uCloudlink Group Q2 2025 Earnings Call Transcript

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Provided by Quartr
August 13, 2025

Key Takeaways

  • Negative Sentiment: Revenue fell 13.3% YoY to $19.4 million in Q2 and net income dropped to $0.7 million from $2.2 million last year.
  • Positive Sentiment: Average monthly active terminals for new product lines surged: IoT +791%, SIM +120%, and Life +105% year-over-year, signalling strong market traction.
  • Neutral Sentiment: The Glucomine platform is set to launch in mid-August with over 20 strategic partners and is being piloted across ten countries, after a pre-launch testing phase.
  • Negative Sentiment: Full-year 2025 revenue guidance was lowered to $82 million–$95 million from the previous range of $95 million–$130 million due to macroeconomic and trade headwinds.
  • Positive Sentiment: Q2 gross margin improved to 52.8% from 49.2%, and service revenue now comprises 75.5% of total revenue, up from 63.4% a year ago.
AI Generated. May Contain Errors.
Earnings Conference Call
uCloudlink Group Q2 2025
00:00 / 00:00

Transcript Sections

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Operator

Good day, and welcome to the uCloud Link second quarter twenty twenty five conference call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Daniel Gao. Please go ahead, sir.

Daniel Gao
Daniel Gao
Director of Investor Relation at uCloudlink Group

Hello, everyone, and thank you for joining us on Euclid's Second Quarter twenty twenty five earnings call. The earnings release and our earnings presentation are now available on our IR website at ir.yoklein.com. Joining me on today's call Mr. Zhi Ping Peng, Co Founder and Chairman of the Board of Directors Mr. Chaobu Chen, Co Founder and Director and Chief Executive Officer and Mr. Yi Meng Shu, Chief Financial Officer. Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and the original highlights for the quarter.

Daniel Gao
Daniel Gao
Director of Investor Relation at uCloudlink Group

They will all be available to take your questions in the Q and 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. 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 mutations implied by these forward looking statements. All forward looking statements are expressly qualified in their entity 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 reverse or update any forward looking statements as a result of new information, future events, change in market conditions or otherwise, except as required by law.

Daniel Gao
Daniel Gao
Director of Investor Relation at uCloudlink Group

Please also notice that earnings press release and this conference call include discussions of unaudited GAAP financial information and unaudited non GAAP financial measures. New Cloudings press release contains a reconciliation of their unaudited non GAAP measures to their most directly comparable, undoubted GAAP measures. I will now turn the call over to Mr. Chen. Please go ahead.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Thank you, Daniel, and good morning or evening, everyone. We are accelerating three transformative growth plans: Glucomine Life, lead by platform Glucomine SIM, powered by ECMO Trio and Glucomine IoT. Through focused investment in R and D, go to market capabilities and brand building to drive sustainable market expansion, while simultaneously strengthening our legacy glaucoma mobile broadband business line by proactively offsetting tariff impact through strategy supply chain adjustments. Throughout this expansion, we maintained financial health as our foundation, ensuring disciplined investments drive sustainable profitability and laying a solid foundation for sustainable long term value creation. Our glaucoma ecosystems continues to gain traction and growth momentum.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Our business remains profitable and continue to generate a stable margin, with total revenue of million dollars and net income of million dollars during the quarter. Our one point zero international data connectivity services business continues to grow with full speed five gs network coverage across 86 countries and regions as we continue to consolidate market share, especially in Mainland China and strengthen our leadership position in the global roaming sector. Our substantial strategic investments focus on R and D and marketing for our next generation products to ensure they drive growth and improve our performance once launched. The development refinement and testing of these products progressed smoothly with several major distributions partner as we build a robust pipeline and enter a final stage commercialization. Feedback has been overwhelmingly positive, reflecting how our solution directly address the market demand and have validated our investment strategy.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

This has set the stage for the launch of several groundbreaking products in the near future. In this quarter's earnings release, we have introduced a new metric, average month active terminals, MAT. Our three new product lines, Glaucoma Light, Glaucoma Thin and Glaucoma IoT, demonstrated remarkable MAT growth of 105.2%, 120.1789% year over year, respectively. I will now review highlights for each of our key business lines. I will start with GLOBALIVE business line, the upcoming commercial launch of the platform where we already have over 20 potential strategic partners lined up and we launched the brand in several countries in the 2005.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

In Hong Kong, we are collaborating with a premier telecommunications service operator to launch platform, making a significant expansion in our global market research and the rollout of a powerful win win cooperation model. This allows operators to monetize premium subscriptions, acquire high value pet owning customers and diversify their revenue streams through our value add services. Our technology amplifies their market research and their infrastructure accelerate our scale. We also met substantial with a leading global online pet retailer to further enhance phones' accessibility and the market penetration within a short time. Alongside pet phones, our industry's Unicore Plus and Unicore Plus series, which are highly competitive, innovative and pioneering products, integrating seamless connectivity across multiple networks, six pack global positioning and fast charging capabilities.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

