UCLOUDLINK GROUP INC. Announces Unaudited Fourth Quarter and Full Year 2025 Financial Results

HONG KONG, March 18, 2026 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced its unaudited financial results for the three months and the full year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights

Full Year 2025 Financial Highlights

Fourth Quarter 2025 Operational Highlights

Full Year 2025 Operational Highlights

Executive Commentary

Mr. Chaohui Chen, Director and Chief Executive Officer of UCLOUDLINK, commented, “We finished 2025 with strong financial and operational momentum, highlighted by net income for the year increasing 38.2% year-over-year to US$6.3 million and net cash inflow from operations of US$3.2 million. Total revenues from mainland China surged 16.5% from last year, underscoring how our uCloudlink 1.0 international data connectivity solutions are accelerating broader consumer adoption and further solidifying our leadership in the global roaming market. This robust performance demonstrates the resilience of our core strategy and the strategic impact of the investments we made in our three new growth engines. The launch of these new products has diversified our business and allowed us to successfully navigate a persistently challenging macroeconomic and trade environment. Through strict operational discipline and focus, we have laid a solid foundation to build up and accelerate growth in 2026.

“Our three new growth engines—GlocalMe Life, GlocalMe SIM, and GlocalMe IoT – continued to hit critical commercial milestones and make solid progress during the quarter. We kicked off 2026 with a powerful showcase at CES in Las Vegas, where we highlighted the latest GlocalMe Life innovations. There, we outlined our vision to eliminate the ‘Pet People Divide’ through the PetPogo ecosystem, introducing the all-new PetCam that complements the PetPhone. This ecosystem transcends basic pet tracking functions by establishing a comprehensive ‘Safety-Wellness-Emotional Connection’ loop that enables owners to see, hear, and interact with their pets seamlessly from anywhere in the world. The response has been exceptional, generating significant global attention and validating our product roadmap. PetPhone orders continue to scale since its initial launch last quarter and are accelerating, reflecting strong market confidence. Under GlocalMe SIM, our eSIM TRIO solution continues to gain strong traction following its pilot program last quarter, with cumulative SIM card sales now surpassing several hundred thousand units as growth momentum accelerates. More importantly, our carrier co-issuance program has started pilot deployment, providing a highly effective, low-capex solution for operators that enhances their global roaming capabilities. Also making its debut at CES was the MeowGo G50 Max, an AI-powered connectivity hub engineered with Sky-to-Ground 5G/satellite integration that creates mobile Wi-Fi hotspots anywhere. Finally, our GlocalMe IoT business maintained its robust growth trajectory, with user adoption and revenue contribution increasing strongly on a year-over-year basis during the quarter. We have solidified the strategic positioning of this business in high-growth sectors such as in-car infotainment and security cameras which will further expand our ecosystem.

“Looking ahead, 2026 will be a pivotal year of execution and transformation for us. We are entering this next phase with clear momentum and a streamlined organizational structure that has been aligned with our evolving strategy. The strong market feedback from CES 2026, combined with accelerating sales of new solutions, provides us with multiple powerful growth engines. We are confident in our ability to scale our user base globally, further diversify our revenue streams, and bridge critical digital divides, from cross-border connectivity to the emotional distance between people and their pets.”

Fourth Quarter 2025 Financial Results

Revenues

Total revenues were US$22.1 million, representing a decrease of 14.6% from US$26.0 million in the same period of 2024.

Cost of Revenues

Cost of revenues was US$10.7 million, representing a decrease of 27.4% from US$14.8 million in the same period of 2024. This decrease was in line with the decrease in revenues from sales of products during the fourth quarter of 2025.

Gross Profit

Overall gross profit was US$11.4 million, compared to US$11.2 million in the same period of 2024. Overall gross margin was 51.6% in the fourth quarter of 2025, compared to 43.0% in the same period of 2024.

Gross profit on services was US$9.4 million, compared to US$8.8 million in the same period of 2024. Gross margin on services was 61.7% in the fourth quarter of 2025, compared to 58.6% in the same period of 2024.

Gross profit on sales of products was US$2.0 million, compared to US$2.4 million in the same period of 2024. Gross margin on sales of products was 29.6% in the fourth quarter of 2025, compared to 21.7% in the same period of 2024.

Operating Expenses

Total operating expenses were US$9.5 million, compared to US$14.1 million in the same period of 2024.

Loss from Operations

Loss from operations was US$1.6 million, compared to US$1.7 million in the same period of 2024.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation, fair value gain/loss in other investment, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization, was US$3.1 million, compared to negative US$2.3 million in the same period of 2024.

