Ubiquiti Inc (0LI9.L) Q1 2025 Earnings Report

Ubiquiti Inc reported solid QQ1 2025 results characterized by topline growth, margin resilience and robust cash generation. Revenue reached USD 550.34 million, up 18.84% year-over-year and 8.45% quarter-over-quarter, driven by ongoing demand for its enterprise WLAN ecosystem and carrier-grade networking platforms. Gross margins remained healthy at approximately 42.1%, supporting an operating margin near 30.7% and an EBITDA margin of about 31.9%, yielding EBITDA of USD 175.3 million and net income of USD 128.0 million (EPS USD 2.12).

Operating cash flow strengthened to USD 233.67 million, translating into free cash flow of USD 233.67 million for the period. The company ended the quarter with USD 165.2 million of cash and cash equivalents and USD 434.8 million net debt, after USD 155.6 million of debt repayments and USD 36.3 million of dividends paid. Total assets stood at USD 1.158 billion against USD 969.8 million of liabilities, with long-term debt of USD 562.4 million and shareholders’ equity of USD 188.1 million, reflecting a leverage profile that remains elevated by design given product cycles and ecosystem investments.

In the near term, the business appears capable of sustaining cash flow generation and margin discipline, though investors should monitor debt reduction progress, working capital dynamics (notably a high CCC and inventory level), and any shift in demand for hardware cycles. Valuation remains demanding relative to peers, with a price-to-earnings around 26x and price-to-book around 70x, underscoring the market’s confidence in continued margin stability and growth in the UniFi/Edge ecosystem. Overall, the QQ1 2025 print supports a cautiously constructive outlook with emphasis on deleveraging, operating efficiency, and continued ecosystem monetization.