Nov 6, 2026, 7:10 AM ETTechnology

Ubiquiti Inc. — First Quarter Fiscal 2027 Earnings Summary

UIUBIQUITI INC

Financial Performance

Total revenues reached $1,026.2 million, representing a 9.5% increase from the prior quarter (4QF26: $937.3 million) and a 39.9% increase from the comparable prior year period (1QF26: $733.8 million).
GAAP diluted earnings per share (EPS) were $5.29, compared to $4.70 in 4QF26 and $3.43 in 1QF26.
Non-GAAP diluted EPS were $5.32, compared to $4.73 in 4QF26 and $3.46 in 1QF26.
GAAP net income was $320.5 million, a 54.2% increase from the comparable prior year period ($207.9 million).
Non-GAAP net income was $322.0 million, a 53.8% increase from the comparable prior year period ($209.3 million).
Gross profit was $485.3 million with a GAAP gross profit margin of 47.3%, an increase of 1.5 percentage points from 4QF26 (45.8%) and 1.3 percentage points from 1QF26 (46.0%).
Total operating expenses were $93.9 million, up from $89.3 million in 4QF26 and $75.7 million in 1QF26.
Research and development expenses were $53.2 million, consistent with 4QF26 ($53.0 million) but up from 1QF26 ($48.5 million).
Sales, general and administrative (SG&A) expenses were $40.6 million, up from $36.3 million in 4QF26 and $27.1 million in 1QF26.
Interest income and other, net, was $6.2 million, compared to $3.1 million in 4QF26 and an expense of $3.2 million in 1QF26.

Enterprise Technology revenue was $941.3 million, up from $868.3 million in 4QF26 and $657.1 million in 1QF26.
Service Provider Technology revenue was $84.9 million, up from $69.0 million in 4QF26 and $76.6 million in 1QF26.
Revenue growth was driven by increases in both Enterprise Technology and Service Provider Technology platforms.

Geographical revenue breakdown for 1QF27: North America ($541.7 million), Europe, the Middle East and Africa ($378.1 million), Asia Pacific ($67.1 million), and South America ($39.3 million).
North America revenue increased from $382.8 million in 1QF26; EMEA increased from $263.1 million; Asia Pacific increased from $53.1 million; South America increased from $34.7 million.
The company competes against incumbent enterprise technology providers by offering a unified platform without licenses or subscriptions.

Component costs have increased since 4QF26 and may continue to rise, potentially pressuring gross profit margins if not offset by pricing.
Component availability may remain constrained, which could limit the ability to meet customer demand and negatively impact revenues and margins.
Forward-looking statements identify risks including U.S. tariffs, public health problems, currency fluctuations, counterfeiting, reliance on limited distributors, supply chain dependencies, geopolitical tensions (Russia/Ukraine, China/Taiwan), and potential intellectual property litigation.

Management attributes revenue growth to increased revenue from both Enterprise Technology and Service Provider Technology platforms.
Gross margin expansion is attributed to lower indirect costs, partially offset by higher component costs.
R&D expense growth is driven by higher software expenses, employee-related expenses, and facility costs.
SG&A expense growth is driven by higher professional fees, credit card processing fees from webstore sales, employee-related expenses, and provisions for credit losses, partially offset by lower marketing expenses.
Interest income growth is driven by higher interest income on invested cash and lower interest expense due to decreased outstanding debt.

The Board of Directors declared a $1.00 per share cash dividend payable on November 23, 2026, to shareholders of record on November 16, 2026.
The company utilizes Non-GAAP financial measures (excluding share-based compensation and tax effects) to evaluate operating performance and for planning purposes.
The company operates a direct webstore model and serves organizations globally through a worldwide partner community.