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Universal Electronics Inc. (UEIC)
NASDAQ:UEIC
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Universal Electronics (UEIC) AI Stock Analysis

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UEIC

Universal Electronics

(NASDAQ:UEIC)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
$3.00
▲(8.70% Upside)
Universal Electronics is currently facing significant financial and operational challenges, with declining revenues and profitability. The technical analysis indicates a bearish trend, and the valuation is unattractive due to ongoing losses. While there are some positive developments in the connected home segment and cost management, these are overshadowed by broader market challenges and a cautious outlook.

Universal Electronics (UEIC) vs. SPDR S&P 500 ETF (SPY)

Universal Electronics Business Overview & Revenue Model

Company DescriptionUniversal Electronics Inc. (UEIC) is a leading global provider of innovative technology solutions for the connected home. The company operates primarily in the consumer electronics sector, specializing in the design and development of remote control devices, smart home products, and software solutions that enhance user experiences across various platforms. UEIC's core offerings include universal remote controls, voice-controlled devices, and automation solutions that integrate with a wide range of entertainment systems and smart home technologies.
How the Company Makes MoneyUniversal Electronics generates revenue primarily through the sale of its consumer electronics products, including remote controls, smart home devices, and audio video control systems. Key revenue streams include direct sales to original equipment manufacturers (OEMs), retail partnerships, and licensing agreements for their patented technologies. The company also benefits from recurring revenue through software updates and subscription services that enhance the functionality of their products. Significant partnerships with major global brands in the entertainment and technology sectors further bolster UEIC's market position and contribute to its earnings by securing long-term contracts and collaborative product development initiatives.

Universal Electronics Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable achievements in connected home growth, cost reductions, and product innovations. However, these were countered by significant revenue declines, gross margin challenges, and a subdued outlook for the next quarter.
Q3-2025 Updates
Positive Updates
Connected Home Growth
Connected home channel grew 13% to $29.8 million, driven by strong performance from new products launched earlier this year.
Net Cash Position Improvement
Net cash position increased significantly by $9.1 million, with a total of $13.2 million as of September 30, 2025.
Cost Reduction Initiatives
Operating expenses decreased to $24.8 million from $28.2 million in the prior year, reflecting ongoing benefits of cost reduction initiatives.
New Product Launches
Secured new design win for batteryless hybrid supercap remote control and commitments for QuickSet Cloud platform across smart TV customers.
Trial Date Set for Litigation Against Roku
Trial date for ongoing litigation against Roku has been set for March 2027, viewed as a favorable timeline.
Negative Updates
Revenue Decline
Net sales were $90.6 million, down 11% from the prior year period, with home entertainment sales declining 20%.
Gross Margin Headwinds
Gross margin was 29.1%, impacted by tariff timing, reducing margin by approximately 120 basis points.
Guidance for Q4 2025
Net sales for Q4 2025 expected to decline compared to Q4 2024, with potential revenue decrease in connected home sales by 13% to 24%.
Home Entertainment Challenges
Soft demand for subscription broadcasting products in Latin America and EMEA, and broader industry weakness in consumer electronics.
Company Guidance
During the third quarter of 2025, Universal Electronics reported revenue of $90.6 million, a decrease from the prior year due to temporary and structural market factors, facing challenges in home entertainment markets, particularly in Latin America and Europe. Despite these headwinds, the connected home channel saw a 13% revenue growth, driven by new product launches and expanded scale with existing customers. The company's gross margin stood at 29.1%, with earnings per share (EPS) within the guidance range at $0.08. Net cash increased by $9.1 million, reflecting disciplined execution amidst a challenging environment. Universal Electronics is focused on diversifying into adjacent markets like utilities and multi-dwelling unit property management and expects full-year growth for the connected home segment. The company also projects annualized cost savings of approximately $5 million starting in the fourth quarter, following strategic cost reductions and facility closures. For the fourth quarter, they anticipate net sales between $82 million and $92 million, with an expected year-over-year revenue decline but an overall profitable year, marking the first since 2022.

