Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or Form 40-F.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Exhibit 99.1
UCLOUDLINK GROUP
INC. Announces Unaudited Third Quarter 2026 Financial Results
Hong Kong, November 11, 2026 – UCLOUDLINK
GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic
sharing marketplace, today announced its unaudited financial results for the three months ended September 30, 2026.
Third Quarter 2026 Financial Highlights
| ● | Total revenues were US$21.4 million, representing
an increase of 1.1% from US$21.1 million in the third quarter of 2025. |
| ● | Total revenues across different business lines were as follows: |
| ● | GlocalMe MeowGo business: US$17.4 million, representing
a decrease of 9.9% from US$19.2 million in the third quarter of 2025. |
| ● | GlocalMe SIM business: US$2.0 million, representing
an increase of 40.3% from US$1.4 million in the third quarter of 2025. |
| ● | GlocalMe IoT business: US$1.2 million, representing
an increase of 496.5% from US$0.2 million in the third quarter of 2025. |
| ● | GlocalMe Life business: US$0.5 million, representing
an increase of 189.9% from US$0.2 million in the third quarter of 2025. |
| ● | PetPhone business: US$0.3 million, representing an
increase of 285.0% from US$0.1 million in the third quarter of 2025. |
| ● | Gross profit was US$11.1 million, representing a decrease
of 2.1% from US$11.3 million in the third quarter of 2025. |
| ● | Income from operations was US$0.2 million, compared
to US$9.2 million in the third quarter of 2025. |
| ● | Net loss was US$0.3 million, compared to net income
of US$9.3 million in the third quarter of 2025. |
| ● | Adjusted net loss (non-GAAP) was US$0.6 million, compared
to adjusted net income of US$0.7 million in the third quarter of 2025. |
| ● | Adjusted EBITDA (non-GAAP) was negative US$0.2 million,
compared to positive US$1.4 million in the third quarter of 2025. |
Third Quarter 2026 Operational Highlights
| ● | Total data consumed in the third quarter through the Company’s
platform was 48,804 terabytes (7,223 terabytes procured by the Company and 41,581 terabytes procured by our business partners), representing
a decrease of 0.5% from 49,044 terabytes in the third quarter of 2025. |
| ● | Average daily active users (“DAU”) in the third
quarter were 431,245, representing an increase of 22.4% from 352,227 in the third quarter of 2025. |
| ● | Average DAU in the third quarter from GlocalMe IoT
business was 79,199, representing an increase of 271.4% from 21,322 in the third quarter of 2025. |
| ● | Average DAU in the third quarter from GlocalMe SIM
business was 39,294, representing an increase of 142.1% from 16,231 in the third quarter of 2025. |
| ● | Average DAU in the third quarter from GlocalMe Life
business was 17,913, representing an increase of 844.3% from 1,897 in the third quarter of 2025. |
| ● | Average DAU in the third quarter from PetPhone business
was 2,557, representing an increase of 572.9% from 380 in the third quarter of 2025. |
| ● | Average DAU in the third quarter from GlocalMe MeowGo
business was 292,282, representing a decrease of 6.4% from 312,397 in the third quarter of 2025. |
| ● | Average monthly active users (“MAU”) in the third
quarter were 867,935, representing an increase of 14.0% from 761,586 in the third quarter of 2025. |
| ● | Average MAU in the third quarter from GlocalMe IoT
business was 125,190, representing an increase of 241.8% from 36,622 in the third quarter of 2025. |
| ● | Average MAU in the third quarter from GlocalMe SIM
business was 130,274, representing an increase of 67.0% from 77,992 in the third quarter of 2025. |
| ● | Average MAU in the third quarter from GlocalMe Life
business was 33,252, representing an increase of 627.6% from 4,570 in the third quarter of 2025. |
| ● | Average MAU in the third quarter from PetPhone business
was 3,197, representing an increase of 499.8% from 533 in the third quarter of 2025. |
| ● | Average MAU in the third quarter from GlocalMe MeowGo
business was 576,022, representing a decrease of 10.3% from 641,869 in the third quarter of 2025. |
| ● | As a proportion of daily active terminals, 54.6% of daily
active terminals were from uCloudlink 1.0 international data connectivity services and 45.4% of daily active terminals were from uCloudlink
