UCL

HONG KONG, Aug. 18, 2026 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced its unaudited financial results for the three months ended June 30, 2026. Second Quarter 2026 Financial Highlights Total revenues were US$18.2 million, representing a decrease of 5.9% from US$19.4 million in the second quarter of 2025. Total revenues across different business lines were as follows: Gross profit was US$9.2 million, representing a decrease of 10.4% from US$10.2 million in the second quarter of 2025. Loss from operations was US$2.9 million, compared to income from operations of US$0.8 million in the second quarter of 2025. Net loss was US$3.0 million, compared to net income of US$0.7 million in the second quarter of 2025. Adjusted net loss (non-GAAP) was US$2.3 million, compared to adjusted net income of US$0.5 million in the second quarter of 2025. Adjusted EBITDA (non-GAAP) was negative US$1.8 million, compared to positive US$1.4 million in the second quarter of 2025. Second Quarter 2026 Operational Highlights Total data consumed in the second quarter through the Company’s platform was 46,641 terabytes (5,752 terabytes procured by the Company and 40,889 terabytes procured by our business partners), representing an increase of 2.6% from 45,441 terabytes in the second quarter of 2025. Average daily active users (“DAU”) in the second quarter were 376,376, representing an increase of 13.3% from 332,323 in the second quarter of 2025. Average monthly active users (“MAU”) in the second quarter were 744,966, representing an increase of 6.6% from 698,862 in the second quarter of 2025. As a proportion of daily active terminals, 56.3% were from uCloudlink 1.0 international data connectivity services and 43.7% were from uCloudlink 2.0 local data connectivity services during the second quarter of 2026. Average daily data usage per terminal was 1.50 GB in June 2026. Average daily active terminals (“DAT”) in the second quarter were 341,511 (12,763 owned by the Company and 328,748 not owned by the Company), representing an increase of 7.4% from 317,957 in the second quarter of 2025. Average monthly active terminals (“MAT”) in the second quarter were 706,382, representing an increase of 6.5% from 663,197 in the second quarter of 2025. As of June 30, 2026, the Company had served 3,250 business partners in 64 countries and regions. The Company had 212 patents with 184 approved and 28 pending approval, while the pool of SIM cards was from 398 MNOs globally as of June 30, 2026. Executive Commentary Mr. Chaohui Chen, Director and Chief Executive Officer of UCLOUDLINK, commented, “Our second quarter results mark a meaningful inflection point in our business. Total revenues for the quarter were US$18.2 million, reflecting the continued impact of macroeconomic headwinds, geopolitical tensions affecting outbound travel from China, and a significant surge in memory chip costs. Our uCloudlink 1.0 international data connectivity services remained under pressure from these factors. However, this impact has been increasingly offset by the rapid scaling of our uCloudlink 2.0 local data connectivity business, which delivered strong growth—particularly from GlocalMe IoT business. We expect this momentum to accelerate further in the third quarter.” “Our three new growth engines - GlocalMe Life, GlocalMe SIM, and GlocalMe IoT - continued to gain meaningful traction during the quarter. Under GlocalMe IoT, our installed base expanded further, providing a solid foundation for continuous high revenue growth. User adoption is growing rapidly across key verticals as we further solidify our position in high-growth sectors including in-car infotainment and security cameras. Building on the ‘AI-powered + Social’ model we pioneered in the first quarter, we are now leveraging PetPhone’s hardware capabilities to build a dedicated pet AI agent that offers both practical pet care tools and engaging human-pet interactive experiences. This enriches the high-frequency use cases within PetPogo and strengthens user retention. We are also opening up our full suite of pet AI agents to third-party developers, connecting hardware, software, and external services to continuously expand the boundaries of the pet ecosystem. PetPhone continues to attract strong media attention, has earned multiple industry awards, and is seeing growing consumer interest and pre-order momentum. Customer education for a product this innovative will take some time, and we believe its value proposition will be clear to the broader market in the second half of the year. Our premium MeowGo G50 Max, the world’s leading Sky-to-Ground integrated mobile connectivity hub, generated strong sales in the short period of time since its debut last quarter. Its unique ability to deliver resilient connectivity through 5G/satellite integration, powered by our AI HyperConn® technology, has proven to be a critical differentiator in markets experiencing political turmoil. It has now established market leadership on several fronts, including the breadth of its country coverage, its strong sales performance in the premium MiFi segment, and its satellite emergency communication capabilities. This is enhancing our brand value and driving increased sales across our entire portfolio of mobile connectivity solutions.” “We also achieved notable recognition during the quarter, winning the ‘Customer Impact Award’ at the MVNOs World Awards 2026 and being shortlisted for ‘Leading Consumer MVNO/Sub-Brand’, further validating our technological leadership and market positioning. Looking ahead, we remain focused on strengthening operational management and cost discipline, with a clear priority on improving cash flow. Together with the ongoing commercial progress of the PetPogo platform, the ramp-up of MeowGo G50 Max, and the continued expansion of GlocalMe IoT, we believe these efforts will position us to navigate the current market environment and emerge stronger. We remain committed to bridging the digital divides in cross-border connectivity as well as the emotional distance between people and their pets, while creating long-term value for our shareholders.” Second Quarter 2026 Financial Results Revenues Total revenues were US$18.2 million, representing a decrease of 5.9% from US$19.4 million in the same period of 2025. Revenues from services were US$13.3 million, representing a decrease of 9.2% from US$14.6 million in the same period of 2025, primarily attributable to a decrease in revenues from data connectivity services. Revenues from sales of products were US$4.9 million, representing an increase of 4.2% from US$4.8 million in the same period of 2025. Geographic DistributionDuring the second quarter of 2026, as a percentage of our total revenues, Japan contributed 36.0%, mainland China contributed 30.3%, North America contributed 13.5%, and other countries and regions contributed the remaining 20.2%, compared to 33.6%, 33.2%, 15.3% and 17.9%, respectively, in the same period of 2025. Cost of Revenues Cost of revenues was US$9.0 million, representing a decrease of 0.8% from US$9.2 million in the same period of 2025. Cost of services was US$5.4 million, representing a decrease of 14.3% from US$6.3 million in the same period of 2025. The decrease was in line with the decrease in revenues from services. Cost of products sold was US$3.6 million, representing an increase of 29.9% from US$2.9 million in the same period of 2025. The increase was primarily driven by industry-wide price increases for supply chain components, particularly global memory chips. Gross Profit Overall gross profit was US$9.2 million, compared to US$10.2 million in the same period of 2025. Overall gross margin was 50.2% in the second quarter of 2026, compared to 52.8% in the same period of 2025. Gross profit on services was US$7.9 million, compared to US$8.3 million in the same period of 2025. Gross margin on services was 59.1% in the second quarter of 2026, compared to 56.6% in the same period of 2025. Gross profit on sales of products was US$1.3 million, compared to US$1.9 million in the same period of 2025. Gross margin on sales of products was 26.5% in the second quarter of 2026, compared to 41.0% in the same period of 2025. Operating Expenses Total operating expenses were US$11.6 million, compared to US$10.4 million in the same period of 2025. Research and development expenses were US$2.0 million, representing an increase of 29.8% from US$1.6 million in the same period of 2025. The increase was primarily due to an increase of US$0.3 million in staff costs. Sales and marketing expenses were US$6.7 million, representing an increase of 20.9% from US$5.5 million in the same period of 2025. The increase was primarily due to increases