uCloudlink Group Q1 2026 Earnings Report

uCloudlink Group EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.01
• Beat/Miss: Missed by -$0.08
• One Year Ago EPS: N/A

uCloudlink Group Revenue Results

• Actual Revenue: $16.86 million
• Expected Revenue: $16.00 million
• Beat/Miss: Beat by +$859.00 thousand
• YoY Revenue Growth: N/A

uCloudlink Group Announcement Details

• Quarter: Q1 2026
• Date: 5/13/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 13, 2026
• Conference Call Time: 8:30AM ET

uCloudlink Group (NASDAQ:UCL) Inc. is a technology company specializing in global mobile data connectivity solutions. The company’s core offering is a cloud SIM virtualization platform that enables seamless roaming for consumers and enterprise users without the need for physical SIM cards. Leveraging proprietary CloudSIM technology, uCloudlink provides portable Wi-Fi hotspot devices, embedded IoT connectivity modules, and eSIM products designed to deliver high-speed data access in multiple countries.

Through its CloudSIM platform, uCloudlink dynamically switches between multiple mobile network operators to optimize coverage and data speeds while controlling costs. Its product lineup includes MiFi devices for individual travelers, enterprise connectivity solutions for corporate customers, and integrated data management services for Internet of Things applications. The company also offers a software-as-a-service model that allows partners to white-label its connectivity solutions under their own brands.

Since its founding in 2014, uCloudlink has expanded its footprint to serve users in more than 100 countries and regions across Asia, Europe, North America and the Middle East. It has established strategic partnerships with major telecommunications operators and device manufacturers to integrate its CloudSIM technology into a wide range of consumer electronics and industrial products. The company maintains headquarters in Hong Kong, with research and development facilities in mainland China and business offices in key international markets.

uCloudlink went public on the Nasdaq Stock Market in early 2018 and is led by founder and Chief Executive Officer Song Wei. Under his leadership, the company has grown from a start-up roaming technology provider into a diversified connectivity solutions firm, driving innovation in global mobile data services and Internet of Things connectivity management.

uCloudlink Group Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: uCloudlink said new growth engines are scaling quickly, with GlocalMe Life, GlocalMe IoT, and GrowCom Scene posting year-over-year revenue growth of over 400%, 300%, and 170%, respectively.
• Positive Sentiment: Management highlighted strong momentum in newer products like PetPogo, UniCord Pro, and eSIM TRIO, and said PetPogo’s beta feedback has been “overwhelmingly positive.”
• Neutral Sentiment: The company reported Q1 2026 revenue of $15.9 million and said new product adoption is helping offset weakness in the traditional business amid macro headwinds and supply chain disruption.
• Negative Sentiment: Profitability softened in the quarter, with net loss widening to $3.5 million, adjusted EBITDA turning to a negative $2.0 million, and operating cash outflow increasing to $8.7 million.
• Negative Sentiment: The company also said memory chipset costs have risen sharply and are pressuring device pricing, while the planned marketing push for new products will weigh on near-term margins and cash flow.

Presentation

[Operator]

Thank you for standing by, and welcome to the uCloudlink Group Inc Q1 2026 Earnings Conference Call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the call over to Mr. Daniel Gao, Company Investor Relations. Please go ahead.

[Daniel Gao, Director of Investor Relations at uCloudlink Group]

Okay. Thank you, operator. Hello, everyone, and thank you for joining us on uCloudlink Q1 2026 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 original 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.

[Daniel Gao, Director of Investor Relations at uCloudlink Group]

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 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 details of the company's filings with the SEC. The company does not assume any obligation of 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. Please also note that uCloudlink's earning press release and this conference call include discussions of unaudited GAAP financial information and unaudited non-GAAP financial measures.

