UCL · uCloudlink Group Inc.

uCloudlink Group Inc. reported unaudited Q1 2026 financial results showing total revenues of US$16.9 million, a 10.1% decline from US$18.7 million in Q1 2025, primarily driven by a drop in international data connectivity services to US$8.5 million from US$9.7 million, attributed to fewer outbound travelers from China amid geopolitical tensions. This was partially offset by growth in local data connectivity to US$1.9 million. Services revenues fell 6.3% to US$13.3 million, while product sales decreased 21.8% to US$3.6 million due to lower terminal sales. Gross profit declined 14.6% to US$8.3 million with margin contracting to 49.1% from 51.7%, reflecting higher cost pressures. Operating expenses rose to US$10.9 million from US$10.2 million, led by 12.2% higher sales and marketing at US$6.4 million from increased lease payments, employee benefits, and exhibitions, plus 16.4% R&D growth. This resulted in an operational loss widening to US$3.5 million from US$0.5 million, with net loss at US$3.5 million and adjusted net loss of US$2.6 million versus prior adjusted net income of US$0.4 million. Adjusted EBITDA turned negative at US$2.0 million from positive US$1.4 million. CEO Chaohui Chen highlighted resilience in core operations despite headwinds, with new growth engines—GlocalMe Life (over 400% YoY revenue growth), GlocalMe IoT (300%), and GlocalMe SIM (170%)—showing strong user expansion: IoT DAU up 246.5%, SIM up 193.6%, Life up 559.9%, plus new PetPhone DAU of 1,097. Strategic investments in PetPogo ecosystem, including beta app launch post-CES 2026, and products like UniCord Pro and MeowGo G50 Max, aim to drive long-term growth despite near-term profitability pressure. Operational metrics improved with data consumption up 5.4% to 45,514 TB, DAU up 10.2% to 354,789, and DAT up 6.1% to 327,615. Cash fell to US$28.0 million from US$32.8 million, reflecting operational outflows and borrowings. No forward guidance provided.