2.0 local data connectivity services during the third quarter of 2026. Average daily data usage per terminal was 1.37 GB in September
2026. |
| ● | Average daily active terminals (“DAT”) in the
third quarter were 373,034 (15,824 owned by the Company and 357,210 not owned by the Company), representing an increase of 12.1% from
332,674 in the third quarter of 2025. |
| ● | Average DAT in the third quarter from GlocalMe IoT
business was 63,521, representing an increase of 350.4% from 14,104 in the third quarter of 2025. |
| ● | Average DAT in the third quarter from GlocalMe SIM
business was 15,227, representing an increase of 41.5% from 10,758 in the third quarter of 2025. |
| ● | Average DAT in the third quarter from GlocalMe Life
business was 16,957, representing an increase of 1,083.3% from 1,433 in the third quarter of 2025. |
| ● | Average DAT in the third quarter from PetPhone business
was 523, representing an increase of 388.8% from 107 in the third quarter of 2025. |
| ● | Average DAT in the third quarter from GlocalMe MeowGo
business was 276,806, representing a decrease of 9.6% from 306,272 in the third quarter of 2025. |
| ● | Average monthly active terminals (“MAT”) in the
third quarter were 804,255, representing an increase of 13.9% from 706,284 in the third quarter of 2025. |
| ● | Average MAT in the third quarter from GlocalMe IoT
business was 112,844, representing an increase of 238.1% from 33,373 in the third quarter of 2025. |
| ● | Average MAT in the third quarter from GlocalMe SIM
business was 103,836, representing an increase of 48.5% from 69,920 in the third quarter of 2025. |
| ● | Average MAT in the third quarter from GlocalMe Life
business was 32,067, representing an increase of 789.8% from 3,604 in the third quarter of 2025. |
| ● | Average MAT in the third quarter from PetPhone business
was 1,058, representing an increase of 253.8% from 299 in the third quarter of 2025. |
| ● | Average MAT in the third quarter from GlocalMe MeowGo
business was 554,450, representing a decrease of 7.5% from 599,088 in the third quarter of 2025. |
| ● | As of September 30, 2026, the Company had served 3,270 business
partners in 65 countries and regions. The Company had 217 patents with 184 approved and 33 pending approval, while the pool of SIM cards
was from 396 MNOs globally as of September 30, 2026. |
Executive Commentary
Mr. Chaohui Chen, Director and Chief Executive
Officer of UCLOUDLINK, commented, “As anticipated, our total revenues regained positive growth momentum on a year-over-year basis
during the third quarter of 2026, landing at the high end of our guidance range. Despite macro headwinds, geopolitical tensions, rising
memory chip costs, and extended component lead times, our resilient business model delivered robust growth across new business lines.
Importantly, we generated positive operating cash inflow of US$1.0 million for the first time this year, further strengthening our financial
foundation.”
“We strongly believe that ‘good connectivity
is the foundation of artificial intelligence (AI),’ especially when reliable networks are critical for safety during turbulent periods
marked by natural disasters or conflict. Driven by this vision, we achieved key commercial breakthroughs across our business during the
third quarter.
In our GlocalMe MeowGo business, we capitalized
on two strategic opportunities. The first was in our premium segment, where our MeowGo G50 Max with AI-powered HyperConn® technology,
the world’s leading Sky-to-Ground integrated mobile connectivity hub, generated better-than-expected sales, demonstrating that demand
for premium solutions remains highly resilient to macroeconomic headwinds. The second was in local connectivity markets, where our latest
4G/5G CPE solution delivered strong sales growth and deepened our penetration. Powered by the same AI-powered HyperConn® technology,
which provides intelligent switching between fixed and mobile networks and real-time congestion detection, the solution delivers highly
reliable connectivity for home and office environments. It reinforces our local broadband strategy and allows us to expand beyond one-time
hardware sales into recurring data connectivity revenue.