[Daniel Gao, Director of Investor Relations at uCloudlink Group]

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

[Chaohui Chen, Director and CEO at uCloudlink Group]

Thank you, Daniel, good morning or evening. We delivered total revenues of $15.9 million in the Q1 of 2026. This result come despite significant external headwinds, including macroeconomic volatility, weak travel demand, rising energy prices, memory chipset cost increase, and the conflict-related supply chain disruption. More importantly, our new product lines have continued to warm up and scale, gradually offsetting the negative impact on our traditional business for these external headwinds. With the continued ramp-up of new products, such as the PetPogo and UniCord Pro, revenues from our new business lines are increasing following an initial market ramp-up period over the past two quarters. Each of these new products, continue to make significant strategic progress during the quarter, laying the groundwork for accelerated commercial momentum going forward.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Overall, our three new growth engine, GlocalMe Life, GlocalMe IoT, and GlocalMe SIM deliver remarkable year-over-year revenue growth of over 400%, 300%, and 170% respectively. To accelerate commercialization and capture early market leadership, we strategically increased marketing spending during the quarter on the platform and broader PetPogo ecosystem. While these investments will temper near-term profitability and cash flow, we are confident they will yield substantial long-term payoffs and contribute to sustainable growth going forward. I will now review the highlights for each of our key business lines. I will start with the PetPogo ecosystem. Building on the exceptional global media attention and the market validation we see at MWC 2026 and CES 2026, with the unveiling of our PetPogo ecosystem and the all new PetCam.

[Chaohui Chen, Director and CEO at uCloudlink Group]

We launched the beta version of the PetPogo app during the quarter. This differentiated and the pioneering AI-powered social platform for the pet technology industry leverages AI technologies and the platform to enable pets and their owners to communicate seamlessly. By effectively transforming the pet ownership experience into an interactive, social, and connected community. We are fostering parallel engagement and continuous interaction. PetPogo also allow pet owners to manage their pet care journey across three stages, before, during, and after activities. This social platform is expected to complete commercial validation in Q2 2026 and begin driving growth starting in Q3 2026. During the quarter, average monthly active user, MAU, reached 1,397, and the early beta feedback has been overwhelmingly positive, reinforcing our confidence in its user adoption and strong growth potential.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Moving on to our GlocalMe Life business line, we continue to drive exponential growth with industry-first innovations. Our UniCord Pro gains strong traction during the quarter, with the sales volume and the market adoption accelerating rapidly. By enabling a lighter, more convenient lifestyle with secure and reliable connectivity, freeing users from cumbersome device while ensuring seamless protected experience. GlocalMe Life solutions saw average daily active user, DAU, during the quarter increase 559.9% year-over-year. Turning to GlocalMe Internet of Things, IoT, our forward-looking strategy is already beginning to generate initial result. The business maintain its strong growth trajectory with user adoption and revenue contribution continuing to expand rapidly year-over-year. We continue to solidify our strategy position to capture the additional market share in high growth sector, such as in-car infotainment and security cameras.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Average DAU for GlocalMe IoT increased by 246.5% compared to Q4 of 2025. As of March 31st, 2026, our total IoT solutions install base reached 2.93 million. For our GlocalMe SIM business line, our eSIM TRIO solution continues to gain strong traction and growth momentum, with average DAU increasing 193.6% year-over-year during the quarter. This validates both our carrier partnership model and its market positioning as a permanent secondary SIM for users. Our carrier co-issuance program has gained pilot deployment, providing a highly effective low CapEx solutions for operators that enhance their global roaming capability. This model is gaining strong traction and is welcomed by both operators and users, confirming a robust product market fit.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Lastly, the launch of our cutting-edge MeowGo G50 Max, the world-first sky-to-ground integrated mobile connectivity hub, is expected to serve as a powerful growth engine for the coming quarter. The MeowGo G50 Max is redefining the connectivity when it matter most. In conflict-affected market with disrupted terrestrial network, its resilient connectivity is a critical differentiator. Powered by our AI-driven HyperConn technologies, it seamlessly switch between the terrestrial in-flight home Wi-Fi, creating a unique one-hop global freedom experience. It also enables satellite-based two-way messaging and emergency SOS, extending connectivity from ocean to desert. We expect this product to reach commercial deployment in the Q2 of 2026. Looking behind its market potential, the MeowGo G50 Max not only represent our high-end brand aspiration, but also focus on driving increased sales and elevating our brand across the entire portfolio of mobile connectivity solutions.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Looking ahead, we remain in the early high growth stages of our transformation. Throughout 2026, we will continue investing strategically in our new growth engines. The strong market validation from MWC 2026 and CES 2026, positive PetPogo beta feedback, and the sustained momentum in GlocalMe IoT demonstrate how our diversified business strategy remains firmly on track. Looking at the coming quarters, we expect our traditional business to gradually stabilize, reaching a level where further downside is limited. At the same time, our new business line will continue to grow, driven by ongoing product ramp-ups and the market adoption. Together, if these dual momentum, our traditional business stabilizing and our new business scaling up, continues as we expect, it is expected to further offset the external headwind that had impacted our performance.

