Revenue contracted by 14.2% in 2025Q4, though the company maintained a resilient 51.6% gross margin despite ongoing competitive pressures in the global telecommunications market.
uCloudlink Group Inc. (UCL) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Revenue | 78.51M | 81.66M | 91.64M | 85.58M | 71.46M | 73.82M | 89.57M | 158.38M | 126.4M | 85.84M |
| Revenue Growth % | -12.06% | -10.88% | 7.08% | 19.75% | -3.2% | -17.58% | -43.45% | 25.3% | 47.24% | - |
| Cost of Revenue | 38.27M | 38.87M | 47.27M | 43.61M | 38.93M | 51.99M | 61.26M | 93.46M | 80.24M | 56.31M |
| Gross Profit | 40.25M | 42.8M | 44.36M | 41.97M | 32.53M | 21.83M | 28.3M | 64.92M | 46.16M | 29.53M |
| Gross Margin % | 51.26% | 52.4% | 48.41% | 49.04% | 45.53% | 29.58% | 31.6% | 40.99% | 36.52% | 34.4% |
| Gross Profit Growth % | - | -3.53% | 5.71% | 28.99% | 49.01% | -22.86% | -56.4% | 40.65% | 56.29% | - |
| Operating Expenses | 43.81M | 41.54M | 39.98M | 39.38M | 51.73M | 67.74M | 91.29M | 59.41M | 69.28M | 47.08M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - |
| EBITDA | -2.98M | 4.07M | 6.71M | 3.71M | -18.21M | -43.74M | -60.71M | 8.55M | -17.85M | -10.44M |
| EBITDA Margin % | -3.79% | 4.99% | 7.33% | 4.33% | -25.48% | -59.26% | -67.78% | 5.4% | -14.12% | -12.16% |
| EBITDA Growth % | -170.77% | -39.35% | 81.04% | 120.36% | 58.37% | 27.95% | -809.86% | 147.92% | -71.02% | - |
| Depreciation & Amortization | 1.38M | 2.82M | 2.33M | 1.12M | 981K | 2.17M | 2.27M | 3.04M | 5.32M | 5.7M |
| D&A / Revenue % | 1.75% | 3.45% | 2.54% | 1.31% | 1.37% | 2.93% | 2.53% | 1.92% | 4.21% | 6.64% |
| Operating Income (EBIT) | -3.56M | 1.26M | 4.38M | 2.59M | -19.19M | -45.91M | -62.98M | 5.51M | -23.16M | -16.14M |
| Operating Margin % | -4.54% | 1.54% | 4.79% | 3.02% | -26.86% | -62.19% | -70.32% | 3.48% | -18.33% | -18.8% |
| Operating Income Growth % | - | -71.37% | 69.5% | 113.48% | 58.2% | 27.11% | -1243.26% | 123.78% | -43.57% | - |
| Interest Expense | 217.28K | 196.52K | 196K | 133K | 441K | 188K | 285K | 438K | 3.38M | 3.3M |
| Interest Coverage | - | 40.93x | 23.53x | 19.98x | -43.82x | -244.13x | -220.86x | 13.02x | -6.71x | -4.84x |
| Interest / Revenue % | 0.28% | 0.24% | 0.21% | 0.16% | 0.62% | 0.25% | 0.32% | 0.28% | 2.68% | 3.84% |
| Non-Operating Income | -928K | 1000K | 241K | 294K | -500K | 113K | -248K | -245K | -1000K | -1000K |
| Pretax Income | 1.08M | 7.85M | 4.63M | 2.88M | -19.69M | -45.8M | -63.23M | 5.26M | -26.11M | -19.26M |
| Pretax Margin % | 1.37% | 9.61% | 5.05% | 3.37% | -27.56% | -62.04% | -70.59% | 3.32% | -20.66% | -22.44% |
| Income Tax | 1.33M | 1.53M | 68K | 70K | 161K | 244K | 185K | 57K | 3.44M | 0 |
| Effective Tax Rate % | 123.35% | 19.49% | 1.47% | 2.43% | -0.82% | -0.53% | -0.29% | 1.08% | -13.15% | 0% |
| Net Income | -253.39K | 6.32M | 4.56M | 2.81M | -19.85M | -46.04M | -63.41M | 5.21M | -26.56M | -19.26M |
| Net Margin % | -0.32% | 7.74% | 4.97% | 3.28% | -27.78% | -62.37% | -70.8% | 3.29% | -21.01% | -22.44% |
| Net Income Growth % | -112.97% | 38.61% | 62.15% | 114.16% | 56.88% | 27.4% | -1317.88% | 119.61% | -37.89% | - |
| EPS (Diluted) | -0.07 | 1.70 | 1.20 | 0.08 | -0.64 | -1.60 | -2.40 | 0.18 | -1.02 | -1.20 |
| EPS Growth % | -110.34% | 41.67% | 1478.95% | 111.87% | 60% | 33.33% | -1433.33% | 117.65% | 15% | - |
| EPS (Basic) | - | 1.70 | 1.20 | 0.08 | -0.64 | -1.60 | -2.40 | 0.18 | -1.02 | -1.20 |
| Diluted Shares Outstanding | 3.82M | 3.79M | 37.63M | 37.17M | 31.25M | 28.6M | 25.99M | 28.46M | 26.15M | 16.23M |
Quick answers to the most common questions about buying UCL stock.
