Ubiquiti Inc delivered a resilient QQ3 2024 result characterized by mid-single-digit revenue growth and solid operating profitability, supported by robust operating cash flow and meaningful free cash flow production. Revenue totaled $492.997 million, up 7.69% year over year and 6.03% quarter over quarter, while net income reached $76.29 million and diluted EPS $1.26. The company generated $163.85 million of operating cash flow and $160.62 million in free cash flow, underscoring strong cash generation despite heightened leverage.
From a balance sheet perspective, total assets stood at $1.2238 billion with total liabilities of $1.1979 billion and shareholders’ equity of approximately $25.9 million, leaving net debt of about $824.5 million. Leverage remains a material consideration, with long-term debt at $876.5 million and a long-term debt-to-capitalization ratio near 0.97, indicating reliance on debt financing relative to equity. Nevertheless, the company exhibits healthy liquidity metrics (current ratio ~3.95, cash balance ~$102.5 million) and a solid cash conversion profile (operating cash flow to revenue around 0.33). The near-term profitability remained buoyant (operating margin ~22.6%, EBITDA margin ~23.6%), though gross margin eased modestly year over year. For investors, the key takeaway is a company generating substantial FCF and operating cash flow to support debt service and potential deleveraging, while continuing to invest in growth initiatives and product platforms in a competitive technology hardware market.