uCloudlink Group Inc.

Total revenue in Q2 2026 was USD 18.2 million, down 5.9% from USD 19.4 million in Q2 2025. Gross profit was USD 9.2 million versus USD 10.2 million a year ago, and gross margin was 50.2% versus 52.8%. Revenue from services was USD 13.3 million, down 9.2% year over year, and operating expenses excluding share-based compensation were USD 11.5 million versus USD 10.1 million. Net loss was USD 3 million compared with net income of USD 0.7 million, and adjusted EBITDA was negative USD 1.8 million versus positive USD 1.4 million. Cash and cash equivalents were USD 25.2 million at June 30, 2026, down from USD 28 million at March 31, 2026. For Q3 2026, management expects total revenue of USD 19 million to USD 22 million, and for full-year 2026 it now expects USD 75 million to USD 85 million, down from the prior USD 85 million to USD 100 million range.

The CEO framed the quarter as a transition period where the legacy international connectivity business is still under pressure, but newer 2.0 local connectivity products are increasingly offsetting that decline. He highlighted strong momentum in GlocalMe IoT, SIM, Life, the premium MeowGo G50 Max, CPE products, and the PetPhone ecosystem, saying these lines are moving from ramp-up toward commercialization. His tone was cautiously optimistic, with repeated emphasis on execution, cost discipline, and improving cash flow.

The CFO emphasized that the quarter’s numbers reflected broad-based growth in the new engines alongside continued pressure in the older business. He cited DAU growth of 13.3% to 376,376, MAU growth of 6.6% to 744,966, revenue of USD 18.2 million, gross margin of 50.2%, operating expenses of USD 11.5 million excluding share-based compensation, net loss of USD 3 million, and operating cash outflow of USD 3 million. He also noted cash and cash equivalents of USD 25.2 million and said the company is strengthening its financial position, while warning that the full-year revenue outlook was revised down because of persistent macroeconomic and global trade headwinds.

The main analyst question focused on memory-chip inflation and broader semiconductor supply-chain issues. Management said memory-chip costs had risen sharply, forcing higher inventory purchases early in the quarter, some pricing actions, and hardware redesigns to reduce memory requirements, while also noting PCB and other component costs were rising. A second question asked why GlocalMe Life revenue fell while DAUs rose; management explained that Life’s MAU base reflects cumulative historical hardware sales, while quarterly revenue was softer because hardware delivery volume dipped and orders were pulled forward into earlier quarters ahead of price increases.