UTStarcom Reports Unaudited Financial Results for First Half of 2026
Rhea-AI Summary
UTStarcom (NASDAQ: UTSI) reported unaudited results for the six months ended June 30, 2026, with total revenue of $3.4 million, down from $4.6 million a year earlier, reflecting lower equipment and service sales mainly in India and China.
The company recorded a gross loss of $0.5 million (‑13.6% margin) versus a $0.8 million gross profit (16.2% margin) in 1H 2025, and an operating loss of $6.0 million compared to $4.2 million. Net loss widened to $5.1 million, or $0.55 per basic share.
Cash, cash equivalents and restricted cash totaled $35.8 million at June 30, 2026, down from $49.2 million, after $4.9 million of operating cash outflow. UTStarcom highlighted ongoing global maintenance contracts, a significant service renewal, a European 5G transport shipment, and on‑schedule development of an Optical Circuit Switching solution for AI data center networking, expected to be showcased at CIOE 2026. According to UTStarcom, R&D spending rose as it pursues this strategic AI networking direction.
Positive
- Cash, cash equivalents and restricted cash of $35.8 million at June 30, 2026
- Net other income improved to $0.7 million from a $0.2 million expense
- Significant maintenance service renewal plus smaller support orders across key product lines
- NetRing TN704ES shipment supports European customer’s 5G transport network expansion
- OCS AI data center networking development on schedule; prototype planned for CIOE 2026
- R&D investment increased to $2.8 million to support new product development
Negative
- Total revenue declined 26.1% year over year to $3.4 million
- Equipment sales fell 55.2% to $0.2 million
- Service revenue decreased 23.6% to $3.1 million
- Gross margin swung to -13.6% from +16.2%
- Operating loss widened to $6.0 million from $4.2 million
- Net loss increased to $5.1 million and EPS to -$0.55
- Cash, cash equivalents and restricted cash decreased $13.4 million year over year
- Operating cash outflow of $4.9 million in the first half of 2026
- Interest income fell to $0.6 million from $1.2 million
News Explained
For the six months ended
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 24 | 2H/FY25 earnings | Negative | -1.5% | Revenue and earnings deteriorated while the company outlined an AI networking pivot. |
| Aug 29 | 1H25 earnings | Negative | -0.8% | Revenue, gross profit, operating results, and net loss all showed deterioration. |
| Mar 24 | 2H/FY24 earnings | Negative | +0.0% | Revenue declined and losses widened despite reported contract and RFP milestones. |
| Sep 05 | 1H24 earnings | Negative | -2.4% | Revenue declined despite improved operating loss and stable net loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events were generally followed by negative 24-hour moves, with an average move of -1.16%.
Key Terms
optical circuit switching technical
gross margin financial
restricted cash financial
operating lease liabilities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HANGZHOU, China, Aug. 14, 2026 (GLOBE NEWSWIRE) -- UTStarcom (“UT,” “UTStarcom” or the “Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results and a business update for the six months ended June 30, 2026 (“the first half”).
Business Highlights:
- Optical Circuit Switching (OCS) product development for AI DC networking infrastructure. UTStarcom continues the development of its comprehensive Optical Circuit Switching (OCS) solution designed for scale-up and scale-out AI Data Center (DC) architectures. Development remains on schedule, and the Company expects to showcase the OCS product concept prototype at the 27th China International Optoelectronic Exposition (CIOE 2026) in September 2026.
- Maintenance and support services to customers globally. While focusing on the development of its AI networking solutions, UTStarcom continues to provide ongoing support to its global customer base in accordance with existing support and maintenance contracts. In 1H 2026, the Company secured a substantial maintenance service renewal order alongside a series of smaller support orders across major product lines, including NetRing PTN, SyncRing, and IMS.
- Network expansion for a European Mobile Network Operator: In 1H 2026, UTStarcom fulfilled an order to ship a batch of NetRing TN704ES platforms in support of a key customer's ongoing 5G transport network expansion in Europe.
