01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Ubiquiti Inc. reported a strong third quarter of fiscal 2026 (three months ended March 31, 2026), with revenues of $788.2 milliona, up from $664.2 million a year earlier, and net income of $233.9 million versus $180.4 million.
Diluted EPS was $3.86b compared with $2.98. Growth was driven by Enterprise Technology, which rose to $717.9 million from $585.7 million, while Service Provider Technology declined to $70.3 million from $78.4 million. Gross profit margin improved to 47% from 45%, supported by favorable product mix, lower excess and obsolete inventory charges and lower shipping costs, partly offset by higher tariff costs.
For the nine months, revenues were $2.34 billionc and net income was $675.4 million. Balance sheet and cash flow strengthened over the period. Cash and cash equivalents rose to $368.7 million from $149.7 million at June 30, 2025, and net cash from operations was $630.1 million for the nine months.
The company fully repaid its $250.0 milliond Term Loan Facility on February 27, 2026, and the $700 million revolving facility matured on March 30, 2026 with no balance outstanding. Subsequent to quarter end, on May 7, 2026, Ubiquiti entered into a $250 million senior secured revolving credit agreement with PNC Bank, National Association, and the Board approved a quarterly cash dividend of $0.80 per share payable May 26, 2026. Risks flagged in the filing include the AX Wireless, LLC complaint filed at the U.S. International Trade Commission in February 2026, where an adverse ruling could result in an order excluding the company's products from the U.S. market and could have a material adverse effect.
The company also disclosed an ongoing Intellectual Ventures patent suit, an IRS matter in which it estimates an incremental tax liability of about $50.0 million excluding interest and penalties, and $60.3 million of Hong Kong tax deposits expected to be refunded upon audit completion. No shares were repurchased under the $500 million 2025 August Program during the quarter.
02—Key points
Key Highlights
- Revenues of $788.2 million for the three months ended March 31, 2026, up from $664.2 million, with Enterprise Technology revenue of $717.9 million compared with $585.7 million a year earlier.
- Net income of $233.9 million, or $3.86 diluted EPS, for the quarter, compared with $180.4 million, or $2.98 diluted EPS, in the prior-year quarter.
- Gross profit margin rose to 47% from 45% in the quarter, driven by favorable product mix, reduced excess and obsolete inventory charges and lower shipping costs, partly offset by higher tariff costs.
- Cash and cash equivalents increased to $368.7 million from $149.7 million at June 30, 2025, with net cash provided by operating activities of $630.1 million for the nine months.
- The $250.0 million Term Loan Facility was fully repaid on February 27, 2026, and the revolving facility matured on March 30, 2026 with no outstanding balance.
- On May 7, 2026, the company entered into a $250 million senior secured revolving credit facility with PNC Bank, National Association, and the Board approved a $0.80 per share quarterly dividend payable May 26, 2026.
- The AX Wireless ITC complaint alleges Wi-Fi 6 patent infringement and could result in an exclusion order barring U.S. sales of certain products, which the filing says would have a material adverse effect if issued.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Ubiquiti kept $0.30.
- Revenue$788.2M100.0%
- Cost of revenue−$417.5M53.0%
- Gross profit$370.7M47.0%
- Operating costs−$79.9M10.1%
- Operating income$290.8M36.9%
- Interest, other & tax−$56.9M7.2%
- Net income$233.9M29.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed May 8, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $788.20M$664.17M | +18.7% |
| Cost of Revenue | $417.49M$368.30M | +13.4% |
| Gross Profit | $370.71M$295.87M | +25.3% |
| R&D Expenses | $51.81M$44.26M | +17.1% |
| SG&A Expenses | $28.08M$24.75M | +13.4% |
| Operating Expenses | $79.89M$69.01M | +15.8% |
| Operating Income | $290.82M$226.86M | +28.2% |
| Net Income | $233.91M$180.44M | +29.6% |
| EPS (Basic) | $3.87$2.98 | +29.9% |
| EPS (Diluted) | $3.86$2.98 | +29.5% |
| Shares Outstanding (Basic) | 60.52M60.49M | +0.1% |
| Shares Outstanding (Diluted) | 60.57M60.55M | 0.0% |
05—Questions
Frequently Asked Questions
How did Ubiquiti perform in the quarter ended March 31, 2026?
Revenues rose to $788.2 million from $664.2 million, and net income increased to $233.9 million from $180.4 million. Income from operations was $290.8 million compared with $226.9 million in the prior-year quarter. Enterprise Technology drove the growth, while Service Provider Technology revenue declined to $70.3 million from $78.4 million.
What drove the improvement in gross margin?
The filing attributes the increase in gross profit margin to 47% from 45% primarily to favorable product mix, reduced charges for excess and obsolete inventory, lower shipping costs and other indirect costs. These benefits were partly offset by higher tariff costs.
What changed in the company's debt and financing arrangements?
The company fully repaid its $250.0 million Term Loan Facility on February 27, 2026, and the $700 million revolving facility matured on March 30, 2026 with no outstanding balance. On May 7, 2026, it entered into a new $250 million senior secured revolving facility with PNC Bank, National Association, which has an option to increase commitments by up to an additional $500 million and matures May 7, 2031.
What are the most significant legal risks disclosed?
The AX Wireless, LLC complaint filed at the ITC on February 2, 2026 seeks a limited exclusion order and cease and desist order that would bar importing and selling certain products in the U.S. The filing states an adverse ruling could have a material adverse effect, and the company cannot currently estimate possible losses. The company also disclosed an IRS matter with an estimated incremental tax liability of approximately $50.0 million, excluding interest and penalties, which it believes is not likely to be sustained against it and has not reserved for.
Will the company continue paying dividends and repurchasing shares?
The Board approved a quarterly cash dividend of $0.80 per share payable May 26, 2026 to holders of record on May 18, 2026, with future dividends subject to Board approval. Dividends paid in the nine months totaled $145.2 million. No shares were repurchased under the $500 million 2025 August Program during the quarter, and that program expires September 30, 2026.
06—Continue