Ubiquiti Networks (UI) AI Stock Analysis

• Market Cap: $45.99B
• Dividend Yield: 0.49%
• Average Volume (3M): 109.42K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.55
• Revenue Growth: 36.77%
• EPS Growth: 102.83%
• Country: US
• Employees: 1,515
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.88
• Shares Outstanding: 60,520,794
• 10 Day Avg. Volume: 90,238
• 30 Day Avg. Volume: 109,418
• PEG Ratio: 0.34
• Price to Book (P/B): 37.26
• Price to Sales (P/S): 9.67
• P/FCF Ratio: 39.68
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 15.43
• Enterprise Value/Gross Profit: 33.97
• Enterprise Value/Ebitda: 43.11
• 1Y Price Target: $623.50
• Price Target Upside: -17.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 12.53
• Revenue Forecast (FY): $3.06B

• Rating: 74 Outperform
• Price Target: $851.00 ▲(12.00% Upside)
• Action: Upgraded Date: 02/07/26
• Date: Action: Upgraded 02/07/26

The score is driven primarily by strong financial performance (high margins and robust free cash flow), supported by constructive technical momentum. The main offset is valuation, with a high P/E and a low dividend yield, and historical volatility in cash flow and capital structure adds risk despite strong current fundamentals.

Positive Factors

High profitability margins

Sustained high gross and net margins indicate durable product-level economics and pricing power. These margins support reinvestment in R&D, platform development and higher returns on incremental sales, making core profitability a long-term structural strength even through modest top-line cycles.

Robust free cash flow generation

Consistently strong operating and free cash flow with FCF roughly matching net income signals high earnings quality and internal funding capacity. This cash generation allows for capex, product investment, and capital returns without reliance on external financing, strengthening durability.

Conservative balance sheet with low leverage

Low debt levels and a rebuilt equity base provide financial flexibility to absorb shocks, fund strategic initiatives, and support multi-year product cycles. The improved capital structure reduces refinancing risk and enhances resilience through cyclical downturns.

Negative Factors

Historical cash flow volatility

Prior negative cash flow shows working-capital and timing sensitivity that can reverse FCF in adverse periods. Such swings complicate long-range planning, force countercyclical financing or cutbacks, and mean current cash strength may not persist through every cycle.

Cyclical revenue and margin variability

Historic swings in revenue and margins reflect sensitivity to upgrade cycles and channel demand. This variability undermines predictability for capacity planning and long-term margin guidance, increasing execution risk versus firms with steadier recurring revenues.

Hardware-centric, unit-volume dependence

A business model reliant on one-time hardware sales and channel-driven unit volumes limits recurring revenue and exposes results to product refresh timing. Without a larger subscription base, revenue predictability and margin resilience are more exposed to competitive and macro cycles.

Ubiquiti Networks Business Overview & Revenue Model

Company Description

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows for on-site and remote management through the cloud; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise class router and security gateway device; and UniFi Access, a door access system. Further, offers base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; antennas; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors, online retailers, and direct to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

How the Company Makes Money

Ubiquiti makes money primarily by selling networking hardware products, with revenue recognized from product sales through a global network of distributors, resellers, and other channel partners rather than predominantly through direct-to-consumer sales. Key revenue streams are (1) enterprise networking products (commonly associated with the UniFi platform), including Wi‑Fi access points, switches, gateways/routers, and related network management software that is typically bundled with the hardware to enable configuration and monitoring; and (2) service-provider and operator-oriented products (commonly associated with the UISP ecosystem), including wireless backhaul/point-to-point and point-to-multipoint gear, routing and switching for ISP deployments, and network management tools used by wireless internet service providers and other operators. The company’s earnings are therefore driven mainly by unit volumes, product mix (higher- vs. lower-priced hardware), and channel demand in networking upgrade cycles (e.g., Wi‑Fi refreshes, multi-site expansions, and ISP network buildouts). Information on specific, material revenue-sharing partnerships, recurring subscription breakdowns, or per-product margin details is null.