Our GlocalMe IoT business delivered impressive
momentum during the quarter, with revenue surging 496.5% year-over-year. This was driven by accelerating deployment of our integrated
data connectivity solutions across a growing installed base of smart devices, particularly in sectors such as in-car infotainment and
security cameras. As this installed base expands and data usage increases, recurring data connectivity revenue is expected to scale. We
remain well positioned to capture further demand as smart hardware partners rapidly extend their international footprint.
GlocalMe SIM/eSIM business forms another
key growth engine, with our OTA and eSIM solutions ranking among the top 10 products on major Chinese e-commerce platforms for key Asia-Pacific
travel routes. Further demonstrating our technological strength, the eSIM Trio, co-developed with MNOs and MVNOs, leverages our
hardware-based multi-IMSI capabilities to provide enhanced security and coverage for domestic and overseas use. GlocalMe Life business
achieved steady MAU growth, with its key solution, UniCord Pro, gaining strong momentum.
Our PetPhone/PetPogo ecosystem continues
to evolve its ‘AI-powered + Social’ model. Unlike single-function devices on the market, PetPhone operates like a mobile
phone, enabling ‘anytime, anywhere’ two-way communication between pets and their owners. We launched our pet AI agent on the
PetPogo app, and our next-generation PetCam, an AI-powered camera, is in the final stages of development and is set to launch
in the fourth quarter. Following several quarters of significant marketing investments, PetPhone’s consumer value proposition
is now materializing and is gaining meaningful market traction. We are receiving highly positive feedback both at major offline events,
such as IFA 2026, and from users and influencers across leading global social media platforms. Our distribution is expanding as well.
In Europe, we have placed PetPhone in the retail network of a regional telecom operator, and in China we have been added to the
centralized procurement catalogs of three major telecom operators, which facilitates SIM issuance and helps build our partner ecosystem.”
“Looking ahead, our focus will be on executing
our strategic priorities to drive sustainable growth. We will continue to invest in R&D and marketing to scale our key business lines,
while maintaining disciplined operational management to improve operating leverage. The share repurchase program announced in the third
quarter reflects management’s confidence in our long-term fundamentals. We believe our solid execution and continued innovation
will position us well to deliver long-term value to our shareholders.”
Third Quarter 2026 Financial Results
Revenues
Total revenues were US$21.4 million, representing
an increase of 1.1% from US$21.1 million in the same period of 2025.
| ● | Revenues from services were US$16.0 million, representing
a decrease of 6.1% from US$17.0 million in the same period of 2025. The decrease was primarily due to a decrease in revenues from international
data connectivity services. |
| ● | Revenues from data connectivity services were US$13.0
million, representing a decrease of 4.8% from US$13.6 million in the same period of 2025. The decrease was primarily due to a decrease
in revenues from international data connectivity services to US$10.4 million in the third quarter of 2026 from US$11.9 million in the
same period of 2025, reflecting softer outbound travel demand from China amid macroeconomic headwinds and geopolitical uncertainties,
which was partially offset by an increase in revenues from local data connectivity services to US$2.6 million in the third quarter of
2026 from US$1.7 million in the same period of 2025, which was primarily driven by the expansion of GlocalMe IoT business. |
| ● | Revenues from PaaS and SaaS services were US$2.5 million,
representing a decrease of 14.6% from US$3.0 million in the same period of 2025. |
| ● | Revenues from sales of products were US$5.4 million,
representing an increase of 30.8% from US$4.1 million in the same period of 2025. The increase was primarily attributable to an increase
of US$0.9 million in sales of terminals and an increase of US$0.4 million in sales of other products. |
During the third quarter of 2026, as
a percentage of our total revenues, mainland China contributed 33.7%, Japan contributed 32.1%, North America contributed 12.3%, and other
countries and regions contributed the remaining 21.9%, compared to 35.1%, 33.2%, 15.4% and 16.3%, respectively, in the same period of
2025.