Universal Electronics Financial Statement Overview

Summary
Universal Electronics faces challenges with declining revenues and profitability, as evidenced by negative margins and net losses. While leverage has improved, the company still struggles with generating positive returns on equity. Cash flow management shows signs of improvement, but overall financial health remains a concern.
Income Statement
45
Neutral
Universal Electronics has experienced declining revenue over the past few years, with a negative revenue growth rate in the TTM period. The gross profit margin has remained relatively stable, but the net profit margin is negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. However, the return on equity remains negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is stable, reflecting a balanced asset structure.
Cash Flow
60
Neutral
Free cash flow has shown positive growth in the TTM period, and the operating cash flow to net income ratio is improving, indicating better cash management. However, the free cash flow to net income ratio suggests that cash flow generation is still not fully aligned with profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue391.00M394.88M420.46M542.75M601.60M614.68M
Gross Profit111.72M113.99M97.56M152.29M173.02M176.26M
EBITDA6.62M10.52M-9.28M38.58M50.00M67.00M
Net Income-22.04M-24.03M-98.24M407.00K5.30M38.57M
Balance Sheet
Total Assets280.70M323.35M355.87M504.16M510.35M510.29M
Cash, Cash Equivalents and Short-Term Investments31.51M26.78M42.75M66.74M60.81M57.15M
Total Debt25.14M49.74M72.37M108.54M75.03M39.77M
Total Liabilities134.55M170.25M176.95M235.76M234.40M196.99M
Stockholders Equity146.15M153.10M178.92M268.41M275.95M313.30M
Cash Flow
Free Cash Flow27.94M6.39M11.31M-9.66M23.24M50.16M
Operating Cash Flow34.32M14.82M25.19M10.93M40.28M73.39M
Investing Cash Flow-7.44M-8.43M-13.88M-21.21M-17.04M-23.73M
Financing Cash Flow-22.50M-19.76M-34.78M20.50M-22.03M-65.96M

Universal Electronics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.76
Price Trends
50DMA
4.13
Negative
100DMA
4.91
Negative
200DMA
5.83
Negative
Market Momentum
MACD
-0.42
Positive
RSI
21.57
Positive
STOCH
5.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UEIC, the sentiment is Negative. The current price of 2.76 is below the 20-day moving average (MA) of 3.46, below the 50-day MA of 4.13, and below the 200-day MA of 5.83, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 21.57 is Positive, neither overbought nor oversold. The STOCH value of 5.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UEIC.

Universal Electronics Risk Analysis

Universal Electronics disclosed 45 risk factors in its most recent earnings report. Universal Electronics reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Universal Electronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$259.35M15.5717.19%6.43%196.68%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
49
Neutral
$43.59M-198.71-0.69%11.58%81.08%
49
Neutral
$532.62M-7.68-24.39%13.27%-66.48%
47
Neutral
$37.56M-14.35%2.35%18.83%
43
Neutral
$174.68M-4.18-96.37%-4.31%59.68%
41
Neutral
$248.42M-91.95%-27.37%70.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UEIC
Universal Electronics
2.76
-8.57
-75.64%
GPRO
GoPro
1.45
0.23
18.85%
KOSS
Koss
4.57
-2.52
-35.54%
TBCH
Turtle Beach
12.59
-3.19
-20.22%
VUZI
Vuzix
2.05
0.34
19.88%
ZEPP
Zepp Health
24.12
21.64
872.58%

Universal Electronics Corporate Events

Universal Electronics Inc. Earnings Call: Mixed Sentiments and Strategic Shifts
Nov 8, 2025

The recent earnings call for Universal Electronics Inc. revealed a mixed sentiment, highlighting both achievements and challenges. While the company celebrated growth in the connected home sector, cost reductions, and innovative product launches, these positives were overshadowed by significant revenue declines, gross margin pressures, and a cautious outlook for the upcoming quarter.

Universal Electronics Inc. Reports Q3 2025 Financial Results
Nov 7, 2025

Universal Electronics Inc. (UEI) is a leading provider of wireless universal control solutions for the home, specializing in user-centric control products and applications that simplify interactions with complex home technologies. The company operates primarily in the home entertainment and connected home markets, serving major global brands.

Stock Buyback
Universal Electronics Extends Share Repurchase Program
Neutral
Nov 6, 2025

On November 4, 2025, Universal Electronics‘ Board of Directors authorized the continuation of a share repurchase program initially approved in October 2023. This program allows the company to repurchase up to $3.5 million worth of its common stock or 778,362 shares, whichever is less, using various methods including open-market transactions. The authorization remains effective until the Board decides otherwise or the program is fully executed, with no obligation for the company to repurchase shares, as repurchases depend on market conditions.

The most recent analyst rating on (UEIC) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Universal Electronics stock, see the UEIC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 21, 2025