of US$0.7 million in promotion fees, US$0.2 million in staff costs, and US$0.1 million in operating lease payments. General and administrative expenses were US$2.9 million, representing a decrease of 12.5% from US$3.3 million in the same period of 2025. The decrease was primarily due to decreases of US$0.3 million in staff costs, US$0.2 million in share-based compensation expenses, and US$0.1 million in bad debt provisions, which were partially offset by an increase of US$0.2 million in cloud infrastructure services. (Loss)/Income from Operations Loss from operations was US$2.9 million, compared to income from operations of US$0.8 million in the same period of 2025. Adjusted EBITDA (Non-GAAP) Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization, was negative US$1.8 million, compared to positive US$1.4 million in the same period of 2025. Net Interest Expenses Net interest expenses were US$0.1 million, compared to US$0.03 million in the same period of 2025. Net (Loss)/Income Net loss was US$3.0 million, compared to net income of US$0.7 million in the same period of 2025. Adjusted Net (Loss)/Income (Non-GAAP) Adjusted net loss, which excludes the impact of share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax, was US$2.3 million, compared to adjusted net income of US$0.5 million in the same period of 2025. Basic and Diluted (Loss)/Earnings per ADS Basic and diluted loss per ADS attributable to ordinary shareholders were US$0.08 in the second quarter of 2026, compared to basic and diluted earnings per ADS of US$0.02 in the same period of 2025. Cash and Cash Equivalents As of June 30, 2026, the Company had cash and cash equivalents of US$25.2 million, compared to US$28.0 million as of March 31, 2026. The decrease was primarily attributable to the net outflow of US$3.0 million from operations. Capital Expenditures (“CAPEX”) Capital expenditures were US$0.04 million, compared to US$0.2 million in the same period of 2025. Business Development In August 2026, the Company completed the sale of its entire equity interest in Beijing Huaxianglianxin Technology Company, a company listed on the National Equities Exchange and Quotations (NEEQ) in China, through a series of block trades. The sale generated cash proceeds of approximately RMB11.4 million, representing a gain of approximately RMB2.9 million over the Company’s initial investment cost of approximately RMB8.5 million. Following the transaction, the Company no longer holds any equity interest in Beijing Huaxianglianxin Technology Company. Additionally, building on the robust momentum of the Company’s GlocalMe IoT business, Mr. Wen Gao has been appointed as General Manager of Shenzhen Yulian Cloud Technology Co., Ltd., a wholly-owned subsidiary of the Company, effective August 17, 2026. In this role, Mr. Gao will focus on driving the expansion of the Company’s IoT solution ecosystem and enhancing its operational agility to accelerate business growth, in line with the Company’s strategic objective of strengthening its presence in the IoT sector. To devote his primary focus and effort to this critical operational role, Mr. Gao ceased to serve as Chief Strategy Officer of the Company upon this appointment. Business Outlook For the third quarter of 2026, UCLOUDLINK expects total revenues to be between US$19.0 million and US$22.0 million, representing a decrease of 10.4% to an increase of 3.8% compared to the same period of 2025. The Company currently expects total revenues for the full year of 2026 to be in the range of US$75 million to US$85 million, compared with the range of US$85 million to US$100 million previously announced. The Company is revising its guidance in light of the persistent macroeconomic challenges and global trade headwinds, which have had and may continue to have a broader impact across industries. The estimates above constitute forward-looking information and are based on the Company’s current expectations and assumptions of market and operating conditions and customer demand. These estimates are therefore subject to risks and uncertainties, including possible adjustments to preliminary financial results, and are not guarantees of future performance and may differ materially from actual results. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents, adjusted net income/(loss) and adjusted EBITDA, as supplemental measures for the review and assessment of the Company’s operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax. Adjusted EBITDA is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization. The Company believes that adjusted net income/(loss) and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in income/(loss) from operations and net income/(loss). The Company believes that adjusted net income/(loss) and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non- GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net income/(loss) and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax, have been and may continue to be incurred in the Company’s business and are not reflected in the presentation of adjusted net income/(loss). Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release. Conference Call UCLOUDLINK will hold a conference call at 8:30 a.m. Eastern Time on Tuesday, August 18, 2026 (8:30 p.m. Hong Kong Time on the same day) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing: Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for “UCLOUDLINK GROUP INC.” Additionally, a live and archived webcast of the conference call will be available at https://ir.ucloudlink.com. A telephone replay will be available one hour after the end of the conference until August 26, 2026 by dialing: About UCLOUDLINK GROUP INC. UCLOUDLINK is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the financial guidance and quotations from management in this announcement, as well as UCLOUDLINK’s strategic and operational plans, contain forward-looking statements. UCLOUDLINK may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about UCLOUDLINK’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: UCLOUDLINK’s strategies; UCLOUDLINK’s future business development, financial condition and results of operations; UCLOUDLINK’s ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in UCLOUDLINK’s revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law. For more information, please contact:

This article first appeared on GuruFocus. Total Revenue: USD 18.2 million, a decrease of 5.9% year-over-year. Gross Profit: USD 9.2 million, compared to USD 10.2 million in the same period of 2025. Gross Margin: 50.2%, down from 52.8% in the prior-year quarter; service gross margin was 59.1%, up from 56.6%. Net Loss: USD 3.0 million, compared to net income of USD 0.7 million in the second quarter of 2025. Adjusted EBITDA: Negative USD 1.8 million, versus positive USD 1.4 million in the prior-year period. Operating Cash Flow: Outflow of USD 3.0 million, compared to an outflow of USD 0.9 million in the same period of 2025. Capital Expenditure: USD 0.04 million, down from USD 0.2 million in the prior-year quarter. Cash and Cash Equivalents: USD 25.2 million as of June 30, 2026, compared to USD 28.0 million as of March 31, 2026. GlocalMe MeowGo Revenue: USD 15.4 million, a decrease of 13.1% year-over-year. GlocalMe SIM Revenue: USD 1.3 million, an increase of 78% year-over-year. GlocalMe IoT Revenue: USD 0.8 million, an increase of 392.4% year-over-year. GlocalMe Life Revenue: USD 0.5 million, a decrease of 21.1% year-over-year. PetPhone Revenue: USD 0.2 million, an increase of 1,527.3% year-over-year. Average DAUs: 376,376, an increase of 13.3% year-over-year. Average MAUs: 744,966, an increase of 6.6% year-over-year. GlocalMe IoT Installed Base: Reached 3.34 million units; MAU grew 210% year-over-year. GlocalMe Life DAU Growth: Increased 801.6% year-over-year. GlocalMe SIM DAU Growth: Increased 132% year-over-year. Third-Quarter 2026 Revenue Guidance: Expected between USD 19 million and USD 22 million. Full-Year 2026 Revenue Guidance: Revised to USD 75 million to USD 85 million, down from the prior range of USD 85 million to USD 100 million. Warning! GuruFocus has detected 4 Warning Signs with UCL. Is UCL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GlocalMe IoT revenue surged 392.4% year-over-year, with installed base reaching 3.34 million units and MAU growing 210%. GlocalMe SIM revenue increased 78% year-over-year, with DAU up 132%, driven by strong eSIM momentum in China and Asia-Pacific. PetPhone revenue grew 1,527.3% year-over-year, with the upgraded AI pet agent creating new opportunities in pet health and safety. GlocalMe Life DAU exploded 801.6% year-over-year, reflecting strong market adoption of the