UTStarcom Reports Unaudited Financial Results for Second Half and Full Year 2025
Rhea-AI Summary
UTStarcom (NASDAQ: UTSI) reported unaudited results for the six months and full year ended December 31, 2025, and outlined a strategic pivot to AI networking. Revenue fell to $9.0M for full-year 2025, gross profit was $1.1M, and 2025 net loss widened to $8.0M. The company is developing an Optical Circuit Switching (OCS) prototype expected in 2H 2026 and noted deliveries and support work for carrier and operator customers in 2H 2025.
Cash, cash equivalents and restricted cash totaled $42.4M as of December 31, 2025.
Positive
- Strategic pivot to AI networking with OCS prototype targeted for 2H 2026
- Confirmed carrier-grade router manufacturing and delivery for China Telecom STN
- Global post-sale support and maintenance revenue stream continued in 2H 2025
Negative
- Full-year revenue down 17.4% to $9.0M versus $10.9M in 2024
- Gross profit fell 62.1% to $1.1M with equipment gross margin at (86.6%)
- Net loss widened to $8.0M in 2025 from $4.4M in 2024
- Cash balance declined 20.2% to $42.4M as of December 31, 2025
Key Figures
Market Reality Check
Peers on Argus
UTSI traded near its 200-day MA with a modest -1.33% move while peers were mixed: MINM (+18.75%), AIRG (+10.52%), BOSC (+2.01%), CMBM (-8.65%), SYTA (-3.15%). Momentum scanner only flagged modest upside in SYNX and CMBM, reinforcing a stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Aug 29 | H1 2025 earnings | Negative | -0.8% | H1 2025 revenue and gross profit fell, net loss widened despite new orders. |
| Mar 24 | FY 2024 earnings | Negative | +0.0% | FY2024 showed sharp revenue decline and larger losses despite China Telecom win. |
| Sep 05 | H1 2024 earnings | Neutral | -2.4% | Revenue declined but operating loss improved and cash remained strong. |
Earnings releases have typically coincided with small, often negative moves (average -1.05%), suggesting the market has consistently marked the stock down on weak financial trends.
Over the past 18 months, UTStarcom’s earnings updates have highlighted persistent revenue contraction and widening losses. FY2024 revenue was $10.9M with a larger operating loss of $7.3M, and H1 2025 revenue fell further to $4.6M with a $3.7M net loss. Cash has trended down from $56.0M at June 30, 2024 to $53.1M at year-end 2024 and $49.2M mid‑2025. Today’s FY2025 report continues this deterioration while introducing a strategic pivot toward AI networking.
Historical Comparison
Past earnings releases moved UTSI about -1.05% on average, reflecting modest but consistently negative reactions to deteriorating financials and shrinking cash.
Earnings updates show a progression of declining revenues and compressed margins from 2024 into 2025, with operating and net losses widening despite selective contract wins.
Market Pulse Summary
This announcement combines weak FY2025 results with a strategic shift toward AI networking. Revenue declined to $9.0M, net loss widened to $8.0M, and equipment gross margin deteriorated to -232%, while cash stood at $42.4M. Historically, earnings have driven modest negative moves averaging -1.05%. Investors may watch for execution on the Optical Circuit Switching prototype targeted for 2H 2026 and signs that new AI-focused products can offset shrinking legacy equipment and service revenues.
Key Terms
optical circuit switching technical
ai data center technical
gross margin financial
AI-generated analysis. Not financial advice.
HANGZHOU, China, March 24, 2026 (GLOBE NEWSWIRE) -- UTStarcom (the Company) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today reported its unaudited financial results for the six months and full year ended December 31, 2025, and provided a business update.