Cost of Revenues
Cost of revenues was US$10.3 million, representing
an increase of 4.8% from US$9.8 million in the same period of 2025. The increase was primarily due to an increase of US$1.5 million in
cost of products sold, which was partially offset by a decrease of US$1.0 million in cost of services.
| ● | Cost of services was US$6.4 million, representing
a decrease of 14.1% from US$7.4 million in the same period of 2025, which was in line with the decrease of revenues from services. |
| ● | Cost of products sold was US$3.9 million, representing
an increase of 62.4% from US$2.4 million in the same period of 2025. The increase was primarily attributable to product mix and higher
component costs, particularly memory chips. |
Gross Profit
Overall gross profit was US$11.1 million, compared
to US$11.3 million in the same period of 2025. Overall gross margin was 51.8% in the third quarter of 2026, compared to 53.6% in the same
period of 2025.
Gross profit on services was US$9.6 million, compared
to US$9.6 million in the same period of 2025. Gross margin on services was 60.3% in the third quarter of 2026, compared to 56.6% in the
same period of 2025.
Gross profit on sales of products was US$1.5 million,
compared to US$1.7 million in the same period of 2025. Gross margin on sales of products was 26.8% in the third quarter of 2026, compared
to 41.0% in the same period of 2025.
Operating Expenses
Total operating expenses were US$11.6 million,
compared to US$11.2 million in the same period of 2025.
| ● | Research and development expenses were US$1.9 million,
representing an increase of 26.9% from US$1.5 million in the same period of 2025, primarily due to an increase of US$0.4 million in staff
costs. |
| ● | Sales and marketing expenses were US$7.0 million,
representing an increase of 4.8% from US$6.7 million in the same period of 2025, primarily due to an increase of US$0.6 million in promotion
fees, which was partially offset by a decrease of US$0.4 million in service fees. |
| ● | General and administrative expenses were US$2.7 million,
representing a decrease of 10.8% from US$3.0 million in the same period of 2025, primarily attributable to a decrease of US$0.2 million
in staff costs, and a decrease of US$0.1 million in share-based compensation expenses. |
Income from Operations
Income from operations was US$0.2 million, compared
to US$9.2 million in the same period of 2025, which reflected an US$8.7 million fair value gain recognized on other investments.
Net Interest Expenses
Net interest expenses were US$0.1 million, compared
to US$0.01 million in the same period of 2025.
Net (Loss)/Income
Net loss was US$0.3 million, compared to net income
of US$9.3 million in the same period of 2025.
Adjusted Net (Loss)/Income (Non-GAAP)
Adjusted net loss, which excludes the impact of
share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax,
was US$0.6 million, compared to adjusted net income of US$0.7 million in the same period of 2025.
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA, which excludes the impact of
share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method investment, net of tax, interest
expenses, income tax expenses, and depreciation and amortization, was negative US$0.2 million, compared to positive US$1.4 million in
the same period of 2025.
Basic and Diluted (Loss)/Earnings
per ADS
Basic and diluted loss per ADS attributable to
ordinary shareholders were US$0.01 in the third quarter of 2026, compared to basic and diluted earnings per ADS of US$0.24 in the same
period of 2025.
Cash and Cash Equivalents
As of September 30, 2026, the Company had cash
and cash equivalents of US$26.5 million, compared to US$25.2 million as of June 30, 2026. The increase was primarily attributable to US$1.7
million in proceeds from the sale of our entire equity interest in Beijing Huaxianglianxin Technology Company, the net inflow of US$1.0
million from operations, and net proceeds of US$1.5 million from bank borrowings, which were partially offset by a repayment of US$3.0
million in bank borrowings.
Capital Expenditures (“CAPEX”)
CAPEX was US$0.1 million, compared to US$0.5 million
in the same period of 2025.