new product line. Gross margin on services improved to 59.1% in Q2 2026 from 56.6% in Q2 2025, indicating better service profitability. Total revenue decreased 5.9% year-over-year to USD 18.2 million, impacted by macroeconomic headwinds and geopolitical tensions. Net loss of USD 3 million in Q2 2026, compared to net income of USD 0.7 million in Q2 2025, with adjusted EBITDA turning negative. Significant surge in memory chip costs (5-10x increase) pressured margins and cash flow, leading to higher inventory purchases. Full-year 2026 revenue guidance was revised downward to USD 75-85 million from USD 85-100 million due to persistent challenges. GlocalMe MeowGo business revenue declined 13.1% year-over-year, with DAU and MAU also decreasing, reflecting continued pressure on the 1.0 international business. Q: What is the company doing to mitigate the significant increase in memory chip costs, and are there other supply chain issues in the semiconductor area? A: CEO Chaohui Chen explained that the memory chip cost surge (5-10x increase) has impacted sales prices. The company's mitigation strategies include: 1) Increasing memory chip storage in the early quarter to offset price increases, which impacted cash flow; 2) Raising sale prices for customers in the second half of the year, while considering customer acceptance; 3) Revising hardware designs (R&D) to reduce memory requirements for large and expensive memory; and 4) Noting that other components like PCBs are also seeing extended lead times and rising costs, making 2026 a challenging year for the supply chain across products like MiFi and PetPhone. Q: Why did GlocalMe Life business revenue decrease year-over-year while average daily active users (DAU) increased significantly? A: CFO Yimeng Shi clarified that the revenue decline was due to a slight decrease in hardware delivery volume in Q2 2026, while the DAU increase reflects the cumulative active base of historically sold Life products (like charge cables popular in Japan). CEO Chen added that the Q2 order dip was a result of customers placing larger orders in Q1 ahead of anticipated price increases driven by supply chain and memory chip costs. Despite the Q2 dip, the first half of 2026 saw dramatic growth compared to the first half of 2025. Q: Can you provide an overview of the Q2 2026 financial results and the revised full-year guidance? A: CFO Yimeng Shi reported total revenue of USD 18.2 million, a 5.9% decrease year-over-year. Gross profit was USD 9.2 million with a gross margin of 50.2%. The company recorded a net loss of USD 3 million and negative adjusted EBITDA of USD 1.8 million. For Q3 2026, revenue is expected to be between USD 19 million and USD 22 million. The full-year 2026 revenue guidance was revised down to USD 75 million to USD 85 million from the previous USD 85 million to USD 100 million, citing persistent macroeconomic challenges and global trade headwinds. Q: What were the key operational metrics and growth drivers for the new business lines in Q2 2026? A: CFO Yimeng Shi highlighted robust growth across new engines. GlocalMe IoT revenue grew 392.4% year-over-year, with the installed base reaching 3.34 million units and MAU up 210%. GlocalMe SIM revenue increased 78%, and PetPhone revenue surged 1,527.3%. Average DAUs for GlocalMe IoT, SIM, and Life grew 277.3%, 132%, and 801.6% year-over-year, respectively. The GlocalMe MeowGo business saw a 7.3% decline in average DAUs. Q: What is the strategic outlook for the uCloudlink 1.0 and 2.0 businesses? A: CEO Chaohui Chen stated that the uCloudlink 1.0 international data connectivity business remains under pressure from macroeconomic headwinds and geopolitical tensions. However, the rapid scaling of the uCloudlink 2.0 local data connectivity business, particularly GlocalMe IoT, is expected to fully offset the contraction in the 1.0 business by the third quarter. The company is focused on strengthening operational management, cost discipline, and improving cash flow. Q: What are the key highlights for the PetPhone ecosystem and its new AI capabilities? A: CEO Chaohui Chen detailed that the PetPhone ecosystem has been upgraded into a dedicated pet AI agent, which can sense a pet's condition and emotional state, supporting owners from prevention to real-time response. This creates opportunities in pet health, veterinary care, safety, and data analytics. The company is expanding its pet AI capabilities and has seen significant branding success, with content reaching tens of millions of views on platforms like TikTok and Instagram. Q: What is the market position and performance of the MeowGo G50 Max and new CPE products? A: CEO Chaohui Chen noted that the MeowGo G50 Max, a Sky-to-Ground integrated connectivity hub, has built a market-leading position in the USD 500+ premium MiFi segment, covering nearly 100 countries. The company also launched new 4G and 5G CPE products (R50 and R55) for local connectivity, which have passed market validation with positive feedback. Several large orders are under negotiation, and the company expects to accelerate deployment and drive stronger growth in Q3. Q: How did the company's cash position and operating cash flow perform in Q2 2026? A: CFO Yimeng Shi reported that cash and cash equivalents were USD 25.2 million as of June 30, 2026, down from USD 28 million as of March 31, 2026. The company recorded an operating cash outflow of USD 3 million in Q2 2026, compared to an outflow of USD 0.9 million in the same period of 2025. Capital expenditure was minimal at USD 0.04 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SurgePays, Inc. (SURG) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.11 per share. This compares to a loss of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +145.46%. A quarter ago, it was expected that this company would post a loss of $0.19 per share when it actually produced a loss of $0.51, delivering a surprise of -168.42%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. SurgePays, Inc., which belongs to the Zacks Internet - Software industry, posted revenues of $16.21 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 17.43%. This compares to year-ago revenues of $11.52 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SurgePays, Inc. shares have lost about 85.2% since the beginning of the year versus the S&P 500's gain of 13.9%. While SurgePays, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SurgePays, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.08 on $18.7 million in revenues for the coming quarter and -$0.70 on $65 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, uCloudlink Group Inc. Sponsored ADR (UCL), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 18. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -350%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. uCloudlink Group Inc. Sponsored ADR's revenues are expected to be $20 million, up 3.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SurgePays, Inc. (SURG) : Free Stock Analysis Report uCloudlink Group Inc. Sponsored ADR (UCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AvePoint, Inc. (AVPT) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +87.50%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.1, delivering a surprise of +25%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. AvePoint, which belongs to the Zacks Internet - Software industry, posted revenues of $124.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.54%. This compares to year-ago revenues of $102.02 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. AvePoint shares have lost about 3.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While AvePoint has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for AvePoint was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $134.07 million in revenues for the coming quarter and $0.39 on $512.98 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. uCloudlink Group Inc. Sponsored ADR (UCL), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -350%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. uCloudlink Group Inc. Sponsored ADR's revenues are expected to be $20 million, up 3.