Q4 2025 uCloudlink Group Inc Earnings Call

March 18, 2026

Speaker #3: There will be a presentation followed by a question-and-answer session. If you would like to ask a question, you'll need to press the star key followed by the number one on your telephone keypad.

Speaker #3: I would now like to hand the conference over to Mr. Yimeng Shi, Company IR. Please go ahead.

Speaker #2: Okay. Hello, everyone, and thank you for joining us on uCloudlink's fourth quarter and full year 2025 earnings call. The earnings release and our earnings presentation are now available on our IR website.

Daniel Gao: Okay. Hello, everyone, and thank you for joining us on uCloudlink's Q4 and full year 2025 earnings call. The earnings release and our earnings presentation are now available on our IR website at ir.ucloudlink.com. Joining me on today's call are Mr. Zhiping Peng, Co-founder and Chairman of the Board of Directors, Mr. Chaohui Chen, Co-founder, Director, and Chief Executive Officer, and Mr. Yimeng Shi, Chief Financial Officer. Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and operational highlights for the quarter. They will all be available to take your questions in the Q&A section that follows. Before we proceed, please note that this call may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Speaker #2: At ir.ucloudlink.com. Joining me on today's call are Mr. Zhi Pingpeng, co-founder and chairman of the board of directors; Mr. Chaohui Chen, co-founder, director, and chief executive officer; and Mr. Yimeng Shi, chief financial officer.

Speaker #2: Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and operational highlights for the quarter.

Speaker #2: They will all be available. Take your questions in the Q&A section that follows. Before we proceed, please notice that this call may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Speaker #2: These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks and uncertainties and other factors not under the company's control.

Daniel Gao: These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations projected or implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors, and the details of the company's filings with the SEC. The company does not assume any obligation to revise or update any forward-looking statements as a result of new information, future events, change in market conditions, otherwise, except as required by law. Please also notice that uCloudlink's earnings press release on this conference call include discussions of audited GAAP financial information and audited non-GAAP financial measures.

Speaker #2: Which may cause actual results, performance, or achievements of the company to be measurably different from the results performance or expectations projected or implied by these forward-looking statements.

Speaker #2: All forward-looking statements are expressly qualified in their entity by their coordinary statements risk factors and details of the company's feelings with the SCC. The company does not assume any obligation to reverse or update any forward-looking statements as a result of new information future events change the market conditions otherwise.

Speaker #2: Except as required by law. Please also note that uCloudlink's earnings press release and this conference call include discussions of both GAAP financial information and non-GAAP financial measures.

Speaker #2: uCloudlink's press release contains a reclassing of all these non-GAAP measures to their most directly comparable GAAP measures. I will now turn the call over to Mr. Chen.

Daniel Gao: uCloudlink's press release contains a reclassification of the audited non-GAAP measures to the most directly comparable audited GAAP measures. I will now turn the call over to Mr. Chen. Please go ahead.

Speaker #2: Please go ahead.

Chaohui Chen: Thank you, Daniel, and good morning or evening, everyone. Despite significant macroeconomic headwinds through 2025, including tariff, we remained steadfast in strategically investing across our three new business lines. Against this challenging backdrop, we maintain our financial health and deliver stable performance. Net income for the year increased 38.2% year-over-year to $6.3 million, with the net cash inflow from the operations reaching $3.2 million. Total revenues from Mainland China surged 15.5% 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 strategy.

Speaker #3: Thank you, Daniel. And good morning or evening, everyone. Despite significant microeconomic headwinds through year 2025, including tariff, we remain steadfast in the strategically investing across our three new business lines.

Speaker #3: Against this challenging backdrop, we maintained our financial health and delivered stable performance. Net income for the year increased 38.2% year-over-year to $6.3 million.

Speaker #3: With the net cash inflow from the operations reaching US dollar 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.

Speaker #3: This robust performance demonstrates the resilience of our core strategy and strategic impact of the investments we make in our three new growth engines. This new product launch has diversified our business and allowed us to successfully navigate a persistently challenging microeconomic and trade environment.

Chaohui Chen: the strategic impact of the investments we made in our three new growth engines. This new product launch has diversified our business and allow us to successfully navigate a persistent rate, challenging macroeconomic and trade environment. Through strict operational discipline and focus, we have laid a solid foundation to build upon and accelerate growth in 2026. Moreover, our smart hardware and the data are emerging as a key gateway to AI and the big data connectivity. While our heavy investment in the pet AI, analyzing pet languages, health, behavior, and sentiment data continues to strengthen our industry leadership. We remain highly focused on overcoming the world's three fundamental digital divide through transformative connectivity solutions.

Speaker #3: Through strict operational discipline and focus, we have laid a solid foundation to build upon and accelerate growth in year 2026. Moreover, our smart hardware and data are emerging as a key gateway to AI and big data connectivity.

Speaker #3: While our heavy investment in the pet AI—analyzing pet languages, health, behavior, and sending data—continues to strengthen our industry leadership, we remain highly focused on overcoming the world's three fundamental digital divides through transformative connectivity solutions.

Speaker #3: We continue to dismantle the global connectivity divide by breaking down international roaming barriers to ensure our users maintain seamless network access anywhere in the world.

Chaohui Chen: We continue to dismantle the global connectivity divide by breaking down international roaming barriers to ensure our users maintain seamless network access anywhere in the world. At the same time, we are tackling the single-country multi-network device through our proprietary Cloud SIM and the HyperConn technologies, which are setting industry standards for intelligent multi-network connectivity and reliability. Lastly, and the most innovatory, we are bridging the emotional digital divide with our AI-powered pet ecosystem, creating entirely new and meaningful connections between humans and their pets. I will now review the highlights for each of our key business lines. I will start with our GlocalMe Life business, which continue to generate solid growth momentum.

Speaker #3: At the same time, we are tackling the single multi-network divide through our proprietary cloud SIM and hypercon technologies which are setting industry standards for intelligent multi-network connectivity and reliability.

Speaker #3: Lastly, and most innovatively, we are bridging the emotional digital divide with our AI-powered pet ecosystem, creating entirely new and meaningful connections between humans and their pets.

