Ubiquiti Inc. (UI) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Nov 6, 2026.

Consensus is $3.71 EPS for Sep 2026 across 1 estimates, ranging $3.71 to $3.71.

UI Jun 2026

Reported Aug 21, 2026

: 27.79%
: -1.05%

: $3.67
: $4.69
: —
: —

Highlights

Record revenue: Fourth-quarter revenue reached $937.3 million, up 23.5% year over year and 18.9% from the prior quarter.
EPS beat: GAAP diluted EPS was $4.70, versus the $3.67 consensus estimate; the supplied estimate data indicate a 27.79% EPS surprise.
Enterprise-led growth: Enterprise Technology revenue rose 27.7% year over year to $868.3 million, while Service Provider Technology declined 12.7% to $69.0 million.
Operating leverage: Operating income increased 30.0% year over year to $340.0 million, although operating expenses rose 9.8% to $89.3 million.
Strong earnings conversion: GAAP net income was $284.9 million, up 6.8% year over year and 21.8% sequentially; the year-ago comparison included an $8.5 million tax benefit from an intangible-property transaction.
Margin pressure emerged: Gross margin was 45.8%, down from 47.0% in the prior quarter but up from 45.1% a year earlier, as higher component and shipping costs offset lower indirect costs.
Full-year acceleration: Fiscal 2026 revenue increased 27.2% to $3.27 billion, while operating income rose 41.8% to $1.19 billion and GAAP EPS increased to $15.85 from $11.76.
Balance-sheet flexibility: Year-end cash and cash equivalents were $522.6 million, with another $88.6 million in short-term investments; the company had no outstanding debt after repaying $250.0 million on its term loan.
Shareholder returns increased: The quarterly dividend was raised to $1.00 per share from $0.80, with management intending to pay at least $1.00 quarterly in fiscal 2027; the $500 million repurchase authorization was extended through September 2027, although no shares were repurchased in fiscal 2026.

Analysis

Ubiquiti’s June 2026 quarter was a record top-line and operating-profit print, led overwhelmingly by Enterprise Technology. Revenue of $937.3 million exceeded the prior quarter’s $788.2 million and the year-ago quarter’s $759.2 million, while GAAP diluted EPS of $4.70 was well above the supplied $3.67 consensus estimate. Operating income climbed to $340.0 million from $290.8 million sequentially and $261.4 million a year earlier. The sequential step-up was unusually large, but the company gave no forward outlook and continues to warn that distributor ordering and end-demand visibility are limited.

The main defining feature was mix: Enterprise Technology revenue rose 27.7% year over year to $868.3 million, more than offsetting a 12.7% decline in Service Provider Technology to $69.0 million. Profitability remained exceptional, but gross margin fell 120 basis points sequentially to 45.8% as component and shipping costs increased. The year-over-year GAAP net-income growth of 6.8% understates underlying progress because the comparable period benefited from an $8.5 million tax benefit; non-GAAP net income increased 33.6%. The company also ended the year with $928.7 million of operating cash flow, substantially reduced debt, and a higher planned dividend.

Enterprise-led growth

Enterprise Technology was the central driver of the quarter and the fiscal year. Fourth-quarter Enterprise revenue increased to $868.3 million from $680.1 million a year earlier and $717.9 million in the prior quarter. Service Provider Technology revenue declined to $69.0 million from $79.0 million year over year and $70.3 million sequentially. For fiscal 2026, Enterprise revenue grew 31.9% to $2.97 billion and represented 91% of total revenue, while Service Provider revenue fell 5.5% to $301.9 million.

Geographic breadth: Fiscal-year revenue increased 34.6% in North America to $1.74 billion, 18.0% in EMEA to $1.18 billion, 30.4% in Asia Pacific to $220.2 million, and 19.1% in South America to $130.8 million.
Channel mix: Distributor sales accounted for 55% of fiscal 2026 revenue, down from 56% in fiscal 2025, while webstore sales increased to 45% from 44%.

