Why Ubiquiti Stock Surged 25.1% in September

Ubiquiti (NYSE: UI) reported a robust fiscal Q4, with revenue surging 50% year-over-year to $759.2 million and adjusted EPS soaring 103% to $3.54, significantly exceeding Wall Street's consensus. Following these results, the company raised its quarterly dividend by 33% to $0.80 per share and initiated a new $500 million stock repurchase program, contributing to a 25.1% stock price increase in September. However, the company's limited public float, with the CEO holding approximately 93% of shares, and its policy of not providing guidance or holding earnings calls, limits investor insight into future growth prospects.

Analysis

Key PointsIn fiscal Q4, Ubiquiti's year-over-year revenue surged 50% and its adjusted EPS soared 103%. The company also raised its quarterly dividend by 33% to $0.80 per share. And it initiated a new stock repurchase program that authorizes it to repurchase up to $500 million of its common stock. - 10 stocks we like better than Ubiquiti › In fiscal Q4, Ubiquiti's year-over-year revenue surged 50% and its adjusted EPS soared 103%. The company also raised its quarterly dividend by 33% to $0.80 per share. And it initiated a new stock repurchase program that authorizes it to repurchase up to $500 million of its common stock. Shares of Ubiquiti (NYSE: UI), which makes wireless networking equipment and access points, jumped 25.1% in September, according to data from S&P Global Market Intelligence. For context, last month, the S&P 500 index returned 3.7% and the tech-heavy Nasdaq Composite index returned 5.7%. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Momentum continued into September from a phenomenal fiscal fourth-quarter report Ubiquiti stock's strong performance in September can be summed up as follows: continued upward momentum from a phenomenal fiscal Q4 earnings report released in late August. In other words, the good news came in August and investors appeared to be continuing to buy shares in September. On the note of buying shares, before we get into the company's trifecta of good news, investors should know that only a very small portion of its stock is available for purchase or sale. That's because Robert Pera, the company's founder, CEO, and Chairman, owns about 93% of Ubiquiti's total shares. So, the public stock float -- shares available to the public for buying and selling -- is only about 7% of total shares. On Aug. 22, Ubiquiti stock skyrocketed 30.6% after the company reported its results for its fourth quarter of fiscal 2025 (ended June 30). Not only did the quarter's revenue and earnings crush Wall Street's consensus estimates, but the company also significantly raised its quarterly cash dividend and initiated a stock buyback program. In Q4, Ubiquiti's revenue surged 50% year over year to $759.2 million. Enterprise technology revenue increased 58% to $680.1 million, and service provider technology revenue rose 4% to $79 million. Earnings per share (EPS) based on generally accepted accounting principles (GAAP) jumped 56% year over year to $4.41, while adjusted EPS soared 103% to $3.54. Wall Street was expecting adjusted EPS of just $2.23, or 28% growth. Ubiquiti raised its quarterly dividend by 33% to $0.80 per share, up from $0.60 per share. The higher dividend was payable on Sept. 8 to shareholders of record at the close of business on Sept. 2. This is the first time since 2021 the company has increased its dividend. The reason it didn't raise its dividend for a few years was to conserve cash in the aftermath of the start of the COVID-19 pandemic. Like other companies, Ubiquiti's supply chain was disrupted during the crisis, so it had trouble fulfilling all its orders. Moreover, it was paying extra for transportation to expedite customers' shipments. So, its financial results were hurt. Recently, the company has been paying off some debt that it incurred during this time. The company's strengthened balance sheet and improved cash flow and business outlook has also given it the confidence to initiate a new stock repurchase program. The program authorizes it to repurchase up to $500 million of its common stock. Limited information on growth prospects Ubiquiti does not provide guidance nor does it hold earnings calls with Wall Street analysts. So, while the company's business is performing very well currently, investors have limited data in which to gauge its growth prospects over the short or long term. Moreover, only a very limited number of Wall Street firms cover the stock and issue ratings on it. Should you invest $1,000 in Ubiquiti right now? Before you buy stock in Ubiquiti, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ubiquiti wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $621,976! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,085! Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor. Stock Advisor returns as of September 29, 2025 Beth McKenna has no position in any of the stocks mentioned. The Motley Fool recommends Ubiquiti. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Ubiquiti (UI) demonstrated exceptional financial performance in its fiscal fourth quarter, reporting a 50% year-over-year revenue increase to $759.2 million and a 103% surge in adjusted EPS to $3.54. This earnings result significantly surpassed Wall Street's consensus estimate of $2.23, fueling a 25.1% stock price increase in September. The growth was predominantly driven by the Enterprise Technology segment, which saw revenue expand by 58%, while the Service Provider Technology segment grew by a modest 4%. Management's confidence in the business outlook is underscored by two key capital return initiatives: a 33% increase in the quarterly dividend to $0.80 per share, the first raise since 2021, and the authorization of a new $500 million stock repurchase program. These actions are supported by a strengthened balance sheet and improved cash flow following pandemic-related supply chain disruptions. However, significant structural risks persist for investors. The company provides no forward guidance and does not hold earnings calls, creating an information vacuum regarding future growth prospects. Furthermore, with the CEO owning approximately 93% of the company, the public float is limited to just 7% of total shares, which can lead to heightened volatility and potential liquidity issues.

Key Decisions for Investors

• The combination of blowout Q4 earnings, a 33% dividend hike, and a new $500 million buyback program signals strong current momentum and management confidence, which may warrant a bullish stance for investors comfortable with the stock's risk profile.
• Investors must weigh the robust operational results against the significant information risk posed by the company's policy of not issuing guidance or conducting earnings calls, making future performance difficult to forecast.
• The low public float of approximately 7% can amplify price volatility and present liquidity challenges, a critical factor to consider when determining position size and managing risk.
• Monitor the performance of the Enterprise Technology segment, as its 58% growth was the primary driver of the quarter's success and is crucial for sustaining the company's valuation.