Speaker #3: I will now reveal the highlights for each of our key business lines. I will start with our global midlife business, which continues to generate solid growth momentum.

Speaker #3: Average daily active terminals during the first quarter surge 897.9% year over year while average daily active users which exclude pet phone increased 409.1% year over year.

Chaohui Chen: Average daily active terminals during the first quarter surged 897.9% year-over-year, while average daily active users, which exclude PetPhones, increased 409.1% year-over-year. Within our broader GlocalMe Life portfolio, our industry's first UniCore+ and UniCore Pro series remain highly competitive and continue to differentiate themselves with their seamless connectivity across multiple networks, safe path, global positioning, and faster charging capabilities. This is a further strengthening our competitive edge in the travel, automotive, and the secure networking markets. At the same time, PetPhone orders continue to scale and accelerated since its initial launch last quarter, reflecting strong market traction across the board. We kick off 2026 with a powerful showcase of our latest innovations at the CES in Las Vegas and MWC in Barcelona.

Speaker #3: Within our broader global midlife portfolio, our industry first unicore plus and unicore pro series remain highly competitive and continue to differentiate themselves with their seamless connectivity across multiple networks six tech global positioning and fast charging capabilities.

Speaker #3: This is a further strengthening our competitive edge in the travel automotive and secure networking markets. At the same time, pet phone orders continue to scale and accelerate since its initial launch last quarter.

Speaker #3: Reflecting strong market traction across the board. We kick off 2026 with a powerful showcase of our latest innovations at the CES in Las Vegas.

Speaker #3: And the NWC in Barcelona. As a highlight, we alternate our vision to eliminate the pet-people divide. Through the Pet Paper Goal ecosystem, and the introduction of the all-new Pet Cam, let’s complement the Pet Phone.

Chaohui Chen: As a highlight, we outlined our vision to eliminate the pet-people divide through the PetPogo ecosystem and the introduction of the all-new PetCam that complements the PetPhone. This revolutionary AI-powered ecosystem will transform how we connect with and care for our pets and transcends a basic pet tracking function by interpreting a comprehensive safety awareness emotion connection loop that enables owners to see, hear, and interact with their pets in real time from anywhere in the world. The market response has been exceptional, generating significant global attention and validating our product roadmap. Purchase orders are growing alongside strong consumer feedback, laying solid foundation for us to drive scale commercialization in 2026.

Speaker #3: This revolutionary AI-powered ecosystem will transform how we connect with and care for our pets and transcends basic pet tracking functions by establishing a comprehensive safety awareness, emotion connection loop.

Speaker #3: Let enable owner to see hear and interact with their pets in real-time for anywhere in the world. The market responds has been exceptional. Generating significant global attention and validating our product roaming.

Speaker #3: Purchase orders are growing alongside strong consumer feedback, laying a solid foundation for us to drive scale commercialization in year 2026. Also, making its debut at the CES was the mere goal for the G50 mask.

Chaohui Chen: Also making its debut at the CES was the MiaGo G50 Mas, an AI-powered connectivity hub with sky-to-ground 5G satellite and Wi-Fi integration that creates mobile Wi-Fi hotspot anywhere. This solution provides a critical safety net with two-way messaging and emergency SOS via satellite networks, ensuring connectivity even when terrestrial networks are beyond reach. Powered by our patented AI HyperConn technology, it can intelligently switch between the terrestrial 5G networks and the Wi-Fi networks to deliver a frictionless one device, one account roaming experience. At its core, it creates a reliable mobile Wi-Fi hotspot, ensuring unmatched coverages and truly seamless connection. Moving on to our GlocalMe IoT business.

Speaker #3: An AI-powered connectivity hub with Skype-to-ground 5G satellite and Wi-Fi integration creates a mobile Wi-Fi hotspot anywhere. This solution provides a critical safety net with two-way messaging and emerging SOS via satellite networks, ensuring connectivity even when terrestrial networks are beyond reach.

Speaker #3: Powered by our patented AI HyperConn technology, it can intelligently switch between terrestrial 5G networks and Wi-Fi networks to deliver a frictionless, one device, one account roaming experience.

Speaker #3: At its core, it creates a reliable mobile Wi-Fi hotspot ensuring unmatched coverage and truly seamless connection. Moving on to our global midlife business, we maintain a robust growth trajectory, with user adoption and revenue contribution increasing strongly on a year-over-year basis during the quarter.

Chaohui Chen: We maintain a robust growth trajectory with user adoption and revenue contribution increasing strongly on a year-over-year basis during the quarter. In Q4, average daily active terminals recorded a year-over-year increase of 434.8%. Highlighting a strategic positioning and traction we are getting in high-growth sectors such as in-car infotainment and security cameras. Having established a strong initial presence in this key sector, we plan to scale these solutions into additional industry verticals in the future to drive to further expansion of our ecosystem. Turning to our global eSIM business line, our eSIM Trio solution continues to gain a strong traction following its pilot programs last quarter, with a cumulative SIM card sales now surpassing several hundred thousand units as growth momentum accelerates.

Speaker #3: In the fourth quarter, average daily active terminals recorded a year-over-year increase of 434.8%. Highlighting our strategic positioning and traction, we are gaining in high-growth sectors such as in-car, infotainment, and security cameras.

Speaker #3: Having established a strong initial presence in these key sectors, we plan to scale these solutions into additional industry verticals in the future to drive further expansion of our ecosystem.

Speaker #3: Turning to our global MID SIM business line, our eSIM trio solution continues to gain strong traction following its pilot programs last quarter. With cumulative SIM card sales now surpassing several hundred thousand units as growth momentum accelerates, this is creating a strong growth momentum.