Margins and earnings

Ubiquiti converted the revenue growth into substantial operating-profit growth. Fourth-quarter gross profit was $429.3 million, up 25.2% year over year, and operating income was $340.0 million, up 30.0%. Operating margin was approximately 36.3%, compared with 34.4% in the year-ago quarter and 36.9% in the prior quarter. R&D rose 11.6% year over year to $53.0 million and SG&A increased 7.1% to $36.3 million, but both remained small relative to revenue.

Quarterly margin movement: Gross margin improved 70 basis points year over year to 45.8% but declined 120 basis points sequentially from 47.0%. Higher component and shipping costs were the principal sequential pressures.
Tax distortion: GAAP net income increased 6.8% to $284.9 million, while non-GAAP net income rose 33.6% to $286.5 million. Fourth-quarter fiscal 2025 GAAP results benefited from an $8.5 million tax benefit tied primarily to an intercompany intangible-property transfer.
Annual profitability: Fiscal 2026 gross margin increased to 46.2% from 43.4%, operating margin increased to about 36.2% from 32.5%, and net income rose 34.9% to $960.3 million.

Supply and inventory

The quarter also highlighted the cost of supporting growth amid uncertain component availability. Management said component costs and shipping costs increased during the quarter and warned that component availability may remain constrained, creating near-term gross-margin risk. The company relies primarily on contract manufacturers in Vietnam and China and on a limited number of suppliers for certain components, including chipsets.

Inventory investment: Year-end inventory rose to $780.4 million from $675.1 million, including $703.4 million of finished goods and $77.1 million of raw materials.
Working-capital use: Fiscal 2026 operating cash flow included a $109.5 million inventory increase, a $57.2 million increase in accounts receivable, and a $29.5 million increase in vendor deposits.
Commitments: Ubiquiti had $1.53 billion of purchase commitments with contract manufacturers and component suppliers as of June 30, 2026. No significant liabilities for current or anticipated cancellations had been recorded.

Cash and capital allocation

Ubiquiti ended fiscal 2026 with considerably greater financial flexibility. Cash and cash equivalents increased to $522.6 million from $149.7 million, supplemented by $88.6 million of short-term investments. Operating cash flow was $928.7 million, up from $640.0 million in fiscal 2025, while capital expenditures were $19.7 million. Financing cash use fell to $446.8 million from $604.1 million despite higher dividends, reflecting the company’s completion of debt repayment.

Debt reduction: Ubiquiti repaid $250.0 million of term-loan principal during fiscal 2026 and had no outstanding debt at year-end. It established a new $250.0 million revolving facility in May 2026, with an option to increase the facility by up to $500.0 million.
Dividend increase: The board declared a $1.00 per-share dividend payable September 8, 2026, compared with $0.80 per share in each fiscal 2026 quarter. Management intends to pay at least $1.00 per share quarterly during fiscal 2027, subject to board approval.
Repurchases: The company extended its authorization to repurchase up to $500.0 million of common stock through September 30, 2027, but repurchased no shares during fiscal 2026.

Operating exposure

The filing places the strong quarter against a business model with limited demand visibility and concentrated operational dependencies. Ubiquiti sells through more than 100 distributors and does not operate a traditional direct sales force, making quarterly orders sensitive to distributor inventory decisions. The company also has substantial exposure to tariffs, trade-policy changes, manufacturing in Vietnam and China, R&D operations in Taiwan, and geopolitical tensions involving China and Taiwan. At June 30, 2026, the company had 1,818 full-time-equivalent employees or contractors, including 1,321 in R&D.

Tariff risk: Management said tariffs and related policy uncertainty have increased product costs and may continue to pressure future gross margins.
Forecasting risk: Longer component and manufacturing lead times than customer-order lead times increase the risk of excess inventory, obsolete products, or missed demand.
Control environment: Management and KPMG concluded that internal controls over financial reporting were effective as of June 30, 2026.

Ubiquiti Inc.

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