Business Update
- Strategic Pivot to AI Networking. UTStarcom recognizes AI Networking as a major market opportunity and is shifting its primary innovation and development efforts toward this sector, leveraging its deep heritage in cutting-edge optical networking technologies and intelligent network automation to address the infrastructure demands of the AI era. Amid the explosive growth of AI processing requirements, the need for highly efficient, low-latency backend networking has become a critical bottleneck. UTStarcom is addressing this challenge by focusing on the development of a comprehensive Optical Circuit Switching (OCS) solution designed for both scale-up and scale-out AI Data Center (AI DC) architectures. By utilizing a purely optical path and eliminating optical-electrical-optical (O-E-O) conversions in suitable AI DC network applications, UTStarcom’s OCS technology is engineered to deliver massive bandwidth, lower latency, deterministic network behavior, reduced power consumption and cooling requirements, and optimized AI network cost. The Company initiated the development work in 2H 2025, with a functional prototype expected to debut in 2H 2026.
- Carrier-grade disaggregated routers hardware supply. Following the award of the China Telecom Research Institute RFP for the manufacturing of 5G transport network routers for China Telecom’s STN network and the execution of the associated frame agreements in early 2025, the Company received its initial purchase order under this framework and successfully delivered the products to the customer in 2H 2025.
- Network expansion for a Mobile Network Operator in Europe. In 2H 2025, UTStarcom received a purchase order for a batch of NetRing TN704ES, the product that was developed earlier specifically to meet the customer's network expansion requirements.
- Post-sale support services to customers globally. In 2H 2025, the Company continued to provide support to its customers around the world in accordance with existing support and maintenance contracts for products such as NetRing PTN, SyncRing, IMS, SSTP.
UTStarcom’s Chief Executive Officer Mr. Hua Li commented, “We have made great efforts in our current products, including research and development, manufacturing, and marketing. However, the results have not met our expectations due to intense market competition. Looking ahead, we aim to explore new directions and products related to AI networking. Artificial intelligence has tremendous potential and is expected to impact nearly every aspect of business and daily life. With our long-term expertise and experience in communication system development, we believe we are well positioned to expand into this new area and expect to achieve meaningful progress and results.”
Second Half and Full Year 2025 Financial Results (Unaudited)
| Summary of 2H 2025 Key Financials (Unaudited) | ||||||
| 2H 2025 | 2H 2024 | Y/Y Change | ||||
| Revenue | - | |||||
| Gross Profit | - | |||||
| Operating Expenses | - | |||||
| Operating Loss | ( | ( | ( | |||
| Net Loss | ( | ( | ( | |||
| Basic EPS | ( | ( | ( | |||
| Cash Balance (including Restricted Cash) | - | |||||
| Summary of Full Year 2025 Key Financials (Unaudited) | ||||||
| 2025 | 2024 | Y/Y Change | ||||
| Revenue | - | |||||
| Gross Profit | - | |||||
| 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
Six months ended December 31, 2025
Total revenues for the second half of 2025 were
- Net equipment sales for the second half of 2025 were
$0.2 million , a decrease of65.9% from$0.6 million in the corresponding period in 2024. The decrease was mainly due to decreased revenue from customers in India. - Net services sales for the second half of 2025 were
$4.1 million , a decrease of9.0% from$4.6 million in the corresponding period in 2024. The decrease was mainly due to the completion of current projects and no new major projects in India.
Twelve months ended December 31, 2025
2025 total revenues were
- 2025 net equipment sales were
$0.8 million , a decrease of46.6% from$1.4 million in the corresponding period in 2024. The decrease was mainly due to decreased revenue from customers in India.
- 2025 net services sales were
$8.2 million , a decrease of13.1% from$9.5 million in 2024. The decrease was mainly due to the completion of current projects and no new major projects in India.
Gross Profit
Six months ended December 31, 2025
Gross profit was
- Equipment gross loss for the second half of 2025 was
$0.5 million , compared to gross profit of$0.1 million in the corresponding period in 2024. Equipment gross margin for the second half of 2025 was (232% ), compared to16.2% for the corresponding period in 2024. The decrease in gross margin was due to lower equipment revenue, an increase in inventory reserves, and a change in expected recovery of cost from suppliers. - Service gross profit for the second half of 2025 was
$0.8 million , compared to$1.1 million in the corresponding period in 2024. Service gross margin for the second half of 2025 was19.0% , compared to24.0% for the corresponding period in 2024, due to fixed labor cost with lower service revenue.