[Chaohui Chen, Director and CEO at uCloudlink Group]

As a result, we believe the Q2 of 2026 will be a turning point in our overall business trajectory with a return to positive year-over-year growth. We are building towards sustainable growth by scaling our user base globally and bridging the digital divide in cross-border connectivities as well as the emotional distance between people and their pets while creating long-term value for our shareholders. With that disciplined optimism in mind, we are confident that we have the right strategy in place to drive sustainable growth going forward. For the Q2 of 2026, we expect total revenues to be between $19.5 million and $22.5 million, representing an increase of 0.5%-16% compared the same period of 2025.

[Chaohui Chen, Director and CEO at uCloudlink Group]

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

[Yimeng Shi, CFO at uCloudlink Group]

Thank you, Mr. Chen. Hello, everyone. I will go over our operational and financial highlights for the Q1 2026. Average daily active user, DAU, and monthly active user, MAU, represents the average number of unique user engaging with our GlocalMe service on a daily and a monthly basis, respectively. Those metrics show strong growth momentum in Q1. Average DAU in the Q1 was 354,789, representing an increase of 10.2% from 321,836 in Q1 of 2025.

[Yimeng Shi, CFO at uCloudlink Group]

GlocalMe IoT, GlocalMe SIM, and GlocalMe Life all deliver significant gains with average DAU up 246.5%, 193.6%, and 559.9% respectively from the same period last year. Average DAUs from our GlocalMe MeowGo business declined by 5.8% year-over-year. Average MAUs were 337,274, representing an increase of 6% from 695,599 in the Q1 of 2025. Average MAUs from our GlocalMe IoT, GlocalMe SIM, and GlocalMe Life business saw increase of 142.1%, 76.8%, and 609% respectively from the same period last year.

[Yimeng Shi, CFO at uCloudlink Group]

Average MAUs from our GlocalMe MeowGo business decreased by 7.3% year-over-year. In the Q1 2026, average DATs were 327,615, with 13,414 owned by the company and 314,201 not owned by the company, representing an increase of 6.1% from Q1 2025. During the quarters, 58.6% of DATs were from uCloudlink 1.0 international data connectivity service, and 41.4% were from uCloudlink 2.0 local data connectivity service.

[Yimeng Shi, CFO at uCloudlink Group]

In March 2026, the average daily data usage per terminal was 1.57GB. Average MATs in Q1 were 702,805, representing an increase of 7.7% from 652,810 in the Q1 2025. Growth was driven by strong momentum across our three new growth engine, with average MAT for GlocalMe IoT, GlocalMe SIM, and GlocalMe Life increases 135%, 74.1%, and 806.1% respectively. From the same period last year, average MAT from GlocalMe MeowGo business, which we previously referred to as GlocalMe mobile/fixed broadband business, decreased by 4.1% year-over-year.