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvePoint, Inc. (AVPT) : Free Stock Analysis Report uCloudlink Group Inc. Sponsored ADR (UCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HONG KONG, May 13, 2026 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced its unaudited financial results for the three months ended March 31, 2026. First Quarter 2026 Financial Highlights Total revenues were US$16.9 million, representing a decrease of 10.1% from US$18.7 million in the first quarter of 2025. Gross profit was US$8.3 million, representing a decrease of 14.6% from US$9.7 million in the first quarter of 2025. Loss from operations was US$3.5 million, compared to US$0.5 million in the first quarter of 2025. Net loss was US$3.5 million, compared to US$0.6 million in the first quarter of 2025. Adjusted net loss (non-GAAP) was US$2.6 million, compared to an adjusted net income of US$0.4 million in the first quarter of 2025. Adjusted EBITDA (non-GAAP) was negative US$2.0 million, compared to positive US$1.4 million in the first quarter of 2025. First Quarter 2026 Operational Highlights Total data consumed in the first quarter through the Company’s platform was 45,514 terabytes (6,058 terabytes procured by the Company and 39,456 terabytes procured by our business partners), representing an increase of 5.4% from 43,179 terabytes in the first quarter of 2025. Average daily active users (“DAU”) in the first quarter were 354,789, representing an increase of 10.2% from 321,836 in the first quarter of 2025. Average DAU in the first quarter from GlocalMe IoT business was 43,566, representing an increase of 246.5% from 12,573 in the first quarter of 2025. Average DAU in the first quarter from GlocalMe SIM business was 17,564, representing an increase of 193.6% from 5,983 in the first quarter of 2025. Average DAU in the first quarter from GlocalMe Life business was 8,117, representing an increase of 559.9% from 1,230 in the first quarter of 2025. Average DAU in the first quarter from PetPhone business was 1,097, as compared with nil in the first quarter of 2025. Average DAU in the first quarter from GlocalMe MeowGo business, which was previously referred to as GlocalMe mobile/fixed broadband business, was 284,445, representing a decrease of 5.8% from 302,050 in the first quarter of 2025. Average monthly active users (“MAU”) in the first quarter were 737,274, representing an increase of 6.0% from 695,599 in the first quarter of 2025. Average MAU in the first quarter from GlocalMe IoT business was 66,074, representing an increase of 142.1% from 27,293 in the first quarter of 2025. Average MAU in the first quarter from GlocalMe SIM business was 75,565, representing an increase of 76.8% from 42,729 in the first quarter of 2025. Average MAU in the first quarter from GlocalMe Life business was 16,350, representing an increase of 609.0% from 2,306 in the first quarter of 2025. Average MAU in the first quarter from PetPhone business was 1,397, as compared with nil in the first quarter of 2025. Average MAU in the first quarter from GlocalMe MeowGo business was 577,888, representing a decrease of 7.3% from 623,271 in the first quarter of 2025. As a proportion of daily active terminals, 58.6% were from uCloudlink 1.0 international data connectivity services and 41.4% were from uCloudlink 2.0 local data connectivity services during the first quarter of 2026. Average daily data usage per terminal was 1.57 GB in March 2026. Average daily active terminals (“DAT”) in the first quarter were 327,615 (13,414 owned by the Company and 314,201 not owned by the Company), representing an increase of 6.1% from 308,863 in the first quarter of 2025. Average DAT in the first quarter from GlocalMe IoT business was 34,207, representing an increase of 432.3% from 6,426 in the first quarter of 2025. Average DAT in the first quarter from GlocalMe SIM business was 9,142, representing an increase of 75.2% from 5,219 in the first quarter of 2025. Average DAT in the first quarter from GlocalMe Life business was 7,280, representing an increase of 1,072.3% from 621 in the first quarter of 2025. Average DAT in the first quarter from PetPhone business was 368, as compared with nil in the first quarter of 2025. Average DAT in the first quarter from GlocalMe MeowGo business was 276,618, representing a decrease of 6.7% from 296,597 in the first quarter of 2025. Average monthly active terminals (“MAT”) in the first quarter were 702,805, representing an increase of 7.7% from 652,810 in the first quarter of 2025. Average MAT in the first quarter from GlocalMe IoT business was 59,338, representing an increase of 135.0% from 25,253 in the first quarter of 2025. Average MAT in the first quarter from GlocalMe SIM business was 61,814, representing an increase of 74.1% from 35,505 in the first quarter of 2025. Average MAT in the first quarter from GlocalMe Life business was 14,770, representing an increase of 806.1% from 1,630 in the first quarter of 2025. Average MAT in the first quarter from PetPhone business was 789, as compared with nil in the first quarter of 2025. Average MAT in the first quarter from GlocalMe MeowGo business was 566,094, representing a decrease of 4.1% from 590,422 in the first quarter of 2025. As of March 31, 2026, the Company had served 3,234 business partners in 64 countries and regions. The Company had 212 patents with 183 approved and 29 pending approval, while the pool of SIM cards was from 397 MNOs globally as of March 31, 2026. Executive Commentary Mr. Chaohui Chen, Director and Chief Executive Officer of UCLOUDLINK, commented, “Our results for the first quarter of 2026 demonstrate the underlying resilience of our core business. We successfully navigated a complex and volatile global landscape, characterized by ongoing geopolitical tensions and conflict-related logistical disruptions that pressured consumer sentiment, maintaining strict operational discipline throughout to offset these headwinds. As a result, total revenues were US$16.9 million during the quarter, at the high end of our guidance range.” “Crucially, our three new growth engines - GlocalMe Life, GlocalMe IoT, and GlocalMe SIM - delivered remarkable year-over-year revenue growth of over 400%, 300%, and 170%, respectively. To accelerate commercialization and capture early market leadership, we strategically increased marketing spending on the PetPhone and broader PetPogo ecosystem. While these investments temper near-term profitability and cash flow, we are confident they will yield substantial long-term payoffs and help lay a solid foundation to drive growth. This forward-looking strategy is already beginning to generate results with our GlocalMe IoT business gaining strong revenue growth momentum with rapid user expansion.” “Each new growth engine also made significant strategic progress in laying the groundwork for accelerated commercial momentum going forward. Following the exceptional global media attention and market validation at CES 2026 in Las Vegas, where we unveiled our PetPogo ecosystem and the all-new PetCam, we are leveraging this momentum to strengthen our positioning and brand equity as we advance toward full-scale commercialization. During the quarter, we launched the beta version of the PetPogo app, pioneering an ‘AI-powered + Social’ model in the pet technology industry. Leveraging PetPhone’s AI-driven hardware to sense and interpret pet data, we are addressing the fundamental communication gap between owners and their pets. The PetPogo ecosystem reimagines the pet social experience with a unique ‘Pet-Centric’ community and ‘Pet Moments’ feature, establishing a highly engaging emotional bridge between humans and pets, among pets themselves, and across pet owner communities which will drive deeper engagement and more meaningful, lasting connections. Early beta feedback has been overwhelmingly positive, reinforcing our confidence in its user adoption and growth potential. Under GlocalMe Life, our UniCord Pro continues to gain strong traction, with sales volume and market adoption accelerating rapidly. MeowGo G50 Max, a premium, sky-to-ground integrated mobile Wi-Fi hub, also drew significant market attention during the quarter. In markets where terrestrial networks have been disrupted due to conflict, the MeowGo G50 Max’s unique ability to provide resilient connectivity is proving to be a critical differentiator. Our GlocalMe IoT business maintained its strong growth trajectory, with user adoption and revenue contribution continuing to expand rapidly year-over-year. We continue to solidify our strategic position to capture additional market share in high-growth sectors such as in-car infotainment and security cameras.” “Looking ahead, we remain in the early, high-growth stages of our transformation. Throughout 2026, we will continue investing strategically in our new growth engines. The strong market validation from CES 2026, positive PetPogo beta feedback, and sustained momentum in GlocalMe IoT demonstrate how our diversified business strategy remains firmly on track. We are building toward sustainable growth by scaling our user base globally and bridging the digital divides in cross-border connectivity as well as the emotional distance between people and their