uCloudlink Group (UCL) investor relations material

Executive summary

• Q2 2026 revenue was $18.2 million, down 5.9% year-over-year, impacted by macroeconomic headwinds, geopolitical tensions, and surging chip costs.

• Strong growth in 2.0 local data connectivity, especially GlocalMe IoT, SIM, Life, and PetPhone, offset declines in core MeowGo/international business.

• PetPhone/PetPogo revenue surged 1,527.3% year-over-year, with significant DAU and MAU increases; GlocalMe IoT and SIM revenues grew 392.4% and 78%, respectively.

• Strategic focus on AI-powered pet care, premium connectivity devices, and expanding product portfolio, validated by industry awards and global recognition.

• User adoption surged across new business lines, with robust DAU/MAU growth and ecosystem expansion.

Financial highlights

• Gross profit was $9.2 million, down from $10.2 million year-over-year; gross margin declined to 50.2% from 52.8%.

• Net loss was $3.0 million, compared to net income of $0.7 million in Q2 2025.

• Adjusted EBITDA was negative $1.8 million, versus positive $1.4 million a year ago.

• Operating cash outflow was $3.0 million, up from $0.9 million in Q2 2025.

• Cash and cash equivalents stood at $25.2 million as of June 30, 2026, down from $28.0 million at March 31, 2026.

Outlook and guidance

• Q3 2026 revenue expected between $19 million and $22 million, representing -10.4% to +3.8% year-over-year.

• Full-year 2026 revenue guidance revised to $75–$85 million, down from previous $85–$100 million, reflecting persistent macroeconomic and global trade challenges.

• Continued ramp-up in 2.0 local connectivity and PetPogo/GlocalMe Life expected to drive growth in H2 2026.