Ubiquiti (UI) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 rose 33% year-over-year to $733.8 million, driven by strong growth in Enterprise Technology sales, though down 3.3% sequentially from the previous quarter.

• Net income increased 62% year-over-year to $207.9 million, with GAAP diluted EPS of $3.43 compared to $2.12 in the prior year; non-GAAP diluted EPS was $3.46.

• Gross margin improved to 46.0% from 42.1% year-over-year, reflecting favorable product mix and lower shipping and inventory costs, partially offset by higher tariffs.

• Cash flow from operations was $198.5 million, with cash and equivalents at $177.2 million as of September 30, 2025.

• Board declared a $0.80 per share cash dividend, payable November 24, 2025.

Financial highlights

• Enterprise Technology revenue grew 40% year-over-year to $657.1 million, now representing 90% of total revenue.

• Service Provider Technology revenue declined 4% year-over-year to $76.6 million.

• North America revenue increased 41% to $382.8 million; EMEA up 28% to $263.1 million; Asia Pacific up 30% to $53.1 million; South America up 4% to $34.7 million.

• Operating income rose 55% to $261.7 million; operating margin expanded to 35.7%.

• R&D expenses increased 28% to $48.5 million; SG&A rose 11% to $27.1 million.

Outlook and guidance

• Management expects continued investment in R&D and expansion of product offerings, with sufficient liquidity to meet near-term needs and plans to enter a new credit facility before the current one matures in March 2026.

• Quarterly dividend of $0.80 per share approved for November 2025; future dividends subject to board approval.

• Forward-looking statements caution on risks and uncertainties impacting future results.