01—Abstract
Summary
Summary of the 10-K filed August 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Ubiquiti Inc. (NYSE: UI) reported a strong fiscal 2025 (year ended June 30, 2025), with revenues of $2.57 billiona, up from $1.93 billion in fiscal 2024, and net income of $711.9 million, compared with $350.0 million a year earlier.
Enterprise Technology drove the growth, rising to $2,254.3 millionb from $1,617.7 million, while Service Provider Technology increased more modestly to $319.3 million. Gross profit margin improved to 43.4% from 38.4%, attributed mainly to favorable product mix, lower excess and obsolete inventory charges and lower indirect operating expenses, partially offset by higher tariffs. Income from operations rose to $836.3 million, and the effective tax rate fell to 11.6%, helped by a one-time $53.7 million deferred tax benefit tied to an intangibles transfer to the U.S.
02—Key points
Key Highlights
- Revenues of $2,573.5 million in fiscal 2025 versus $1,928.5 million in fiscal 2024; Enterprise Technology was $2,254.3 million, or 88% of total revenues.
- Net income of $711.9 million (diluted EPS of $11.76) versus $350.0 million (diluted EPS of $5.79) in fiscal 2024.
- Gross profit margin rose to 43.4% from 38.4%, driven by product mix and lower excess and obsolete inventory charges, partially offset by higher tariffs.
- Cash flow from operations was $640.0 million; debt was reduced, with $283.1 million of term loan principal and $205.0 million of revolver principal repaid during the year.
- Cash dividends of $0.60 per quarter were paid in fiscal 2025, and on August 22, 2025 the Board declared a $0.80 per share dividend, with the Company intending to pay at least $0.80 per quarter for the remaining quarters of fiscal 2025.
- A new $500 million stock repurchase program was approved on August 21, 2025, expiring September 30, 2026.
- The $250.0 million term loan matures in March 2026, and the company states it intends to have a new facility in place before the existing one matures.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Ubiquiti kept $0.28.
- Revenue$2.57B100.0%
- Cost of revenue−$1.46B56.6%
- Gross profit$1.12B43.4%
- Operating costs−$281.2M10.9%
- Operating income$836.3M32.5%
- Interest, other & tax−$124.4M4.8%
- Net income$711.9M27.7%
Where FY2025 revenue went
$2.57B- Cost of revenue: $1.46B, 57% of revenue
- Net income: $711.9M, 28% of revenue
- R&D: $169.7M, 6.6% of revenue
- SG&A: $111.5M, 4.3% of revenue
- Interest, other & tax: $124.4M, 4.8% of revenue
Kept 28% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 22, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $2.57B$1.93B | +33.4% |
| Cost of Revenue | $1.46B$1.19B | +22.5% |
| Gross Profit | $1.12B$739.76M | +51.1% |
| R&D Expenses | $169.67M$159.77M | +6.2% |
| SG&A Expenses | $111.50M$81.00M | +37.7% |
| Operating Expenses | $281.17M$240.76M | +16.8% |
| Operating Income | $836.28M$499.00M | +67.6% |
| Net Income | $711.92M$349.96M | +103.4% |
| EPS (Basic) | $11.77$5.79 | +103.3% |
| EPS (Diluted) | $11.76$5.79 | +103.1% |
| Shares Outstanding (Basic) | 60.48M60.45M | 0.0% |
| Shares Outstanding (Diluted) | 60.53M60.46M | +0.1% |
05—Questions
Frequently Asked Questions
How did Ubiquiti's profitability change in fiscal 2025?
Income from operations increased to $836.3 million from $499.0 million, and net income rose to $711.9 million from $350.0 million. Gross profit reached $1,117.5 million, up from $739.8 million, and the effective tax rate was 11.6% compared with 17.4% in fiscal 2024.
What is driving revenue growth?
Revenue growth was driven mainly by Enterprise Technology, which rose $636.6 million, or 39.4%. Service Provider Technology increased $8.5 million, or 2.7%. By region, North America and EMEA showed the largest increases.
How much debt does Ubiquiti have and when does it mature?
As of June 30, 2025, $250.0 million was outstanding under the Initial Term Loan Facility, classified as short-term, and the revolving facility had no balance outstanding. The facilities mature in March 2026.
What risks does the filing highlight?
The filing highlights reliance on a limited number of contract manufacturers and suppliers, including single-source chipset suppliers, as well as tariffs and trade policy changes, geopolitical tensions involving China, Taiwan and Russia, and dependence on founder Robert J. Pera, who beneficially owned 56,278,181 shares as of August 22, 2025.
Are there any significant pending legal or tax matters?
The Company disclosed an IRS matter for fiscal 2015 and 2016 with an estimated incremental tax liability of approximately $50.0 million excluding interest and penalties, for which no reserve was provided. It also disclosed a Hong Kong tax audit with $60.3 million of refundable deposits, and a patent infringement lawsuit filed by Intellectual Ventures I LLC, for which the loss cannot currently be estimated.
06—Continue