pets, while creating long-term value for our shareholders.” First Quarter 2026 Financial Results Revenues Total Revenues were US$16.9 million, representing a decrease of 10.1% from US$18.7 million in the same period of 2025. Revenues from services were US$13.3 million, representing a decrease of 6.3% from US$14.2 million in the same period of 2025. This decrease was primarily attributable to the decrease in revenues from international data connectivity services. Revenues from data connectivity services were US$10.4 million, representing a decrease of 6.5% from US$11.2 million in the same period of 2025. This decrease was primarily attributable to a decrease in revenues from international data connectivity services to US$8.5 million in the first quarter of 2026 from US$9.7 million in the same period of 2025, primarily due to the decline in outbound travelers from China, against the backdrop of a volatile and tense international situation, which was partially offset by an increase in revenues from local data connectivity services to US$1.9 million in the first quarter of 2026 from US$1.5 million in the same period of 2025, as a result of the continued development of GlocalMe IoT business. Revenues from PaaS and SaaS services were US$2.5 million, representing a decrease of 9.7% from US$2.7 million in the same period of 2025. Revenues from sales of products were US$3.6 million, representing a decrease of 21.8% from US$4.5 million in the same period of 2025, primarily due to a decrease of US$0.9 million in sales of terminals. Geographic DistributionDuring the first quarter of 2026, as a percentage of our total revenues, Japan contributed 32.0%, mainland China contributed 30.3%, North America contributed 17.3%, and other countries and regions contributed the remaining 20.4%, compared to 40.4%, 31.2%, 12.9% and 15.5%, respectively, in the first quarter of 2025. Cost of Revenues Cost of revenues was US$8.6 million, representing a decrease of 5.2% from US$9.0 million in the same period of 2025. This decrease was mainly attributable to the decrease in cost of products sold. Cost of services was US$6.1 million, representing a slight decrease of 0.2% compared to the same period of 2025. Cost of products sold was US$2.5 million, representing a decrease of 15.3% from US$2.9 million in the same period of 2025, consistent with the decrease in product sales. Gross Profit Overall gross profit was US$8.3 million, compared to US$9.7 million in the same period of 2025. Overall gross margin was 49.1% in the first quarter of 2026, compared to 51.7% in the same period of 2025. Gross profit on services was US$7.2 million, compared to US$8.1 million in the same period of 2025. Gross margin on services was 54.5% in the first quarter of 2026, compared to 57.3% in the same period of 2025. Gross profit on sales of products was US$1.1 million, compared to US$1.6 million in the same period of 2025. Gross margin on sales of products was 28.9% in the first quarter of 2026, compared to 34.3% in the same period of 2025. Operating Expenses Total operating expenses were US$10.9 million, compared to US$10.2 million in the same period of 2025. Research and development expenses were US$1.6 million, representing an increase of 16.4% from US$1.4 million in the same period of 2025. This increase was mainly due to an increase of US$0.3 million in staff costs. Sales and marketing expenses were US$6.4 million, representing an increase of 12.2% from US$5.7 million in the same period of 2025. This increase was primarily due to increases of US$0.3 million in operating lease payments, US$0.3 million in employee benefit expenses and US$0.1 million in exhibition expenses. General and administrative expenses were US$2.9 million, representing a decrease of 6.6% from US$3.1 million in the same period of 2025. This decrease was primarily attributable to a decrease of US$0.7 million in bad debt provisions, which was partially offset by an increase of US$0.3 million in testing fees. Loss from Operations Loss from operations was US$3.5 million, compared to US$0.5 million in the same period of 2025. Adjusted EBITDA (Non-GAAP) Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization, was negative US$2.0 million, compared to positive US$1.4 million in the same period of 2025. Net Interest Expenses Net interest expenses remained at US$0.05 million. Net Loss Net loss was US$3.5 million, compared to US$0.6 million in the same period of 2025. Adjusted Net Loss/Income (Non-GAAP) Adjusted net loss, which excludes the impact of share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax, was US$2.6 million, compared to an adjusted net income of US$0.4 million in the same period of 2025. Basic and Diluted Loss per ADS Basic and diluted loss per ADS attributable to ordinary shareholders were US$0.09 in the first quarter of 2026, compared to US$0.02 in the same period of 2025. Cash and Cash Equivalents As of March 31, 2026, the Company had cash and cash equivalents of US$28.0 million, compared to US$32.8 million as of December 31, 2025. The decrease was primarily attributable to a net outflow of US$8.7 million from operations and repayments of US$1.3 million for bank borrowings, which were partially offset by proceeds of US$5.0 million from bank borrowings. Capital Expenditures (“CAPEX”) CAPEX was US$0.03 million, compared to US$0.3 million in the same period of 2025. Business Outlook For the second quarter of 2026, UCLOUDLINK expects total revenues to be between US$19.5 million and US$22.5 million, representing an increase of 0.5% to 16.0% compared to the same period of 2025. The above outlook is based on current market conditions and reflects the Company’s preliminary estimates of market and operating conditions and customer demand. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents, adjusted net income/(loss) and adjusted EBITDA, as supplemental measures to review and assess the Company’s operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax. Adjusted EBITDA is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization. The Company believes that adjusted net income/(loss) and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in income/(loss) from operations and net income/(loss). The Company believes that adjusted net income/(loss) and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non- GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net income/(loss) and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax, have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of adjusted net income/(loss). Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release. Conference Call UCLOUDLINK will hold a conference call at 8:30 a.m. Eastern Time on Wednesday, May 13, 2026 (8:30 p.m. Beijing Time on the same day) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing: Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for “UCLOUDLINK GROUP INC.” Additionally, a live and archived webcast of the conference call will be available at https://ir.ucloudlink.com. A telephone replay will be available one hour after the end of the conference until May 20, 2026 by dialing: About UCLOUDLINK GROUP INC. UCLOUDLINK is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the financial guidance and quotations from management in this announcement, as well as UCLOUDLINK’s strategic and operational plans, contain forward-looking statements. UCLOUDLINK may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about UCLOUDLINK’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: UCLOUDLINK’s strategies; UCLOUDLINK’s future business development, financial condition and results of operations; UCLOUDLINK’s ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in UCLOUDLINK’s revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to UCLOUDLINK’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law. For more information, please contact: UCLOUDLINK GROUP INC.Daniel GaoTel: +852-2180-6111E-mail: [email protected] Investor Relations:Christensen AdvisoryChristian Arnell, Managing DirectorTel: +852-2117-0861E-mail: [email protected]