For fiscal year 2025, uCloudlink Group Inc. (UCL) reported total revenue of $81.7M. This represents a 4.9% decline compared to $85.8M in 2017.
uCloudlink Group Inc. (UCL) is profitable, generating $6.3M in net income for the fiscal year ending 2025 with a net profit margin of 7.7%.
uCloudlink Group Inc. (UCL) reported an operating income of $1.3M, resulting in an operating profit margin of 1.5%. This margin reflects the operational efficiency of the business before interest and taxes.
uCloudlink Group Inc. (UCL) generated $42.8M in gross profit for the year, representing a gross profit margin of 52.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Travel-dependent revenue volatility
Revenue Contraction Amid Market Shifts
As reported in recent financial filings, UCL experienced a 14.2% year-over-year revenue decline in 2025Q4, reflecting ongoing challenges in transitioning from legacy cross-border roaming services to the newer local data connectivity model while navigating a highly competitive and fragmented global telecommunications landscape.
The persistent revenue contraction suggests that the company's pivot toward the 2.0 local data model has yet to achieve the scale necessary to offset the volatility inherent in international travel cycles. Investors should monitor whether the current decline represents a structural loss of market share to software-only eSIM alternatives or merely a temporary lag in the adoption of the GlocalMe platform.
Gross Margin Resilience Faces Pressure
Based on the provided income statement data, UCL maintained a gross margin of 51.6% in 2025Q4, demonstrating a degree of pricing power despite the broader revenue headwinds and the increasing commoditization of global data connectivity services across the telecommunications sector.
While the gross margin remains relatively stable, the company's reliance on wholesale data procurement from MNOs leaves it vulnerable to potential cost spikes that could rapidly erode profitability. The ability to sustain these margins will likely depend on the company's success in migrating users to higher-margin PaaS/SaaS offerings rather than relying on hardware-centric data reselling.
Operating Leverage Remains Elusive
According to the latest quarterly figures, UCL's operating margin of 8.5% in 2025Q4 highlights a persistent struggle to achieve meaningful operating leverage, as fixed costs in R&D and SG&A continue to consume a significant portion of the company's gross profit generation.
The discrepancy between gross and operating margins suggests that the company's current cost structure is not yet optimized for its existing revenue scale. Further investigation is warranted to determine if the recent R&D spending is effectively driving future growth or if it represents a recurring burden that limits the company's path to consistent profitability.
Earnings Volatility Masks Operational Reality
As indicated by the 2025Q4 net loss of $3.1 million despite positive operating income, UCL's bottom-line performance appears heavily influenced by non-operating items, complicating the assessment of the company's true underlying profitability and the sustainability of its earnings trajectory.
The significant swing from a $9.3 million net profit in 2025Q3 to a net loss in 2025Q4 warrants caution, as it suggests that non-operating factors or tax anomalies may be distorting the reported results. Analysts should look past the headline EPS figures to focus on the core operating performance, which remains thin and highly sensitive to minor fluctuations in data costs.