[Yimeng Shi, CFO at uCloudlink Group]

As Platform is a newly launched business, we only just begun to see user adoption and engagement grow during the quarters. In the Q1, average DAU and MAUs were 1,097 and 1,397 respectively. While average DATs and MATs for Platform reached 368 and 789, reflecting the growing traction of this new offering. As of March 31, 2026, the company had 212 patents with 183 approved and 29 pending approval, and a pool of SIM cards from 397 MNOs globally. Total revenue for the Q1 2026 were $69.9 million, representing a decrease of 10.1% from $18.7 million in the same period 2025.

[Yimeng Shi, CFO at uCloudlink Group]

Revenue from service was $13.3 million, representing a decrease of 6.3% from $14.2 million in the same period 2025. Revenue from service contributed 79.9% of total revenue during the Q1 of 2026, compared to 75.7% in same period last year. Geographically speaking, during the Q1 2026, Japan contributed 32%, Mainland China contributed 30.3%, North America contributed 17.3%, and other country and regions contributed the remaining 20.4%, compared to 40.4%, 31.2%, 12.9%, and 15.5% respectively in the same period, 2025.

[Yimeng Shi, CFO at uCloudlink Group]

Our gross profit was $8.3 million compared to $9.7 million in the same period, 2025. Overall gross margin in Q1 2026 was 49.1% compared to 51.7% in same period, 2025. Gross margins on service was 54.5% in the Q1 2026 compared to 57.3% in the same period, 2025. Excluding share-based compensations, total operating expenses was $10.8 million compared to $9.9 million in the same period, 2025. Net loss in the Q1 2026 was $3.5 million compared to a net loss of $0.6 million in the same period, 2025.

[Yimeng Shi, CFO at uCloudlink Group]

Adjusted EBITDA was negative $2.0 million in the Q1 2026 compared to a positive $1.4 million in the same period, 2025. For the Q1 2026, we record an operating cash outflow of $8.7 million compared to an inflow of $0.2 million in same period, 2025. For the Q1 2026, our capital expenditure were $30,000 compared to $300,000 in the same period, 2025. Turning to balance sheet items. Our cash and cash equivalents were $28 million as of March 31, 2026, compared to $32.8 million as of December 31, 2025.

[Yimeng Shi, CFO at uCloudlink Group]

We continue to strengthen our financial position and believe we are well-positioned to drive continued growth in our business. Operator, please open it up for Q&A. Thanks.

[Operator]

Thank you.

[Yimeng Shi, CFO at uCloudlink Group]

Thank you.

[Operator]

We will now begin the question and answer session. To ask a question, you may press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are on a speakerphone, please pick up the handset to ask your question. Our first question today will come from Theodore O'Neill with Litchfield Hills Research. Please go ahead.

[Theodore O'Neill, Analyst at Litchfield Hills Research]

Thank you for taking my questions. My first question is about the G50 Max. In your prepared remarks, you're talking about this being interesting to market it's in conflict zones. I'm hoping that it's a shrinking market, not a growing market. Could you talk about some other markets where this G50 Max would be appropriate? I think you mentioned at sea, and I'm thinking perhaps the very remote rural areas as well.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Yeah. Our MeowGo G50 Max is our high-end product. It's a 5G. We can roll out 5G in over 100 countries. That's most popular we can offer in the 5G in the world. Compare like the other, our competitor like AT&T, maybe just 75. The first advantageous, we can provide the maximize coverage of 5G worldwide. That's first. The second, we can provide about certified airline for the in cabin 4G, 5G connection. The second, that means the business traveler on the air cabin, they can serve in. Then it's about satellite SOS and the messaging.

[Chaohui Chen, Director and CEO at uCloudlink Group]

No matter you are in the outdoor or in the comfort area, you never lost the connection. The number four is, if you are in the office and at home, you of course, you can get Wi-Fi available, but Wi-Fi sometime is not reliable. Sometime is unreliable. During this case, we can back up by the 5G and 4G with the multi carrier that enable your remote work and remote study and remote meeting never fail down. We balance the best coverage and the best tariff. That means one device and one account, you can enjoy the global best coverage and the best tariff.

