Diamond Equity Research Releases Update Note on uCloudlink Group Inc. (NASDAQ: UCL)
New York, Nov. 17, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, an equity research firm with a focus on small capitalization public companies has released update note on uCloudlink Group Inc. (NASDAQ:UCL). The research summary below is from a report commissioned by uCloudlink Group Inc. and produced by Diamond Equity Research. The update note includes information on uCloudlink Group Inc.'s financial results, management commentary, recent developments, outlook, risks, and our revised valuation estimates.
The update note is available below.
uCloudlink Group Update Note November 2025
Highlights from the note include:
- uCloudlink Announced Third Quarter 2025 Results - uCloudlink reported its financial results for Q3 2025, with total revenues of $21.1 million, a year-on-year decrease of 16.0%, including $17.0 million in service revenue (down 1.4%) and $4.1 million in product sales (down 48.0%). The decline in product sales was primarily due to delays of mobile broadband orders from Japan (management expects these orders to be placed in Q4), as well as lower-than-expected sales of data-related products and terminals due to the macroeconomic and trade headwinds. This resulted in a geographical shift in the company's revenue structure, with Japan contributing 33.2% (down from 46.6%), mainland China 35.1% (up from 27.8%), North America 15.4%, and other regions 16.3%. The overall gross margin further expanded from 48.4% to 53.6%, primarily due to improved product sales margins. Operating expenses increased by 12.1% YoY to $11.2 million, mainly due to a 24.9% rise in sales and marketing costs as the company continued to invest heavily in promoting its innovative products and scaling a global user base. uCloudlink's net income for Q3 2025 was $9.3 million, including a $8.7 million fair value gain in other investments, compared to a net income of $3.4 million in the year-ago period. uCloudlink's efforts to create diversified revenue streams through innovative product lines while maintaining operational profitability are in line with our expectations as well as its business expansion and long-term growth objectives.
- Operational Momentum Continued with Significant Growth in Both DAU and MAU – uCloudlink's GlocalMe Ecosystem continued its growth momentum by expanding its user base and developing partnerships, with both average daily active users ("DAU") and monthly active users ("MAU") up 6.1% and 11.9% YoY in Q3 2025, respectively. Strongest growth came from emerging segments: IoT (+754% DAU), SIM (+346%), and Life (+324%), indicating rapid scaling of the company's three new growth engines. While core mobile/fixed broadband saw modest declines, the overall increase in registrations and active user engagement supports long-term monetization potential. The GlocalMe ecosystem continues to expand globally, supported by new product launches (MeowGo G40 Pro, MeowGo G50 Max, PetPhone), eSIM TRIO pilot validation, and accelerated IoT deployments. We view the company's diversified growth drivers and expanding partner network as supportive of potential long-term growth.
- Valuation Update – Despite macroeconomic challenges and trade headwinds, uCloudlink is actively mitigating the impact of tariffs by creating new growth opportunities through product innovation. Our valuation for uCloudlink remains $10.00, combining discounted cash flow and comparable company analysis, which is contingent on the company maintaining its successful execution.
About uCloudlink Group Inc.
uCloudlink operates as an innovative mobile technology company that offers the world's first and leading mobile data traffic sharing marketplace to users globally, with aggregated mobile data allowances from over 392 MNOs (mobile network operator) globally. Leveraging its integral cloud SIM technology, it allows users to enjoy a smooth mobile connectivity experience without limitation to one MNO. uCloudlink was incorporated in 2014 and is headquartered in Hong Kong.
For more information, visit https://ucloudlink.gcs-web.com.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by uCloudlink Group Inc. for producing research materials regarding uCloudlink Group Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for research engagement. As of 11/17/25 the issuer had paid us $175,000 for our research services, consisting of $20,000 for an initiation report and $15,000 for six update notes in the first year of coverage and $35,000 in the second, third, fourth and fifth year of coverage for update notes during the term, which commenced 06/01/2021 and is renewable annually. Please note this is the most up to date payment disclosure as of this date. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 11/17/2025. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. This report is based on information we consider reliable, including the subject of the report. This report does not explicitly or implicitly affirm that the information contained in this document is accurate and/or comprehensive, and as such should not be relied on in such capacity. All information contained within this report is subject to change without any formal or other notice provided. Investors need to be aware of the high degree of risk in small capitalization equities including the complete potential loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for uCloudlink Group Inc. Please review update report attached for full disclosures.
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