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 uCloudlink 2.0 local data connectivity, GlocalMe IoT, SIM, Life, and PetPhone/PetPogo businesses offset declines in international/MeowGo business.

• PetPhone/PetPogo revenue surged 1,527.3% year-over-year, with significant user and revenue growth validated by industry awards.

• Strategic focus on expanding the IoT ecosystem, AI-powered pet platforms, and premium connectivity solutions.

• User adoption surged across new business lines, with DAU and MAU up significantly in IoT, SIM, Life, and PetPhone.

Financial highlights

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

• 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 last year.

• Operating cash outflow was $3.0 million, up from $0.9 million last year; capex was $0.04 million, reflecting an asset-light model.

• 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, a range of -10.4% to +3.8% year-over-year.

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

• Continued ramp-up in 2.0 local connectivity and PetPogo/GlocalMe Life expected in Q3/Q4 as user engagement and revenues accelerate.