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Hong Kong's uCloudlink Q3 revenue rises 1.1%, posts net loss

By Reuters News


Overview

  • Hong Kong mobile data platform's Q3 revenue rose 1.1% yr/yr, while profitability declined

  • Company posted adjusted net loss along with negative adjusted EBITDA

  • Sluggish revenue growth driven by weaker international data connectivity demand, partly offset by IoT and SIM gains


Outlook

  • uCloudlink expects Q4 revenue between $22.5 mln and $25.5 mln

  • Company sees 2026 full-year revenue in range of $79 mln to $82 mln


Result Drivers

  • INTERNATIONAL CONNECTIVITY WEAKNESS - Co said revenue from international data connectivity services fell due to softer outbound travel demand from China amid macroeconomic headwinds and geopolitical uncertainties

  • IOT AND SIM BUSINESS GROWTH - Revenue from GlocalMe IoT and SIM businesses rose sharply, driven by expansion of integrated data connectivity solutions and higher demand for OTA and eSIM products

  • HIGHER PRODUCT SALES, LOWER MARGINS - Sales of terminals and other products increased, but gross margin on product sales declined due to product mix and higher component costs, especially memory chips


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$21.4 mln

Q3 Adjusted Net Loss

$0.6 mln

Q3 Adjusted EBITDA

-$0.2 mln

Q3 Gross Profit

$11.1 mln

Q3 Income from Operations

$0.2 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the wireless telecommunications services peer group is "buy"

  • Wall Street's median 12-month price target for Ucloudlink Group Inc is $8.00, about 4,132.8% above its November 10 closing price of $0.19


Reuters Recommended Reads

  • Nov 10 - Hong Kong's Valuetronics HY revenue rises on ICE segment growth

  • Nov 10 - Singapore's Bitdeer Q3 revenue beats estimates on AI cloud growth

  • Nov 10 - Chinese chipmakers Denglin, Xinde end mixed in Hong Kong debuts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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