Business Outlook
For the fourth quarter of 2026, UCLOUDLINK expects
total revenues to be between US$22.5 million and US$25.5 million, representing an increase of 1.8% to 15.4% compared to the same period
of 2025.
The Company currently expects total revenues for
the full year of 2026 to be in the range of US$79.0 million to US$ 82.0 million, narrowing the previously announced range of US$75.0 million
to US$85.0 million.
The estimates above constitute forward-looking
information and are based on the Company’s current expectations and assumptions of market and operating conditions and customer
demand. These estimates are therefore subject to risks and uncertainties, including possible adjustments to preliminary financial results,
and are not guarantees of future performance and may differ materially from actual results.
Non-GAAP Financial Measures
To supplement the financial measures prepared
in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents, adjusted net income/(loss)
and adjusted EBITDA, as supplemental measures to review and assess the Company’s operating performance. The presentation of these
non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and
presented in accordance with U.S. GAAP. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation,
fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax. Adjusted EBITDA is defined
as net income/(loss) excluding share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method
investment, net of tax, interest expense, income tax expenses and depreciation and amortization.
The Company believes that adjusted net income/(loss)
and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses
that are included in income/(loss) from operations and net income/(loss). The Company believes that adjusted net income/(loss) and adjusted
EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects
and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non- GAAP financial measures have limitations as analytical tools.
One of the key limitations of using adjusted net income/(loss) and adjusted EBITDA is that they do not reflect all items of income and
expense that affect the Company’s operations. Share-based compensation, fair value gain/loss in other investments and share of profit/loss
in equity method investment, net of tax, have been and may continue to be incurred in the Company’s business and is not reflected
in the presentation of adjusted net income/(loss). Further, the non-GAAP financial measures may differ from the non-GAAP information used
by other companies, including peer companies, and therefore their comparability may be limited.
The Company compensates for these limitations
by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating
its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single
financial measure.
Reconciliation of each of these non-GAAP financial
measures to the most directly comparable GAAP financial measure is set forth at the end of this release.
Conference Call
The Company will host a conference call to discuss
its financial results at 8:30 a.m. U.S. Eastern Time on Wednesday, November 11, 2026 (9:30 p.m. Hong Kong Time on the same day).
Listeners may access the call by dialing:
| International: |
+61-7-3145-4010 |
| US/Canada (Toll Free): |
1-855-881-1339 |
| UK (Toll Free): |
0-800-051-8245 |
| Mainland China (Toll Free): |
4001-200-659 |
| Hong Kong (Toll Free): |
800-966-806 |
| Singapore (Toll Free): |
800-101-2785 |
Participants should dial in at least 10 minutes
before the scheduled start time and ask to be connected to the call for “UCLOUDLINK GROUP INC.”
Additionally, a live and archived webcast of the
conference call will be available at https://ir.ucloudlink.com.
A telephone replay will be available one hour
after the end of the conference until November 18, 2026 by dialing:
| US/Canada (Toll Free): |
1-855-883-1031 |
| International: |
+61-7-3107-6325 |
| Replay Passcode: |
10058236 |
About UCLOUDLINK GROUP INC.
UCLOUDLINK
is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the
telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset
and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative
cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access
to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and
competitive pricing.
Safe Harbor Statement
This announcement contains forward-looking statements.
These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,”
“future,” “intends,” “plans,” “believes,” “estimates,” “confident”
and similar statements. Among other things, the financial guidance and quotations from management in this announcement, as well as UCLOUDLINK’s
strategic and operational plans, contain forward-looking statements. UCLOUDLINK may also make written or oral forward-looking statements
in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical
facts, including but not limited to statements about UCLOUDLINK’s beliefs and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained
in any forward-looking statement, including but not limited to the following: UCLOUDLINK’s strategies; UCLOUDLINK’s future
business development, financial condition and results of operations; UCLOUDLINK’s ability to increase its user base and usage of
its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service
industry; changes in UCLOUDLINK’s revenues, costs or expenditures; governmental policies and regulations relating to the global
mobile data connectivity service industry, general economic and business conditions globally and in China; and assumptions underlying
or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with
the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the
press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law.
