As of September 16, 2026
1. Company Overview
Ubiquiti Inc. is a global technology enterprise that designs, manufactures, and markets high-performance networking technology platforms, wireless broadband infrastructure, and unified IT software solutions for enterprise, service provider, and consumer markets.
- UniFi (Enterprise Technology): Core flagship ecosystem offering unified network infrastructure, Wi-Fi access points, switches, security gateways, IP surveillance (UniFi Protect), and cloud management.
- UISP (Service Provider Technology): High-capacity wireless broadband infrastructure, point-to-point backhaul, and edge routing platforms tailored for Wireless Internet Service Providers (WISPs).
- Software Ecosystem & Cloud: Subscription-free software platforms and host-managed applications integrated directly into proprietary hardware deployments.
Exchange: NYSE | Sector: Technology | Industry: Communications Equipment / Networking Hardware
Headquarters: New York, NY | CEO: Robert J. Pera
2. Key Stock & Valuation Snapshot
| Metric | Value | Reference / Context |
| Stock Price | $559.44 | 52-Week Range: $500.23 – $1,099.99 |
| Market Capitalization | $33.86 Billion | Mid-to-large-cap networking equipment innovator |
| Trailing P/E (TTM) | 35.29x | Near 10-year historical median (~32.9x) supported by strong earnings growth |
| Price / Book (P/B) | 23.2x | Skewed high due to extensive historical debt-funded buybacks and low equity base |
| Diluted EPS (Q4 FY26) | $4.70 GAAP (+6.6% YoY) | $4.73 Non-GAAP (+33.6% YoY); Full-Year FY26 EPS: $15.85 |
| Dividend Yield (Forward) | 0.71% | Annualized Dividend: $4.00/share ($1.00 quarterly) |
3. Financial Performance (Q4 & Full-Year FY2026 Summary)
Reported on August 21, 2026, Ubiquiti delivered record fourth-quarter and full-year financial results for the fiscal year ended June 30, 2026, driven by robust demand across its UniFi Enterprise platform.
- Total Operating Revenue: $937.3 million in Q4 FY26 (+23.5% YoY); Full-Year Revenue $3.27 billion (+27.2% YoY).
- Net Quarterly Profit: $284.9 million GAAP net income in Q4 FY26.
- Gross Margin: 45.8% GAAP gross margin in Q4 FY26 (Full-Year FY26 Gross Margin: 46.2% vs. 43.4% in FY25).
- Operating Cash Flow: Exceptional cash generation fueled by high operating leverage and asset-light operations.
- Segment Breakdown: Enterprise Technology $868.3 million (+25.8% YoY); Service Provider Technology $69.0 million.
4. Quality Metrics Dashboard
| Metric Category | UI Performance | Target Benchmark | Pass / Fail Status |
| EPS Growth Next 3 Years | ~18.0% Annualized | > 7.0% | PASS |
| EPS Growth Next Year | ~15.2% | > 7.0% | PASS |
| ROCE | 90.4% | > 20.0% | PASS |
| ROE (TTM) | 91.1% | > 10.0% | PASS |
| 5-Year Average ROE | > 100% | > 10.0% | PASS |
| ROIC (TTM) | 92.0% – 102.3% | > 15.0% | PASS (Elite capital efficiency) |
| 5-Year Average ROIC | 78.5% | > 15.0% | PASS |
| TTM Net Profit Margin | 29.1% | > 10.0% | PASS |
| 5-Year Net Profit Margin | 26.4% | > 10.0% | PASS |
| TTM Gross Margin | 46.2% | > 40.0% | PASS |
| 5-Year Gross Margin | 43.8% | > 40.0% | PASS |
| TTM Free Cash Flow Margin | 24.5% | > 10.0% | PASS |
| 5-Year Free Cash Flow Margin | 22.1% | > 10.0% | PASS |
| FCF Conversion Ratio | 98.2% | > 80.0% | PASS |
| CAPEX to Revenue (TTM) | ~1.2% | Asset-Light Target | PASS (Outsourced manufacturing) |
| 5-Year CAPEX to Revenue | ~1.5% | Asset-Light Target | PASS |
| TTM Revenue Growth | 27.2% (23.5% Q4 YoY) | > 5.0% | PASS |
| 5-Year Revenue Growth | 14.8% | > 5.0% | PASS |
| TTM EPS Growth | 45.5% (Full-Year FY26) | > 7.0% | PASS |
| Last 5 Year EPS Growth | 24.5% | > 7.0% | PASS |
| Sloan Ratio | +2.4% | -10.0% to +10.0% | PASS (High earnings quality) |
| Debt to Equity | Elevated (Short-term debt focus) | Conservative Leverage | PASS (Manageable via cash flow) |
| Net Debt to EBITDA | ~0.85x | < 3.0x | PASS |
5. Growth Catalysts
- UniFi Enterprise Platform Expansion: Rapid market share gains in commercial, hospitality, and SMB networking through high-density Wi-Fi 7 access points, enterprise routing, and cloud-managed switches.
- Zero-Licensing Disruption: Displacing legacy enterprise networking vendors (Cisco, Aruba) by eliminating recurring annual software license fees and subscription paywalls.
- Asset-Light R&D Model: High operating margin expansion driven by a community-supported software testing framework and an outsourced manufacturing strategy with low sales/marketing overhead.
6. Dividend & Capital Return Profile
- Quarterly Dividend: $1.00 per share ($4.00 annualized, payable September 8, 2026).
- Dividend Track Record: Consistent regular quarterly dividends with regular board authorization updates.
- Payout Ratio: ~25% of GAAP net income, ensuring significant safety and cash retention.
- Share Repurchases: Active board authorization enabling up to $500 million in stock repurchases through September 30, 2027.
7. Historical Stock Returns
| Time Horizon | UI Total Return | Benchmark / Context |
| 1-Month | -1.99% | Pulled back alongside broader mid-cap tech sector |
| YTD (2026) | -1.35% | Consolidated after multi-year expansion |
| 1-Year | +67.5% | Massively outperformed tech and hardware indices |
| 3-Year Return | ~295% (Cumulative) | Exceptional compound outperformance |
| 5-Year CAGR | ~22.4% (Annualized) | World-class long-term wealth compounding |
8. SWOT Analysis
Strengths
- World-class capital efficiency (>90% ROIC/ROE) driven by outsourced assembly and minimal direct salesforce overhead.
- Fanatical customer loyalty across IT administrators, WISPs, and prosumer communities.
- High operating leverage delivering ~29% TTM net profit margins.
Weaknesses
- Concentrated insider ownership structure (~90% controlled by founder/CEO Robert Pera) limits public float.
- Heavy reliance on outsourced third-party contract manufacturers and component suppliers.
Opportunities
- Deepening footprint in enterprise security access control, IP cameras (UniFi Protect), and VoIP systems.
- Acceleration of Wi-Fi 7 enterprise upgrade cycles across commercial IT deployments.
Threats
- Supply chain disruptions or component cost inflation impacting gross margins.
- Intense competitive pressure from enterprise networking behemoths (Cisco, Arista, HPE/Aruba).
9. Investment Thesis
Core Case: Ubiquiti represents one of the most uniquely efficient business models in public markets. By leveraging a community-led sales model, eliminating recurring software license fees, and utilizing an asset-light production strategy, Ubiquiti generates world-class capital returns (>90% ROIC). Supported by record FY26 top-line revenue ($3.27B) and continuous expansion of its UniFi enterprise ecosystem, UI remains a premier compounder capable of converting top-line growth into durable long-term cash flow.
10. Dividend Stockpile Score
