Ubiquiti Networks (UI) AI Stock Analysis

• Market Cap: $33.96B
• Dividend Yield: 0.5%
• Average Volume (3M): 144.88K
• Price to Earnings (P/E): 42.9
• Beta (1Y): 1.59
• Revenue Growth: 36.77%
• EPS Growth: 102.83%
• Country: US
• Employees: 1,515
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.46
• Shares Outstanding: 60,499,657
• 10 Day Avg. Volume: 111,561
• 30 Day Avg. Volume: 144,883
• 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: 1.18
• Enterprise Value/Revenue: 14.51
• Enterprise Value/Gross Profit: 32.70
• Enterprise Value/Ebitda: 42.13
• 1Y Price Target: $587.50
• Price Target Upside: 5.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 11.78
• Revenue Forecast (FY): $2.90B

• Rating: 60 Neutral
• Price Target: $569.00 ▲(2.50% Upside)

The overall stock score reflects strong financial performance, but is tempered by negative technical indicators and a high valuation. The company's profitability and cash flow generation are strengths, but the stock's current bearish momentum and high P/E ratio suggest caution.

Positive Factors

Revenue Growth

The significant year-over-year revenue increase demonstrates strong demand for Ubiquiti's products, indicating robust market position and potential for sustained growth.

Profitability Margins

High profitability margins reflect efficient operations and pricing power, suggesting the company can maintain strong earnings performance over time.

Leverage Management

Improved leverage management indicates better financial stability, reducing risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could pressure liquidity, potentially limiting the company's ability to fund operations and growth initiatives without additional financing.

Low Equity Levels

Low equity levels can pose financial risks, especially during economic downturns, as it limits the company's ability to absorb losses and invest in future growth.

Cash Generation Lag

Cash generation slightly lagging behind net income indicates potential issues in converting earnings into cash, which could affect liquidity and operational flexibility.

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 Networks generates revenue primarily through the sale of its networking hardware, software, and services. The company's revenue model is based on direct sales to customers, distributors, and resellers, with a significant portion of its earnings coming from the sale of routers, switches, and wireless access points. Key revenue streams include hardware sales, recurring subscription services for software licensing, and cloud management services. Ubiquiti also benefits from strategic partnerships with internet service providers (ISPs) and other telecommunications companies, which help expand its market reach and customer base. Additionally, the company's focus on cost-effective solutions allows it to maintain competitive pricing while achieving healthy profit margins.

Ubiquiti Networks Financial Statement Overview

Summary

Ubiquiti Networks demonstrates strong profitability and operational efficiency, with robust margins and cash flow generation. However, inconsistent revenue growth and a low equity ratio pose potential risks.

Income Statement

Ubiquiti Networks shows strong profitability with a consistent gross profit margin of around 43% and a net profit margin of approximately 27% in the TTM period. The revenue growth rate of 7.13% in the TTM period indicates positive momentum. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the revenue growth has been volatile in previous years, which could pose a risk.

Balance Sheet

The company has improved its financial stability with a reduced debt-to-equity ratio of 0.45 in the TTM period, down from previous high levels. Return on equity is exceptionally high at 179.90%, indicating strong profitability relative to equity. However, the equity ratio is low, suggesting potential vulnerability to financial fluctuations.

Cash Flow

Ubiquiti Networks maintains a healthy operating cash flow to net income ratio of 0.90 and a free cash flow to net income ratio of 0.98 in the TTM period. Despite a recent decline in free cash flow growth, the company has a history of positive cash flow generation, which supports its financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.76B	2.57B	1.93B	1.94B	1.69B	1.90B
Gross Profit	1.22B	1.12B	739.76M	760.73M	669.81M	912.28M
EBITDA	949.66M	858.18M	518.25M	560.86M	475.95M	754.69M
Net Income	791.81M	711.92M	349.96M	407.64M	378.66M	616.58M
Balance Sheet
Total Assets	1.49B	1.47B	1.15B	1.41B	844.71M	890.99M
Cash, Cash Equivalents and Short-Term Investments	177.19M	149.73M	126.34M	114.94M	136.65M	250.74M
Total Debt	178.18M	297.42M	757.29M	1.14B	853.26M	532.30M
Total Liabilities	661.83M	798.19M	1.06B	1.52B	1.23B	888.29M
Stockholders Equity	828.44M	668.26M	95.06M	-115.73M	-382.88M	2.70M
Cash Flow
Free Cash Flow	589.67M	627.44M	529.54M	-166.36M	356.79M	593.70M
Operating Cash Flow	604.81M	640.03M	541.52M	-145.43M	370.26M	612.02M
Investing Cash Flow	-15.14M	-12.59M	-11.97M	-20.93M	-11.18M	-19.27M
Financing Cash Flow	-577.65M	-604.06M	-518.02M	144.96M	-472.27M	-485.95M

Ubiquiti Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 555.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UI, the sentiment is Negative. The current price of 555.13 is below the 20-day moving average (MA) of 561.28, below the 50-day MA of 645.65, and above the 200-day MA of 476.87, indicating a neutral trend. The MACD of -16.91 indicates Negative momentum. The RSI at 38.26 is Neutral, neither overbought nor oversold. The STOCH value of 49.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UI.

Ubiquiti Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	77 Outperform	$307.40B	29.34	23.01%	2.08%	8.91%	14.53%
ERIC	74 Outperform	$31.97B	12.88	25.45%	2.54%	1.04%	―
ZBRA	71 Outperform	$13.60B	26.75	14.29%	―	13.35%	34.73%
HPE	68 Neutral	$31.50B	-315.62	0.23%	2.27%	14.00%	-102.25%
NOK	66 Neutral	$34.57B	35.28	4.03%	2.38%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UI	60 Neutral	$33.96B	42.92	155.78%	0.50%	36.77%	102.83%

Ubiquiti Networks Corporate Events

Ubiquiti Networks Elects New Director Amid Compliance Issues

Ubiquiti Inc. announced the passing of Ronald A. Sege, a long-serving member of its Board of Directors, on November 30, 2025. His death leaves a vacancy in the Class II director seat and reduces the audit committee to two members, resulting in non-compliance with NYSE requirements. The company plans to appoint a new independent director to regain compliance. Additionally, during the Annual Meeting on December 4, 2025, stockholders approved the election of a Class II director and the ratification of KPMG LLP as the independent auditor for the fiscal year ending June 30, 2026.