Ubiquiti delivers exceptional profitability with 115% ROE, 30% operating margins, and a Piotroski score of 7 out of 9, and has beaten earnings in 3 of the last 4 quarters with an average surprise of 23%, but the stock is in a momentum trough with falling volume and is trading below its 200-day moving average, making timing the entry the key challenge.
Thesis pillars
- Concentration Risk Limits Position Size→Stable
- Best In Class Margins And Returns→Stable
- Earnings Beat Streak With Large Surprises→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Aug 21, 2026
Ubiquiti Inc. (UI) Stock Analysis
Temporary headwind edge
Technology · Communication Equipment
Sell if holding. At $602.71, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.6%; Sector modifier (Technology): -0.8.
Ubiquiti designs networking equipment and software for service providers and enterprises, including UniFi WiFi, switching, security gateways, video surveillance and access control, and airMAX and airFiber wireless broadband gear. It sells through over 100 distributors, online... Read more
Sell if holding. At $602.71, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.6%; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.7/10, moderate confidence.
Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: speculative.
About Ubiquiti Inc.
About Ubiquiti Inc.
Ubiquiti reported revenue of $3.3 billion for the fiscal year ended June 30, 2026, up from $2.6 billion in fiscal 2025 and $1.9 billion in fiscal 2024, with net income of $960.3 million. Founded by Robert Pera in 2005, the company employed or contracted 1,818 full-time equivalents at June 30, 2026, 1,321 of them in research and development and 65% located in Asia Pacific. Its devices form networking infrastructure in over 200 countries and territories.
Ubiquiti operates as one segment and sells enterprise products, built around UniFi OS, and service-provider products, built around UISP. The enterprise line covers WiFi access points, switching, cloud gateways, UniFi Protect video surveillance, UniFi Access door control and UniFi Talk business phones; the service-provider line covers airMAX and airFiber wireless gear, UFiber GPON and 60 GHz Wave products. It has no traditional direct sales force and relies on over 100 distributors, online retailers and its webstores, supported by an online user community. Contract manufacturers, primarily located in Vietnam and China, build its products, and the company states that moving production to new providers would take approximately three to six months. R&D expenses were $204.2 million in fiscal 2026. The 10-K names Cisco, Fortinet, Hewlett Packard Enterprise and Ruckus in enterprise WLAN and switching, Axis Communications, HIKVISION, Hanwha Vision and Verkada in video surveillance, and Cambium Networks, MikroTik and TP-Link among service-provider rivals.
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Supply and tariffs form the main exposure. The 10-K says the majority of product revenues depend on products incorporating components from a small number of suppliers, that the company relies on purchase orders instead of long-term contracts or guaranteed supply, and that firmware licensing agreements with some suppliers can be terminated without cause at the end of each annual term. U.S. tariffs on imports from China and Vietnam have already raised product costs, and the company expects tariffs and trade policy uncertainty to keep affecting costs and margins, so historical gross margins may not predict future periods. Component shortages may force costly redesigns because the company does not stockpile enough parts to cover re-engineering time.
See also: Technology · Communication Equipment
From Ubiquiti Inc.'s most recent 10-K filing, extracted October 18, 2026.
Recent developments
updated 2026-10-29Recent Developments — Ubiquiti Inc.
Latest news
- NEWS Arete Wealth Advisors LLC Purchases New Position in Ubiquiti Inc. $UI - MarketBeat — MarketBeat neutral
- NEWS UI DCF Analysis: Intrinsic Value $432 vs Price $964 - GuruFocus — GuruFocus negative
- NEWS UI|Ubiquiti Inc|Price:525.700|Chg%:-4.360 - TradingKey — TradingKey negative
- NEWS UI DCF Analysis: Intrinsic Value $432 vs Price $1027 - GuruFocus — GuruFocus negative
- NEWS Pixel UI may finally catch up to rival Android skins with a long-overdue notification tweak - Android Authority — Android Authority neutral
Generated 2026-10-29T11:08:52Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- MEDIUMSuppliercontract manufacturers in Vietnam and China10-K Item 1: 'We use contract manufacturers, primarily located in Vietnam and China, to manufacture our products.'
- MEDIUMSuppliersmall number of component suppliers10-K Item 1: 'The majority of our product revenues are dependent upon the sale of products that incorporate components from a small number of suppliers.'
- MEDIUMGeographicsales outside the United States10-K Item 1: 'A majority of our sales are made outside the United States'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $602.71, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.6%; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $560.52. Score 5.7/10, moderate confidence.
Analyst target: $624.32 (+3.6% upside). Prior stop was $560.52. Stop-loss: $560.52.
Thin upside margin: 3.6%; Sector modifier (Technology): -0.8; Expensive valuation.
Ubiquiti Inc. trades at a P/E of 38.0 (forward 30.8). TrendMatrix value score: 3.9/10. Verdict: Sell.
11 analysts cover UI with a consensus score of 2.2/5. Average price target: $735.
What does Ubiquiti Inc. do?Ubiquiti designs networking equipment and software for service providers and enterprises, including UniFi WiFi,...
Ubiquiti designs networking equipment and software for service providers and enterprises, including UniFi WiFi, switching, security gateways, video surveillance and access control, and airMAX and airFiber wireless broadband gear. It sells through over 100 distributors, online retailers and its own webstores in over 75 countries, with no customer at 10% or more of revenue. Revenue was $3.3 billion and net income $960.3 million in fiscal 2026, and a majority of sales are outside the United States.