We have further strengthened our competitive edge in the travel, automotive and secure networking markets. Commercial application of our Glaucoma IoT solutions also continues to gain strong momentum with user adoption growing over 10 times year over year after nearly three years of commercialization efforts. As revenue contribution increased, entering a new phase of accelerated growth. Beyond core connectivity revenue, we are also diversifying monetization through value added services. We enable China's top manufacturers to accelerate their global expansion through customized IoT connectivity solutions.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Strategic partner with more industrial leader in the battery monitoring, desk cams, vehicle infotainment and the smart security camera sectors are accelerating our expansion into high growth verticals, further consolidating IoT as a key pillar for our business. Turning to our Glaucoma SIM business line. Our success isn't evident. It is the result of a successful business evolution. We have already sold over 300,000 OTA SIM and eSIM units since year 2024.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Outperforming competitors in these baseline segments. We achieved top ranking market share in our outbounding travelers of Mainland China, traveling to Hong Kong, Macau, Japan and Korea. This operational maturity positions us distinctly from market entrants. Building on this foundation, Yixin Trail represents our second more advantageous realized. While competitor remain focused on the legacy SIM or eSIM technologies, we have advanced to redefine industry standards through this innovation.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Eastern Trier has been recognized as transforming a transformative solution, receiving the top NWC Innovation Award from the Slash Guild. Its groundbreaking capabilities generating significant industry attention at both Mobile World Congress Year twenty twenty five in Barcelona and MVMO's World Congress Year two thousand and five in Vienna. Our comprehensive marketing campaign for Eastern Trio, executive in partnership with top media outlets, substantially increased its market visibility and exposure. We are synergistically addressing two critical hand points for the industry with this product: First, as the ultimate permanent secondary SIM for consumers, it ensures seamless global coverage by dynamically connecting to multiple networks, eliminating the need for costly international roaming and providing users with reliable, high speed connectivity across devices. Secondary, through our carrier car insurance program, we solved critical pain points for operators, especially Tier two, Tier three mobile network operators and mobile virtual operators.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

By upgrading their network performance and global roaming capabilities without the need for infrastructure investment and funding power. With nearly 1,000 trial units distributed, strong user feedback, key breakthroughs in carrier partnership programs and the simple car production and testing with multiple operator schedule for next quarter. We poised to begin large scale commercial deployment during the third quarter with strong confidence. Lastly, our Gokomi mobile fixed broadband business line, we pilot launched the upgraded MiuGo G40 Pro late in the second quarter, which supposed to be 3x faster than traditional four gs devices. It's the world's first to enable in flight Wi Fi and connect to Wi Fi network across several application scenarios such as home, airport, office and cafes.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

With Mirgo G40 Pro, we are transforming portable connectivity from international travel only solution to a true market scenario company with our patented AI hypercom technologies, seamlessly saving users as a single intelligent device and one account regardless where they are. Furthermore, in the third quarter, we will launch the MiuGo G50 MAX with the sky to ground five gs satellite integration and AI driven network switching, further solidifying our innovative leadership in the mobile fixed broadband industry. This device enhanced network quality through AI powered real time congestion detection and the network reselecting. In summary, we are ideally positioned to capitalize our strategy and operation momentum Despite trade and macroeconomic headwinds, we remain committed to executing our strategic R and D and the marketing investment for new products, while sustaining a healthy finance performance. These three products from our core business lines, Glaucoma Sync, led by YsimTrue Glaucoma Life, Anko, by platform and Glaucoma IoT have all achieved successful transformation in the second quarter, laying a solid foundation for future growth with the potential to reach the multimillion of users in the future.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Our diversifying product portfolio provides multiple pathways for us to drive growth through our remainder of the years as we scale up our user base and build a comprehensive global market data traffic and sharing marketplace. We are confident that we have a right strategy in place to generate sustainable growth in the coming quarters. For the 2025, we expect total revenue to be between US22.0 million to US26 million representing a decrease of 12.7 to an increase of 3.2% compared to the same period of the year 2024. The company currently expects its revenue from the full year of the year 2025 to be in the range of million dollars to US95 million dollars as compared with a range between US95 million dollars to US130 million dollars as previously announced. The company is revising its guidance in light of the recent macroeconomic challenges and the global trade headwinds, which have had and may continue to have broader impact across the industries.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Now I will turn the call over to Mr. Shi.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

Thank you, Mr. Chen. Hello, everyone. I will go over our operational and financial highlights for the 2025. Average daily active terminal, DAT, and average monthly active terminal, MAT, are important operating metrics for us as measures customer usage trend over the period and it reflected our business performance.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