Twelve months ended December 31, 2025
2025 gross profit was
- 2025 equipment gross loss was
$0.7 million , compared to gross profit$0.2 million in 2024. 2025 equipment gross margin was (86.6% ), compared to13.0% in 2024. The decrease in gross margin was due to lower equipment revenue, an increase in inventory reserves, and a change in expected recovery of cost from suppliers.
- 2025 service gross profit was
$1.7 million , compared to$2.7 million in 2024. 2025 service gross margin was20.7% , compared to28.7% in 2024, due to fixed labor cost with lower service revenue.
Operating Expenses
Six months ended December 31, 2025
Operating expenses for the second half of 2025 were
- Selling, general and administrative (“SG&A”) expenses for the second half of 2025 were
$2.4 million , compared to$2.4 million in the corresponding period in 2024.
- Research and development (“R&D”) expenses for the second half of 2025 were
$2.3 million , compared to$2.5 million in the corresponding period in 2024, lower due to decreased personnel cost resulting from cost reduction initiatives.
Twelve months ended December 31, 2025
2025 operating expenses were
- 2025 SG&A expenses were
$4.9 million , compared to$5.1 million in 2024. The decrease was mainly due to continued tight cost controls.
- 2025 R&D expenses were
$4.6 million , compared to$5.1 million in 2024, lower due to decreased personnel cost resulting from cost reduction.
Operating Loss
Operating loss for the second half of 2025 was
Full year 2025 operating loss was
Interest Income, Net
Net interest income for the second half of 2025 was
Full year 2025 net interest income was
Other Income (Expenses), Net
Net other income for the second half of 2025 was
Full year 2025 net other expense was
Net Loss
Net loss attributable to shareholders for the second half of 2025 was
Full year 2025 net loss attributable to shareholders was
Cash Flow
Cash used in operating activities in the second half of 2025 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, the effect of the COVID-19 pandemic on the Company’s business, 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 | ||||||
| December 31, | December 31, | |||||
| 2025 | 2024 | |||||
| (In thousands) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 33,695 | $ | 43,913 | ||
| Notes receivable, net | 321 | 659 | ||||
| Short-term investments | 701 | 165 | ||||
| Accounts receivable, net | 4,466 | 4,849 | ||||
| Inventories and deferred costs | 1,718 | 2,207 | ||||
| Short-term restricted cash | 6,693 | 6,824 | ||||
| Prepaid and other current assets | 3,959 | 4,454 | ||||
| Total current assets | 51,553 | 63,071 | ||||
| Long-term assets: | ||||||
| Property, plant and equipment, net | 709 | 476 | ||||
| Operating lease right-of-use assets, net | 966 | 1,399 | ||||
| Long-term restricted cash | 1,987 | 2,406 | ||||
| Other long-term assets | 690 | 848 | ||||
| Total long-term assets | 4,352 | 5,129 | ||||
| Total assets | $ | 55,905 | $ | 68,200 | ||
| LIABILITIES AND EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 4,170 | $ | 7,008 | ||
| Customer advances | 27 | 769 | ||||
| Deferred revenue | 12 | 62 | ||||
| Income tax payable | 8,734 | 8,163 | ||||
| Operating lease liabilities, current | 801 | 1,184 | ||||
| Other current liabilities | 4,269 | 4,342 | ||||
| Total current liabilities | 18,013 | 21,528 | ||||
| Long-term liabilities: | ||||||
| Operating lease liabilities, non-current | 330 | 404 | ||||
| Long-term deferred revenue and other liabilities | 1,063 | 1,042 | ||||
| Total liabilities | 19,406 | 22,974 | ||||
| Total equity | 36,499 | 45,226 | ||||
| Total liabilities and equity | $ | 55,905 | $ | 68,200 | ||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
