Executive Summary

UI delivered strong YoY growth and margin expansion: revenue $733.8M (+33.3% YoY; -3.3% QoQ) and GAAP diluted EPS $3.43 (Non-GAAP $3.46), with gross margin up 390 bps YoY to 46.0% .
Results exceeded S&P Global consensus: revenue $733.8M vs $702.4M estimate*, and Non-GAAP diluted EPS $3.46 vs $2.93 estimate*; coverage was thin with only one estimate for both revenue and EPS* (beat on both) (Values retrieved from S&P Global).
Mix-driven gross margin strength persisted; management cited “favorable product mix” and lower shipping/indirect costs, partially offset by higher tariffs and incremental E&O charges .
Board declared a $0.80 dividend payable Nov 24, 2025, consistent with the prior quarter’s intent to pay ≥$0.80 per quarter in FY26 .
Potential catalysts: sustained margin expansion and consistent capital returns vs. watch-outs from tariffs and a modest sequential revenue decline (-3.3% QoQ) .

What Went Well and What Went Wrong

What Went Well
- Robust YoY growth: revenue +33.3% YoY to $733.8M, Non-GAAP diluted EPS up ~62% YoY to $3.46, driven by higher Enterprise Technology sales and gross profit expansion .
- Margin execution: GAAP gross margin rose to 46.0% (+90 bps QoQ; +390 bps YoY) on “favorable product mix” and, as a % of revenue, lower shipping and indirect costs .
- Geographic breadth: North America $382.8M and EMEA $263.1M posted strong YoY gains alongside APAC and South America, reinforcing broad-based demand .
What Went Wrong
- Modest sequential slowdown: revenue fell 3.3% QoQ as both Enterprise Technology and Service Provider Technology declined vs F4Q25 .
- Cost headwinds: higher tariffs and incremental E&O charges partly offset margin tailwinds in the quarter .
- Service Provider softness: Service Provider Technology revenue was $76.6M, down YoY and QoQ, continuing a relative underperformance vs. Enterprise Technology .

Metric	F1Q25 (YoY base)	F4Q25 (Prior Qtr)	F1Q26 (Current)
Revenue ($M)	$550.3	$759.2	$733.8
Gross Profit ($M)	$231.6	$342.7	$337.4
Gross Margin (%)	42.1%	45.1%	46.0%
Total Operating Expenses ($M)	$62.4	$81.3	$75.7
Income from Operations ($M)	$169.2	$261.4	$261.7
GAAP Net Income ($M)	$128.0	$266.7	$207.9
GAAP Diluted EPS ($)	$2.12	$4.41	$3.43
Non-GAAP Diluted EPS ($)	$2.14	$3.54	$3.46
Revenue YoY change	—	—	+33.3%
Revenue QoQ change	—	—	-3.3%

Actual vs S&P Global Consensus (Q1 FY26)

Metric	Consensus*	Actual	# of Estimates*
Revenue ($M)	702.4*	733.8	1*
Non-GAAP Diluted EPS ($)	2.93*	3.46	1*

Values retrieved from S&P Global.

Segment Breakdown

Segment ($M)	F1Q25	F4Q25	F1Q26
Enterprise Technology	470.2	680.1	657.1
Service Provider Technology	80.2	79.0	76.6
Total Revenue	550.3	759.2	733.8

Selected KPIs / Operating Items

KPI ($M unless noted)	F1Q25	F4Q25	F1Q26
R&D Expense	38.0	47.5	48.5
SG&A Expense	24.4	33.9	27.1
Interest & Other, net	10.6	3.2	3.2
Dividend per Share (declared)	—	$0.80	$0.80

Metric	Period	Previous Guidance	Current Update	Change
Dividend per share	FY2026 / Ongoing	Intend to pay ≥$0.80 per quarter in FY2026	Declared $0.80 payable Nov 24, 2025	Maintained

No explicit quantitative guidance was provided for revenue, margins, OpEx, OI&E, tax rate, or segments in Q1 FY26 materials .

Note: No Q1 FY26 earnings call transcript was available in our document set; themes below reflect press releases/8-K commentary.

Topic	Q-2 (F3Q25)	Q-1 (F4Q25)	Current (F1Q26)	Trend
Gross margin drivers	Margin up on favorable mix; lower indirect costs	Margin up on mix; lower E&O and indirect costs; higher tariffs	Margin up on mix; lower shipping/indirect costs; higher tariffs; incremental E&O	Improving with persistent tariff/E&O offsets
Tariffs / cost headwinds	Tariffs cited as prior-year headwind, improved vs YoY	Higher tariffs partially offset improvements	Higher tariff costs persisted	Ongoing headwind
Operating expenses	R&D up QoQ; SG&A down QoQ from prior-quarter elevated level	R&D up; SG&A up (reserves, fees, marketing)	R&D up; SG&A down QoQ (lower reserves, fees)	Mixed; disciplined SG&A in Q1
Demand/regions	Broad-based growth across NA/EMEA	NA and EMEA strong	NA $382.8M; EMEA $263.1M; APAC and SA also up YoY	Broad-based strength sustained
FX/interest (I&O)	Lower interest expense, FX gains vs prior periods	Lower interest expense; FX gains vs prior year	I&O steady at $3.2M; lower vs prior-year period	Stabilizing

“GAAP gross margin of 46.0% increased by 0.9% as compared to the prior quarter… and increased by 3.9% as compared to the comparable prior year period,” driven by “favorable product mix” and, as a % of revenue, “lower shipping costs and indirect operating expenses,” partially offset by “incremental excess and obsolete inventory charges and higher tariff costs” .
Operating discipline: R&D increased YoY and QoQ (employee-related, depreciation/software), while SG&A declined QoQ (lower receivable reserves and webstore processing fees) .
Capital returns: “The Company's Board of Directors declared a $0.80 per share cash dividend payable on November 24, 2025…” .
Company positioning: Ubiquiti “is focused on democratizing network technology on a global scale,” powered by UISP and UniFi software platforms .

No earnings call transcript was available for Q1 FY26 in our document library; as a result, no Q&A themes or quote attributions could be extracted [ListDocuments showed none for earnings-call-transcript].

Consensus from S&P Global (thin coverage): revenue estimate $702.4M* vs actual $733.8M (beat); Non-GAAP diluted EPS estimate $2.93* vs actual $3.46 (beat); both metrics had only one contributing estimate* (Values retrieved from S&P Global).
Implication: Given beats on both revenue and EPS with margin expansion, we expect upward estimate revisions to top-line and gross margin assumptions; however, modelers should reflect persistent tariff/E&O drags and slightly lower sequential revenue vs F4Q25 .

Mix-driven margin story intact: gross margin rose to 46.0% with continued mix benefits and lower shipping/indirect costs, despite tariff and E&O headwinds .
Enterprise outperformance continues: Enterprise Technology remains the growth engine; Service Provider shows relative softness QoQ/YoY .
Sequential step-down was modest (-3.3% QoQ) after a record F4Q25; watch for seasonality and order cadence normalization into F2Q26 .
Capital return consistency: $0.80 dividend declared, in line with the stated FY26 intent, signaling confidence in cash generation .
Model sensitivities: incorporate higher tariff costs and potential E&O variability; EPS leverage remains tied to sustaining favorable mix and OpEx discipline .
Estimate dynamics: with single-estimate coverage*, UI’s beats may drive outsized estimate resets and volatility around subsequent prints (Values retrieved from S&P Global).
Monitoring items: tariff regime changes, distributor/webstore dynamics affecting SG&A/fees, and inventory/E&O trends that can influence quarterly margin variability .