Universal Electronics Inc.

Net sales were $73.2 million, down from $97.7 million a year ago, a decline of approximately 25%. GAAP and adjusted non-GAAP gross margin were both 35.4%, versus 29.9% in the prior-year quarter. GAAP operating income was $4.8 million versus $1.0 million last year; adjusted non-GAAP operating income was $5.8 million versus $2.9 million. GAAP net income was $1.6 million, or $0.12 per diluted share, versus a GAAP net loss of $2.9 million, or $0.22 per diluted share, last year. Adjusted non-GAAP net income was $4.6 million, or $0.34 per diluted share, versus $2.4 million, or $0.18 per diluted share, last year. Cash and cash equivalents were $32.4 million, and net cash ended the quarter at $11.6 million. For the first half of 2026, operating cash flow was positive $5.5 million. Full-year 2026 adjusted non-GAAP diluted EPS guidance was reaffirmed at $0.45 to $0.65, compared with $0.31 in fiscal 2025; management said the guidance includes the tariff recovery benefit already realized and no further refunds are expected.

Rick Carnifax framed Q2 as evidence that the company’s restructuring is starting to show up in results rather than just plans. He stressed that UEI is now profitable on lower revenue because of a rebuilt cost structure, tighter portfolio focus, and continued employee/customer/supplier continuity. His tone was defensive but confident: he repeatedly said the company is not relying on a demand rebound and is instead executing on what it can control.

Wade Michael Jenke emphasized profitability, cost discipline, working capital, and liquidity. He cited GAAP and adjusted non-GAAP gross margin of 35.4%, adjusted non-GAAP operating expenses down $6.2 million or 24%, and operating cash flow of $5.5 million in the first half, helped by an $8.1 million inventory reduction. He also noted cash and cash equivalents of $32.4 million, no borrowings on the U.S. credit line, and available borrowing resources of $48.7 million at quarter-end.

Analysts asked about the new Amazon litigation and the long-running Roku case; management said the Amazon suit was filed today, timing is uncertain, and the Roku case remains ongoing with a court date scheduled for 2027. They also asked whether guidance includes further tariff refunds, and Wade said no further refunds are expected and all material tariff monetization is already in guidance. On customer concentration, management disclosed Daikin at 21%, Comcast at 11.4%, and Sony at 8%, and said the thermostat win is from a customer relationship that began a couple of years ago and should see more shipments in the second half.