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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 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
$4.00
▼(-4.76% Downside)
Action:Reiterated
Date:05/14/26
Overall score reflects ongoing fundamental headwinds (multi-year revenue contraction and continued losses) partially offset by improved financial resilience (lower leverage and positive free cash flow) and an earnings call that emphasized tangible cost/working-capital execution with reaffirmed FY2026 adjusted EPS guidance. Technicals remain weak with the stock trading below major moving averages.
Positive Factors
Improving leverage
Material reduction in debt and low debt-to-equity provide durable financial flexibility: lower interest burden and greater capacity to fund working capital, restructure operations, or support product investments. This reduces solvency risk and supports multi‑quarter strategic execution.
Negative Factors
Multi-year revenue decline
Persistent multi‑year top-line contraction signals structural demand loss or competitive displacement in core markets. Shrinking scale impairs fixed-cost absorption, reduces bargaining power with suppliers, and limits ability to reinvest in R&D and go‑to‑market over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
Material reduction in debt and low debt-to-equity provide durable financial flexibility: lower interest burden and greater capacity to fund working capital, restructure operations, or support product investments. This reduces solvency risk and supports multi‑quarter strategic execution.
Read all positive factors

Universal Electronics Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Chart Insights
Data provided by:The Fly

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

Universal Electronics Business Overview & Revenue Model

Company Description
Universal Electronics Inc. designs, develops, manufactures, and sells pre-programmed and universal control products, audio-video (AV) accessories, and intelligent wireless security and smart home products for video services, consumer electronics, ...
How the Company Makes Money
UEIC makes money primarily by selling control-related products and solutions to business customers in the home entertainment and smart home markets. Key revenue streams include: (1) Hardware product sales: sales of remote controls and other contro...

Universal Electronics Earnings Call Summary

Earnings Call Date:May 11, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call balances clear near-term challenges—most notably a meaningful revenue decline (−14.4% YoY), continued operating losses, margin pressure from mix, tariffs and commodity costs, and market headwinds in Europe and set-top boxes—with concrete early execution successes including $5.3M of operating expense reductions, a $9.8M inventory reduction, improved adjusted non-GAAP net loss and per-share metrics, and reaffirmed FY26 adjusted EPS guidance ($0.45–$0.65). Management’s focus is on cost alignment, R&D prioritization, working capital discipline and preserving customer relationships while acknowledging slower-than-expected demand recovery.
Positive Updates
Revenue and Segment Detail Provided
Total revenue of $79.0M for Q1 FY2026 (down 14.4% YoY from $92.3M). Management provided segment breakdown: Connected Home net sales $28.3M (down ~10.7% YoY from $31.7M) and Home Entertainment net sales $50.7M (down ~16.3% YoY from $60.6M), improving transparency into drivers of the top-line decline.
Negative Updates
Significant Top-Line Decline
Total revenue decreased 14.4% YoY to $79.0M, with both end markets contributing to the decline (Connected Home down ~10.7%, Home Entertainment down ~16.3%), reflecting secular pressures and delayed deployments.
Read all updates
Q1-2026 Updates
Negative
Revenue and Segment Detail Provided
Total revenue of $79.0M for Q1 FY2026 (down 14.4% YoY from $92.3M). Management provided segment breakdown: Connected Home net sales $28.3M (down ~10.7% YoY from $31.7M) and Home Entertainment net sales $50.7M (down ~16.3% YoY from $60.6M), improving transparency into drivers of the top-line decline.
Read all positive updates
Company Guidance
The company reaffirmed its FY2026 framework and expects revenue to decline year‑over‑year while delivering adjusted non‑GAAP diluted EPS of $0.45–$0.65 (vs. $0.31 in FY2025), with that outlook grounded in execution—cost alignment, portfolio focus, and working capital discipline—rather than a near‑term demand rebound. In Q1, revenue was $79.0M (down 14.4% YoY from $92.3M) with connected home sales of $28.3M (vs. $31.7M) and home entertainment sales of $50.7M (vs. $60.6M); adjusted non‑GAAP gross profit was $20.6M (26.1% of sales, down from 28.3%), with a 1.7‑point unfavorable product‑mix impact, GAAP operating loss of $3.9M (adjusted non‑GAAP operating loss $1.6M), adjusted non‑GAAP net loss of $1.3M or $0.10 per share (vs. $1.5M, $0.12), cash of $29.8M, operating cash flow down $0.8M, inventories reduced by $9.8M, A/R and contract assets down ~$0.8M sequentially, operating expenses down $5.3M YoY (R&D $5.4M vs. $7.2M, SG&A down $3.5M), expected ~ $5M of annualized labor cost savings and approximately $1.3M of one‑time severance.

