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Ubiquiti 8-K Report, Financial Results (Feb 7, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 7, 2025
Period End
February 7, 2025
Security
UI
In the record · 2016–202610-K1110-Q328-K77

UI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 77 current reports (8-K) between 2016 and 2026.

  1. Auditor change8-K · Dec ’16Dec ’16
  2. Leadership change8-K · Oct ’18Oct ’18
  3. Leadership change8-K · Dec ’20Dec ’20
  4. Material agreement8-K · Apr ’23Apr ’23

01—Abstract

Summary

Summary of the 8-K filed February 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Ubiquiti Inc. reported record revenues of $599.9 milliona for the fiscal quarter ended December 31, 2024, up from $550.3 million in the prior quarter and $465.0 million in the year-earlier quarter.

The filing states that the increase in revenue was driven by both the Enterprise Technology and Service Provider Technology platforms, with Enterprise Technology contributing $518.2 millionb and Service Provider Technology $81.7 million. Revenue grew 9.0% sequentially and 29.0% year over year. Profitability also improved.

GAAP net income was $136.8 millionc, or $2.26 per diluted share, compared with $82.1 million, or $1.36 per diluted share, a year earlier. Non-GAAP net income was $138.1 million, or $2.28 per diluted share. GAAP gross margin was 41.2%, down from 42.1% in the prior quarter, which the company attributed to unfavorable product mix, higher shipping and tariff costs, partly offset by lower warehouse-related expenses and excess and obsolete inventory charges.

Gross margin was up from 38.2%d a year earlier, driven by favorable product mix and lower warehouse-related expenses. Operating expenses rose, with SG&A increasing on higher bad debt expense tied to a customer default and higher webstore credit card processing fees.

The Board declared a $0.60 per share cash dividend payable February 24, 2025, to shareholders of record at the close of business on February 18, 2025. The results are furnished under Item 2.02 via Exhibit 99.1 and are not deemed filed for purposes of Section 18 of the Exchange Act.

02—Key points

Key Highlights

  1. Record revenues of $599.9 million, up 9.0% from the prior quarter ($550.3 million) and 29.0% from the year-earlier quarter ($465.0 million).
  2. GAAP diluted EPS of $2.26 versus $1.36 a year earlier; non-GAAP diluted EPS of $2.28.
  3. GAAP net income of $136.8 million, up 66.6% year over year; non-GAAP net income of $138.1 million, up 65.9%.
  4. GAAP gross margin of 41.2%, down from 42.1% in the prior quarter but up from 38.2% a year earlier, with tariff and shipping costs cited as headwinds.
  5. Income from operations of $178.8 million versus $121.1 million a year earlier; total operating expenses of $68.4 million.
  6. Enterprise Technology revenue of $518.2 million and Service Provider Technology revenue of $81.7 million.
  7. Board declared a $0.60 per share cash dividend, payable February 24, 2025, to holders of record on February 18, 2025.

03—Questions

Frequently Asked Questions

  1. What drove the increase in Ubiquiti's revenue this quarter?

    The filing states that revenue rose compared with both the prior quarter and the comparable prior-year period, driven by increases in both the Enterprise Technology and Service Provider Technology platforms. Revenue reached $599.9 million, compared with $550.3 million in the prior quarter and $465.0 million a year earlier.

  2. Why did gross margin decline from the prior quarter?

    The company attributed the sequential decline in GAAP gross margin, from 42.1% to 41.2%, primarily to unfavorable product mix and higher shipping and tariff costs. These were partly offset by lower warehouse-related expenses and lower excess and obsolete inventory charges.

  3. How did operating expenses change, and what drove the increase in SG&A?

    Total operating expenses were $68.4 million, compared with $62.4 million in the prior quarter and $56.5 million a year earlier. SG&A rose to $28.5 million, mainly due to higher bad debt expense related to a customer default and higher fees for webstore credit card processing. R&D rose to $40.0 million, driven primarily by higher prototype-related expenses.

  4. What is the dividend announced with these results?

    The Board of Directors declared a $0.60 per share cash dividend, payable on February 24, 2025, to shareholders of record at the close of business on February 18, 2025.

  5. What is the difference between GAAP and non-GAAP results in this report?

    Non-GAAP net income and non-GAAP diluted EPS exclude share-based compensation expense and the tax effect of these adjustments. For the quarter, GAAP net income was $136.8 million and non-GAAP net income was $138.1 million, while GAAP diluted EPS was $2.26 and non-GAAP diluted EPS was $2.28.

04—Continue

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