Chaohui Chen: This is creating a strong growth momentum with average daily active terminals increasing 180.8 year-over-year during the quarter, validating both our carrier's partnership model and its market positioning as a permanent secondary SIM card for users. More importantly, our carrier co-issuance program has begun pilot deployment and expanding fast, providing a highly effective low CapEx solution for operators that enhance their global roaming capabilities. This fourth SIM model is gaining strong traction and is welcomed by both operators and users, confirming robust product market fit. Looking ahead, 2026 will be a pivotal years of execution and the transformation for us. We closed 2025 with a streamlined organizational structure, having integrated our branding, online and offline sales, and e-commerce teams to better align with our evolving strategy.

Speaker #3: With an average daily active terminals increasing 180.8 year-over-year during the quarter. Validating both our carriers' partnership model and its market positioning as a permanent secondary SIM card for users.

Speaker #3: More importantly, our carrier coinsurance program has begun pilot deployment and is expanding fast, providing a highly effective, low CapEx solution for operators that enhances their global roaming capabilities.

Speaker #3: This forces SIM model is gaining strong traction with operators and users, confirming a robust product-market fit. Looking ahead, 2026 will be a promoter year of exclusion and transformation for us.

Speaker #3: We close 2025 with a streamline organizational structure. Having integrated our branding online and offline sales, and the e-commercial teams to better align with our evolving strategy.

Speaker #3: Building on this foundation, we kick off the new year's by onboarding highly experienced leaders with deep. To customer expertise to strengthen our capabilities for next phase of growth.

Chaohui Chen: Building on this foundation, we kick off the new year by onboarding highly experienced leaders with deep customer expertise to strengthen our capabilities for next phase of growth. At the same time, we are actively forging partnerships with world-renowned universities and leading global technology companies, integrating resources, and laying a solid foundation for long-term success. The strong market feedback from the CES 2026, combined with accelerating sales of new solutions, provide 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 devices for cross-border connectivities to emotional distances between people and their pets. With the disciplined optimism in mind, we are confident that we have the right strategy in place to drive sustainable growth going forward.

Speaker #3: At the same time, we are actively forging partnerships with world-renowned universities and leading global technology companies integrating resource and laying a solid foundation for long-term success.

Speaker #3: The strong market feedback from the CES 2026 combined with accelerating sales of new solution provides us with a multiple powerful growth engine. We are confident in our ability to scale our user-based growth globally further diversify our revenue streams and bridging critical digital divides.

Speaker #3: For cross-border connectivities to emotional distance between people and their pets. With the discipline optimism in mind, we are confident that we have the right strategy in place to drive sustainable growth going forward.

Speaker #3: For the fourth quarter of year 2026, we expect a total revenue to be between US dollar 16 million to 17 million representing a decrease of 9.1% to 14.4% compared to the same period of year 2025.

Chaohui Chen: For Q4 of 2026, we expect total revenue to be between $15 million to $17 million, representing a decrease of 9.1% to 14.4% compared to the same period of 2025. For 2026, we expect total revenues to be between $85 million and $200 million, representing an increase of 4.4% to 22.9% from 2025. I will now turn the call over to Mr. Shi.

Speaker #3: For year 2026, we expect total revenues to be between US 85 million and 200 million US dollar representing an increase of 4.4% to 22.9% from year 2025.

Speaker #3: I will now turn the call over to Mr. Shi.

Speaker #2: Thank you, Mr. Chen. Hello, everyone. I will go over our operational and financial highlights for the fourth quarter and full year 2025. Average daily active terminals (DATs) and average monthly active terminals (MATs) are important operating metrics for us.

Yimeng Shi: Thank you, Mr. Chen. Hello, everyone. I will go over our operational and financial highlights for Q4 and full year 2025. Average daily active terminals, DATs, and average monthly active terminal, MAT, are important operating metrics for us, as they measure customer usage trend over the period and are reflective of our business performance. In Q4 of 2025, average DAT was 328,847, of which 15,636 owned by the company, and 313,211 not owned by the company, representing an increase of 6.6% from Q4 of 2024.

Speaker #2: Other measured customer usage trends over the periods are reflective of our business performance. In the fourth quarter 2025, average DAT was 328,000 and 847, of which 15,000 and 636 were owned by the company, and 313,000 and 211 were not owned by the company.

Speaker #2: Representing an increase of 6.6% from the fourth quarter of 2024. During the quarter, 57.1% of DAT were from eCloudlink 1.0 international data connectivity service.

Yimeng Shi: During the quarter, 57.1% of DAT were from uCloudlink 1.0 international data connectivity service, and 42.9% were from uCloudlink 2.0 local data connectivity service. In December 2025, the average daily data usage per terminal was 1.59 GB. Average MATs in Q1 were 704,393, representing an increase of 11.1% from 644,245 in Q1 2024. Growth was driven by strong momentum across our three new growth engines, with average MATs for GlocalMe IoT, GlocalMe Scene, and GlocalMe Live increasing 127.5%, 133.8%, and 616.9% respectively from the same period last year.

Speaker #2: And 42.9% were from eCloudlink 2.0 local data connectivity service. In December 2025, the average daily data usage per terminal was 1.59 gigabytes. Average MATs in the fourth quarter were 704,000 and 393, representing an increase of 11.1% from 634,000 and 245 in the fourth quarter of 2024.

Speaker #2: Growth was driven by strong momentum across our three new growth engines, with average MAPs MATs for global mid IoT, global mid SIM, and global mid life.

Speaker #2: Increasing 127.5%, 133.8%, and 616.9%, respectively, from the same period last year. Average MATs from global mid goal business, which were previously referred to as global mid mobile fixed broadband business, decreased slightly by 0.5% year over year, reflecting a relatively stable user space in this segment.

Yimeng Shi: Average MATs from GlocalMe NearGo business, which were previously referred to as GlocalMe Mobile Fixed Broadband business, decreased slightly by 0.5% year-over-year, reflecting a relatively stable user base in this segment. Average Daily Active User, DAU, and Monthly Active User, MAU, represent the average number of unique users engaging with our GlocalMe service on a daily and monthly basis, respectively. Those metrics show strong growth momentum in Q4. Average DAU in Q4 were 353,278, representing an increase of 10.4% from 320.37 in Q4 2024.