In the 2025, average DATs were three hundred and seventeen thousand nine and fifty seven, of which 18,863 owned by the company and 299,094 not owned by the company, representing an increase of 3.8% from 306,289 in the 2024. During the 2025, 55.7% of DOT were from EuclaLink one point zero international data connectivity service and 45.3% were from EuclaLink two point zero local data connectivity service. In June 2025, the average daily data usage per terminal was 1.59 gigabyte. Average monthly active terminal MAT in the second quarter were 663,197, representing an increase of 5.6% from 628,125 in the 2024. First average math in the second quarter of GlobalMe IoT business was 42,095, representing an increase of 791% from 4,725 in the 2024.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

Average MAT in the second quarter from GlobalMe's SIM business was 42,271, representing an increase of 120.1% from 19,208 in the 2024. Third, average MAT in the third quarter from Glogomi Life business was 2,633, representing an increase of 105.2% from twelve eighty three in the 2024. Fourth, average MAT in the second quarter from GluconB mobile fixed broadband business was 576,198, representing a decrease of 4.4% from 602,909 in the 2024. As of 06/30/2025, the company had 183 patents with 167 approved and 16 pending approved. The proof of SIM card was from three ninety one mobile label operator globally as of 06/30/2025.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

Total revenue for the second quarter twenty twenty five was US19.4 million dollars representing a decrease of 13.3% from US22.4 million dollars in the same period of 2024. Revenue from service were US14.6 million dollars in the 2025, representing an increase of 3.3% from 14,200,000.0 in the same period of 2024. Revenue from service contributed 75.5% of the total revenue during the 2025 compared to 63.4% in same period last year. Geographically speaking, during the 2025, Japan contributed 33.6%, Mainland China contributed 33.2%, North American contributed 15.3 and other countries and regions contributed the remaining 70.9% compared to 46.2%, 23.5%, 14.615.7% respectively in same period 2024. Our gross profit was US10.2 million dollars in the second quarter twenty twenty five compared to billion dollars in the same period of 2025.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

Overall gross margin in the 2025 further rose to 52.8% from 49.2% in the same period 2024. The gross margin on service was 56.6% in the 2025 compared to 60.3% in the same period of 2024. Excluding share based compensation, total operating expenses were billion dollars or 51.9% of the total revenue in the 2025 compared to US8.7 million dollars or 39.1% of total revenue in the same period in 2024. Net income in the 2025 was US0.7 million dollars compared to US2.2 million dollars in the same period of 2024. Adjusted EBITDA was million dollars in the second quarter twenty twenty five compared to US3.3 million dollars in the same period 2024.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

For the 2025, we record operating cash outflow of million dollars compared to an operating cash inflow of US4.7 million dollars in the same period of 2024. For the 2025, our capital expenditure was US0.2 million dollars compared to US1.6 million dollars in the same period 2024. We maintained a solid balance sheet with cash and cash equivalent US30.2 million dollars as of 06/30/2025 compared to US31.1 million dollars as of 03/31/2025. With operators, let's open up for Q and A.

Operator

Thank you. We will now begin the question and answer session. If you are using a speakerphone, please pick up your handset before pressing the keys. Question is from Theodore O'Neill, Litfield Hills Research.

Theodore O'Neill
CEO at Litchfield Hills Research

Thank you. My first question is about the GlocalMe ecosystem. You're seeing strong growth in the quarter. And I was wondering how much you expect that to continue in terms of growth?

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

Put some color first and then CEO has more comment on that. In this second quarter, we we as just statements in this year call. Our some three new business, new business says Global Me's IoT business and SIM business and also live business. These three business has shown strong and rapid growth in terms average monthly active terminal. Even this as a figure pay us, the IoT business, the MAT increased nearly eight times year over year basis.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

And the same MAT's growth more than 100% compared with the same period last year. The Life business in terms of MAT growth 105% year over year business. Even the revenue generated from the three new business are small proportionately, but the trend growth trend is massive. So we expect the new business IoT, SIM and LIVE will scale our used business to a multi millions basis. So that gives us the futures a strong growth potential to 10,000,000 used business in the next couple of years.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Yes. And Jeff, add some more comments about this. Because we put a lot of R and D resource in the branding and marketing, so investment in these three new products, we already have nearly more than one year. And for IoT, we already investment here for three years. So we can see IoT part.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

So if now it goes to a new stage because we already finished the testing period with the major leader in the industry for IoT. So now it's starting to launch the product. So we can see the faster growth from revenue side and the MAT side because you can see some, for example, like the major matter, maybe every month, just active ones. So I'm making more can more reflect the IoT growth. So we can see now it's on the right track.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

And we believe the trend of every month, we can see that data is fast growing. So we believe IoT will be the first one to see the to make a positive profit. So after three years investment, that's the first. And second, from SIM card, we already sold SIM card for 300 pieces. So we get the experience.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

