01—Abstract
Summary
Summary of the 10-Q filed May 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Ubiquiti Inc. reported results for the three and nine months ended March 31, 2025 in its quarterly report on Form 10-Q.
Revenues rose to $664.2 milliona for the quarter, up from $493.0 million a year earlier, an increase of $171.2 million or 35%. Enterprise Technology drove the growth, with revenue up $171.4 million or 41%, while Service Provider Technology was roughly flat at $78.4 million. Gross profit margin expanded to 45% from 35% in the prior-year quarter, and income from operations rose to $226.9 million from $111.2 million.
Net income was $180.4 millionb, or $2.98 per diluted share, compared with $76.3 million, or $1.26 per diluted share, a year earlier. For the nine months, revenues were $1.81 billion and net income was $445.2 million, or $7.36 per diluted share. The balance sheet shows total assets of $1.30 billion and stockholders' equity of $436.1 million, up from $95.1 million at June 30, 2024.
Debt fell sharply: the Initial Term Loan Facility balance was $340.0 millionc at March 31, 2025, all classified as short-term, and the First Amendment Term Loan Facility and the Revolving Facility had no outstanding balance. Operating cash flow was $509.7 million for the nine months, and the company paid $108.9 million in common stock dividends during that period. The board approved a quarterly dividend of $0.60 per share payable May 27, 2025.
Investors should weigh several risks disclosed in the filing. Inventory rose to $590.5 milliond, including $167.5 million of inventory received not billed, and purchase commitments with contract manufacturers totaled $1,264.5 million.
The company faces an Intellectual Ventures patent lawsuit whose possible loss cannot currently be estimated, and an IRS matter for which the company estimates an incremental tax liability of approximately $50.0 million, excluding interest and penalties, without a reserve recorded. Tariffs are described as significantly increasing product costs, and the filing states that historical gross margins may not indicate future margins.
02—Key points
Key Highlights
- Quarterly revenue of $664.2 million, up 35% from $493.0 million; Enterprise Technology revenue rose 41% to $585.7 million, while Service Provider Technology was essentially flat at $78.4 million.
- Gross profit margin increased to 45% from 35%, driven mainly by lower excess and obsolete inventory charges, favorable product mix and lower tariffs, partly offset by higher shipping costs.
- Net income of $180.4 million, or $2.98 per diluted share, versus $76.3 million, or $1.26 per diluted share, in the prior-year quarter.
- Nine-month operating cash flow of $509.7 million, compared with $310.1 million a year earlier.
- Total debt outstanding fell to $340.0 million, all short-term under the Initial Term Loan Facility, from $705.4 million at June 30, 2024 (including current portions); the revolver had no balance and $700.0 million was available.
- Quarterly dividend of $0.60 per share approved on May 6, 2025, payable May 27, 2025.
- Tariffs are cited as a significant factor that increases product costs; the filing states that historical gross margins may not be indicative of future margins.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Ubiquiti kept $0.27.
- Revenue$664.2M100.0%
- Cost of revenue−$368.3M55.5%
- Gross profit$295.9M44.5%
- Operating costs−$69.0M10.4%
- Operating income$226.9M34.2%
- Interest, other & tax−$46.4M7.0%
- Net income$180.4M27.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed May 9, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $664.17M$493.00M | +34.7% |
| Cost of Revenue | $368.30M$318.90M | +15.5% |
| Gross Profit | $295.87M$174.10M | +69.9% |
| R&D Expenses | $44.26M$42.50M | +4.2% |
| SG&A Expenses | $24.75M$20.38M | +21.5% |
| Operating Expenses | $69.01M$62.88M | +9.8% |
| Operating Income | $226.86M$111.22M | +104.0% |
| Net Income | $180.44M$76.29M | +136.5% |
| EPS (Basic) | $2.98$1.26 | +136.5% |
| EPS (Diluted) | $2.98$1.26 | +136.5% |
| Shares Outstanding (Basic) | 60.49M60.46M | 0.0% |
| Shares Outstanding (Diluted) | 60.55M60.46M | +0.1% |
05—Questions
Frequently Asked Questions
How much did Ubiquiti's revenue and profit grow in the quarter ended March 31, 2025?
Revenues were $664.2 million, up $171.2 million or 35% from $493.0 million. Net income was $180.4 million, compared with $76.3 million a year earlier, and diluted EPS was $2.98 versus $1.26.
What drove the revenue increase?
Enterprise Technology revenue rose $171.4 million, or 41%, to $585.7 million, with growth across all regions. Service Provider Technology was roughly flat, declining $0.2 million to $78.4 million in the quarter.
How has the company's debt position changed?
Debt outstanding at March 31, 2025 consisted of $340.0 million on the Initial Term Loan Facility, all classified as short-term. The First Amendment Term Loan Facility was fully repaid and the Revolving Facility had no outstanding balance, with $700.0 million available. During the nine months, the company repaid $193.1 million of term loan principal and $205.0 million under the revolver.
What legal and tax risks are disclosed?
The company is defending a patent infringement suit filed by Intellectual Ventures I LLC and cannot currently estimate a possible loss. For a 2015/2016 IRS matter, the company estimates an incremental tax liability of about $50.0 million, excluding interest and penalties, but has recorded no reserve because it believes its position is more likely than not to be sustained. Hong Kong IRD deposits of $60.6 million are expected to be refunded upon audit completion, though the outcome is not assured.
What dividend is the company paying?
The Board approved a quarterly cash dividend of $0.60 per share on May 6, 2025, payable May 27, 2025 to shareholders of record on May 19, 2025. The company paid $108.9 million in common stock dividends during the nine months ended March 31, 2025.
06—Continue