Ubiquiti Networks Financial Statement Overview

Summary

Strong TTM profitability (~45% gross margin, ~30% net margin), solid revenue growth (~7.8%), and excellent cash generation (TTM FCF ~$708M, ~20% FCF growth, strong cash conversion). Offsetting this, results have shown meaningful historical volatility (including negative cash flow in 2023 and prior swings in equity/leverage), increasing cyclicality risk despite a currently conservative balance sheet (debt-to-equity ~0.10).

Income Statement

TTM (Trailing-Twelve-Months) results show strong profitability with a ~45% gross margin and ~30% net margin, alongside solid ~7.8% revenue growth. Profitability has also improved versus the prior annual period (higher margins and higher net income). The main weakness is that growth and margins have been volatile over the past few years (including a flat-to-down revenue year in 2024 and earlier variability), suggesting some cyclicality and sensitivity to demand/competitive conditions.

Balance Sheet

The balance sheet looks conservative in TTM (Trailing-Twelve-Months) with low leverage (debt-to-equity ~0.10) and over $1.0B of equity, a notable improvement from earlier years when equity was very thin or negative and leverage appeared elevated. Returns on equity are exceptionally high in the recent periods, reflecting strong profitability but also indicating that equity levels have been a moving target historically. Key risk: the company’s capital structure has shown meaningful swings across prior annual reports, which can increase uncertainty around balance-sheet durability through cycles.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow (~$716M) and free cash flow (~$708M) are robust, with free cash flow growth of ~20%. Cash conversion is strong, with free cash flow roughly matching net income, supporting earnings quality. The primary drawback is historical volatility—cash flow was negative in 2023—showing that working-capital or timing effects can meaningfully swing cash generation in certain periods.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.97B	2.57B	1.93B	1.94B	1.69B	1.90B
Gross Profit	1.35B	1.12B	739.76M	760.73M	669.81M	912.28M
EBITDA	1.06B	858.18M	518.25M	560.86M	475.95M	754.69M
Net Income	888.63M	711.92M	349.96M	407.64M	378.66M	616.58M
Balance Sheet
Total Assets	1.61B	1.47B	1.15B	1.41B	844.71M	890.99M
Cash, Cash Equivalents and Short-Term Investments	302.82M	149.73M	126.34M	114.94M	136.65M	250.74M
Total Debt	174.10M	297.42M	757.29M	1.14B	853.26M	532.30M
Total Liabilities	592.63M	798.19M	1.06B	1.52B	1.23B	888.29M
Stockholders Equity	1.02B	668.26M	95.06M	-115.73M	-382.88M	2.70M
Cash Flow
Free Cash Flow	708.29M	627.44M	529.54M	-166.36M	356.79M	593.70M
Operating Cash Flow	716.29M	640.03M	541.52M	-145.43M	370.26M	612.02M
Investing Cash Flow	-16.79M	-12.59M	-11.97M	-20.93M	-11.18M	-19.27M
Financing Cash Flow	-529.77M	-604.06M	-518.02M	144.96M	-472.27M	-485.95M

Ubiquiti Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 759.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UI, the sentiment is Positive. The current price of 759.84 is above the 20-day moving average (MA) of 751.99, above the 50-day MA of 649.46, and above the 200-day MA of 566.22, indicating a bullish trend. The MACD of 31.68 indicates Positive momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UI.

Ubiquiti Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UI	74 Outperform	$45.99B	35.83	120.56%	0.49%	36.77%	102.83%
CSCO	74 Outperform	$309.40B	23.23	23.64%	2.09%	8.91%	14.53%
ERIC	70 Outperform	$38.36B	11.10	29.57%	2.51%	1.04%	―
ZBRA	66 Neutral	$9.97B	29.45	11.50%	―	13.35%	34.73%
HPE	65 Neutral	$28.63B	17.34	-0.64%	2.17%	14.17%	-102.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NOK	59 Neutral	$46.03B	15.06	4.38%	2.26%	5.05%	115.92%