01—Abstract
Summary
Summary of the 10-Q filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Ubiquiti Inc. reported strong results for the three and six months ended December 31, 2025.
Revenues were $814.9 milliona for the quarter, up 36% from $599.9 million, and $1.55 billion for the six months, up 35% from $1.15 billion. Enterprise Technology drove the growth, rising to $729.0 million in the quarter from $518.2 million. Gross profit margin expanded to 46% from 41% in the prior-year quarter, reflecting favorable product mix, lower shipping costs and lower excess and obsolete inventory charges, partly offset by higher tariff costs.
Net income was $233.6 millionb, or $3.86 per diluted share, versus $136.8 million, or $2.26 per diluted share, a year earlier. The balance sheet strengthened over the period. Cash and cash equivalents rose to $302.8 million from $149.7 million at June 30, 2025, and the company repaid $202.5 million of term loan principal, leaving $47.5 million outstanding.
The $700 millionc revolving facility was undrawn, and the credit facilities mature on March 30, 2026. Management says it intends to enter into a new credit facility before that date if needed. The Board approved a quarterly dividend of $0.80 per share on February 6, 2026, and no repurchases were made under the $500 million August 2025 program.
The main risk flagged is new litigation. On February 2, 2026, Ax Wireless, LLC filed an ITC complaint and a related district court complaint alleging infringement of Wi-Fi 6 patents. The filing states that an adverse ITC ruling could result in an order excluding the company's products from the U.S. market, which would have a material adverse effect.
The company cannot currently estimate the possible loss. Ongoing IRS and Hong Kong tax matters are also disclosed, with about $50.0 milliond of potential IRS incremental tax liability and $60.8 million of Hong Kong deposits expected to be refunded.
02—Key points
Key Highlights
- Revenue rose 36% to $814.9 million in the quarter and 35% to $1.55 billion for the six months, led by Enterprise Technology, which grew 41% in the quarter to $729.0 million.
- Gross profit margin increased to 46% in the quarter from 41%, driven by favorable product mix, lower shipping costs and lower excess and obsolete inventory charges, partly offset by higher tariff costs.
- Net income was $233.6 million, or $3.86 per diluted share, in the quarter, compared with $136.8 million, or $2.26 per diluted share, in the prior-year quarter.
- Cash and cash equivalents increased to $302.8 million from $149.7 million at June 30, 2025, after $202.5 million of term loan principal repayments and $96.8 million of dividends paid.
- Term loan outstanding was $47.5 million, the $700 million revolver was undrawn, and the credit facilities mature March 30, 2026, with management intending to enter a new facility if needed.
- The Ax Wireless complaints filed February 2, 2026 allege Wi-Fi 6 patent infringement; an adverse ITC ruling could exclude products from the U.S. market, which would be materially adverse.
- The Board approved a quarterly dividend of $0.80 per share payable February 23, 2026, and no shares were repurchased under the $500 million August 2025 program during the period.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Ubiquiti kept $0.29.
- Revenue$814.9M100.0%
- Cost of revenue−$440.9M54.1%
- Gross profit$374.0M45.9%
- Operating costs−$81.1M10.0%
- Operating income$292.9M35.9%
- Interest, other & tax−$59.3M7.3%
- Net income$233.6M28.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed February 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $814.87M$599.88M | +35.8% |
| Cost of Revenue | $440.87M$352.65M | +25.0% |
| Gross Profit | $374.00M$247.23M | +51.3% |
| R&D Expenses | $50.84M$39.96M | +27.2% |
| SG&A Expenses | $30.25M$28.46M | +6.3% |
| Operating Expenses | $81.10M$68.42M | +18.5% |
| Operating Income | $292.90M$178.81M | +63.8% |
| Net Income | $233.61M$136.79M | +70.8% |
| EPS (Basic) | $3.86$2.26 | +70.8% |
| EPS (Diluted) | $3.86$2.26 | +70.8% |
| Shares Outstanding (Basic) | 60.50M60.47M | 0.0% |
| Shares Outstanding (Diluted) | 60.57M60.53M | +0.1% |
05—Questions
Frequently Asked Questions
How did Ubiquiti's revenue and profitability change in the quarter ended December 31, 2025?
Revenues were $814.9 million, up from $599.9 million, and net income was $233.6 million, up from $136.8 million. Diluted EPS was $3.86 versus $2.26. Gross profit margin rose to 46% from 41%, and income from operations was $292.9 million versus $178.8 million.
What is the new patent litigation and why does it matter?
On February 2, 2026, Ax Wireless, LLC filed a complaint with the U.S. International Trade Commission and a related district court complaint alleging infringement of Wi-Fi 6 patents. The complainant seeks an exclusion order that would bar importing and selling certain products in the U.S. The filing states that an adverse ITC ruling could have a material adverse effect, and the company cannot currently estimate a possible loss.
How is Ubiquiti funding its debt maturity and shareholder dividends?
As of December 31, 2025, $47.5 million was outstanding on the term loan and the $700 million revolver was undrawn. The facilities mature March 30, 2026, and management says it intends to enter a new credit facility before then if needed. Cash from operations was $462.4 million for the six months, and dividends paid totaled $96.8 million.
What are the main unresolved tax matters?
The company is contesting an IRS proposed adjustment for fiscal 2015 and 2016 that it estimates would create incremental tax liability of about $50.0 million, excluding interest and penalties, and has not reserved for it. Hong Kong deposits of $60.8 million are expected to be refunded upon completion of the audit, though the outcome is not assured. Unrecognized tax benefits total $34.7 million.
06—Continue