Executive Summary
Ubiquiti’s QQ2 2025 results demonstrate meaningful top-line growth and resilient profitability, supported by a diversified product ecosystem and a scalable cloud-managed networking platform. Revenue rose to $599.9 million, up 29.0% year-over-year and 9.0% quarter-over-quarter, driven by strength across enterprise WLAN, carrier-grade products, and consumer networks. Gross margin expanded to ~41.2%, contributing to an EBITDA margin near 30.6% and a net margin of ~22.8%, with net income of $136.8 million and diluted EPS of $2.26.
The company generated robust cash flow, with operating cash flow of $152.4 million and free cash flow of $150.4 million, underscoring financial flexibility to invest in growth while reducing leverage. Balance-sheet metrics show a solid current ratio (2.22) and substantial liquidity ($133.1 million cash), but the firm carries elevated absolute debt levels (total debt $451.3 million; net debt $318.2 million) and a relatively high inventory level that contributed to a longer cash conversion cycle. Valuation remains rich by traditional metrics (P/E ~37x, P/S ~34x, P/B ~70x), reflecting investor confidence in durable profitability and growth potential from the UniFi ecosystem and enterprise product lines.
Overall, the QQ2 results reinforce Ubiquiti’s position as a high-margin hardware and software-enabled networking solutions provider with strong cash generation. Management commentary is not included in the provided transcript dataset, so the forward-looking statements below synthesize quantitative results with industry context and plausible catalysts for the next quarters.
Key Performance Indicators
Key Insights
Revenue: $599.9M (+29.02% YoY; +9.00% QoQ). Gross Profit: $247.23M; Gross Margin: 41.21% (+39.17% YoY; +6.74% QoQ). Operating Income: $178.81M; Operating Margin: 29.81% (+47.65% YoY; +5.68% QoQ). Net Income: $136.80M; Net Margin: 22.80% (+66.59% YoY; +6.88% QoQ). EPS: $2.26 (diluted) (+66.18% YoY; +6.60% QoQ). EBITDA: $183.40M; EBITDA Margin: 30.57%....
Financial Highlights
Revenue: $599.9M (+29.02% YoY; +9.00% QoQ). Gross Profit: $247.23M; Gross Margin: 41.21% (+39.17% YoY; +6.74% QoQ). Operating Income: $178.81M; Operating Margin: 29.81% (+47.65% YoY; +5.68% QoQ). Net Income: $136.80M; Net Margin: 22.80% (+66.59% YoY; +6.88% QoQ). EPS: $2.26 (diluted) (+66.18% YoY; +6.60% QoQ). EBITDA: $183.40M; EBITDA Margin: 30.57%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
599.88M |
29.02% |
9.00% |
| Gross Profit |
247.23M |
39.17% |
6.74% |
| Operating Income |
178.81M |
47.65% |
5.68% |
| Net Income |
136.80M |
66.59% |
6.88% |
| EPS |
2.26 |
66.18% |
6.60% |
Key Financial Ratios
operatingProfitMargin
29.8%
operatingCashFlowPerShare
$2.52
freeCashFlowPerShare
$2.49
dividendPayoutRatio
26.5%
Management Commentary
Transcript not provided in the dataset. No management quotes are available from an earnings call (earningsTranscript: []).
Forward Guidance
No explicit forward guidance is contained in the provided data. Based on QQ2 2025 fundamentals, the sustainable drivers for Ubiquiti appear to be: (i) expansion of the UniFi ecosystem and cloud-managed networking sales into enterprise and service-provider segments; (ii) ongoing demand for high-margin network infrastructure hardware (routing, switching, WLAN, and video surveillance) with potential software monetization via cloud services. Risks to outlook include macro volatility, competition, and supply-chain dynamics affecting inventory levels. Investors should monitor (a) inventory levels and cash conversion cycle (DIO) as a signal of demand alignment and working-capital efficiency, (b) leverage dynamics and interest coverage given elevated debt, (c) cadence of product cycle refreshes and any shifts toward subscription-based software revenues, and (d) currency and regulatory considerations for the LSE-listed issuer and USD-denominated reporting.