For more information, please contact:
| UCLOUDLINK GROUP INC. |
| Liam Xie |
| Tel: +852-2180-6111 |
| E-mail: ir@ucloudlink.com |
| |
| Investor Relations: |
| Christensen Advisory |
| Christian Arnell, Managing Director |
| Tel: +852-2117-0861 |
| E-mail: ucloudlink@christensencomms.com |
UCLOUDLINK GROUP INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands of US$, except for share and per
share data)
| | |
As of
December 31, | | |
As of
September 30, | |
| | |
2025 | | |
2026 | |
| ASSETS | |
| | |
| |
| Current assets | |
| | |
| |
| Cash and cash equivalents | |
| 32,831 | | |
| 26,486 | |
| Accounts receivable, net | |
| 4,436 | | |
| 6,634 | |
| Inventories | |
| 4,378 | | |
| 3,293 | |
| Prepayments and other current assets | |
| 4,574 | | |
| 5,188 | |
| Other investments | |
| 13,346 | | |
| 12,968 | |
| Amounts due from related parties | |
| 1,697 | | |
| 91 | |
| Total current assets | |
| 61,262 | | |
| 54,660 | |
| Non-current assets | |
| | | |
| | |
| Prepayments | |
| 43 | | |
| 63 | |
| Long-term investments | |
| 2,044 | | |
| - | |
| Property and equipment, net | |
| 2,224 | | |
| 1,078 | |
| Right-of-use assets, net | |
| 1,745 | | |
| 2,695 | |
| Intangible assets, net | |
| 511 | | |
| 437 | |
| Total non-current assets | |
| 6,567 | | |
| 4,273 | |
| TOTAL ASSETS | |
| 67,829 | | |
| 58,933 | |
| | |
| | | |
| | |
| LIABILITIES | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Short term borrowings | |
| 5,549 | | |
| 8,080 | |
| Current portion of long-term bank borrowings | |
| 68 | | |
| 1,693 | |
| Accrued expenses and other liabilities | |
| 19,343 | | |
| 16,727 | |
| Accounts payable | |
| 7,193 | | |
| 3,941 | |
| Contract liabilities | |
| 3,425 | | |
| 3,041 | |
| Operating lease liabilities | |
| 1,189 | | |
| 1,163 | |
| Total current liabilities | |
| 36,767 | | |
| 34,645 | |
| Non-current liabilities | |
| | | |
| | |
| Long term borrowings | |
| 1,622 | | |
| - | |
| Operating lease liabilities | |
| 574 | | |
| 1,470 | |
| Other non-current liabilities | |
| 58 | | |
| 28 | |
| Total non-current liabilities | |
| 2,254 | | |
| 1,498 | |
| TOTAL LIABILITIES | |
| 39,021 | | |
| 36,143 | |
| | |
| | | |
| | |
| SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Class A ordinary shares | |
| 13 | | |
| 13 | |
| Class B ordinary shares | |
| 6 | | |
| 6 | |
| Additional paid-in capital | |
| 242,421 | | |
| 242,855 | |
| Accumulated other comprehensive income | |
| 2,075 | | |
| 2,444 | |
| Accumulated losses | |
| (215,707 | ) | |
| (222,528 | ) |
| TOTAL SHAREHOLDERS’ EQUITY | |
| 28,808 | | |
| 22,790 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| 67,829 | | |
| 58,933 | |
UCLOUDLINK GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
(In thousands of US$, except for share and per
share data)
| | |
For the three months ended | | |
For the nine months ended | |
| | |
September 30,
2025 | | |
September 30,
2026 | | |
September 30,
2025 | | |
September 30,
2026 | |
| Revenues | |
| 21,154 | | |