[Chaohui Chen, Director and CEO at uCloudlink Group]

That's why we believe that one device for every scenario, not only at home, at the office, can solve the people have to bring the multi device, multi package, home Wi-Fi, in cabin Wi-Fi. We have roaming eSIM or roaming or local multi carrier tariff. You can get the similar coverage and the solution. Now with our solution, one device, simply the one device, one account, you can get the best coverage and the tariff. That's our purpose.

[Theodore O'Neill, Analyst at Litchfield Hills Research]

Okay. Thank you. My next question is about the in-car infotainment and security cameras. Can you give us any more detail about the actual market share or the growth of that exposure to that business?

[Chaohui Chen, Director and CEO at uCloudlink Group]

Yes. I think that's about our IoT business. We embed our Cloud SIM and HyperConn solution into the, you know, in-car infotainment and the CarPlay. The majorly CarPlay devices, this majorly CarPlay devices is come from China. Major top 10, this partner all embed our solution. That means, plug our this CarPlay device not only can get the entertainment in the car, but also can get the network in the car. Almost the top 10, these provider all use our solution. That's for car infotainment. For camera, I think the car now are more and more, you know, 4G camera. They use. In the traditional, they need to plug a SIM card inside.

[Chaohui Chen, Director and CEO at uCloudlink Group]

That means if the carrier network has some problem or coverage adjustment, you have to go to the high place to replace SIM card for the camera. It's very inconvenient. With our solutions, because 4G is more popular, the price is similar like Wi-Fi camera. You can see the 4G camera, the volume of the market share in the camera market is bigger and bigger. For the 4G camera, I think that currently, more and more is the top from China provider embed our software solution into their camera. That means the user, end user still can use the SIM slot to put into SIM card, but it's expensive and coverage is poor. Use our solution, not only get a benefit from the better tariff, but also can get cross-carrier coverage.

[Chaohui Chen, Director and CEO at uCloudlink Group]

You can see our market share in this market grows dramatically. You can see our installation volume is about 3.9 million pieces for shipment. In the six months later, they will turn into the package and with our operation. From shipment to the user and adopt our solution needs six months. You can see six months later, we will get far more user than currently.

[Theodore O'Neill, Analyst at Litchfield Hills Research]

Okay, thank you. My last question is about supply chain issues. You mentioned in the prepared remarks about memory prices being a headwind, but I was also wondering, are you seeing any supply chain issues in terms of availability?

[Chaohui Chen, Director and CEO at uCloudlink Group]

Yes. I think, compared last year, memory chip is almost five to 10x higher. That's a heavy impact, you know, I think the cost of the device. We have many ways. One side, we have a lot of deficit. We have, you know, but also, we try to, you know, redesign to reduce the memory size and to lower the cost. Also, we look in the instead of the Chinese local memory. All these we can overcome some part of the memory price going up, but we can't offset the total because the price is too high. That definitely will some impact to our selling price.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Not only 2B and 2C selling price for the device is higher, about 20%, 30% up than compared last year.

[Theodore O'Neill, Analyst at Litchfield Hills Research]

Thank you very much.

[Operator]

Again, if you have a question, please press star then one. As there are no further questions at this time, I would like to hand the call back over to Mr. Gao for any closing remarks. Please go ahead.

[Daniel Gao, Director of Investor Relations at uCloudlink Group]

Thank you once again for joining us today. If you have further questions, please feel free to contact uCloudlink's investor relations through the contact information provided on our website or speak to our investor relations firm, Christensen & Associates. We look forward to speaking with you again on our next quarterly call. Thank you.

[Operator]

That does conclude our conference for today. Thank you for your participation. You may now disconnect.

[Chaohui Chen, Director and CEO at uCloudlink Group]

Thank you.

Participants

Executives

• Chaohui Chen, Director and CEO
• Daniel Gao, Director of Investor Relations
• Yimeng Shi, CFO

Analysts

• Theodore O'Neill, Analyst at Litchfield Hills Research