Ubiquiti Revenues Hit Record $937.3 Million
The networking infrastructure provider announced a plan to pay quarterly dividends of at least $1.00 per share in fiscal 2027.
Ubiquiti Inc. (UI), the networking infrastructure provider, reported record revenues of $937.3 million for the fourth quarter of fiscal 2026. The result represents an 18.9% increase from the $788.2 million reported in the prior quarter and a 23.5% increase compared to the same period a year earlier.
Growth was driven by the Enterprise Technology platform, which generated $868.3 million in the quarter, up from $717.9 million in the prior quarter. This gain offset a decline in the Service Provider Technology platform, which saw revenues fall to $69.0 million from $70.3 million in the prior quarter. For the full fiscal year 2026, total revenues rose 27.2% to $3.3 billion compared to fiscal 2025.
Profitability faced headwinds toward the end of the fiscal year. GAAP gross margin for the fourth quarter was 45.8%, a 1.2-percentage-point decrease from the 47.0% margin reported in the prior quarter. The sequential decline was primarily driven by higher shipping costs and higher component costs, though these were partially offset by lower other indirect costs.
Ubiquiti flagged an increase in certain component costs during the fourth quarter. These costs may continue to rise and availability may remain constrained, which could result in near-term pressure on gross profit margins if the company is unable to offset the costs through pricing or other measures.
Operating expenses rose sequentially. Research and development expenses were $53.0 million in the fourth quarter, compared with $51.8 million in the prior quarter. Sales, general, and administrative expenses rose to $36.3 million from $28.1 million in the prior quarter. The SG&A increase was attributed to higher professional fees, employee-related expenses, marketing expenses, and higher credit card processing fees associated with incremental webstore sales.
GAAP net income for the fourth quarter was $284.9 million, a 6.8% increase from the prior-year period. Non-GAAP net income rose 33.6% year over year to $286.5 million. The company reported GAAP diluted earnings per share of $4.70 and non-GAAP diluted earnings per share of $4.73.
Geographic revenue for the quarter was led by North America at $507.4 million, followed by Europe, the Middle East, and Africa at $331.6 million, Asia Pacific at $69.4 million, and South America at $28.9 million.
The board of directors declared a $1.00-per-share cash dividend payable on September 8, 2026. The company intends to pay regular quarterly cash dividends of at least $1.00 per share during each quarter of fiscal year 2027. Additionally, Ubiquiti extended the expiration date of its stock repurchase program, authorizing the repurchase of up to $500 million of common stock through September 30, 2027.