uCloudlink Group (UCL) AI Stock Analysis

• Market Cap: $90.34M
• Dividend Yield: N/A
• Average Volume (3M): 106.11K
• Price to Earnings (P/E): 46.0
• Beta (1Y): 0.50
• Revenue Growth: 3.83%
• EPS Growth: -55.18%
• Country: US
• Employees: 404
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): <0.01
• Shares Outstanding: 25,425,346
• 10 Day Avg. Volume: 65,104
• 30 Day Avg. Volume: 106,106
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: $2.50
• Price Target Upside: 4.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: $2.50 ▲(4.60% Upside)

uCloudlink Group's overall stock score reflects a mix of positive financial performance and growth in new product lines, offset by bearish technical indicators, overvaluation concerns, and challenges highlighted in the earnings call. The company's strong operational efficiency and cash flow management are significant strengths, but the decline in revenue and revised guidance pose risks.

uCloudlink Group Business Overview & Revenue Model

Company Description

uCloudlink Group Inc. (UCL) is a leading mobile data traffic sharing platform that specializes in providing global connectivity solutions. The company operates in the telecommunications sector, focusing on cloud-based mobile data services. Its core products include portable Wi-Fi devices, global data plans, and platforms that enable users to share mobile data seamlessly across various devices and geographical locations. UCL aims to enhance connectivity for travelers and businesses that require reliable internet access while on the move.

How the Company Makes Money

uCloudlink generates revenue primarily through the sale of its portable Wi-Fi devices and subscription-based data plans. Customers purchase these devices and pay for access to mobile data services, which are often sold on a pay-as-you-go basis or through monthly subscriptions. Key revenue streams also include partnerships with local telecom operators to provide data services in specific regions, enabling UCL to offer competitive pricing and extensive coverage. Additionally, the company monetizes its technology through licensing agreements and collaborations with other firms in the telecommunications sector. Promotions and marketing partnerships further contribute to its earnings, allowing UCL to reach broader markets and enhance customer acquisition.

uCloudlink Group Financial Statement Overview

Summary

uCloudlink Group shows a positive growth trajectory with improved profitability and cash flow metrics. However, a slight decline in EBIT and EBITDA and high liabilities compared to assets require vigilance.

Income Statement

uCloudlink Group has shown a positive trajectory in profitability with a TTM Gross Profit Margin of 47.8% and a Net Profit Margin of 3.8%. Revenue has grown steadily, as evidenced by a 7.8% increase from 2023 to 2024. The company has improved its EBIT and EBITDA margins to 3.7% and 5.3%, respectively, indicating strong operational efficiency gains. However, the decline in EBIT and EBITDA from the previous annual report suggests a need for caution in sustaining operational performance.

Balance Sheet

The company's Debt-to-Equity Ratio of 0.49 reflects moderate leverage, supporting financial stability. The Return on Equity of 16.5% is impressive, indicating effective utilization of shareholder funds. The Equity Ratio stands at 34.0%, highlighting a balanced approach towards financing through equity. Despite these strengths, total liabilities remain high relative to total assets, suggesting potential risks in financial flexibility.

Cash Flow

uCloudlink Group has demonstrated a strong Free Cash Flow growth of 12.2% from 2023 to 2024, indicating improved cash generation capability. The Operating Cash Flow to Net Income Ratio of 2.13 suggests robust cash flow management. However, the Free Cash Flow to Net Income Ratio of 1.42, while positive, indicates room for improvement in converting net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.26M	91.64M	85.58M	71.46M	73.82M	89.57M
Gross Profit	44.05M	44.36M	41.97M	32.53M	21.83M	28.30M
EBITDA	4.90M	6.94M	3.78M	-18.19M	-43.73M	-60.68M
Net Income	3.51M	4.56M	2.81M	-19.93M	-46.33M	-63.41M
Balance Sheet
Total Assets	62.74M	64.98M	56.61M	45.93M	67.13M	97.25M
Cash, Cash Equivalents and Short-Term Investments	39.05M	38.76M	30.98M	26.81M	20.65M	41.37M
Total Debt	10.37M	9.90M	7.67M	3.06M	3.18M	3.70M
Total Liabilities	41.41M	43.36M	40.55M	36.64M	47.03M	40.86M
Stockholders Equity	21.33M	21.62M	16.05M	9.29M	20.09M	56.39M
Cash Flow
Free Cash Flow	4.98M	5.19M	4.44M	3.98M	-22.62M	-3.77M
Operating Cash Flow	7.48M	9.19M	6.51M	4.40M	-21.74M	-2.04M
Investing Cash Flow	-3.52M	-3.76M	-240.00K	-162.00K	-935.00K	-35.44M
Financing Cash Flow	2.53M	1.73M	2.51M	3.54M	735.00K	26.68M

uCloudlink Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCL, the sentiment is Negative. The current price of 2.39 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 2.93, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCL.

uCloudlink Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXDO	77 Outperform	$202.14M	66.80	3.26%	―	13.10%	1.03%
SIFY	61 Neutral	$932.60M	―	-3.90%	―	10.20%	―
UCL	57 Neutral	$90.34M	46.05	9.29%	―	3.83%	-55.18%
KORE	49 Neutral	$44.26M	-0.61	146.66%	―	0.24%	68.22%
ATNI	48 Neutral	$237.86M	-4.63	-9.83%	6.38%	-5.33%	-334.05%
FNGR	47 Neutral	$95.65M	-16.08	-37.45%	―	11.55%	-26.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

uCloudlink Group Corporate Events

uCloudlink Reports Q2 2025 Results Amid Strategic Growth Plans

On August 13, 2025, uCloudlink Group Inc. announced its unaudited financial results for the second quarter of 2025, revealing a 13.3% decrease in total revenues compared to the same period in 2024. Despite the decline in financial performance, the company reported growth in data consumption and active terminals, reflecting the resilience of its business strategy amidst macroeconomic challenges. The company is poised for future growth with strategic investments in R&D and marketing, particularly with the upcoming launch of the PetPhone and other innovative products, which are expected to strengthen its market position and expand its global reach.