Speaker #2: Average daily active user (DAU) and monthly active user (MAU) represent the average numbers of unique users engaging with our global MiFi service on a daily and monthly basis, respectively. Those metrics show strong growth momentum in the fourth quarter. Average DAU in the fourth quarter were 353,000 and 278, representing an increase of 10.4% from 320,370 in the fourth quarter of 2024.

Speaker #2: Global mid IoT global mid SIM and global mid life all deliver significant gains with average DAU up 558.7%, 349.8%, and 409.1% respectively from the same period last year.

Yimeng Shi: GlocalMe IoT, GlocalMe Scene, and GlocalMe Live all deliver significant gains with average DAU up 558.7%, 349.8%, and 409.1% respectively from the same period last year. Average DAU from GlocalMe NearGo business declined slightly by 4% year-over-year. Average MAUs were 738,777, representing a 9.2% increase from 676,610 in Q4 2024. Average MAUs from GlocalMe IoT, GlocalMe Scene, GlocalMe Live business line saw increase of 66% to 433.3% and 460.2% respectively from the same period last year.

Speaker #2: Average DAU from global mid-goal business declined slightly by 4% year over year. Average MAUs were 738,000 and 777, representing a 9.2% increase from 676,000 and 610 in the fourth quarter 2024.

Speaker #2: Average MAUs from Global MID, IoT Global MID, and SIM Global MID life business lines saw increases of 66%, 453.3%, and 460.2%, respectively, from the same period last year.

Speaker #2: Average MAU from global mid goal business decreased slightly by 2.2% year over year as payphone is nearly locked business we are beginning to see earlier user adoption during the quarter.

Yimeng Shi: Average MAU from GlocalMe NearGo business decreased slightly by 2.2% year-over-year. As PetPhone is a newly launched business, we are beginning to see early user adoption during the quarter. In the first quarter's average DAT and MAT for platform reached 257 and 571 respectively, while average DAU and MAU were 745 and 977, reflecting the initial traction of this new offering. As of 31 December 2025, the company had 206 patents, with 181 approved and 25 pending approval, and approved SIM cards from 398 MNOs globally.

Speaker #2: In the fourth quarter, average DAT and MAT for the platform reached 257 and 571 respectively, whilst average DAU and MAU were 745 and 977, reflecting the initial tractions of this new offering.

Speaker #2: As of December 31, 2025, the company had 206 patents, with 181 approved and 25 pending approval. And approved SIM cards from 398 MNOs globally.

Speaker #2: Total revenue for the fourth quarter of 2025 was $22.1 million, representing a decrease of 14.6% from $26.0 million in the same period of 2024.

Yimeng Shi: Total revenue for Q1 2025 was $22.1 million, representing a decrease of 14.6% from $26 million in the same period of 2024. Revenue from service were $15.2 million, representing a 1.1% increase from $15 million in the same period of 2024. Revenue from service contributed 68.5% of total revenues during Q1 2025, comparing to 57.8% in same period last year.

Speaker #2: Revenue from service were 15.2 million US dollars representing a 1.1 increase from 15 million US dollars in the same period 2025. Revenue from service contributed 68.5% of total revenues during the fourth quarter 2025 comparing to 57.8% in the same period last year.

Speaker #2: Geographically speaking, during the fourth quarter of 2025, Japan contributed 43.6%, mainland China contributed 26.8%, North America contributed 11.2%, and other country and regions contributed remaining 18.4% compared to 33.6%, 20%, 12.1%, and 14.3% respectively in the same periods of 2024.

Yimeng Shi: Geographically speaking, during Q1 2025, Japan contributed 43.6%, Mainland China contributed 26.8%, North America contributed 11.2%, and other countries and regions contributed the remaining 18.4%, compared to 33.6%, 20%, 12.1%, and 14.3% respectively in the same period of 2024. Our gross profits was $11.4 million in Q1 2025, compared to $11.2 million in the same period of 2024. Overall gross margin in Q1 2025 increased to 51.6% from 43% in the same periods of 2025.

Speaker #2: Our gross profits was 11.4 million in the fourth quarter 2025 compared to 11.2 million in the same period 2024. Overall gross margin in the fourth quarters of 2025 increased to 51.6% from 43% in the same periods of 2025.

Speaker #2: The gross margins on service were 61.7% in the fourth quarter 2025 compared to 58.6% in the same quarter 2024. Excluding share-based conversations total operating expenses were 9.4 million US dollars compared with 13.9 million US dollars in the fourth quarter 2024.

Yimeng Shi: The gross margins on service was 61.6% in Q1 2025, compared to 58.6% in the same quarter 2024. Excluding share-based compensations, total operating expenses were $9.4 million compared with $13.9 million in Q1 2024. Net loss in Q1 2025 was $3.1 million compared with a net loss of $1.5 million in same period 2024. Adjusted EBITDA was positive $3.1 million in Q1 2025, compared with negative $2.3 million in the same period of 2024.

Speaker #2: Net loss in the fourth quarter 2025 was 3.1 million US dollars compared with a net loss of 1.5 million US dollars in the same period 2024.

Speaker #2: Adjusted EBITDA was positive $3.1 million in the fourth quarter of 2025 compared with elective $2.3 million in the same period of 2025.

Speaker #2: For the fourth quarter of 2025, we recorded operating cash inflows of $4.7 million, compared to $0.5 million in the same period of 2024.

Yimeng Shi: For Q1 2025, we recorded operating cash inflows of $4.7 million compared to $0.5 million in the same period of 2024. For Q1 2025, our capital expenditure were $20,000 compared to $0.6 million in the same period, 2024. Moving to 2025 full year's financial results. Average DATs and MATs show similar patterns to those observed in the first quarters. For the full year, average DATs were 322,169, of which 18,449 owned by the company and 303,720 owned by Venice Partner, representing an increase of 1.7% from 316,688 in 2024.

Speaker #2: For the fourth quarter 2025, our capital expenditures were $20,000 compared to $0.6 million in the same period of 2024. Moving to 2025 full year's financial results.

Speaker #2: Average DATs and MATs show similar patterns to those observed in the fourth quarters. For the four years, average DATs were 322,000 and 169, of which 18,000 and 449 were owned by the company and 303,000 and 720 owned by business partners.