| Six months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Net sales | $ | 4,344 | $ | 5,159 | $ | 8,978 | $ | 10,878 | ||||||||
| Cost of net sales | 4,044 | 3,968 | 7,927 | 7,972 | ||||||||||||
| Gross profit | 300 | 1,191 | 1,051 | 2,906 | ||||||||||||
| 6.9 | % | 23.1 | % | 11.7 | % | 26.7 | % | |||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,384 | 2,412 | 4,964 | 5,152 | ||||||||||||
| Research and development | 2,320 | 2,510 | 4,644 | 5,085 | ||||||||||||
| Total operating expenses | 4,704 | 4,922 | 9,608 | 10,237 | ||||||||||||
| Operating loss | (4,404 | ) | (3,731 | ) | (8,557 | ) | (7,331 | ) | ||||||||
| Interest income, net | 1,086 | 1,459 | 2,241 | 2,791 | ||||||||||||
| Other income (expense), net | 149 | 49 | (12 | ) | 855 | |||||||||||
| Loss before income taxes | (3,169 | ) | (2,223 | ) | (6,328 | ) | (3,685 | ) | ||||||||
| Income tax expense | (1,059 | ) | (129 | ) | (1,622 | ) | (683 | ) | ||||||||
| Net loss attributable to UTStarcom Holdings Corp. | $ | (4,228 | ) | $ | (2,352 | ) | $ | (7,950 | ) | $ | (4,368 | ) | ||||
| Net loss per share attributable to UTStarcom Holdings Corp.—Basic | $ | (0.46 | ) | $ | (0.26 | ) | $ | (0.87 | ) | $ | (0.48 | ) | ||||
| Weighted average shares outstanding—Basic | 9,210 | 9,179 | 9,190 | 9,150 | ||||||||||||
| UTStarcom Holdings Corp. Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| Six months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (In thousands) | ||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
| Net loss | $ | (4,228 | ) | $ | (2,352 | ) | $ | (7,950 | ) | $ | (4,368 | ) | ||||
| Depreciation | 107 | 138 | 207 | 275 | ||||||||||||
| Allowance (recovery) for credit losses | 539 | (37 | ) | 582 | (39 | ) | ||||||||||
| Stock-based compensation expense | 57 | 56 | 114 | 117 | ||||||||||||
| Gain on release of tax liability due to expiration of the statute of limitations | (10 | ) | (10 | ) | (21 | ) | (21 | ) | ||||||||
| Lease amortization | 534 | 544 | 1,067 | 1,123 | ||||||||||||
| Deferred income taxes | 231 | 154 | 231 | 154 | ||||||||||||
| Changes in fair value for trading securities investment | 20 | 204 | 80 | (165 | ) | |||||||||||
| Changes in operating assets and liabilities | (1,537 | ) | (667 | ) | (3,132 | ) | (1,533 | ) | ||||||||
| Net cash used in operating activities | (4,287 | ) | (1,970 | ) | (8,822 | ) | (4,457 | ) | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
| Additions to property, plant and equipment | (377 | ) | (52 | ) | (423 | ) | (158 | ) | ||||||||
| Purchase of short-term investments | (616 | ) | — | (616 | ) | — | ||||||||||
| Net cash used in investing activities | (993 | ) | (52 | ) | (1,039 | ) | (158 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
| Net cash provided by financing activities | — | — | — | — | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,546 | ) | (873 | ) | (907 | ) | (1,889 | ) | ||||||||
| Net decrease in cash and cash equivalents | (6,826 | ) | (2,895 | ) | (10,768 | ) | (6,504 | ) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 49,201 | 56,038 | 53,143 | 59,647 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 42,375 | $ | 53,143 | $ | 42,375 | $ | 53,143 | ||||||||
FAQ
What did UTStarcom (UTSI) report for full-year 2025 revenue and net loss?
Why is UTStarcom (UTSI) shifting to AI networking with an OCS prototype in 2026?
How much did UTStarcom's cash balance change by year-end 2025 and why does it matter?
What caused UTStarcom (UTSI) equipment gross margin to be negative in 2025?
Did UTStarcom (UTSI) win any commercial orders in 2H 2025 that support revenue recovery?
How did UTStarcom's operating expenses and R&D change in 2025 compared with 2024?
