Revenue: As of FY2025, the actual value is USD 368.29 M, beating the estimate of USD 367.8 M.EPS: As of FY2025, the actual value is USD -1.41, beating the estimate of USD -1.6.<h3>Segment Revenue</h3><ul><li>#### Total Net Sales<ul><li>Total Net Sales for Universal Electronics Inc. were $368.3 million in 2025, representing a 6.7% decrease from $394.9 million in 2024, which followed $420.5 million in 2023.</li></ul></li><li>#### Connected Home Segment Sales<ul><li>Connected Home Segment Sales increased to $125.4 million in 2025 from $108.3 million in 2024, driven by shipments to climate control and home automation customers from projects won in prior years. In 2023, sales were $125.5 million.</li></ul></li><li>#### Home Entertainment Segment Sales<ul><li>Home Entertainment Segment Sales decreased to $242.9 million in 2025 from $286.6 million in 2024. This decline was attributed to lower demand for subscription broadcasting products in Europe and Latin America, reduced demand for televisions, and a weak retail market with elevated inventory levels. Sales were $294.9 million in 2023.</li></ul></li></ul><h3>Operational Metrics</h3><ul><li>#### Gross Profit<ul><li>Gross Profit was $106.5 million in 2025, down from $114.0 million in 2024 but up from $97.6 million in 2023.</li></ul></li><li>#### Gross Profit Percentage<ul><li>The Gross Profit Percentage was 28.9% in both 2025 and 2024. In 2025, gross margin improved by approximately 60 basis points due to stabilizing global freight rates and logistics optimization, and by 90 basis points from favorable foreign currency movements, partially offset by a 100 basis point reduction from unrecoverable tariff costs and a -$0.9 million impairment charge on machinery and equipment.</li></ul></li><li>#### Operating Loss<ul><li>Operating Loss improved to -$6.4 million in 2025 from -$15.3 million in 2024 and -$85.3 million in 2023.</li></ul></li><li>#### Operating Loss Percentage<ul><li>The Operating Loss Percentage was -1.7% in 2025, improving from -3.9% in 2024.</li></ul></li><li>#### Research and Development (R&amp;D) Expenses<ul><li>R&amp;D Expenses decreased by 11.6% to $26.3 million in 2025 from $29.7 million in 2024, primarily due to a $2.6 million reduction in payroll/personnel costs, $0.3 million in reduced discretionary travel, and lower third-party product development costs. R&amp;D expenses were $31.3 million in 2023.</li></ul></li><li>#### Selling, General and Administrative (SG&amp;A) Expenses<ul><li>SG&amp;A Expenses were $85.4 million in 2025, a 7.0% decrease from $91.8 million in 2024. This reflected $2.2 million in lower volume-driven expenses, $4.8 million in reduced people-related expenses, and $2.8 million in lower discretionary spending, partially offset by $1.3 million for abandoning office space and $2.6 million in severance costs. SG&amp;A expenses were $98.5 million in 2023.</li></ul></li><li>#### Factory Restructuring Charges<ul><li>Factory Restructuring Charges were $1.2 million in 2025, related to the Mexico manufacturing facility closure. These charges were $3.6 million in 2024 and $4.0 million in 2023.</li></ul></li><li>#### Legal Judgment<ul><li>Universal Electronics Inc. recorded $0 for legal judgment in 2025, compared to $4.2 million in 2024 related to an adverse judgment against a PRC subsidiary.</li></ul></li><li>#### Goodwill Impairment<ul><li>There was no goodwill impairment in 2025 or 2024, compared to $49.1 million in 2023 due to declining financial performance and negative trends.</li></ul></li><li>#### Net Interest Expense<ul><li>Net Interest Expense decreased to -$0.9 million in 2025 from -$3.4 million in 2024, mainly due to a lower average loan balance and lower interest rates. It was -$4.3 million in 2023.</li></ul></li><li>#### Other Income (Expense), Net<ul><li>Other Income (Expense), Net deteriorated to -$4.6 million in 2025 from $0.1 million in 2024, primarily due to an increase in net foreign currency losses. It was -$2.6 million in 2023.</li></ul></li><li>#### Income Tax Expense<ul><li>Income Tax Expense was $6.6 million in 2025, up from $5.4 million in 2024 and $6.0 million in 2023.</li></ul></li><li>#### Net Loss<ul><li>Net Loss improved to -$18.6 million in 2025 from -$24.0 million in 2024 and -$98.2 million in 2023.</li></ul></li></ul><h3>Cash Flow</h3><ul><li>#### Cash and Cash Equivalents<ul><li>Cash and Cash Equivalents were $32.3 million as of December 31, 2025, up from $26.8 million as of December 31, 2024. The 2025 balance included $1.6 million in North America, $9.0 million in PRC, $4.6 million in Asia (excluding PRC), $10.0 million in Europe, and $7.2 million in South America.</li></ul></li><li>#### Net Cash Provided by Operating Activities<ul><li>Net Cash Provided by Operating Activities increased to $23.6 million in 2025 from $14.8 million in 2024. It was $25.2 million in 2023.</li></ul></li><li>#### Net Cash Used for Investing Activities<ul><li>Net Cash Used for Investing Activities was -$6.8 million in 2025, including $3.9 million for capital expenditures and $3.0 million for patent development. This was an improvement from -$8.4 million in 2024 and -$13.9 million in 2023.</li></ul></li><li>#### Net Cash Used for Financing Activities<ul><li>Net Cash Used for Financing Activities was -$16.7 million in 2025, including $13.6 million in net repayments on Credit Lines and $3.1 million for common stock repurchases. This compared to -$19.8 million in 2024 and -$34.8 million in 2023.</li></ul></li></ul><h3>Unique Metrics</h3><ul><li>#### Inventory Turns<ul><li>Inventory Turns declined to 2.8 turns in 2025 from 3.0 turns in 2024, attributed to maintaining required safety stock levels amid lower sales demand.</li></ul></li><li>#### Days Sales Outstanding (DSO)<ul><li>Days Sales Outstanding (DSO) improved to 75 days in 2025 from 81 days in 2024, largely due to decreased sales and improved customer collections.</li></ul></li><li>#### Share Repurchase Program<ul><li>As of March 11, 2026, the Board authorized an amendment to repurchase up to an additional 1,000,000 shares, totaling 1,013,556 shares including the remaining 13,556 shares from the prior authorization.</li></ul></li></ul><h3>Outlook / Guidance</h3>Universal Electronics Inc. anticipates continued negative impacts from adverse macroeconomic conditions, including new tariffs and reduced consumer spending on durable goods. The company expects to utilize cash flows from operations and revolving lines of credit to support ongoing business, capital expenditures, discretionary share repurchases, and potential acquisitions. Management believes current cash balances, anticipated operating cash flow, and available borrowing resources will be sufficient for at least the next twelve months and the foreseeable future, with estimated investing activities cash flows for 2026 ranging from $6.0 million to $8.0 million.

Universal Electronics | 10-K: FY2025 Revenue Beats Estimate at USD 368.29 M