| 21,382 | | |
| 59,279 | | |
| 56,475 | |
| Revenues from services | |
| 17,046 | | |
| 16,008 | | |
| 45,874 | | |
| 42,596 | |
| Sales of products | |
| 4,108 | | |
| 5,374 | | |
| 13,405 | | |
| 13,879 | |
| Cost of revenues | |
| (9,826 | ) | |
| (10,296 | ) | |
| (28,032 | ) | |
| (27,955 | ) |
| Cost of services | |
| (7,404 | ) | |
| (6,363 | ) | |
| (19,821 | ) | |
| (17,855 | ) |
| Cost of products sold | |
| (2,422 | ) | |
| (3,933 | ) | |
| (8,211 | ) | |
| (10,100 | ) |
| Gross profit | |
| 11,328 | | |
| 11,086 | | |
| 31,247 | | |
| 28,520 | |
| Research and development expenses | |
| (1,478 | ) | |
| (1,875 | ) | |
| (4,443 | ) | |
| (5,535 | ) |
| Sales and marketing expenses | |
| (6,692 | ) | |
| (7,012 | ) | |
| (17,888 | ) | |
| (20,050 | ) |
| General and administrative expenses | |
| (3,038 | ) | |
| (2,710 | ) | |
| (9,541 | ) | |
| (8,584 | ) |
| Other income/(expense), net | |
| 9,123 | | |
| 690 | | |
| 10,204 | | |
| (535 | ) |
| Income/(loss) from operations | |
| 9,243 | | |
| 179 | | |
| 9,579 | | |
| (6,184 | ) |
| Interest income | |
| 11 | | |
| 4 | | |
| 47 | | |
| 10 | |
| Interest expenses | |
| (21 | ) | |
| (79 | ) | |
| (137 | ) | |
| (216 | ) |
| Income/(loss) before income tax | |
| 9,233 | | |
| 104 | | |
| 9,489 | | |
| (6,390 | ) |
| Income tax credit/(expense) | |
| 72 | | |
| (13 | ) | |
| (110 | ) | |
| 8 | |
| Share of profit/(loss) in equity method investment, net of tax | |
| 1 | | |
| (435 | ) | |
| (9 | ) | |
| (439 | ) |
| Net income/(loss) | |
| 9,306 | | |
| (344 | ) | |
| 9,370 | | |
| (6,821 | ) |
| Attributable to: | |
| | | |
| | | |
| | | |
| | |
| Equity holders of the Company | |
| 9,306 | | |
| (344 | ) | |
| 9,370 | | |
| (6,821 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings/(loss) per share for Class A and Class B ordinary shares | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 0.02 | | |
| (0.00 | ) | |
| 0.02 | | |
| (0.02 | ) |
| Diluted | |
| 0.02 | | |
| (0.00 | ) | |
| 0.02 | | |
| (0.02 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings/(loss) per ADS (10 Class A shares equal to 1 ADS) | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 0.24 | | |
| (0.01 | ) | |
| 0.25 | | |
| (0.18 | ) |
| Diluted | |
| 0.24 | | |
| (0.01 | ) | |
| 0.25 | | |
| (0.18 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Shares used in earnings/(loss) per Class A and Class B ordinary share computation: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 380,145,622 | | |
| 384,234,571 | | |
| 377,864,149 | | |
| 382,336,717 | |
| Diluted | |
| 380,145,622 | | |
| 384,234,571 | | |
| 377,864,149 | | |
| 382,336,717 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income/(loss) | |
| 9,306 | | |
| (344 | ) | |
| 9,370 | | |
| (6,821 | ) |
| Other comprehensive income/(loss), net of tax | |
| | | |
| | | |
| | | |
| | |
| Foreign currency translation adjustment | |
| (195 | ) | |
| 56 | | |
| (137 | ) | |
| 369 | |
| Total comprehensive income/(loss) | |
| 9,111 | | |
| (288 | ) | |
