Ubiquiti Inc. — First Quarter Fiscal 2027 Earnings Summary

Financial Performance:

• Revenues reached $1,026.2 million, an increase of 9.5% from the prior quarter and 39.9% from the comparable prior year period.
• GAAP diluted earnings per share (EPS) were $5.29, and non-GAAP diluted EPS were $5.32.
• GAAP net income was $320.5 million, representing a 54.2% increase compared to the prior year period.
• Non-GAAP net income was $322.0 million, representing a 53.8% increase compared to the prior year period.
• Gross profit was $485.3 million with a GAAP gross profit margin of 47.3%, an increase of 1.5 percentage points from the prior quarter and 1.3 percentage points from the prior year.
• Total operating expenses were $93.9 million.
• Research and development expenses were $53.2 million, up from $48.5 million in the prior year period.
• Sales, general and administrative expenses were $40.6 million, up from $36.3 million in the prior quarter and $27.1 million in the prior year period.
• Interest income, net was $6.2 million, compared to $3.1 million in the prior quarter and an expense of $3.2 million in the prior year period.

Business Segments and Product Lines:

• Enterprise Technology revenue was $941.3 million, up from $868.3 million in the prior quarter and $657.1 million in the prior year period.
• Service Provider Technology revenue was $84.9 million, up from $69.0 million in the prior quarter and $76.6 million in the prior year period.
• Revenue growth was driven by increases in both Enterprise Technology and Service Provider Technology platforms.

Market and Competitive Landscape:

• North America generated $541.7 million in revenue, compared to $382.8 million in the prior year period.
• Europe, the Middle East and Africa generated $378.1 million in revenue, compared to $263.1 million in the prior year period.
• Asia Pacific generated $67.1 million in revenue, compared to $53.1 million in the prior year period.
• South America generated $39.3 million in revenue, compared to $34.7 million in the prior year period.

Risks and Challenges:

• Component costs have increased since the fourth quarter of fiscal 2026 and may continue to rise, potentially pressuring gross profit margins.
• Component availability may remain constrained, which could limit the ability to meet customer demand and negatively impact revenues and gross profit margins.
• Forward-looking statements highlight risks including U.S. tariffs, public health problems, fluctuating operating results, distributor inventory management, political and economic volatility, counterfeiting, reliance on limited distributors and suppliers, and geopolitical tensions.

Management Commentary and Tone:

• Management attributed the increase in gross profit margin primarily to lower indirect costs, partially offset by higher component costs.
• The increase in R&D expenses was driven by higher software expenses, employee-related expenses, and facility costs.
• The increase in SG&A expenses was primarily attributable to higher professional fees and provision for credit losses on accounts receivable, partially offset by lower marketing expenses.
• The increase in interest income was driven by higher interest income on invested cash and lower interest expense due to a decrease in outstanding debt.

Other Key Points:

• The Board of Directors declared a $1.00 per share cash dividend payable on November 23, 2026, to shareholders of record at the close of business on November 16, 2026.
• The company operates a unified platform (UniFi) for networking, physical security, storage, and building technology without licenses or subscriptions.
• The company serves organizations globally through direct webstores and a worldwide partner community.