We know how to play the game in this industry. So in some travel line, for example, like China, travel to Hong Kong, travel to Macau, travel to Japan, we already go to the Tier one sector. So in this SIM card service in China. So now we have more confidence because we have new product for Eastern Trio, this innovative super SIM card come up. And we just launched June.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

So I think we do the promotion in with FengZong, okay, for the advertisement. So it gets a very fast growth as well. So finally, so you can see our Live product. Currently, the smaller revenue is we start to launch our GlucoMe Live product end of last year. So it's for cable.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

It's our UniCore. It's a fourth product and a long plug. And in the second quarter, end of second quarter, we had new second generation of the live product come out like Unicore Plus, like this new Unicore Pro, this new product come out is more stronger capability, more high performance. Either way, we win more market share. So but more important, I just emphasize here is our platform product.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

I think it's our we already the platform we already finished many trial. So and also, we try to improve our product better and better. We keep in our R and D, and we just let our product to reach our requirement. So that's why we delayed the launch of the commercial launch. Our preview is we're supposed to launch in the second quarter, but now we are postponed to August.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

As the middle of this August, we will launch the global library of our platform. I think currently, the feedback and the trial is very positive for our new version. So we believe this will lead a fast growth and after our heavy investing in branding and marketing. So that's the I just give a brief about our three new product line growth. Although we have some impact on the tariff, as I mentioned, for micro for tariff, impact for our traditional product, But I think we can see the fast growth for new product.

Theodore O'Neill
CEO at Litchfield Hills Research

Thank you very much. My next and my last question is about sales of products were below expectations. And I was wondering if you could give us some more detail on that. Was that tariff related? Is it particular geographies?

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

Yes. Disclosed, this only for the second quarters, our the quarter revenues is achieved below the guidance, million the dollars And the main reason for this lowest revenues achievements, because the legacy is the mobile broadband business. The order from Japan was delayed, that was a couple of millions. This order will be placed in this quarter, third quarter. This is a main reason for the second quarter revenues to below guidance.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

And the second is the micro reasons, the microeconomics and trade headwinds. And thus, we our sales on The U. S. Market have not reached the expectations. And so the major geography reasons is that Japan's markets delayed orders.

Yimeng Shi
Yimeng Shi
CFO at uCloudlink Group

The second is the trade headwinds. So that's a little bit impact our sales in U. S. Market.

Theodore O'Neill
CEO at Litchfield Hills Research

You very much.

Operator

Next question is from Vivien Zhang, Diamond Equity Research.

Wei (Vivian) Zhang
Equity Research Analyst at Diamond Equity Research LLC

Hello and good morning and evening everyone. Thank you for taking my questions. So my question is regarding the company's upcoming products such as the platform. Do you think this upcoming products will be affected by the industrial headwinds and resulting in lower than expected sales?

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

Because this new product, I think it's a new concept, a new innovation in the industry. So from the we already have hundreds of pieces already commercial trial. So all the positive is very all the feedback is very positive. Also, we improved with adopt some consumers' opinion that these products are more better and more competitive in the industry. So because it's a new product, new concept, from currently, we can see the feedback from the users, feedback from investment, feedback from our channel, feedback from mobile operator, all is very positive, very all believe this product will be very successful.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

And that's why we are now happy we are very confident we already have invested in R and D design. And also, the way we are more invested in the branding. So you can see the from this month, we start to launch a product, so in Hong Kong, U. S. And with some big channel.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

And we have 10 countries in our plan, country by country. We will with our local big channel partner, we start to launch this product. But we haven't placed a big forecast in our annual product revenue because I think I believe this is from the concept to the bigger volume need two or three quarters. That's our current belief. So the product, we haven't placed a big order here.

Chaohui Chen
Chaohui Chen
Founder, CEO & Director at uCloudlink Group

But we believe in the future, this will bring us very successful product. We believe so, and our partner also believe so.

Wei (Vivian) Zhang
Equity Research Analyst at Diamond Equity Research LLC

Okay. I see. Thank you for answering my questions. That's all my questions. Thank you.

Operator

This concludes our Q and A session. I would like to turn the conference back to Mr. Gao for any closing remarks.

Daniel Gao
Daniel Gao
Director of Investor Relation at uCloudlink Group

Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact Euclid's Investor Relations through the contact information provided on our website or speak to our Investor Relations form, criticism anniversary. We look forward to speaking to you all again on our next quarterly call. Thank you.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Executives
    • Daniel Gao
      Daniel Gao
      Director of Investor Relation
    • Chaohui Chen
      Chaohui Chen
      Founder, CEO & Director
    • Yimeng Shi
      Yimeng Shi
      CFO
Analysts
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