Speaker #2: Representing an increase of 1.7 from 316,000 and 688 in 2024. In 2025, 56.3% of DATs were from equaling 1.0 in national data connectivity service and 43.7% of DAT were from equaling 2.0 in local data connectivity service.

Yimeng Shi: In 2025, 36.3% DATs were from uCloudlink 1.0 in national data connectivity service and 43.7% of DAT were from uCloudlink 2.0 local data connectivity service. Average MATs in 2025 were 681,672, representing an increase of 8% from 631,137 in 2024. Growth was primarily driven by our three new growth engines, with average MATs from GlocalMe IoT, GlocalMe SIM, GlocalMe Life, increasing 360.7%, 119.8%, and 356.0% year-over-year, respectively.

Speaker #2: Average MATs in 2025 were 681,000 and 672, representing an increase of 8% from 631,000 and 137 in 2024. Gross was primarily driven by our three new gross engines, with average MATs from global mid IoT, global mid SIM, and global mid life increasing 360.7%, 119.8%, and 356.0% year over year, respectively.

Speaker #2: Average DAU in 2025 were 340,000 and 36 representing an increase of 4.2 from 326,000 and 412 in 2024. This growth was supported by strong expansions in global mid IoT, global mid SIM, and global mid life.

Yimeng Shi: Average DAU in 2025 were 340,036, representing an increase of 4.2% from 326,412 in 2024. This growth was supported by strong expansions in GlocalMe IoT, GlocalMe SIM, and GlocalMe Life, where average DAT is increasing 737.3%, 321.5%, and 349.1% year-over-year, respectively. Average MAU in 2025 were 723,706, representing increase of 8.9% from 664,815 in 2024.

Speaker #2: Where average DATs increased 737.3%, 321.5%, and 349.1% year over year, respectively. Average MAU in 2025 were 723,000 and 706, representing an increase of 8.9% from 664,000 and 815 in 2024.

Speaker #2: Average MAU from Global MID IoT, Global MID SIM, and Global MID Life increased 251.2%, 167.5%, and 413% year over year, respectively. Total revenue for 2025 reached $81.4 million compared with $91.6 million in 2024.

Yimeng Shi: Average MAU from GlocalMe IoT, GlocalMe SIM, and GlocalMe Life, increasing 251.2%, 167.5%, and 413% year-over-year, respectively. Total revenue for 2025 reached $81.4 million, compared with $91.6 million in 2024. Revenue from service was $60 million, representing 1.8% year-over-year increase from $60 million in 2024. Revenue from data connectivity service were $47.8 million, a slight increase from $47.6 million in 2024. Within the segment, international data connectivity service remained the largest contributor, rising from $39.5 million in 2024 to $41.41 million in 2025, representing 4% year-over-year increase.

Speaker #2: Revenue from service was 61 million US dollars representing 1.8% year over year increasing from 60 million US dollars in 2024. Revenue from data connectivity service were 47.8 million US dollars a slight increase from 47.6 million in 2024.

Speaker #2: Within the segment in the national data connectivity service remained the largest contributor rising from 39.5 million US dollars in 2024 to 41.41 million US dollars in 2025.

Speaker #2: Representing a 4% year-over-year increase. Overall gross margin was 52.4% in 2025, an increase compared with 48.4% in 2024. Gross margin for service was 58% in 2025, compared with 6.8% in 2024.

Yimeng Shi: Overall gross margins was 52.4% in 2025, an increase when compared with 48.4% in 2024. Gross margin for service was 58% in 2025, compared with 6.8% in 2024. For the full year 2025, excluding share-based compensation, total operating expenses was $40.4 million compared to $40.8 million in 2024. Net income was $6.3 million in 2025, compared with $4.6 million in 2024, representing 38.2% increase from 2024. Adjusted EBITDA was $17.2 million in 2025, compared to $7.1 million in 2024.

Speaker #2: For the full year 2025, excluding share-based compensation, total operating expenses were $40.4 million compared to $40.8 million in 2024. Net income was $6.3 million in 2025 compared with $4.6 million in 2024, representing a 38.2% increase from 2024.

Speaker #2: Adjust EBITDA was 70.2 million US dollars in 2025 compared to 7.1 million in 2024. For the full years our capital expenditure were 1.0 million US dollars compared to 4 million US dollars in 2024.

Yimeng Shi: For the full year, our capital expenditure were $1.0 million compared to $4 million in 2024, which generated positive operating cash inflow of $3.2 million compared to $9.2 million in 2024. Turning to balance sheet items, our cash and cash equivalents increased to $32.8 million as of 31 December 2024 compared to $28.5 million as of 30 September 2024. We remain focused on strengthening our financial position and believe we are well positioned to drive continuous growth in our business. Operator, please open up for Q&A.

Speaker #2: We generated positive operating cash inflow of 3.2 million US dollars compared to 9.2 million US dollars in 2024. Turning to balance sheet item, our cash and cash equivalents increased to 32.8 million US dollars as of December 31st, 2024.

Speaker #2: Compared to $28.5 million as of September 30, 2025. We remained fixed on strengthening our financial position and believe we are well positioned to drive continuous growth in our business.

Speaker #2: With operator, please open up for Q&A.

Speaker #1: Thank you. If you would like to ask a question, please press star one (*) on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two (*2).

Operator 2: Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Theodore O'Neill from Litchfield Hills Research. Please go ahead.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Theodore O'Neill from Litchfield Hills Research. Please go ahead.

Speaker #1: If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Theodore O'Neill from Litchfield Hills Research.

Speaker #1: Please go ahead.

Speaker #2: Oh, thank you very much. Looking at your guidance for 2026 implies a fairly strong second half of the year and I was wondering if you could talk about that growth in terms of what product lines or geographic areas you expect to see participate the most in that growth.

Theodore O'Neill: Oh, thank you very much. Looking at your guidance for 2026 implies a fairly strong second half of the year. I was wondering if you could talk about that growth in terms of what product lines or geographic areas you expect to see participate the most in that growth.

