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UI, Ubiquiti Inc.

Communications Equipment capital-intensive

We sell equipment, and provide the related software platforms, worldwide through a network of over 100 distributors, on-line retailers and direct to customers through our webstores.

Ubiquiti is focused on democratizing network technology on a global scale.

Our devices play a role in creating networking infrastructure in over 200 countries and territories around the world.

Latest annual: FY2025 10-K

UI · Ubiquiti Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$2.6B

+33.4% YoY · 15% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $3.1B 5-yr avg $2.0B

Gross margin 46% 5-yr avg 42%

Operating margin 35.8% 5-yr avg 30.6%

ROIC 108% 5-yr avg 142%

Owner-earnings margin 24% 5-yr avg 19%

Free cash flow margin 24% 5-yr avg 19%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 44% and operating margin about 32% through the cycle, a solid spread between what it charges and what the product costs to make. Inventory runs near 16% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run high across the record (median 152%, above 15% in 10 of 10 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 26% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 4 regions, the largest North America at 50%.

Revenue by geography, FY2025

North America50%$1.3B
EMEA39%$999M
Asia Pacific7%$169M
South America4%$110M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$666M	$865M	$1.0B	$1.2B	$1.3B	$1.9B	$1.7B	$1.9B	$1.9B	$2.6B	$3.1B	RevenueRevenue
49%	46%	44%	46%	47%	48%	40%	39%	38%	43%	46%	Gross marginGross mgn
5%	4%	4%	4%	3%	3%	4%	4%	4%	4%	4%	SG&A / revenueSG&A/rev
9%	8%	7%	7%	7%	6%	8%	7%	8%	7%	6%	R&D / revenueR&D/rev
$242M	$290M	$326M	$394M	$478M	$743M	$462M	$545M	$499M	$836M	$1.1B	Operating incomeOp. inc.
36.3%	33.5%	32.1%	33.9%	37.2%	39.1%	27.3%	28.1%	25.9%	32.5%	35.8%	Operating marginOp. mgn
$214M	$258M	$196M	$323M	$380M	$617M	$379M	$408M	$350M	$712M	$942M	Net incomeNet inc.
11%	10%	38%	15%	16%	15%	15%	16%	17%	12%	14%	Effective tax rateTax rate
											Cash flow & returns
$198M	$112M	$332M	$259M	$460M	$612M	$370M	($145M)	$542M	$640M	$761M	Operating cash flowOp. cash
$6M	$7M	$7M	$8M	$8M	$12M	$14M	$16M	$19M	$22M	$19M	DepreciationDeprec.
($26M)	($155M)	$125M	($74M)	$69M	($20M)	($26M)	($574M)	$166M	($101M)	($207M)	Working capital & otherWC & other
$6M	$7M	$9M	$52M	$31M	$18M	$13M	$21M	$12M	$13M	$20M	CapexCapex
0.9%	0.8%	0.9%	4.4%	2.4%	1.0%	0.8%	1.1%	0.6%	0.5%	0.6%	Capex / revenueCapex/rev
$191M	$105M	$323M	$252M	$453M	$600M	$357M	($162M)	$530M	$627M	$741M	Owner earningsOwner earn.
28.7%	12.1%	31.8%	21.7%	35.2%	31.6%	21.1%	−8.3%	27.5%	24.4%	23.9%	Owner earnings marginOE mgn
$191M	$105M	$323M	$208M	$430M	$594M	$357M	($166M)	$530M	$627M	$741M	Free cash flowFCF
28.7%	12.1%	31.8%	17.9%	33.4%	31.3%	21.1%	−8.6%	27.5%	24.4%	23.9%	Free cash flow marginFCF mgn
$0	$0	$0	$71M	$79M	$101M	$148M	$145M	$145M	$145M	$145M	Dividends paidDiv. paid
$194M	$105M	$445M	$468M	$700M	$220M	$618M	$0	$0	—	—	BuybacksBuybacks
266%	109%	186%	102%	212%	286%	162%	56%	65%	143%	108%	ROICROIC
