Ubiquiti’s QQ2 2025 results demonstrate meaningful top-line growth and resilient profitability, supported by a diversified product ecosystem and a scalable cloud-managed networking platform. Revenue rose to $599.9 million, up 29.0% year-over-year and 9.0% quarter-over-quarter, driven by strength across enterprise WLAN, carrier-grade products, and consumer networks. Gross margin expanded to ~41.2%, contributing to an EBITDA margin near 30.6% and a net margin of ~22.8%, with net income of $136.8 million and diluted EPS of $2.26.
The company generated robust cash flow, with operating cash flow of $152.4 million and free cash flow of $150.4 million, underscoring financial flexibility to invest in growth while reducing leverage. Balance-sheet metrics show a solid current ratio (2.22) and substantial liquidity ($133.1 million cash), but the firm carries elevated absolute debt levels (total debt $451.3 million; net debt $318.2 million) and a relatively high inventory level that contributed to a longer cash conversion cycle. Valuation remains rich by traditional metrics (P/E ~37x, P/S ~34x, P/B ~70x), reflecting investor confidence in durable profitability and growth potential from the UniFi ecosystem and enterprise product lines.
Overall, the QQ2 results reinforce Ubiquiti’s position as a high-margin hardware and software-enabled networking solutions provider with strong cash generation. Management commentary is not included in the provided transcript dataset, so the forward-looking statements below synthesize quantitative results with industry context and plausible catalysts for the next quarters.