UTStarcom’s Chief Executive Officer Mr. Hua Li commented, “As artificial intelligence continues to transform industries worldwide, the Company believes Optical Circuit Switching (OCS) represents a promising technology with significant potential to support next-generation AI infrastructure and high-performance computing applications. Accordingly, the Company is exploring OCS as a strategic growth direction to capitalize on the expanding opportunities created by the AI ecosystem. At the same time, the Company remains committed to its existing products and services and will continue to support its current customers while prudently pursuing new opportunities that enhance long-term shareholder value.”
First Half 2026 Financial Results
| Summary of 1H 2026 Key Financials | ||||||||
| 1H 2026 | 1H 2025 | Y/Y Change | ||||||
| Revenue | - | |||||||
| Gross Profit (Loss) | ( | - | ||||||
| Operating Expenses | ||||||||
| Operating Loss | ( | ( | ( | |||||
| Net Loss | ( | ( | ( | |||||
| Basic EPS | ( | ( | ( | |||||
| Cash Balance (including Restricted Cash) | - | |||||||
* Dollar comparisons are used where percentage comparisons are not meaningful.
* All amounts are in U.S. Dollars millions except for Earnings Per Share (EPS).
Total Revenues
Total revenues for the first half of 2026 were
- Net equipment sales were
$0.2 million , a decrease of55.2% from$0.5 million in the corresponding period in 2025. The decrease was primarily due to decreased revenue from customers in India and China due to decrease in volume.
- Net services sales were
$3.1 million , a decrease of23.6% from$4.1 million in the corresponding period in 2025. The decrease was mainly due to the completion of projects in late 2025, and no new major projects in India and China.
Gross Profit (Loss)
Gross loss was
- Gross loss on equipment sales was
$0.7 million , compared to$0.2 million in the corresponding period in 2025. Equipment gross margin for the first half of 2026 was negative291.0% , compared to negative30.4% for the corresponding period in 2025. The decrease in gross margin was due to lower equipment revenue and higher inventory reserves.
- Service gross margin was
$0.2 million , compared to$0.9 million in the corresponding period in 2025. Service gross margin was8.0% , compared to22.4% for the corresponding period in 2025, due to high fixed cost with lower service revenue.
Operating Expenses
Operating expenses for the first half of 2026 were
- Selling, general and administrative (“SG&A”) expenses for the first half of 2026 were
$2.7 million , compared to$2.6 million in the corresponding period in 2025.
- Research and development (“R&D”) expenses were
$2.8 million , compared to$2.3 million in the corresponding period in 2025. The increase was mainly due to workforce reduction related severance costs.
Operating Loss
Operating loss for the first half of 2026 was
Interest Income, Net
Net interest income for the first half of 2026 was
Other Income (Expenses), Net
Net other income for the first half of 2026 was
Net Loss
Net loss attributable to shareholders for the first half of 2026 was
Cash Flow
Cash used in operating activities in the first half of 2026 was
About UTStarcom Holdings Corp.
UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the Company’s strategic initiatives and the Company’s business outlook. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially and adversely from the Company’s current expectations. These include risks and uncertainties related to, among other things, changes in the financial condition and cash position of the Company, changes in the composition of the Company’s management and their effect on the Company, the Company’s ability to realize anticipated results of operational improvements and benefits of the divestiture transaction, the ability to successfully identify and acquire appropriate technologies and businesses for inorganic growth and to integrate such acquisitions, the ability to internally innovate and develop new products, assumptions the Company makes regarding the growth of the market and the success of the Company’s offerings in the market and the Company’s ability to execute its business plan and manage regulatory matters. The risks and uncertainties also include the risk factors identified in the Company’s latest annual report on Form 20-F and current reports on Form 6-K as filed with the Securities and Exchange Commission. The Company is in a period of strategic transition and the conduct of its business is exposed to additional risks as a result. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, which may change and the Company assumes no obligation to update any such forward-looking statements.
For investor and media inquiries, please contact:
UTStarcom Holdings Corp.
