Ubiquiti Inc. announced its financial results for the second quarter ended December 31, 2025.

Ubiquiti Inc. (NYSE: UI) ("Ubiquiti" or the "Company") today announced its financial results for the second quarter ended December 31, 2025.

Second Quarter Fiscal 2026 Financial Summary

Revenues of $814.9 million

GAAP diluted EPS of $3.86

Non-GAAP diluted EPS of $3.88

Additional Financial Highlight

The Company's Board of Directors declared a $0.80 per share cash dividend payable on February 23, 2026 to shareholders of record at the close of business on February 17, 2026.

Income Statement Items

Revenues

Revenues for the second quarter fiscal 2026 were $814.9 million, representing an increase from the prior quarter of 11.1% and an increase from the comparable prior year period of 35.8%.

The increase in revenues compared to the prior quarter as well as the comparable prior year period was driven by an increase in revenue from both our Enterprise Technology platform and Service Provider Technology platform.

Gross Margins

During the second quarter fiscal 2026, GAAP gross profit was $374.0 million. GAAP gross margin of 45.9% decreased marginally by 0.1% as compared to the prior quarter GAAP gross margin of 46.0% and increased by 4.7% as compared to the comparable prior year period GAAP gross margin of 41.2%.

The marginal decrease in gross profit margin as compared to the prior quarter was primarily driven by product mix, holiday pricing, and higher shipping costs, offset in part by lower other indirect costs. The increase in gross profit margin as compared to the comparable prior year period was primarily driven by favorable product mix, lower shipping costs, lower excess and obsolete inventory charges, offset in part by higher tariff costs.

Research and Development

During the second quarter fiscal 2026, research and development ("R&D") expenses were $50.8 million. This reflects an increase as compared to the R&D expenses of $48.5 million in the prior quarter and an increase as compared to the R&D expenses of $40.0 million in the comparable prior year period.

The increase in R&D expenses as compared to the prior quarter was primarily driven by higher prototype-related expenses. The increase in R&D expenses as compared to the comparable prior year period was primarily driven by higher employee-related expenses and prototype-related expenses.

Sales, General and Administrative

The Company's sales, general and administrative ("SG&A") expenses for the second quarter fiscal 2026 were $30.3 million. This reflects an increase as compared to the SG&A expenses of $27.1 million in the prior quarter and an increase compared to the SG&A expenses of $28.5 million in the comparable prior year period.

The increase in SG&A costs as compared to the prior quarter was primarily due to higher marketing expenses and an increase in credit card processing fees arising from increased webstore sales, offset in part by lower professional fees. The increase in SG&A as compared to the comparable prior year period was primarily due to higher marketing expenses and fees associated with webstore credit card processing, driven by higher webstore sales, offset in part by lower bad debt expenses relating to a customer default.

Interest Expense and Other, net

During the second quarter fiscal 2026, interest expense and other, net ("I&O") expenses were $1.6 million. This reflects a decrease as compared to the I&O expenses in the prior quarter of $3.2 million and a decrease as compared to the I&O expenses in the comparable prior year period of $11.4 million, respectively.

The decrease in I&O expenses as compared to the prior quarter was primarily due to lower interest expense driven by a decrease in borrowings partially offset by higher foreign exchange losses. The decrease in I&O expenses as compared to the comparable prior year period was primarily due to lower interest expense driven by a decrease in borrowings and lower interest rates and lower foreign exchange losses.

Net Income and Earnings Per Share

During the second quarter fiscal 2026, GAAP net income was $233.6 million and non-GAAP net income was $235.1 million. This reflects an increase in GAAP net income and non-GAAP net income from the comparable prior year period by 70.8% and 70.2%, respectively, primarily driven by higher revenues and gross profit. Second quarter fiscal 2026 GAAP earnings per diluted share was $3.86 and non-GAAP earnings per diluted share was $3.88. This reflects an increase in GAAP and non-GAAP earnings per diluted share from the comparable prior year period of 70.8% and 70.2%, respectively.

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