| 9,233 | | |
| (6,452 | ) |
UCLOUDLINK GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(In thousands of US$)
| | |
For the three months ended | | |
For the nine months ended | |
| | |
September 30,
2025 | | |
September 30,
2026 | | |
September 30,
2025 | | |
September 30,
2026 | |
| Net cash (used in)/generated from operating activities | |
| (898 | ) | |
| 1,005 | | |
| (1,539 | ) | |
| (10,704 | ) |
| Net cash (used in)/generated from investing activities | |
| (536 | ) | |
| 1,589 | | |
| (1,036 | ) | |
| 1,600 | |
| Net cash (used in)/generated from financing activities | |
| (298 | ) | |
| (1,520 | ) | |
| 678 | | |
| 2,109 | |
| (Decrease)/increase in cash and cash equivalents | |
| (1,732 | ) | |
| 1,074 | | |
| (1,897 | ) | |
| (6,995 | ) |
| Cash and cash equivalents at beginning of the period | |
| 30,204 | | |
| 25,196 | | |
| 30,057 | | |
| 32,831 | |
| Effect of exchange rates on cash and cash equivalents | |
| 44 | | |
| 216 | | |
| 356 | | |
| 650 | |
| Cash and cash equivalents at end of the period | |
| 28,516 | | |
| 26,486 | | |
| 28,516 | | |
| 26,486 | |
UCLOUDLINK GROUP INC.
UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP
RESULTS
(In thousands of US$)
| | |
For the three months ended | | |
For the nine months ended | |
| | |
September 30,
2025 | | |
September 30,
2026 | | |
September 30,
2025 | | |
September 30,
2026 | |
| Reconciliation of Net Income/(Loss) to Adjusted Net Income/(Loss) | |
| | |
| | |
| | |
| |
| Net income/(loss) | |
| 9,306 | | |
| (344 | ) | |
| 9,370 | | |
| (6,821 | ) |
| Add: share-based compensation | |
| 168 | | |
| 70 | | |
| 877 | | |
| 434 | |
| fair value (gain)/loss in other investments | |
| (8,730 | ) | |
| (779 | ) | |
| (8,580 | ) | |
| 378 | |
| Less: share of (profit)/loss in equity method investment, net of tax | |
| (1 | ) | |
| 435 | | |
| 9 | | |
| 439 | |
| Adjusted net income/(loss) | |
| 743 | | |
| (618 | ) | |
| 1,676 | | |
| (5,570 | ) |
| |
|
For the three months ended |
|
|
For the nine months ended |
|
| |
|
September 30,
2025 |
|
|
September 30,
2026 |
|
|
September 30,
2025 |
|
|
September 30,
2026 |
|
| Reconciliation of Net Income/(Loss) to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income/(loss) |
|
|
9,306 |
|
|
|
(344 |
) |
|
|
9,370 |
|
|
|
(6,821 |
) |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
21 |
|
|
|
79 |
|
|
|
137 |
|
|
|
216 |
|
| Income tax (credit)/expense |
|
|
(72 |
) |
|
|
13 |
|
|
|
110 |
|
|
|
(8 |
) |
| Depreciation and amortization |
|
|
662 |
|
|
|
336 |
|
|
|
2,173 |
|
|
|
1,411 |
|
| EBITDA |
|
|
9,917 |
|
|
|
84 |
|
|
|
11,790 |
|
|
|
(5,202 |
) |
| Add: share-based compensation |
|
|
168 |
|
|
|
70 |
|
|
|
877 |
|
|
|
434 |
|
| fair value (gain)/loss in other investments |
|
|
(8,730 |
) |
|
|
(779 |
) |
|
|
(8,580 |
) |
|
|
378 |
|
| Less: share of (profit)/loss in equity method investment, net of tax |
|
|
(1 |
) |
|
|
435 |
|
|
|
9 |
|
|
|
439 |
|
| Adjusted EBITDA |
|
|
1,354 |
|
|
|
(190 |
) |
|
|
4,096 |
|
|
|
(3,951 |
) |