Ucloudlink Group (NASDAQ:UCL) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. Access the full call at https://edge.media-server.com/mmc/p/h9xks59f/ Ucloudlink Group reported total revenues of $15.9 million for Q4 2026 despite external challenges like macroeconomic volatility and rising costs. New product lines, such as Platform and Unicore Pro, are gaining traction, with significant year-over-year revenue growth in the Glaucoma line, IoT, and Glaucomacine. The Pepago ecosystem, featuring the Pepgo app, has launched its beta version, receiving positive feedback and showing strong potential for growth. The Mirgo G50 Max, a high-end mobile connectivity hub, is expected to drive future growth with its unique capabilities in global 5G coverage and satellite messaging. The company anticipates a return to positive year-over-year growth in the second quarter of 2026, with expected revenues between $19.5 million and $22.5 million. Financial challenges include a decrease in total revenue by 10.1% year-over-year and a net loss of $3.5 million for the first quarter of 2026. Management expressed confidence in their strategy to drive sustainable growth through continued investment in new growth engines and market validation from recent product launches. OPERATOR Thank you for standing by and welcome to the Ucloudlink Group first quarter 2026 earnings conference call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question you would need to press the star key followed by the number one on your telephone keypad. I would now like to hand the call over to Mr. Xi Chao Gao, company investor relations. Please go ahead. Xi Chao Gao (Investor Relations) Thank you Operator. Hello everyone and thank you for joining us on Ucloudlink fourth quarter 2026 earnings call. The earnings release and our earnings presentation are now available on our IR website at ir.ucloudlink.com Joining me on today's call are Mr. Zhi Pingpeng, Co Founder and Chairman of the board of directors Mr. Chao Hui Chen, Co Founder, Director and Chief executive officer and Mr. Yi Mengshi, chief financial officer. Mr. Chen will begin with an overview of our recent business highlights. Mr. Shu will then discuss our financial and original highlights for the quarter. They will all be available to take your questions in the QA SECtion that follows. Before we proceed, please note that this call may contain forward looking statements made pursuit to the safe harbor provisions of the previous SECurities Litigation Reform act of 1995. These forward looking statements are based on measurements, current expectations and observations that involve known and unknown risks, uncertainties and other factors not under component's control which may cause actual results, performance or treatments of the Company to be materially different from the results, performance or expectations projected or implied by these forward looking statements. All forward looking statements are expressly qualified in their entity by the cautionary statements, risk factors and details of the Company's filings with the SEC. The Company does not assume any obligation of reverse or update any forward looking statements as a result of new information, future events, change in market conditions or otherwise except as required by law. Please also note that Ucloudlink's earning press release and this conference call include discussions of unaudited GAAP financial information and unaudited non GAAP financial measures. Uclain's press release contains the reconciliations of the unaudited non GAAP measures to the most directly comparable unaudited GAAP measures. I will now turn the call over to Mr. Chen. Please go ahead. Chao Hui Chen (Co Founder, Director and Chief Executive Officer) Thank you Daniel and good morning or evening. It delivered total revenues of US$15.9 million in the fourth quarter of 2026. This result comes despite significant external headwinds including macroeconomic volatility, weak travel demand, rising energy prices, memory chipset, cost increase and conflict related supply chain disruption. More importantly, our new product lines have continue to warm up and scale gradually offsetting the negative impact on our traditional business for these external headwinds. With the continued ramp up of new products such as the Platform and Unicore Pro, revenues from our new business lines are increasing following an initial market one up period over the past two quarters. Each of these new products continue to make significant strategic progress during the quarter, laying the groundwork for accelerating commercial momentum going forward. Overall, our three new growth engine Glocomm line, Glocomm IoT and Glocommcine deliver remarkable year over year revenue growth of over 400%, 300% and 170% respectively. To accelerate commercialization and capture early market leadership, we strategically increased marketing spending during the quarter on a platform and broader Pepgo ecosystem. While these investments will attempt near term profitability and cash flow, we are confident they will yield substantial long term payoffs and contribute to sustainable growth going forward. I will now review the highlights for each of our key business lines. I will start with the pepago Ecosystem Building on the exceptional global media attention and the market validation received at NWC 2026 and CEX 2026 with the unveiling of our Pepago ecosystem and the all new PetCam, we launched the beta version of the Pepgo app during the quarter. This differentiated and the pioneering AI power plus social platform for the pet technology industry leverages AI technologies and the platform to enable pet and their owners to communicate seamlessly. By effectively transforming the pet ownership experience into an interactive, social and connected community, we are fostering unparalleled engagement and continuous interaction. Pepgo also allow pet owners to manage their pet care journey across three stages before, during and after activities. This social platform is expected to complete commercial validation in Q2 2026 and begin driving growth starting in Q3 2026. During the quarter, average monthly Pepgo user MAU reached 1397 and the early beta feedback has been overwhelmingly positive, reinforcing our confidence in its user adoption and strong growth potential. Moving on to our Glaucoming Live business line, we continue to drive exponential growth with industry first innovations. Our Unicor Pro gained strong traction during the quarter with the sales volume and the market adoption accelerating rapidly. By enabling a lighter, more convenient lifestyle with secure and reliable connectivity, freeing users from cumbersome device while ensuring seamless protected experience. Glocomm Live Solutions saw average daily activity. User DAU during the quarter increased 559.9% year over year. Turning to Glocomm IoT, our forward looking strategy is already beginning to generate initial result, the business maintained its strong growth trajectory with user adoption and revenue contribution continuing to expand rapidly year over year. We continue to solidify our strategic position to capture additional market share in high growth sector such as in car infotainment and security cameras. Average DAU for Glaucoma IoT increased by 246.5% compared to the fourth quarter of the year 2025 and as of March 31, 2026 our total IoT solutions install base reached 2.93 million. For our global missing business line, our eSIM Trial solution continues to gain strong traction and growth momentum with average DAU increasing 193.6 year over year during the quarter. This validates both our carrier partnership model and its market positioning as a permanent secondary theme for users. Furthermore, our carrier insurance program has begun pilot deployment providing a highly effective low capex solutions for operators that enhance their global roaming capability. This model is gaining strong traction and is welcomed by both operators and users confirming a robust product market fit. Lastly, the launch of our cutting edge MIRGO G50 Max, the world's first sky to ground integrated mobile connectivity hub is expected to serve as a power powerful growth engine for the coming quarter. The near go G50 mask is redefining the connectivity when it matters most in conflict affected market with disruptive terrestrial network. Its resilient connectivity is a critical differentiator powered by our AI driven hyperconc technologies is seamlessly switch between terrestrial in flight home WI fi creating a unique 1/2 global fleeting experience. It also enables satellite based 2 way messaging and emerging SOS extending connectivity from ocean to desert. We expect this product to reach commercial deployment in the second quarter of year 2026. Looking behind its market potential, the MIRGO G50 Max not only represent our high end brand aspiration but also focus on driving increased sales and elevating our brand across the entire portfolio of mobile connectivity solutions. Looking ahead, we remain in the early high growth stages of our transformation. Throughout 2026 we will continue investing strategically in our new growth engines. The strong market validation from MWC 2026 and CES 2026, positive Pepego beta feedback and sustained momentum in global MI IoT demonstrate how our diversified business strategy remains firmly