Yimeng Shi: Thanks, Theo. Yes. The outlook for the year 2026, we expect a robust growth trend for our overall business. The main growth driver, as we disclose in the year 2025, the three new business line main growth driver, which are GlocalMe IoT, GlocalMe SIM, and GlocalMe Life, as well as a new business line, PetPhone, separated from the GlocalMe Life business line. This year is a separate business line for PetPhone business. All the four now is the four business line will drive our main business growth in terms of revenue.

Speaker #3: Thanks, Theo. Yeah. Look for the year 2026. We expect a growth, a robust growth trend for our overall business. The main growth driver as we disclosed in the year 2025 and the three new business lines are main growth driver which are global mid IoT, global mid SIM, and global mid life.

Speaker #3: As well as a new business line platform separated from the global mid life business line. This year is a separate business line for platform business.

Speaker #3: So all those four now, as four business lines, will drive our main business growth in terms of revenue. Our legacy business, Wi-Fi mobile broadband Wi-Fi, has kept stable business and will contribute solid cash flow to support our investment in our four new businesses.

Yimeng Shi: Our legacy business, Wi-Fi, mobile broadband Wi-Fi, has kept a stable business, which will contribute solid cash flow to support our investments on our four new businesses. As we disclosed last year, in the year 2025, we invested massively on four new business lines. All these investments came from the cash inflow generated from our legacy business, mobile broadband business. Last year, in the year 2025, the operational metrics has told us the growth driver will come into revenue for the year 2026.

Speaker #3: So as we disclosed, last year in the year 2025, we invested massively on four new business lines. All this investments came from the cash inflow generated from our legacy business mobile broadband business.

Speaker #3: So last year, in the year 2025, the operational metrics has told us the growth driver will come into revenue for the year 2026. As we disclosed, the DAUMAU metrics for this three new business IoT SIM and life the growth massively a couple of times more than the previous year's 2024.

Yimeng Shi: As we disclose the DAU, MAU metrics for these three new business, IoT, SIM, and Life, they grow massively a couple times more than the previous year, 2024. This will carry on this driver for our growth in year 2026. Yeah.

Speaker #3: So this will carry on this driver for our growth the year 2026. Yeah.

Speaker #1: Thank you. And could you give us some more information about global mid IoT? Are there particular industries that where you see growth for the IoT part of the business or is it very broad-based?

Theodore O'Neill: Thank you. Could you give us some more information about GlocalMe IoT? Are there particular industries where you see growth for the IoT part of the business, or is it very broad-based?

Yimeng Shi: Yeah. You know, our IoT business, because we not just invest last year. We are almost invest nearly 10 years. From last year, we finished our IoT product embed into the industry, you know, IoT leaders. We finished all the trials. That's why we can see a largely increase, because they already embed our IoT Cloud SIM input solution into their, like a camera, like a car infotainment, these, even a, like battery, you know, monitoring. These, because you know, all the Chinese manufacturer and this smart device more and more go to the outside China and go to the worldwide. So we would just enable them to cross the, you know, network in each country easily.

Speaker #3: Yeah. Our IoT business because we know just invest last year we are almost invest nearly 10 years. But from last year we finished our IoT product into the industry IoT leaders.

Speaker #3: We finished all the trial. That's why we can see a largely increase because they already embed our IoT cloud SIM port solution into their like a camera, like a car infotainment this even the battery monitoring this because you know all the Chinese manufacturer and this smart device more and more go to the outside China and go to the worldwide so we just embed enable them to close the network in each country easily.

Speaker #3: So this help us gain a volume customer increase. I always our partner so give us the forecast this year their IoT product like a security camera like a CarPlay like the power monitoring and battery monitor etc.

Yimeng Shi: This helps us gain a volume customer increase. All these our partners give us the forecast this year. Their IoT product like security camera like CarPlay like you know the power monitoring and battery monitor et cetera. They will have a large volume deployed with our solution. Before that we just finished the test last before last year. From the second half of last year we see more and more this industry player embed our solution because our solution is much better than currently just practicing inside.

Speaker #3: And they will have a large volume deploy with our solution. Before that we just finished the test last second half of last year we see more and more this industry player embed our solution because our solution is much better than currently just practicing inside.

Speaker #3: So that's why we are more confident in the next couple of years we can get millions of connections and the revenues from these partners.

Chaohui Chen: That's why we have more confidence. In the next couple of years, we can get millions of connections and the revenues from these partners.

Speaker #1: Okay. All right. Thank you very much.

Theodore O'Neill: Okay. All right. Thank you very much.

Speaker #2: Thank you. Once again, if you would like to ask a question, please press star one on your telephone and waive your name to be announced.

Operator 2: Thank you. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Vivian Zhang from Diamond Equity Research. Please go ahead.

Operator: Thank you. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Vivian Zhang from Diamond Equity Research. Please go ahead.

Speaker #2: Your next question comes from Vivian Jiang from Diamond Equity Research. Please go ahead.

Speaker #4: Hello. Hello. This is Vivian Jiang with Diamond Equity Research. Congratulations on the results achieved. I got several questions. Firstly, can you provide more details about the recently introduced platform ecosystem and the platform and how do you expect them to drive the growth of sales and profit margins?

Vivian Zhang: Hello, hello. This is Vivian Zhang with Diamond Equity Research. Congratulations on the results achieved. I got several questions. Firstly, can you provide more details about the recently introduced PetPogo ecosystem and the PetCam? How do you expect them to drive the growth of sales and profit margins?

Chaohui Chen: Okay. Last October, we newly launched our platform product in Asia area, then to US area. I think that we already start up the solution, the platform for solution bridging the digital gap between the people and the pets. Also we get a very popular during the CES exhibition and also MWC in Barcelona. Like CBS, Reuters, and even Xinhua, they all give a very focused report about our new product. Also last CES, we also launch a new PetCam.

Speaker #3: Okay, last quarter—so year 2024 Q4—we are in the last, October, last, yeah, October, we newly launched our platform product in the Asia area, and to the US area.

