Free cash flow remains sensitive to working capital cycles, as evidenced by the operating cash flow to net income ratio declining to 0.72 in 2026Q3 compared to 2.23 in 2024Q4.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 |
|---|
| Cash from Operations | 760.5M | 640.03M | 541.52M | -145.43M | 370.26M | 612.02M | 460.28M | 259.26M | 332.05M | 112.04M | 197.51M | 134.55M | 121.33M | 131.89M | 81.79M | 62.84M | -25.98M | 7.26M |
| Operating CF Margin % | - | 24.87% | 28.08% | -7.49% | 21.89% | 32.24% | 35.83% | 22.32% | 32.65% | 12.95% | 29.64% | 22.58% | 21.19% | 41.11% | 23.14% | 31.76% | -18.97% | 11.51% |
| Operating CF Growth % | 50.17% | 18.19% | 472.36% | -139.28% | -39.5% | 32.97% | 77.54% | -21.92% | 196.38% | -43.28% | 46.79% | 10.9% | -8.01% | 61.26% | 30.15% | 341.84% | -457.67% | - |
| Net Income | 942.11M | 711.92M | 349.96M | 407.64M | 378.66M | 616.58M | 380.3M | 322.69M | 196.29M | 257.51M | 213.62M | 129.66M | 176.94M | 80.49M | 102.59M | 49.73M | -5.46M | 9.89M |
| Depreciation & Amortization | 18.52M | 21.9M | 19.25M | 16.29M | 13.69M | 12.1M | 7.7M | 7.56M | 7.31M | 7.36M | 6.29M | 4.97M | 2.82M | 1.96M | 602K | 213K | 144K | 84K |
| Stock-Based Compensation | 7.27M | 7.21M | 6.36M | 4.73M | 3.52M | 3.03M | 2.89M | 2.89M | 3.21M | 2.79M | 3.72M | 4.99M | 4.91M | 3.38M | 1.49M | 952K | 281K | 505K |
| Deferred Taxes | -71.76M | -72.19M | -11.97M | -16.86M | -1.84M | -674K | -1.19M | 196K | 2.03M | -938K | -1.15M | -911K | 2.09M | 377K | -897K | -1.16M | -645K | 536K |
| Other Non-Cash Items | 21.52M | 30.54M | 45.82M | 12.96M | 14.32M | 13.3M | 18.21M | 4.24M | 17.62M | 2.46M | 2.1M | 7.56M | -2.54M | -227K | -12.78M | -2K | 673K | 0 |
| Working Capital Changes | -157.15M | -59.35M | 132.09M | -570.19M | -38.08M | -32.31M | 52.38M | -78.32M | 105.59M | -157.14M | -27.07M | -11.73M | -62.88M | 45.91M | -9.21M | 13.12M | -20.98M | -3.75M |
| Change in Receivables | -29.54M | -86.93M | -1.76M | -48.2M | 52.66M | -30.14M | 13.88M | 18.73M | -33.97M | -58.16M | -16.68M | -11.34M | -18.33M | 38.66M | -36.65M | -5.86M | -29.54M | -3.49M |
| Change in Inventory | -68.99M | -219.87M | 250.66M | -487.92M | -29.57M | 52.89M | -28.05M | -163.66M | 35.97M | -86.99M | -20.01M | 7.03M | -33.76M | -9M | -2.27M | -1.06M | -4.08M | 199K |
| Change in Payables | 38.07M | 113.55M | -103.09M | 69.73M | -28.69M | -43.34M | 116.9M | 24.33M | -34.6M | -2.55M | 7.72M | 9.73M | -2.33M | 9.72M | 11.69M | 9.08M | 3.93M | 475K |
| Cash from Investing | -19.52M | -12.59M | -11.97M | -20.93M | -11.18M | -19.27M | 69.58M | -157.57M | -9.12M | -7.23M | -6.25M | -12.72M | -4.04M | -5.36M | -3.31M | -479K | -615K | -280K |
| Capital Expenditures | -10.73M | -12.59M | -11.97M | -20.93M | -13.47M | -18.32M | -30.62M | -51.68M | -9.12M | -7.23M | -6.25M | -12.72M | -4.04M | -5.36M | -3.31M | -479K | -615K | -280K |
| CapEx % of Revenue | 0.35% | 0.49% | 0.62% | 1.08% | 0.8% | 0.97% | 2.38% | 4.45% | 0.9% | 0.84% | 0.94% | 2.14% | 0.71% | 1.67% | 0.94% | 0.24% | 0.45% | 0.44% |
| Acquisitions | 0 | 0 | 0 | 0 | 13.47M | 18.32M | 30.62M | -5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -8.79M | 0 | 0 | 0 | -13.47M | -18.32M | -30.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -523.29M | -604.06M | -518.02M | 144.96M | -472.27M | -485.95M | -625.4M | -530.23M | -260.45M | -51.64M | -86.63M | -22.52M | 1.99M | -20.76M | -32.78M | -14.42M | 41.34M | 753K |
| Debt Issued (Net) | -340M | -458.13M | -372.5M | 291.88M | 295M | -161.25M | 157.5M | 10M | 230.25M | 53.75M | 106M | 25.25M | -4M | 46.5M | 29.56M | 0 | 56K | 0 |
| Equity Issued (Net) | -1.31M | -778K | -434K | 23K | -618.03M | -219.64M | -699.95M | -467.39M | -443.48M | -103.79M | -192.41M | -33.03M | 2.09M | -53.72M | -74.75M | -9.65M | 41.18M | 0 |
| Dividends Paid | -181.51M | -145.15M | -145.09M | -145.04M | -148.06M | -100.81M | -78.68M | -71.36M | 0 | 0 | 0 | -15.02M | 0 | -15.65M | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.31M | -778K | -434K | 0 | -618.13M | -219.76M | -700.13M | -468.23M | -445.01M | -105.23M | -193.52M | -34.71M | 0 | -54.35M | -108M | -9.65M | -64.62M | 0 |
| Other Financing | -470K | 0 | -434K | -1.87M | 98K | -4.25M | -4.27M | -1.47M | -3.65M | 1.44M | 887K | 3.77M | 5.99M | 2.74M | 13.21M | -1.77M | 6.4M | 753K |
| Net Change in Cash | 217.69M | 23.39M | 11.52M | -21.4M | -113.19M | 106.8M | -95.53M | -428.53M | 62.48M | 53.17M | 104.63M | 99.3M | 119.27M | 105.77M | 45.7M | 47.95M | 14.74M | 7.74M |