on track. Looking at the coming quarter, we expect our traditional business to gradually stabilize reaching a level where further downside is limited. At the same time our new business line will continue to grow driven by ongoing product ramp ups and the market adoption together. If this dual momentum our traditional business stabilizing and our new business scaling up continues as we expect, it is expected to further offset the the external headwind that had impact our performance. As a result, we believe the second quarter of 2026 will be a turning point in our overall business trajectory with a return to positive year over year growth. We are building towards sustainable growth by scaling our user base globally and bridging the digital divide in cross-border connectivity as well as the emotional distance between people and their pets while creating long term value for our shareholders. With that discipline optimism in mind, we are confident that we have the right strategy in place to drive sustainable growth going forward. For the second quarter of 2026 we expect total revenues to be between US$19.5 million and US$22.5 million, representing an increase of 0.5% to 16% compared the same period of year 20. I will now turn the call over to Mr. Shi. Yi Mengshi (Chief Financial Officer) Thank you Mr. Chen. Hello everyone. I will go over our operational and financial highlights for the first quarter 2026. Average daily active User DAU and Monthly Active User MAU represents the average number of unique users engaging with our globalme service on a daily and monthly basis respectively. Both metrics show strong growth momentum in the first quarter. Average DAU in the first quarter was 354,789, representing an increase of 10.2% from 321,000 and 836 in the first quarter of 2025. Glocomm IoT, GlocommSIM and Glocomm Live all deliver significant gains with average DAU up 246.5%, 193.6% and 559.9% respectively from the same period last year. Average DA use from our Glocomm NearGo business declined by 5.8% year over year. Average MAUs were 337,274, representing an increase of 6% from 695,000 and 599 in the first quarter of 2025. Average MAUs from our Glucomb IoT Glucomy SIEM and Glucomb Live business saw increase of 142.1%, 76.8% and 609% respectively from the same period last year. Average MAUs from our Global Meal Gold business decreased by 7.3% year over year in the first quarter 2026. Average devices were 327,615, with 13,414 owned by the company and 314,201 not owned by the company, representing an increase of 6.1% from the first quarter 2025. During the quarters, 58.6% of DAUs were from UKuleleink 4.0 International Data Connectivity Service and 41.4% were from Ucloudlink 2.0 Local Data Connectivity Service. In March 2026 the average daily data usage per termina was 1.57 gigabyte. Average MAUs in the first quarter were 702,805, representing an increase of 7.7% from 652,000 and 810 in the first quarter. 2025. Growth was driven by strong momentum across our three new growth engines with average MAD for Glovomy IoT, Glucomy SIEM and Glucomy LIVE increasing 135%, 74.1% and 806.1% respectively from the same period last year. Average MA did from Glocomm NearGo business, which we previously referred to as Google Me Mobile Fixed Broadband business decreased by 4.1% year over year. The platform is a newly launched business. We only just began to see user adoption and engagement grow during the quarters. In the first quarter. Average DAU and MAUs were 1,097 and 1397 respectively, while average DAUs and MATs for platform reached 368 and 789 reflecting the growing traction of this new offering. As of March 31, 2026, the company had 212 patents with 183 approved and 29 pending approval and a pool of SIM cards from 397 MNOs globally. Total revenue for the first quarter 2026 were 69.9 million USD,, representing a decrease of 10.1% from US$18.7 million in the same period 2025. Revenue from service was US$13.3 million, representing a decrease of 6.3% from US$14.2 million in the same period 2025. Revenue from service contributed 79.9% of total revenue during the first quarter of 2026 compared to 75.7% in same period last year. Geographically speaking, during the first quarter of 2026, Japan contributed 32%, Mainland China contributed 30.3%, North America contributed 70.3% and other countries and regions contributed the remaining 20.4% compared to 40.4%, 31.2%, 12.9% and 15.5% respectively in the same period 2025. Our gross profit was US$8.3 million compared to US$9.7 million in the same Period 2025. Overall gross margin in the first quarter 2026 was 49.1% compared to 51.7% in same period 2025. Gross margins on service was 54.5% in the first quarter quarter 2026 compared to 57.3% in the same period 2025. Excluding share based compositions, total operating expenses were 10.8% million compared to US$9.9 million in the same period 2025. Net loss in the first quarter 2026 was US$3.5 million compared to a net loss of US$0.6 million in the same period 2025. Adjusted EBITDA was negative US$2.0 million in the first quarter 2026 compared to a positive US$1.4 million in the same period 2025. For the first quarter 2026, we record an operating cash outflow of US$8.7 million compared to an inflow of US$0.2 million in same period 2025. For the first Quarter 2026, our capital expenditure was US$30,000 compared to US$300,000 in the same period 2025. Turning to balance sheet items, our cash and Cash equivalents were $28 million as of March 31, 2026 compared to 32.8 million as of December 31, 2025. We continue to strengthen our financial position and believe we are well positioned to drive continued growth in our business. So operators, let's open it up for Q and A. Thanks. OPERATOR Thank you. We will now begin the question and answer session. To ask a question, you may press Star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you are on a speakerphone, please pick up the handset to ask your question. And our first question today will come from Theodore o' Neil with Lynchfield Hills Research. Please go ahead. Thank you for taking my questions. My first question is about the G50 Max and in your prepared remarks you're talking about this being interesting to the market. It's in conflict zones and I'm hoping that it's a shrinking market, not a growing market. So could you talk about some other markets where this G50 max would be appropriate? And I think you mentioned at sea, and I'm thinking perhaps very remote rural areas as well. Cao Hui Zhen Yeah, I'm Cao Hui Zhen. So our G50 Max is our high end product. It's a 5G. We can roll out 5G in over hundred countries that that's most popular we can offer in the 5G in the world. So compare like the other our competitor like AT&T maybe just 75. So the first advantage is we can provide maximize coverage of 5G worldwide. That's first. And the second we can provide about 35 airlines for the in cabin 4G 5G connection. The second that means the business traveler in the air cabin they can surf the internet. And then it's about satellite SOS and the messaging. So no matter you are in the outdoor or in a conflict area, you can get you never lost the connection. And the number four is if you are in the office and at home, of course you can get Wi-Fi available. But Wi-Fi sometimes is not reliable, sometimes it's unreliable. During this case you we can backup by the 5G and 4G with the multicarrier that enable your remote work and remote study and remote meeting never fail. So we balance the best coverage and the best tariffs. So that means one device and one account. You can enjoy the global best coverage and the best tariffs. So that's why we believe that one device for every scenario. Not only at home, at office consult people have to bring the multi device, multi package home Wi-Fi. In cabin Wi-Fi we have roaming eSIM or roaming or local multi-carrier tariffs. Then you can get similar coverage and solution. And now with our solution, one device, simply one device, one account, you can get the best coverage and tariffs. That's our purpose. Theodore o' Neil Okay, thank you. My next question is about the in car infotainment and security cameras. Can you give us any more details about the actual market share or the growth of that exposure that business? Cao Hui Zhen Yes, I think that's about our IoT business. We embed our cloud SIM and HyperConn solution into in car infotainment and CarPlay. The major league car infotainment devices. This major car infotainment devices is come from China major top 10. This partner all embed our solution. That means plug our this CarPlay device not only can get entertainment in the car but also can get the network in the car. So Almost the top 10 these provider all