Speaker #3: I think that we already started I think the solution the platform for solution bridging the digital gap between the people and the pets. And also we get a really popular during the CES exhibition and also NWC in Barcelona so like CBS like Luther's and even the Chinese Xinhua they all give a very focused report about our new product.

Speaker #3: And also last CES we also launched a new pet cam and also the pet camera shoot I think is integrated platform and the pet cam.

Chaohui Chen: Also, the pet camera should integrate the platform and the PetCam. Now we can provide not only just the voice connection with the people and the pet, but also we can provide the camera, I think the video connection with the pet. That means we can provide the connection through the pet, you know, the pet view. We call it for FPV. Also, we can use this pet camera as a CCTV to monitor to understand the pet, you know, the mood, the behavior and their security, etc. That's why we are not only just start on the voice for PetPhone, but we have now more device and more function coming like a PetCam.

Speaker #3: So now we can provide not only just the voice connection with the people and the pet but also we can provide the camera I think the video connection with the pet.

Speaker #3: That means we can provide we can provide the connection through the pet the pet view. We call it FPV. Also we can use this pet camera as a CCTV to monitor to understand the pet the moody the behavior and their security etc.

Speaker #3: So that's why we are not only just start from the voice for platform but we have more function coming like a pet cam. This is foster pet cam can I think can do the live broadcast live video also can be added as a CCTV.

Chaohui Chen: First, PetCam can, I think, can do the live broadcast, live video. Also can be add as a CCTV. It's very useful to improve the safety and the communication effect with the pet. And also, we, our PetPogo, this is hardware pet camera and the pet, and the PetPhone. Our ecosystem, our app, we call the pet and the digital world is our PetPogo. In the international version, we call it PetPogo. For Chinese version, we call it PetPogo. It's separated because of data security arrangement. I think, for this PetPogo, we can provide, we can solve it, I think first is the communication between the pet and the people.

Speaker #3: So it's very useful to improve the safety and the communication effect with the pet. And also we our pet goal this is hardware is pet camera and the pet and the platform.

Speaker #3: Our ecosystem our app we call the digital world is our pet goal. So in the international version we call the pet goal. For Chinese version we call the pet wolf.

Speaker #3: It's separated because data security arrangement. So I think for these pet goal we can provide we can solve I think first is a communication between the pet and the people we can provide in the AI translation for the moody languages that's first part.

Chaohui Chen: We can provide AI translation for the multiple languages. That's the first part. The second, we can support end-to-end for pet safety, including the tracking and the training. Also, we can provide healthcare for the pet, it's end-to-end. We can see that once the PetPogo launches end of this month, we can see the platform is significantly different from the current tracker and the current pet training device. The platform, finally, we understand it can solve three major anxieties. First is about communication. The second is about safety, and the third is about health. It compares to just a single function device.

Speaker #3: And the second we can solve it end to end for pet safety including the tracking and the training. Also we can provide in the healthcare for the pet is end to end.

Speaker #3: So we can see that once the pet goal launch end of next month we can see the platform significantly apply different ways the current tracker and the current pet training device we the platform finally we understand it can solve the three major anxieties first is about communication the second is about safety and the third is about healthy.

Speaker #3: So it's compare the last just single function device and the platform and the pet goal can provide in more effective pinpoint anxiety solutions. So pet goal I think we mentioned pet goal is we are increase we are include not only just platform platform we believe it will be like an iPhone with the app inside first and the second pet goal with community and with more functional and even the AI agent inside so like a translation like a video camera healthy AI etc.

Chaohui Chen: PetPhone and the PetPogo can provide more effective, you know, pinpoint anxiety solutions. PetPogo, I think, we mentioned PetPogo is we include not only just PetPhone. PetPhone, we believe it will be like iPhone with app inside first. The second, PetPogo with a community and with a more, you know, functional and even AI agent inside. Like a translation, like a video camera, healthy AI, etc., all put into here. We have a community with all the people and the pet, and they live together, and they share together, and they talk together. That's like

Speaker #3: All put into here, and also we have a community with all the people and the pet, and they live together and they shake together and they talk together. So that's like a pet words, like a WeChat, that we call the pet WeChat and the pet TikTok.

Yimeng Shi: Worlds like a WeChat that we call the Pet WeChat and the Pet TikTok. We integrate more and more functions in the PetPogo. The initial version is quite different because we have now a community for pet owners. We are more understanding each other. I believe in the future PetPogo will grow up become a social digital society for pets and the people. That's all. Thank you.

Speaker #3: So, we are integrating more and more functions into the Pet Goal. The initial version is quite different. Because we now have a community for pet owners, we are more understanding of each other, and I believe in the future Pet Goal will grow up and become a digital society for pets and people.

Speaker #3: That's all. Thank you.

Speaker #4: Okay, got it. My next question will be about the R&D expenses declining a lot in the fourth quarter. So, we would like to know if this will impact the company's ability to research and develop new products.

Vivian Zhang: Okay. Got it. My next question will be about the R&D expenses declining a lot in Q4. We would like to know if this will impact the company's ability of researching and developing new products?

Yimeng Shi: The percentages. Now, the figures are the expenditures related to R&D. The figures tell us we improve our R&D's efficiencies via investment on more efficiency on project management and also AI tools, some like AI coding program. All this improve our R&D's efficiency, improving. We invest R&D resource more on a new business line, as we say, the more R&D research investment on platform business. Yeah. Last investment R&D's is not enough. This year we will carry on the investments on R&D's for new business.

Speaker #3: The percentage. No. The figures the expenditure is related to R&D figures tell us we improve our R&D efficiencies via invest on more efficiency on programs management and also AI tools some like AI coding AI coding program over this improve our accompanying R&D efficiency improving improving.

Speaker #3: So we invest R&D resource more on a new business line as we say more R&D research invest on platform business. Yeah. And then that's the investment R&D is not enough.