49%	43%	62%	325%	—	22845%	—	—	368%	107%	78%	Return on equityROE
49%	43%	62%	253%	—	n/m	—	—	216%	85%	66%	Retained to equityRetained/eq
											Balance sheet
$551M	$604M	$667M	$308M	$144M	$251M	$137M	$115M	$126M	$150M	$369M	Cash & investmentsCash+inv
$83M	$141M	$175M	$156M	$142M	$172M	$120M	$168M	$169M	$245M	$246M	ReceivablesReceiv.
$57M	$142M	$102M	$264M	$286M	$234M	$262M	$737M	$462M	$675M	$654M	InventoryInvent.
$52M	$49M	$14M	$39M	$156M	$112M	$84M	$154M	$51M	$165M	$168M	Accounts payablePayables
$88M	$234M	$263M	$382M	$273M	$294M	$298M	$751M	$580M	$755M	$732M	Operating working capitalOper. WC
$728M	$952M	$1.0B	$754M	$587M	$694M	$622M	$1.2B	$916M	$1.2B	$1.4B	Current assetsCur. assets
$91M	$98M	$113M	$179M	$264M	$276M	$311M	$352M	$285M	$711M	$394M	Current liabilitiesCur. liab.
8.0×	9.7×	8.9×	4.2×	2.2×	2.5×	2.0×	3.3×	3.2×	1.7×	3.6×	Current ratioCurr. ratio
$747M	$973M	$1.0B	$876M	$737M	$891M	$845M	$1.4B	$1.2B	$1.5B	$1.7B	Total assetsAssets
$192M	$242M	$460M	$465M	$628M	$467M	$763M	$1.0B	$670M	$0	$48M	Total debtDebt
($359M)	($362M)	($206M)	$157M	$485M	$216M	$626M	$926M	$544M	($150M)	($321M)	Net debt / (cash)Net debt
$440M	$602M	$316M	$99M	($295M)	$3M	($383M)	($116M)	$95M	$668M	$1.2B	Shareholders’ equityEquity
0.6%	0.3%	0.3%	0.2%	0.2%	0.2%	0.2%	0.2%	0.3%	0.3%	0.2%	Stock comp / revenueSBC/rev
											Per share
85.8M	83.3M	78.3M	71.6M	65.5M	63.1M	61.7M	60.5M	60.5M	60.5M	60.6M	Shares out (diluted)Shares
$7.77	$10.39	$12.98	$16.22	$19.61	$30.10	$27.41	$32.10	$31.90	$42.51	$51.12	Revenue / shareRev/sh
$2.49	$3.09	$2.51	$4.51	$5.80	$9.78	$6.13	$6.74	$5.79	$11.76	$15.55	EPS (diluted)EPS
$2.23	$1.26	$4.12	$3.52	$6.91	$9.51	$5.78	$-2.68	$8.76	$10.37	$12.23	Owner earnings / shareOE/sh
$2.23	$1.26	$4.12	$2.90	$6.56	$9.42	$5.78	$-2.75	$8.76	$10.37	$12.23	Free cash flow / shareFCF/sh
$0.00	$0.00	$0.00	$1.00	$1.20	$1.60	$2.40	$2.40	$2.40	$2.40	$2.40	Dividends / shareDiv/sh
$0.07	$0.09	$0.12	$0.72	$0.47	$0.29	$0.22	$0.35	$0.20	$0.21	$0.32	Cap. spending / shareCapex/sh
$5.13	$7.23	$4.03	$1.39	$-4.51	$0.04	$-6.20	$-1.91	$1.57	$11.04	$19.85	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+20.8%/yr	+16.7%/yr
Owner earnings / share	+18.6%/yr	+8.5%/yr
EPS	+18.8%/yr	+15.2%/yr
Dividends / share	—	+14.8%/yr
Capital spending / share	+12.4%/yr	−15.0%/yr
Book value / share	+8.9%/yr	—

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Service Provider Technology+2.7%
“Service Provider Technology revenues increased $8.5 million, or 2.7%, from $310.8 million in fiscal 2024 to $319.3 million in fiscal 2025, primarily due to increase in revenue in our Service Provider Technology platform in the Europe, the Middle East and Africa region, partially offset by declines in all other regions.”
✓ figure matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

61Mpeak FY2016

ROIC

143%low FY2023

Gross margin

43%low FY2024

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$627Mowner earningsvs.$712Mnet incomelow FY2023

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $712M of profit but $627M of owner earnings: $84M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$712M

