Ubiquiti Inc. Reports First Quarter Fiscal 2027 Financial Results

Gross margin improved despite higher component costs, which Ubiquiti warns could create near-term pressure alongside supply constraints.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

~ Record Revenues of $1,026.2 million ~

~ GAAP Diluted Earnings Per Share of $5.29 ~

NEW YORK--(BUSINESS WIRE)-- Ubiquiti Inc. (NYSE: UI) ("Ubiquiti" or the "Company") today announced its financial results for the first quarter ended September 30, 2026.

First Quarter Fiscal 2027 Financial Summary

• Revenues of $1,026.2 million
• GAAP diluted EPS of $5.29
• Non-GAAP diluted EPS of $5.32

Additional Financial Highlight

• The Company's 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.

Financial Highlights ($ in millions, except per share data)
(Unaudited)

Income statement highlights		1QF27		4QF26		1QF26
Revenues		1,026.2		937.3		733.8
Enterprise Technology		941.3		868.3		657.1
Service Provider Technology		84.9		69.0		76.6
Gross profit		485.3		429.3		337.4
Gross Profit Margin (%)		47.3%		45.8%		46.0%
Total Operating Expenses		93.9		89.3		75.7
Income from Operations		391.5		340.0		261.7
GAAP Net Income		320.5		284.9		207.9
GAAP EPS (diluted)		5.29		4.70		3.43
Non-GAAP Net Income		322.0		286.5		209.3
Non-GAAP EPS (diluted)		5.32		4.73		3.46

Ubiquiti Inc. Revenues by Product Type ($ In thousands) (Unaudited)
		Three Months Ended September 30,
		2026			2025
Enterprise Technology		$	941,344		$	657,147
Service Provider Technology			84,904			76,626
Total revenues		$	1,026,248		$	733,773

Ubiquiti Inc. Revenues by Geographical Area ($ In thousands) (Unaudited)
		Three Months Ended September 30,
		2026			2025
North America		$	541,689		$	382,824
Europe, the Middle East and Africa			378,134			263,120
Asia Pacific			67,103			53,124
South America			39,322			34,705
Total revenues		$	1,026,248		$	733,773

Income Statement Items

Revenues

Revenues for the first quarter of fiscal 2027 were $1,026.2 million, representing an increase from the prior quarter of 9.5% and an increase from the comparable prior year period of 39.9%.

The growth in revenues over the prior quarter and the comparable prior year period was driven by an increase in revenue from both our Enterprise Technology and Service Provider Technology platforms.

Gross Profit Margin - Gross Profit as a percentage of Revenue

During the first quarter of fiscal 2027, GAAP gross profit was $485.3 million. GAAP gross profit margin of 47.3% increased by 1.5 percentage points as compared to the prior quarter GAAP gross profit margin of 45.8% and increased by 1.3 percentage points as compared to the comparable prior year period GAAP gross profit margin of 46.0%.

The increase in gross profit margin as compared to the prior quarter and the comparable prior year period was primarily driven by lower indirect costs, offset in part by higher component costs.

Since the fourth quarter of fiscal 2026, the Company has experienced an increase in certain component costs. Component costs may continue to rise, and availability may remain constrained. These factors may result in near-term pressure on our gross profit margins, particularly to the extent we are unable to offset higher component costs through pricing or other measures. In addition, ongoing supply constraints could limit our ability to meet customer demand and negatively impact our revenues and gross profit margins.

Research and Development

During the first quarter of fiscal 2027, research and development ("R&D") expenses were $53.2 million. This is consistent with the prior quarter's R&D expenses of $53.0 million and reflects an increase compared to the R&D expenses of $48.5 million in the comparable prior year period.

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

Sales, General and Administrative

The Company’s sales, general and administrative ("SG&A") expenses for the first quarter of fiscal 2027 were $40.6 million. This reflects an increase as compared to the SG&A expenses of $36.3 million in the prior quarter and an increase compared to the SG&A expenses of $27.1 million in the comparable prior year period.

The increase in SG&A costs as compared to the prior quarter was primarily attributable to higher professional fees and provision for credit losses on accounts receivable, offset in part by lower marketing expenses. The increase in SG&A as compared to the comparable prior year period was primarily driven by higher professional fees, credit card processing fees arising from incremental webstore sales, employee-related expenses, and provision for credit losses on accounts receivable.

