UCLOUDLINK GROUP INC. (NASDAQ:UCL) reported a 1.1% increase in third-quarter 2026 revenue to $21.4 million, compared with $21.1 million a year earlier, as growth in its GlocalMe IoT, SIM and Life businesses offset lower revenue from its GlocalMe MeowGo operations.
The mobile data connectivity company recorded a net loss of $0.3 million for the three months ended September 30, 2026, compared with net income of $9.3 million in the corresponding period of 2025.
Adjusted net loss was $0.6 million, compared with adjusted net income of $0.7 million a year earlier. Adjusted EBITDA was negative $0.2 million, versus positive $1.4 million in the prior-year quarter.
UCLOUDLINK also narrowed its full-year revenue guidance to between $79 million and $82 million, from its previous forecast of $75 million to $85 million.
Revenue Growth Across Newer Business Segments
Revenue from GlocalMe MeowGo declined 9.9% to $17.4 million, compared with $19.2 million in the third quarter of 2025.
The company’s other business segments recorded year-on-year revenue increases.
GlocalMe SIM revenue rose 40.3% to $2 million, while GlocalMe IoT revenue increased 496.5% to $1.2 million.
GlocalMe Life generated $0.5 million in revenue, an increase of 189.9%, while PetPhone revenue grew 285% to $0.3 million.
Total service revenue declined 6.1% to $16 million, primarily reflecting lower international data connectivity revenue amid reduced outbound travel demand from China.
Revenue from product sales increased 30.8% to $5.4 million, supported by higher terminal and other product sales.
Gross Profit Declines as Product Costs Increase
UCLOUDLINK reported gross profit of $11.1 million, down 2.1% from $11.3 million a year earlier.
Gross margin decreased to 51.8% from 53.6%, reflecting changes in product mix and higher component costs, particularly memory chips.
The gross margin on product sales declined to 26.8% from 41%, while the service gross margin increased to 60.3% from 56.6%.
Operating expenses rose to $11.6 million from $11.2 million, including research and development expenditure of $1.9 million and sales and marketing costs of $7 million.
Operating income was $0.2 million, compared with $9.2 million in the third quarter of 2025. The prior-year figure included an $8.7 million fair value gain on other investments.
Basic and diluted loss per American depositary share was $0.01, compared with earnings of $0.24 per ADS a year earlier.
Daily Active Users Increase 22.4%
UCLOUDLINK reported a 22.4% increase in average daily active users to 431,245, compared with 352,227 in the prior-year quarter.
Average monthly active users increased 14% to 867,935.
Growth was concentrated in the company’s newer connectivity businesses. Average daily active users increased 271.4% in GlocalMe IoT, 142.1% in GlocalMe SIM and 844.3% in GlocalMe Life.
PetPhone daily active users rose 572.9% to 2,557, while GlocalMe MeowGo daily active users declined 6.4% to 292,282.
Average daily active terminals increased 12.1% to 373,034, while total data consumption through the company’s platform declined 0.5% to 48,804 terabytes.
As of September 30, 2026, UCLOUDLINK served 3,270 business partners across 65 countries and regions.
CEO Comments on Business Performance
UCLOUDLINK Chief Executive Officer Chaohui Chen said the company returned to year-on-year revenue growth during the quarter, with results reaching the upper end of its guidance range.
“As anticipated, our total revenues regained positive growth momentum on a year-over-year basis during the third quarter of 2026, landing at the high end of our guidance range,” Chen said.
“Despite macro headwinds, geopolitical tensions, rising memory chip costs, and extended component lead times, our resilient business model delivered robust growth across new business lines.”
Chen also highlighted the company’s operating cash flow, which turned positive for the first time in 2026.
UCLOUDLINK generated $1 million in net operating cash inflow during the quarter.
The company said it continued expanding its GlocalMe connectivity products and PetPhone ecosystem, including the development of an AI-powered PetCam scheduled for launch in the fourth quarter.
Cash Balance Reaches $26.5 Million
UCLOUDLINK held cash and cash equivalents of $26.5 million as of September 30, 2026, compared with $25.2 million at the end of June.
The increase reflected $1.7 million in proceeds from the disposal of its entire equity interest in Beijing Huaxianglianxin Technology Company, $1 million in operating cash inflow and $1.5 million in net proceeds from bank borrowings, partially offset by $3 million in bank loan repayments.
Capital expenditure totalled $0.1 million, compared with $0.5 million in the third quarter of 2025.
UCLOUDLINK Forecasts Fourth-Quarter Revenue of $22.5 Million to $25.5 Million
For the fourth quarter of 2026, UCLOUDLINK expects revenue between $22.5 million and $25.5 million, representing year-on-year growth of 1.8% to 15.4%.
The company narrowed its full-year revenue forecast to $79 million–$82 million, compared with its previous range of $75 million–$85 million.
The revised guidance implies a midpoint of $80.5 million, compared with $80 million under the previous forecast.
Management said it intends to continue investing in research, development and marketing while focusing on operating efficiency and the expansion of its connectivity businesses.
The company also referenced the share repurchase programme announced during the third quarter.
UCLOUDLINK noted that its financial forecasts remain subject to market conditions, customer demand and other operating uncertainties.