Universal Electronics Financial Statement Overview

Summary
Fundamentals are mixed: multi-year revenue decline and continued losses (negative net margin and negative EBIT in TTM) weigh heavily, but balance-sheet risk is moderated by reduced leverage (debt-to-equity ~0.24) and a solid equity base. Cash flow is a relative strength with positive TTM operating cash flow (~$13.9M) and free cash flow (~$8.5M), though both have weakened versus 2025, raising durability concerns.
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue355.00M368.29M394.88M420.46M542.75M601.60M
Gross Profit96.55M103.25M113.99M97.56M152.29M173.02M
EBITDA8.18M14.11M10.52M-9.28M38.58M50.00M
Net Income-19.66M-18.60M-24.03M-98.24M407.00K5.30M
Balance Sheet
Total Assets255.14M274.00M323.35M355.87M504.16M510.35M
Cash, Cash Equivalents and Short-Term Investments29.83M32.31M26.78M42.75M66.74M60.81M
Total Debt33.25M33.48M49.74M72.37M108.54M75.03M
Total Liabilities115.82M127.81M170.25M176.95M235.76M234.40M
Stockholders Equity139.32M146.18M153.10M178.92M268.41M275.95M
Cash Flow
Free Cash Flow8.46M19.75M6.39M11.31M-9.66M23.24M
Operating Cash Flow13.86M23.63M14.82M25.19M10.93M40.28M
Investing Cash Flow-6.01M-6.75M-8.43M-13.88M-21.21M-17.04M
Financing Cash Flow-11.38M-16.66M-19.76M-34.78M20.50M-22.03M

Universal Electronics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.20
Price Trends
50DMA
4.19
Negative
100DMA
4.02
Negative
200DMA
4.10
Negative
Market Momentum
MACD
-0.07
Positive
RSI
42.31
Neutral
STOCH
23.46
Neutral
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 4.2 is above the 20-day moving average (MA) of 4.18, above the 50-day MA of 4.19, and above the 200-day MA of 4.10, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 23.46 is Neutral, 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 49 risk factors in its most recent earnings report. Universal Electronics reported the most risks in the "Finance & Corporate" 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
$1.79B5.99%-0.22%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
$216.34M1.02%-21.70%-93.37%
50
Neutral
$50.77M-1.77-13.45%-10.20%9.43%
48
Neutral
$37.87M-15.50-3.62%3.28%-44.36%
48
Neutral
$129.33M-17.94%42.35%46.12%
42
Neutral
$185.77M-201.66%-21.02%12.80%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UEIC
Universal Electronics
4.02
-2.80
-41.06%
GPRO
GoPro
0.96
0.37
61.89%
KOSS
Koss
4.00
-1.89
-32.09%
TBCH
Turtle Beach
10.71
-0.41
-3.69%
ZEPP
Zepp Health
8.81
6.19
236.26%
SONO
Sonos
15.02
5.17
52.49%

Universal Electronics Corporate Events

Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Universal Electronics Highlights 2025 Results Amid Ongoing Challenges
Positive
Mar 12, 2026
On March 11, 2026, Universal Electronics amended its long‑standing credit agreement, doubling the cap on restricted payments to $8 million, a move that provides greater balance sheet flexibility for capital allocation. The same day, the boar...
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: May 14, 2026