Interest Income (Expense) and Other, net

During the first quarter of fiscal 2027, the Company reported interest income (expense) and other, net ("I&O") income of $6.2 million. This reflects an increase as compared to the I&O income of $3.1 million in the prior quarter. In the comparable prior year period, the Company had reported I&O expense of $3.2 million.

The increase in I&O income compared to the prior quarter was primarily driven by higher interest income on invested cash. The increase in I&O income as compared to the comparable prior year period was primarily attributable to higher interest income on invested cash and lower interest expense driven by a decrease in outstanding debt.

Net Income and Earnings Per Share

During the first quarter of fiscal 2027, GAAP net income was $320.5 million and non-GAAP net income was $322.0 million. This reflects an increase in GAAP net income and non-GAAP net income from the comparable prior year period by 54.2% and 53.8%, respectively. The primary factors contributing to this growth were higher revenues and increased gross profit. First quarter fiscal 2027 GAAP earnings per diluted share was $5.29 and non-GAAP earnings per diluted share was $5.32. Both measures increased from the comparable prior year period, with GAAP and non-GAAP earnings per diluted share increasing by 54.2% and 53.8%, respectively.

About Ubiquiti Inc.

Ubiquiti builds UniFi, a unified platform for networking, physical security, storage, and building technology that lets any organization run enterprise-grade infrastructure without licenses or subscriptions. By designing hardware and software as one coherent system, Ubiquiti has redefined what an IT company can be: a design house that ships complete, world-class infrastructure at a fraction of incumbent cost and eliminates the rent-extraction model that has defined enterprise technology for decades. Ubiquiti is headquartered in New York and serves organizations globally through its direct webstores and worldwide partner community.

Ubiquiti and the U logo are trademarks or registered trademarks of Ubiquiti and/or its affiliates in the United States and other countries. For more information, please visit www.ui.com.

Safe Harbor for Forward Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact including words such as "look", "will", "anticipate", "believe", "estimate", "expect", "forecast", "consider" and "plan" and statements in the future tense are forward looking statements. The statements in this press release that could be deemed forward-looking statements include the statement regarding our intention to pay quarterly cash dividends, any statement regarding the cost and availability of components, any statements or assumptions underlying the foregoing, and any statement regarding future events and the future financial performance of Ubiquiti Inc. that involves risks or uncertainties.

Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not limited to, the impact of U.S. tariffs on our operations and financial results; the impact of public health problems on results; fluctuations in our operating results; varying demand for our products due to the financial and operating condition of our distributors and their customers, and our distributors’ inventory management practices; political and economic conditions and volatility affecting the stability of business environments, economic growth, currency values, commodity prices and other factors that may influence the ultimate demand for our products in particular geographies or globally; impact of counterfeiting and our ability to contain such impact; our reliance on a limited number of distributors; inability of our contract manufacturers and suppliers to meet our demand; our dependence on chipset suppliers for chipsets without a short-term alternative; as we move into new markets, competition from certain of our current or potential competitors who may be more established in such markets; our ability to keep pace with technological and market developments; success and timing of new product introductions by us and the performance of our products generally; our ability to effectively manage the significant increase in our transactional sales volumes; we may become subject to warranty claims, product liability and product recalls; that a majority of our sales are into countries outside the United States and we are subject to numerous U.S. export control and economic sanctions laws; costs related to responding to government inquiries related to regulatory compliance; our reliance on certain key members of our management team, including our founder and chief executive officer, Robert J. Pera; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; whether the final determination of our income tax liability may be materially different from our income tax provisions; the impact of any intellectual property litigation and claims for indemnification; litigation related to U.S. securities laws; and social, economic and political conditions in the United States and abroad, including the impact of the military conflict between Russia and Ukraine and the tension between China and Taiwan. We discuss these risks in greater detail under the heading "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended June 30, 2026, and subsequent filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC’s website at www.sec.gov. Copies may also be obtained by contacting the Ubiquiti Inc. Investor Relations Department, by email at IR@ui.com or by visiting the Investor Relations section of the Ubiquiti Inc. website, https://ir.ui.com/.

Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date made. Except as required by law, Ubiquiti Inc. undertakes no obligation to update information contained herein. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect.

Ubiquiti Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)
		Three Months Ended September 30,
			2026			2025
Revenues		$	1,026,248		$	733,773
Cost of revenues			540,900			396,364
Gross profit			485,348			337,409
Operating expenses:
Research and development			53,241			48,543
Sales, general and administrative			40,640			27,144
Total operating expenses			93,881			75,687
Income from operations			391,467			261,722
Interest income (expense) and other, net			6,162			(3,182	)
Income before income taxes			397,629			258,540
Provision for income taxes			77,166			50,664
Net income		$	320,463		$	207,876
Net income per share of common stock:
Basic		$	5.29		$	3.44
Diluted		$	5.29		$	3.43
Weighted average shares used in computing net income per share of common stock:
Basic			60,524			60,499
Diluted			60,564			60,559

Ubiquiti Inc. Reconciliation of GAAP Net Income to Non-GAAP Net Income (In thousands, except per share data) (Unaudited)
		Three Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025
Net Income		$	320,463			$	284,902			$	207,876
Share-based compensation:
Cost of revenues			81				76				70
Research and development			1,345				1,403				1,311
Sales, general and administrative			595				563				503
Tax effect of Non-GAAP adjustment relating to Share-based compensation			(482	)			(485	)			(450	)
Non-GAAP net income		$	322,002			$	286,459			$	209,310
Non-GAAP diluted EPS		$	5.32			$	4.73			$	3.46
Shares outstanding (Diluted)			60,564				60,575				60,559
Weighted-average shares used in Non-GAAP diluted EPS			60,564				60,575				60,559

Use of Non-GAAP Financial Information

To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use non-GAAP measures of net income and earnings per diluted share that are adjusted to exclude certain costs, expenses and gains such as share-based compensation expense and the tax effects of these non-GAAP adjustments.

Reconciliations of the adjustments to GAAP results for the periods presented are provided above. In addition, an explanation of the ways in which management uses non-GAAP financial information to evaluate its business, the substance behind management’s decision to use this non-GAAP financial information, material limitations associated with the use of non-GAAP financial information, the manner in which management compensates for those limitations, and the substantive reasons management believes that this non-GAAP financial information provides useful information to investors is included under the paragraphs below.

Usefulness of Non-GAAP Financial Information to Investors

We believe that the presentation of non-GAAP net income and non-GAAP earnings per diluted share provides important supplemental information regarding non-cash expenses, significant items that we believe are important to understanding our financial and business trends relating to our financial condition and results of operations. Non-GAAP net income and non-GAAP earnings per diluted share are among the primary indicators used by management as a basis for planning and forecasting future periods and by management and our board of directors to determine whether our operating performance has met specified targets and thresholds. Management uses non-GAAP net income and non-GAAP earnings per diluted share when evaluating operating performance because it believes that the exclusion of the items described below, for which the amounts or timing may vary significantly depending upon the Company’s activities and other factors, facilitates comparability of the Company’s operating performance from period to period. We have chosen to provide this information to investors so they can analyze our operating results in the same way that management does and use this information in their assessment of our business and the valuation of our Company.

About our Non-GAAP Net Income and Non-GAAP Earnings per Diluted Share

We compute non-GAAP net income and non-GAAP earnings per diluted share by adjusting GAAP net income and GAAP earnings per diluted share to remove the impact of certain adjustments and the tax effect of those adjustments. Items excluded from net income are:

• Share-based compensation expense and
• Tax effect of non-GAAP adjustments, applying the principles of ASC 740.

These non-GAAP measures are not in accordance with, or an alternative to, GAAP and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income or earnings per diluted share prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results.

For more information on the non-GAAP adjustments, please see the table captioned "Reconciliation of GAAP Net Income to Non-GAAP Net Income" included in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261105710705/en/

Investor Relations
Ubiquiti Inc.
Investor Relations
ir@ui.com

Ph. 1-646-780-7958

Source: Ubiquiti Inc.

Key Terms

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

diluted eps financial

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

share-based compensation financial

Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.