Overview

* uCloudlink Q2 revenue falls 13.3% yr/yr, missing analyst expectations

* Adjusted net income for Q2 misses consensus, reflecting macroeconomic challenges

* Company maintains operational breakeven amid growth in data consumption

Outlook

* uCloudlink expects Q3 2025 revenue between $22 mln and $26 mln

* Company revises 2025 full-year revenue to $85 mln-$95 mln

* uCloudlink cites macroeconomic challenges for revised revenue guidance

* Company focuses on R&D and marketing investments for growth

Result Drivers

* INTERNATIONAL TRAVEL RECOVERY - Growth in international data connectivity services attributed to recovery in international travel

* PRODUCT SALES DECLINE - Significant decrease in product sales impacted overall revenue

* SERVICE COSTS - Increased rental use of 5G Wi-Fi terminals raised service costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $19.40 $23 mln

Revenue mln (1

Analyst)

Q2 Miss $500,000 $833,000

Adjusted (1

Net Analyst)

Income

Q2 $1.40

Adjusted mln

EBITDA

Q2 Gross 52.8%

Margin

Q2 Gross $10.20

Profit mln

Q2 $800,000

Income

from

Operatio

ns

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the wireless telecommunications services peer group is "buy"

* Wall Street's median 12-month price target for Ucloudlink Group Inc ( UCL ) is $9.00, about 55.8% above its August 12 closing price of $3.98

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)