Ubiquiti Networks (UI) AI Stock Analysis

• Market Cap: $33.66B
• Dividend Yield: 0.49%
• Average Volume (3M): 201.11K
• Price to Earnings (P/E): 42.5
• 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): 3.46
• Shares Outstanding: 60,499,657
• 10 Day Avg. Volume: 179,598
• 30 Day Avg. Volume: 201,114
• 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: 1.19
• Enterprise Value/Revenue: 14.51
• Enterprise Value/Gross Profit: 32.70
• Enterprise Value/Ebitda: 42.13
• 1Y Price Target: $587.50
• Price Target Upside: 2.92% 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 ▼(-0.32% Downside)

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 through the sale of its hardware and software products, which primarily target service providers and enterprise customers. The company's revenue model is based on direct sales of its networking equipment, which includes routers, switches, and wireless access points. Additionally, Ubiquiti benefits from recurring revenue through software subscriptions and managed services. Key revenue streams include the sales of UniFi products, which are popular among small to medium-sized businesses and educational institutions, as well as airMAX products used by internet service providers. Partnerships with distributors and resellers also play a significant role in expanding its market reach and driving sales. Ubiquiti’s focus on cost-effective, high-quality products allows it to maintain a competitive edge and attract a diverse customer base.

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: Neutral
• Last Price: 570.81
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 570.81 is below the 20-day moving average (MA) of 633.46, below the 50-day MA of 665.45, and above the 200-day MA of 461.42, indicating a neutral trend. The MACD of -42.85 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 57.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$301.23B	28.75	23.01%	2.11%	8.91%	14.53%
ERIC	74 Outperform	$31.73B	12.65	25.45%	3.13%	1.04%	―
ZBRA	68 Neutral	$12.28B	24.44	14.29%	―	13.35%	34.73%
HPE	67 Neutral	$27.83B	26.64	5.37%	2.43%	14.39%	-38.96%
NOK	66 Neutral	$34.00B	34.27	4.03%	2.43%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UI	60 Neutral	$33.66B	42.55	155.78%	0.49%	36.77%	102.83%

Ubiquiti Networks Corporate Events

Ubiquiti Networks Inc. Reports Strong Quarterly Growth

Ubiquiti Networks Inc. is a company that develops high-performance networking technology for service providers, enterprises, and consumers globally, operating primarily in the technology sector. In its latest earnings report for the quarter ending September 30, 2025, Ubiquiti Inc. showcased a strong financial performance with significant growth in revenue and net income compared to the previous year. The company reported revenues of $733.8 million, a substantial increase from $550.3 million in the same quarter of 2024, driven primarily by its enterprise technology segment.

Ubiquiti Inc. Reports Strong Fiscal 2025 Results

Ubiquiti Inc. is a global leader in networking technology, providing professional networking products powered by its UISP and UniFi software platforms, serving over 200 countries. The company recently announced its financial results for the fourth quarter and full fiscal year 2025, showcasing record revenues and significant growth. Ubiquiti reported fourth-quarter revenues of $759.2 million and full-year revenues of $2.6 billion, marking a substantial increase from the previous year. The company’s GAAP diluted EPS for the quarter was $4.41, while the non-GAAP diluted EPS stood at $3.54. Ubiquiti’s financial performance was driven by strong growth in its Enterprise Technology platform, which contributed significantly to the revenue increase. The company also declared a cash dividend of $0.80 per share and announced a new stock repurchase program worth up to $500 million. Looking ahead, Ubiquiti aims to continue its growth trajectory, with plans to maintain regular quarterly cash dividends and further enhance shareholder value through strategic initiatives.

Ubiquiti Networks Announces $500 Million Stock Buyback

Ubiquiti Inc. announced a $500 million stock repurchase program approved by its Board of Directors on August 21, 2025, set to expire on September 30, 2026. The program allows for the repurchase of common stock in various market conditions and transactions, with the company retaining discretion over the timing and amount of repurchases. Additionally, Ubiquiti reported record revenues of $759.2 million for the fourth quarter of fiscal 2025, ending June 30, 2025, and a full-year revenue of $2.6 billion, marking a significant increase from the previous year. The company also declared a $0.80 per share cash dividend and plans to maintain regular quarterly dividends in fiscal 2026, reflecting strong financial performance and strategic capital management.

The most recent analyst rating on (UI) stock is a Buy with a $440.00 price target. To see the full list of analyst forecasts on Ubiquiti Networks stock, see the UI Stock Forecast page.