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↓Deteriorating
- Best In Class Margins And Returns→Stable
- Earnings Beat Streak With Large Surprises↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Ubiquiti Inc. (UI) Stock Analysis
Technology · Communication Equipment
Hold if already holding. Not a fresh buy at $617.99, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8.
Ubiquiti designs networking products for network operators, service providers and consumers, sold to over 100 distributors and direct through webstores in over 75 countries. Contract manufacturers in Vietnam and China build its products, and no customer reached 10% of revenue in... Read more
Hold if already holding. Not a fresh buy at $617.99, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 6.1/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 22d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: speculative.
About Ubiquiti Inc.
About Ubiquiti Inc.
Ubiquiti's revenue grew to $2.6 billion in fiscal 2025 from $1.9 billion in fiscal 2024, with net income more than doubling to $711.9 million, sold through a single reportable segment spanning its UniFi enterprise networking platform and airMAX/airFiber wireless-carrier platforms. The company sold products in more than 75 countries through over 100 distributors and its own webstores, with a majority of sales made outside the United States and 1,187 of its 1,667 employees working in research and development.
Ubiquiti does not employ a traditional direct sales force, instead building brand awareness through online reviews, its website, and the Ubiquiti Community of distributors, value-added resellers, systems integrators, and IT professionals, supplemented by digital marketing and retail chains for consumer sales. The company depends on contract manufacturers primarily located in Vietnam and China to build its products, and the majority of its product revenue depends on components sourced from a small number of suppliers, some of whom Ubiquiti licenses chipset firmware technology from under non-exclusive agreements that renew annually. Recent U.S. tariffs on imports from China and Vietnam have increased product costs and are expected to continue affecting gross margins in future periods. Ubiquiti competes against Cambium Networks in wireless backhaul and CPE, Cisco and Juniper Networks in enterprise WLAN and switching, and Axis Communications and Hikvision in video surveillance.
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Ubiquiti's tariff exposure compounds two separate concentrations already built into its supply chain: the company depends on contract manufacturers primarily located in Vietnam and China, and separately on a small number of suppliers for the chipsets and components that go into the majority of its product revenue. Because recent U.S. executive orders imposed significant tariffs on imports from China and, separately, on most imports from Vietnam — with rates and exclusions changing repeatedly — Ubiquiti's 10-K states its historical gross margins may not be indicative of results in future periods, without disclosing what share of finished-goods cost is subject to the tariffs currently in effect.
See also: Technology · Communication Equipment
From Ubiquiti Inc.'s most recent 10-K filing, extracted October 11, 2026.
Recent developments
updated 2026-10-16Recent 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 9-Day Sell-Off Sends Ubiquiti Stock Down 43% - Trefis — Trefis negative
Generated 2026-10-16T11:32:28Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerdistributors majority of revenues10-K Item 1: 'Sales to our distributors have accounted for the majority of our revenues.'
- MEDIUMSuppliersingle or limited number of suppliers for components10-K Item 1A: 'currently depend on a single or limited number of suppliers for several components for our products'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Technicals 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
Hold if already holding. Not a fresh buy at $617.99, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Target $624.32 (+1.0%), stop $574.73 (−7.5%), A.R:R 0.1:1. Score 6.1/10, moderate confidence.
Take-profit target: $624.32 (+1.0% upside). Target $624.32 (+1.0%), stop $574.73 (−7.5%), A.R:R 0.1:1. Stop-loss: $574.73.
Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Expensive valuation.
Ubiquiti Inc. trades at a P/E of 38.2 (forward 30.9). TrendMatrix value score: 3.9/10. Verdict: Hold.
11 analysts cover UI with a consensus score of 2.2/5. Average price target: $735.
What does Ubiquiti Inc. do?Ubiquiti designs networking products for network operators, service providers and consumers, sold to over 100...
Ubiquiti designs networking products for network operators, service providers and consumers, sold to over 100 distributors and direct through webstores in over 75 countries. Contract manufacturers in Vietnam and China build its products, and no customer reached 10% of revenue in fiscal 2025.