Tel: +86 (571) 8192 8888
Ms. Shelley Jiang, Investor Relations
Email: utsi-ir@utstar.com/ Shelleyjiang@utstar.com /
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Balance Sheets | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (In thousands) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 27,459 | $ | 33,814 | ||||
| Accounts and notes receivable, net | 3,776 | 4,787 | ||||||
| Short-term investments | 1,747 | 701 | ||||||
| Inventories and deferred costs | 928 | 1,718 | ||||||
| Short-term restricted cash | 6,531 | 6,574 | ||||||
| Prepaid and other current assets | 3,616 | 3,959 | ||||||
| Total current assets | 44,057 | 51,553 | ||||||
| Long-term assets: | ||||||||
| Property, plant and equipment, net | 581 | 709 | ||||||
| Operating lease right-of-use assets, net | 419 | 966 | ||||||
| Long-term restricted cash | 1,842 | 1,987 | ||||||
| Other long-term assets | 683 | 690 | ||||||
| Total long-term assets | 3,525 | 4,352 | ||||||
| Total assets | $ | 47,582 | $ | 55,905 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,357 | $ | 4,170 | ||||
| Customer advances | 146 | 27 | ||||||
| Deferred revenue | 12 | 12 | ||||||
| Income tax payable | 7,804 | 8,734 | ||||||
| Operating lease liabilities, current | 384 | 801 | ||||||
| Other current liabilities | 3,858 | 4,269 | ||||||
| Total current liabilities | 15,561 | 18,013 | ||||||
| Long-term liabilities: | ||||||||
| Operating lease liabilities, non-current | 188 | 330 | ||||||
| Long-term deferred revenue and other liabilities | 1,074 | 1,063 | ||||||
| Total liabilities | 16,823 | 19,406 | ||||||
| Total equity | 30,759 | 36,499 | ||||||
| Total liabilities and equity | $ | 47,582 | $ | 55,905 | ||||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Operations | ||||||||
| Six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| (In thousands, except per share data) | ||||||||
| Net sales | $ | 3,370 | $ | 4,634 | ||||
| Cost of net sales | 3,828 | 3,883 | ||||||
| Gross profit (loss) | (458 | ) | 751 | |||||
| (13.6 | )% | 16.2 | % | |||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 2,717 | 2,580 | ||||||
| Research and development | 2,844 | 2,324 | ||||||
| Total operating expenses | 5,561 | 4,904 | ||||||
| Operating loss | (6,019 | ) | (4,153 | ) | ||||
| Interest income, net | 632 | 1,155 | ||||||
| Other income (expense), net | 654 | (161 | ) | |||||
| Loss before income taxes | (4,733 | ) | (3,159 | ) | ||||
| Income tax expense | (346 | ) | (563 | ) | ||||
| Net loss attributable to UTStarcom Holdings Corp. | $ | (5,079 | ) | $ | (3,722 | ) | ||
| Net loss per share attributable to UTStarcom Holdings Corp.—Basic | $ | (0.55 | ) | $ | (0.41 | ) | ||
| Weighted average shares outstanding—Basic | 9,200 | 9,150 | ||||||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| Six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| (In thousands) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net Loss | $ | (5,079 | ) | $ | (3,722 | ) | ||
| Depreciation | 145 | 100 | ||||||
| Allowance (Recovery) for credit losses | (13 | ) | 43 | |||||
| Stock-based compensation expense | 2 | 57 | ||||||
| Gain on release of tax liability due to expiration of the statute of limitations | (11 | ) | (11 | ) | ||||
| Right-of-use assets amortization | 543 | 533 | ||||||
| Changes in fair value of equity securities investment | (125 | ) | 60 | |||||
| Changes in operating assets and liabilities | (405 | ) | (1,595 | ) | ||||
| Net cash used in operating activities | (4,943 | ) | (4,535 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Additions to property, plant and equipment | — | (46 | ) | |||||
| Purchase of short-term investments | (921 | ) | — | |||||
| Net cash used in investing activities | (921 | ) | (46 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Net cash provided by financing activities | — | — | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (679 | ) | 639 | |||||
| Net decrease in cash and cash equivalents | (6,543 | ) | (3,942 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 42,375 | 53,143 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 35,832 | $ | 49,201 | ||||
