UI · Ubiquiti Inc.

Ubiquiti’s third quarter fiscal 2026 results reflect strong year-over-year growth across top and bottom lines, with revenue rising 18.7% to $788.2 million and GAAP diluted EPS increasing 29.5% to $3.86. The revenue growth was primarily driven by a $132.1 million increase in Enterprise Technology revenue, while Service Provider Technology declined $8.1 million year-over-year. Gross margin expanded 2.5 percentage points to 47.0%, attributed to favorable product mix, reduced excess and obsolete inventory charges, and lower shipping and indirect costs — though partially offset by higher tariff costs. Operating expenses were well-controlled: total operating expenses rose only 15.8% YoY despite R&D increasing 16.9% to $51.8 million and SG&A rising 13.3% to $28.1 million, reflecting disciplined investment amid scaling. Notably, the Company repaid all outstanding debt as of March 2026, eliminating interest expense pressure and contributing to a $5.4 million YoY reduction in interest and other, net. Management explicitly linked the sequential revenue decline to the strong holiday webstore sales in Q2, underscoring seasonality in direct-to-consumer channels. The declared $0.80 quarterly dividend signals continued confidence in cash generation and capital return discipline. No forward guidance was provided in the press release or 8-K filing, consistent with Ubiquiti’s historical practice of avoiding formal outlooks. Given the magnitude of YoY earnings growth, margin expansion, debt elimination, and sustained capital return, this is a materially positive operational update for investors.