use our solution. So that's for car infotainment and for camera. So I think the car now more and more you know 4G-enabled cameras they use in the traditional they need to plug a SIM card inside. That means if the carrier network has some problem or courage adjustment, you have to go to the high place to replace SIM card for the camera. It's very inconvenient. But with our solutions, because 4G is more popular, the Price is similar like wi fi camera. You can see the 4G-enabled cameras. The volume of the marketet share in the camera marketet is bigger and bigger. So for this big 4G-enabled cameras I think that currently more and more is the top from China provider embed our software solution into their camera. That means the user end user still can use the SIM slot to put into SIM card. But it's expensive and coverage is poor. But use our solution not only get a benefit from the better but also can get cross carrier coverage. You can see our marketet share in this marketet grows dramatically. So you can see our installation volume is about 2.9 2.93 million pieces for shipment. In the six months later they will turn into the package and with our in operation about from the shipment to the user and adopt our solution needs about six months. So you can see six months later we will get more user far more user than currently. Theodore o' Neil Thank you. And my last question is about supply chain issues. You mentioned in the prepared remarks about memory prices being a headwind. But I was also wondering are you seeing any supply chain supply chain issues in terms of availability? Cao Hui Zhen Yes, I think compared last year memory chip is almost five to ten times higher. So that's a heavy impact. You know the I think the cost of the device. So we have many. We think a lot of ways one side we have a lot of deposits we have, you know. But also so we try to, you know redesign to reduce the memory size and to lower the cost. And also we looking to the Chinese local memory. So all these we can overcome some of of the memory price going up but we can't offset the total because the price is too high. That definitely we have some impact to our selling price. You can see Our not only 2B and 2C selling price for the device is higher about 20%, 30% up then compared last year. OPERATOR Thank you very much again. If you have a question, please press star then one. As there are no further questions at this time, I would like to hand the call back over to Mr. Gow for any closing remarks. Please go ahead. Xi Chao Gao (Investor Relations) Thank you once again for joining us today. If you have further questions, please feel free to contact Ucloudlink's investment through the contact information provided on our website or speak to our investor relations form. Christensen Advisory. We look forward to speaking with you or again on our next quarterly call. Thank you. OPERATOR That does conclude our conference for today. Thank you for your participation. You may now disconnect. Thank you again for that. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: UCLOUDLINK GROUP (UCL): Free Stock Analysis Report This article Transcript: Ucloudlink Group Q1 2026 Earnings Conference Call originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ucloudlink Group Inc (NASDAQ:UCL) reported significant year-over-year revenue growth in its new business lines, with Glacomy Line, Glacomy IoT, and Glacomy Sync achieving over 400%, 300%, and 170% growth respectively. The company launched the beta version of the PaperGo app, which has received overwhelmingly positive feedback, indicating strong user adoption and growth potential. Ucloudlink Group Inc (NASDAQ:UCL) has strategically increased marketing spending to accelerate commercialization and capture early market leadership, which is expected to yield substantial long-term payoffs. The company's new product, Mirgo G50 Mask, is expected to serve as a powerful growth engine, offering resilient connectivity in conflict-affected markets and remote areas. Ucloudlink Group Inc (NASDAQ:UCL) has a strong patent portfolio with 212 patents, including 183 approved and 29 pending approval, which supports its innovative product offerings. Total revenue for the first quarter of 2026 decreased by 10.1% compared to the same period in 2025, indicating challenges in maintaining growth. The company reported a net loss of $3.5 million in the first quarter of 2026, compared to a net loss of $0.6 million in the same period of 2025. Gross profit and gross margin both declined year-over-year, with gross profit at $8.3 million and gross margin at 49.1% in the first quarter of 2026. Ucloudlink Group Inc (NASDAQ:UCL) faced significant external headwinds, including macroeconomic volatility, weak travel demand, and rising energy prices, impacting its traditional business. The company experienced an operating cash outflow of $8.7 million in the first quarter of 2026, compared to an inflow of $0.2 million in the same period of 2025, indicating cash flow challenges. Warning! GuruFocus has detected 5 Warning Signs with UCL. Is UCL fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the potential markets for the G50 Max beyond conflict zones? A: The G50 Max is a high-end 5G product that offers extensive coverage in over 100 countries, surpassing competitors like AT&T. It is suitable for business travelers, providing in-cabin 4G/5G connectivity and satellite SOS messaging. It also serves remote work and study needs with reliable multi-carrier backup, making it ideal for remote rural areas and at-sea connectivity. Unidentified_3 Q: Could you provide more details on the market share and growth of your in-car infotainment and security camera business? A: Our IoT business integrates Cloud SIM and HyperCon solutions into in-car infotainment systems, with major CarPlay device providers in China using our solutions. For security cameras, our 4G solutions are increasingly popular, offering better tariffs and cross-carrier coverage. Our market share in this segment is growing significantly, with an installation volume of about 3.9 million units. Unidentified_3 Q: Are there any supply chain issues affecting your business, particularly regarding memory prices? A: Memory chip prices have increased 5 to 10 times compared to last year, impacting device costs. We are redesigning to reduce memory size and exploring local Chinese memory options to mitigate costs. However, the high prices have led to a 20-30% increase in device selling prices. Unidentified_3 Q: How is the new PaperGo app performing, and what are its future prospects? A: The PaperGo app, an AI-powered social platform for pet technology, has received positive beta feedback and is expected to complete commercial validation in Q2 2026. It aims to transform pet ownership into an interactive community, with growth anticipated to start in Q3 2026. Unidentified_3 Q: What are the financial highlights for the first quarter of 2026? A: Total revenue was $16.9 million, with a gross profit of $8.3 million and a gross margin of 49.1%. Average daily active users (DAU) increased by 10.2% year-over-year. Despite a net loss of $3.5 million, the company is positioned for growth with strategic investments in new business lines. Unidentified_4 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

JFrog Ltd. (FROG) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +24.60%. A quarter ago, it was expected that this company would post earnings of $0.19 per share when it actually produced earnings of $0.22, delivering a surprise of +15.79%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. JFrog, which belongs to the Zacks Internet - Software industry, posted revenues of $153.98 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.51%. This compares to year-ago revenues of $122.41 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. JFrog shares have lost about 13.9% since the beginning of the year versus the S&P 500's gain of 7.6%. While JFrog has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for JFrog was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $151.79 million in revenues for the coming quarter and $0.90 on $626.53 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, uCloudlink Group Inc. Sponsored ADR (UCL), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13. This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of -250%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. uCloudlink Group Inc. Sponsored ADR's revenues are expected to be $16 million, down 14.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JFrog Ltd. (FROG) : Free Stock Analysis Report uCloudlink Group Inc. Sponsored ADR (UCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research