uCloudlink Group Inc. Beats EPS Estimates, Misses on Revenue in Q1 2025

May 21, 2025 8:00 PM - Rayan Ahmad(Last modified: May 22, 2025 1:46 PM)

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uCloudlink Group Inc. (NASDAQ:UCL) Surpasses EPS Estimates but Misses on Revenue

uCloudlink Group Inc. (NASDAQ:UCL) is a key player in the mobile data traffic sharing marketplace. On May 21, 2025, UCL reported its earnings, revealing an earnings per share (EPS) of -$0.01, surpassing the estimated EPS of -$0.04. Despite this positive EPS surprise, the company's actual revenue of $18.75 million fell short of the estimated $22.5 million.

During the Q1 2025 earnings call, UCL's leadership, including CEO Chaohui Chen and CFO Yimeng Shi, discussed the company's financial performance. Analysts like Theodore O'Neill from Litchfield Hills Research attended the call. UCL reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a $0.04 loss, marking a 75% earnings surprise.

UCL's revenue for the quarter ending March 2025 was $18.75 million, surpassing the Zacks Consensus Estimate by 3.02%. This revenue represents a 3.4% increase from the $18.1 million reported in the same period of 2024. However, the gross profit declined by 3.1% to $9.7 million, and the company experienced a net loss of $0.6 million, contrasting with a net income of $0.4 million in the previous year.

The company's debt-to-equity ratio is 0.458, showing a moderate level of debt compared to equity. Additionally, UCL has a current ratio of 1.32, suggesting it has a good level of liquidity to cover its short-term liabilities.

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