Net Interest Expense/Income

Net interest expense was US$0.04 million, compared to a net interest income of US$0.1 million in the same period of 2024.

Net Loss

Net loss was US$3.1 million, compared to US$1.5 million in the same period of 2024.

Adjusted Net Income/Loss (Non-GAAP)

Adjusted net income, which excludes the impact of share-based compensation, fair value gain/loss in other investment and share of profit/loss in equity method investment, net of tax, was US$1.0 million, compared to adjusted net loss of US$3.1 million in the same period of 2024.

Basic and Diluted Loss per ADS

Basic and diluted loss per ADS attributable to ordinary shareholders were US$0.08 in the fourth quarter of 2025, compared to US$0.04 in the same period of 2024.

Cash and Cash Equivalents

As of December 31, 2025, the Company had cash and cash equivalents of US$32.8 million, compared to US$28.5 million as of September 30, 2025. The increase was primarily attributable to proceeds of US$5.1 million from bank borrowings and net inflow of US$4.7 million from operations, which was partially offset by repayments of US$5.7 million in bank borrowings.

Capital Expenditures (“CAPEX”)

Capital expenditures were US$0.02 million, compared to US$0.6 million in the same period of 2024.

Full Year 2025 Financial Results

Revenues

Total revenues were US$81.4 million, representing a decrease of 11.1% from US$91.6 million in 2024.

Cost of Revenues

Cost of revenues was US$38.7 million, representing a decrease of 18.0% from US$47.2 million in 2024. This decrease was due to a decrease in cost of products sold, which was partially offset by an increase in cost of services.

Gross Profit

Overall gross profit was US$42.7 million, compared to US$44.4 million in 2024. Overall gross margin was 52.4% in 2025, compared to 48.4% in 2024.

Gross profit on services was US$35.4 million, compared to US$36.5 million in 2024. Gross margin on services was 58.0% in 2025, compared to 60.8% in 2024.

Gross profit on sales of products was US$7.3 million, compared to US$7.9 million in 2024. Gross margin on sales of products was 35.6% in 2025, compared to 24.9% in 2024.

Operating Expenses

Total operating expenses were US$41.4 million, compared to US$42.0 million in 2024.

Income from Operations

Income from operations was US$8.0 million, compared to US$4.4 million in 2024.

Adjusted EBITDA (Non-GAAP)

Net Interest Expenses/Income

Net interest expense was US$0.1 million, compared to a net interest income of US$0.03 million in 2024.

Net Income

Net income was US$6.3 million, compared to US$4.6 million in 2024.

Adjusted Net Income (Non-GAAP)

Basic and Diluted Earnings per ADS

Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.17 in 2025, compared to US$0.12 in 2024.

Capital Expenditures (“CAPEX”)

Capital expenditures were US$1.0 million, compared to US$4.0 million in 2024.

Business Outlook

For the first quarter of 2026, UCLOUDLINK expects total revenues to be between US$16.0 million and US$17.0 million, representing a decrease of 9.1% to 14.4% compared to the same period of 2025. For 2026, UCLOUDLINK expects total revenues to be between US$85.0 million and US$100.0 million, representing an increase of 4.4% to 22.9% from 2025.

The above outlook is based on current market conditions and reflects the Company’s preliminary estimates of market and operating conditions and customer demand.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents, adjusted net income/(loss) and adjusted EBITDA, as supplemental measures to review and assess the Company’s operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investment and share of profit/loss in equity method investment, net of tax. Adjusted EBITDA is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investment, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization.

The Company believes that adjusted net income/(loss) and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in income/(loss) from operations and net income/(loss). The Company believes that adjusted net income/(loss) and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non- GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net income/(loss) and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation, fair value gain/loss in other investment and share of profit/loss in equity method investment, net of tax, have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of adjusted net income/(loss). Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

Conference Call

UCLOUDLINK will hold a conference call at 8:30 a.m. Eastern Time on Wednesday, March 18, 2026 (8:30 p.m. Hong Kong Time on the same day) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for “UCLOUDLINK GROUP INC.” Additionally, a live and archived webcast of the conference call will be available at https://ir.ucloudlink.com.

A telephone replay will be available one hour after the end of the conference until March 25, 2026, by dialing:

About UCLOUDLINK GROUP INC.

UCLOUDLINK is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the financial guidance and quotations from management in this announcement, as well as UCLOUDLINK’s strategic and operational plans, contain forward-looking statements. UCLOUDLINK may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about UCLOUDLINK’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: UCLOUDLINK’s strategies; UCLOUDLINK’s future business development, financial condition and results of operations; UCLOUDLINK’s ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in UCLOUDLINK’s revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to UCLOUDLINK’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law.

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