| Free Cash Flow | 749.77M | 627.44M | 529.54M | -166.36M | 356.79M | 593.7M | 429.67M | 249.57M | 322.93M | 104.8M | 191.26M | 121.82M | 117.28M | 126.53M | 78.48M | 62.36M | -26.6M | 6.99M |
| FCF Margin % | 24.22% | 24.38% | 27.46% | -8.57% | 21.09% | 31.28% | 33.45% | 21.48% | 31.76% | 12.11% | 28.7% | 20.44% | 20.49% | 39.44% | 22.2% | 31.52% | -19.42% | 11.07% |
| FCF Growth % | 2.46% | 18.49% | 418.31% | -146.63% | -39.9% | 38.18% | 72.16% | -22.72% | 208.13% | -45.2% | 57% | 3.87% | -7.31% | 61.23% | 25.84% | 334.45% | -480.82% | - |
| FCF per Share | 12.38 | 10.37 | 8.76 | -2.75 | 5.78 | 9.42 | 6.56 | 3.49 | 4.12 | 1.26 | 2.23 | 1.36 | 1.31 | 1.40 | 0.94 | 0.99 | -0.42 | 0.11 |
| FCF Conversion (FCF/Net Income) | 0.80x | 0.90x | 1.55x | -0.36x | 0.98x | 0.99x | 1.21x | 0.80x | 1.69x | 0.44x | 0.92x | 1.04x | 0.69x | 1.64x | 0.80x | 1.26x | 4.76x | 0.73x |
| Interest Paid | 8.03M | 31.05M | 75.09M | 53.87M | 11.56M | 11.81M | 21.82M | 23.35M | 11.38M | 5.19M | 2.35M | 1.29M | 1.65M | 1.7M | 689K | 0 | 0 | 0 |
| Taxes Paid | -11.93M | 177.24M | 108.57M | 109.69M | 78.18M | 139.62M | 74.92M | 41.73M | 9.61M | 25.74M | 18.53M | 12.8M | 14.01M | 4.09M | 6.21M | 12.14M | 9.94M | 6.25M |
Working capital volatility
As reported in recent financial statements, Ubiquiti's operating cash flow to net income ratio fluctuated significantly, dropping to 0.72 in 2026Q3 from a peak of 2.23 in 2024Q4, indicating that accounting profits are increasingly decoupled from immediate cash generation due to shifting working capital requirements.
The widening gap between net income and operating cash flow suggests that earnings quality is currently pressured by non-cash accruals or timing differences in revenue recognition. Investors should monitor whether this trend reflects a structural shift in collection cycles or merely temporary inventory build-ups associated with new product launches.
Based on the provided cash flow data, free cash flow margins have exhibited high volatility, ranging from 16.1% to 45.2% over the last ten quarters, underscoring the inherent sensitivity of Ubiquiti's hardware-centric, non-recurring revenue model to quarterly fluctuations in operational efficiency and capital expenditure timing.
The inconsistency in FCF generation highlights the lack of a recurring revenue buffer, making the company's cash position highly dependent on the success of individual product cycles. While the company remains consistently cash-generative, the lack of a smooth trajectory complicates long-term capital allocation planning for investors.
According to quarterly filings, working capital changes have swung from a positive $128.0M in 2024Q4 to a negative $74.6M in 2026Q3, revealing that Ubiquiti's cash flow is heavily influenced by the timing of inventory procurement and distributor-level sell-in dynamics rather than steady-state operational cash conversion.
The significant negative working capital impact in recent periods suggests a deliberate build-up of inventory, likely to support the rollout of new hardware SKUs. This strategy warrants close scrutiny, as it ties up liquidity and increases the risk of obsolescence if market demand for specific product lines fails to materialize.
As indicated by historical cash flow statements, Ubiquiti consistently directs a substantial portion of its cash toward dividends, with $48.4M paid out in 2026Q3, while maintaining minimal share repurchase activity, suggesting a management preference for direct cash distribution over aggressive equity retirement or large-scale strategic acquisitions.
The commitment to consistent dividend payments despite fluctuating cash flow suggests a high degree of confidence in the company's underlying cash-generating capability. However, the relatively thin cash balance of $149.7M relative to the dividend payout rate may limit the company's flexibility to pursue inorganic growth opportunities.
Quick answers to the most common questions about buying UI stock.
Ubiquiti Inc. (UI) generated $640.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ubiquiti Inc. (UI) generated $627.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Ubiquiti Inc. (UI) spent $12.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Ubiquiti Inc. (UI) returned $145.2M to shareholders via cash dividends and spent $0.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.