Speaker #3: So this year we will carry on investments on R&D for new business. As we finally in the 6K in the last years I think in October we spin off platform business as a separated a separated subsidiary so we have start to a new financing risk finance for platform business so the platform business will have I believe will have a new fundraising deal in this year sometime so we will invest as a new fund on new business like platform business pet goal so we will still invest increase investment on R&D on new business invest on our new futures.

Yimeng Shi: As we filed the Form 6-K in the last year, I think in October, we spin off platform business as a separate subsidiary. We have started to a new financing, risk financing for platform business. The platform business will have, I believe, a new fundraising deal in this year sometime. We will invest this new fund on new business like platform business, PetPogo. We will still invest, increase investment on R&D for new business, invest on our new features.

Speaker #4: Okay, okay. I think we are, yeah, we are spending more on the new business rather than just the traditional business.

Vivian Zhang: Okay. I see.

Yimeng Shi: Yeah. I think we are more-

Vivian Zhang: Mm-hmm.

Yimeng Shi: Yeah. We are more spending on new business rather than just, traditional business.

Speaker #3: Oh. Okay. Got it. Got it.

Vivian Zhang: Oh, okay. Got it. My last question is that, can you elaborate on the reasons for the decline in product sales? Do you think this decline will continue?

Speaker #4: My last question is that can you elaborate on the reasons for the decline in product sales? Do you think this decline will continue?

Speaker #3: Sorry. Which one?

Yimeng Shi: Sorry, which one?

Speaker #4: Yes. Can you elaborate on the reasons for the decline in product sales? Do you think this decline will continue?

Vivian Zhang: Yes. Can you elaborate on the reasons for the decline in product sales? Do you think this decline will continue?

Yimeng Shi: You mean the mobile broadband business decline?

Speaker #3: You mean mobile profile mobile program business decline?

Speaker #4: No. I mean.

Vivian Zhang: No. I mean

Speaker #3: Or which business are you?

Yimeng Shi: Sorry. Which business are you-

Speaker #4: Yes.

Vivian Zhang: Yes.

Speaker #3: Sorry. Can you say again?

Yimeng Shi: Sorry. Can you say again?

Vivian Zhang: Can you explain why the product sales declined? Like, whether and, do you think this decline will continue?

Speaker #4: Can you explain why the product sales declined? Was it under do you think this decline will continue?

Vivian Zhang: Can you explain why the product sales declined? Like, whether and, do you think this decline will continue?

Yimeng Shi: We disclosed a little bit the revenues generated from the mobile Wi-Fi, mobile broadband's hardware deliveries was a little bit declined a lot last year. The service revenues was increasing a little bit over the year 2024. As we disclose the MAUs, the metrics was increases about 10% over the last year, which will show our service revenue related to this active user will come back to our count on recurring basis in the year 2026 and over.

Speaker #3: We disclosed a little bit the revenues revenues generate from the mobile Wi-Fi mobile broadbands and hardware delivery was a little bit declined last year but the revenue the service revenues was increasing a little bit over the year 2024.

Speaker #3: As we disclosed the MAUs the metrics was increasing about 10% over the last years which will show our revenue service revenue related this active user will come back to our account on recurring basis in the year 2026 and over so and as we say we the new gross new gross engines came from the four new business line as I mentioned IoTs platform SIEM live service so the mobile Wi-Fi the legacy business as a contributor of a cash flow for us to invest on our new business so that's yeah.

Yimeng Shi: As I will say, the new growth engines came from the four new business line as I mentioned, IoT, platform, SaaS, live service. The mobile Wi-Fis are the legacy business. They, as a contributor of cash flow for us to invest in our new business. That's.

Chaohui Chen: Yeah. More comment because our current legacy product are from international part is heavy impact by the I think the economic and tariff. For example, last year. We can see in the last summer. I think that the travel is our good season, but at the moment, we suffer from the, you know, earthquake numerous in Japan. That's impact the first. The second, and also we can see the Sino-US trade war during the middle of last year, around June. You can see Q4. We are suffer from the China and the Sino-US, no, Sino-Japan relationship, and this year it's the same.

Speaker #5: And more comment because our current legacy product from the international part is heavy impact by the I think the economic and tariff for example last year so you can see in the last summer it's our I think it's the travel is good season but at the moment we suffer from the earthquake and numerous in Japan so that's impact the first.

Speaker #5: The second and also so we can see the US travel world during the last middle of last year around June so you can see the fourth quarter we suffer from the China and the US and Japan relationship and this year is the same so the fourth quarter we suffer from the Middle East world so all these is heavy impact about traveler this part but for the domestic part it will still a stable growth so we have to overcome the traveler business that's very heavy by the economic and the situation the political situation worldwide.

Chaohui Chen: The Q4 we suffer from the Middle East war. All this is have impact about our traveler this part. For the domestic part, it will still a stable growth. We have to overcome the traveler business that's very heavy by the economic and the situation, the political situation worldwide. If the worldwide situation getting better, I think this will regain the benefit we will regain from this part.

Speaker #5: So if the worldwide situation gets better, I think this will regain the benefit. We will regain from this part.

Speaker #4: Oh. Okay. That helps a lot. Thanks for sharing the details. That's all. Thank you.

Vivian Zhang: Oh, okay. That helps a lot. Thanks for sharing the details. That's all. Thank you.

Speaker #3: Thank you.

Chaohui Chen: Thank you.

Speaker #5: Thank you. There are no further questions at this time. I'll now hand back for any closing

Operator 2: Thank you. There are no further questions at this time. I'll now hand back for any closing remarks.

Operator: Thank you. There are no further questions at this time. I'll now hand back for any closing remarks.

Speaker #6: Okay, thank you once again for joining us today. If you have further questions, please feel free to contact your colleagues in investor relations through the contact information provided on our website, or speak to our investor relations team.

Chaohui Chen: Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact uCloudlink Investor Relations through the contact information provided on our website or speak to our investor relations firm, Christensen Advisory. We look forward to speaking with you again on our next quarterly call. Thank you.

Speaker #6: Greetings and happy anniversary. We look forward to speaking with you again on our next quarterly call. Thank you.

Operator 2: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Q4 2025 uCloudlink Group Inc Earnings Call

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