Universal Electronics Inc. (UEIC) Q3 2025 Earnings Call Transcript
Revenue $90.6 million, down 11% year-over-year from $102.1 million. The decline was attributed to temporary and structural market factors, including market softness in customer inventories and lower television sales in Asia.
Connected Home Revenue $29.8 million, up 13% year-over-year. Growth was driven by strong performance from new products, particularly in climate control, and scale expansion with existing customers.
Home Entertainment Revenue $60.8 million, down 20% year-over-year. Decline was due to soft demand for subscription broadcasting products in Latin America and EMEA, fewer television sales, and elevated inventories in the retail channel.
Gross Margin 29.1%, down from 30.1% year-over-year. The decrease was due to a temporary gross margin headwind related to tariff timing, which reduced gross margin by approximately 120 basis points.
Operating Expenses $24.8 million, down from $28.2 million year-over-year. The reduction was due to cost reduction initiatives, including headcount optimization and lower fixed or discretionary spending.
Net Income $1.1 million or $0.08 per diluted share, down from $1.4 million or $0.10 per diluted share year-over-year. The decline was attributed to lower revenue and gross margin.
Net Cash Position $13.2 million as of September 30, 2025, up from $4.1 million at June 30, 2025. The improvement was driven by strong receivable collection and disciplined expense management.
Operating Cash Flow $10.1 million generated in Q3 2025, contributing to $27.8 million for the first 9 months of 2025. This reflects improved cost structure and working capital efficiency.
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Universal Electronics Appoints Wade Jenke as CFO to Drive Financial Growth Strategies
- Executive Appointment: Universal Electronics has appointed Wade M. Jenke as Chief Financial Officer, effective immediately, with responsibilities for financial, accounting, treasury, and investor relations functions aimed at driving the company's growth and profitability.
- Extensive Experience: Jenke's prior role as CFO at Amtech Systems equips him with valuable financial management skills in the semiconductor industry, which is expected to significantly support UEI's financial and strategic objectives.
- Strategic Execution: Jenke expressed his commitment to enhancing financial discipline and supporting the execution of strategic initiatives, which will help improve the company's financial performance and strengthen its market competitiveness.
- Management Team Enhancement: Jenke's addition is viewed as a strong enhancement to UEI's senior management team, expected to drive ongoing innovation and maintain the company's leadership position in the technology sector.
UEI Unveils QuickSet homeSense, Ushering in a New Era of Smart Living
- Smart Home Innovation: UEI's introduction of QuickSet homeSense at CES 2026 serves as an adaptive intelligence layer for smart homes, learning from real-time activities to provide personalized experiences that enhance safety and energy efficiency.
- Energy Optimization: homeSense automatically turns off lights and devices in unoccupied rooms, enabling households and property managers to effortlessly save energy, thereby improving overall quality of life for users.
- Personalized Content Delivery: By recognizing user habits, homeSense tailors entertainment recommendations and notifications, optimizing ad reach for content providers while ensuring user privacy is respected.
- Market Expansion: Tide Touch seamlessly integrates with homeSense, supporting diverse user needs across multiple channels, enhancing energy management and convenience, marking UEI's strategic positioning in the smart home market.