Owner earnings$627M · 24% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$712M	$350M	$408M	$379M	$617M
Depreciation & amortizationnon-cash charge added back	+$22M	+$19M	+$16M	+$14M	+$12M
Stock-based compensationreal costnon-cash, but a real cost	+$7M	+$6M	+$5M	+$4M	+$3M
Working capital & othertiming of cash in and out, other non-cash items	−$101M	+$166M	−$574M	−$26M	−$20M
Cash from operations	$640M	$542M	($145M)	$370M	$612M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$13M	−$12M	−$16M	−$13M	−$12M
Owner earnings	$627M	$530M	($162M)	$357M	$600M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$5M	—	−$6M
Free cash flow	$627M	$530M	($166M)	$357M	$594M
Owner-earnings marginowner earnings ÷ revenue	24%	27%	-8%	21%	32%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $7M), owner earnings is nearer $620M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$150M

Net cash, debt-free

Cash $150M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $150M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 163d

Long (60+ days)

DSO 35 + DIO 169 − DPO 41 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 143%

Very high (≥25%) through the cycle

10-yr median, range 56%–286%; 143% latest = NOPAT $739M ÷ invested capital $519M

Industry peers: median 3%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 143% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 24%

High through the cycle

10-yr median margin, range -8%–35%; latest $627M = operating cash $640M − maintenance capex $13M

Industry peers: median 9%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 24% of revenue this year, a 24% median across 10 years. Treating stock comp as the real expense it is (less $7M of SBC) leaves $620M.
Are earnings backed by cash? 0.90×

Mostly cash-backed

Cash from ops $640M ÷ net income $712M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 23%

Reinvests most of it

Dividends + buybacks $145M ÷ Owner Earnings $627M

What this means
Of $627M Owner Earnings, $145M (23%) went back to shareholders, $145M dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.57×

Harvesting

Capex $13M ÷ depreciation $22M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $2.6B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.65×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $0 vs $462M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 7 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +120%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $8.09/share (latest year $11.76), the averaged base the calculator's gate runs on, and book value is $11.04/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 10 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 34% → 29% (3-yr avg ends)

What this means
The recent-years average (29%) sits below the early years (34%), but the latest year (32%) is back near the early level: a cyclical trough dragging the window down, not a one-way slide. The through-cycle median is 32% — read it across the cycle, not on the dip.
Reinvestment, incremental ROIC —

What this means
The reinvested base moved too little against the change in profit to read a reliable return on it here — the figure would be a small-denominator artifact, not a moat. Judge this one on the owner-earnings record and the cash it returns instead.
Owner earnings growth +16%/yr

What this means
Owner earnings grew about 16% a year over the record.
Worst year 2024 · 25.9% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −3.8%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“If we fail to keep pace with rapidly evolving technological developments in AI, our competitive position and business results may suffer.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.4B

Cash & short-term investments$369M
Receivables$246M
Inventory$654M
Other current assets$135M

Current liabilities$394M

Accounts payable$168M
Other current liabilities$226M

Current ratio3.56×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.90×stricter: inventory excluded

Cash ratio0.94×strictest: cash alone against what's due

Working capital$1.0Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+18.7%the freshest read on whether the business is still growing

Current ratio, recent quarters3.2× → 3.6×

Deeper floors

Tangible book value$1.2Bequity stripped of goodwill & intangibles

Net current asset value$890MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$114M$67M of it operating leases

Deferred revenue$89Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $3.4B of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$182M · 5%
Dividends$834M · 25%
Buybacks$2.8B · 81%

Returned to owners$3.6B
109% of the owner earnings the business produced over the span, $834M as dividends and $2.8B as buybacks.
Source of funding−$387M
Reinvestment and shareholder returns ran $387M beyond the operating cash the business generated, so the gap was financed off the balance sheet: cash and short-term investments drew down $182M.
Average price paid for buybacks$94.83
Across the years where the filing reports a share count, 29M shares were bought for $2.8B, about $94.83 each. Year to year the price paid ranged from $32.25 (2016) to $280.97 (2022); its heaviest year, 2020, paid $120.71 ($700M).
Net change in share count−29.4%
The diluted count fell from 86M to 61M, so the buybacks outran the stock issued to staff.
Dividend record$2.40/sh
Paid in 7 of the years on record. It was never cut over the span.
Return on what it retained—
Not read here: owner earnings are negative over the span, or the company returned nearly all its earnings rather than retaining them, so there is too little retained to measure a return on.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Robert J. Pera	$119k	$119k	$600M
2022	Robert J. Pera	$479k	$479k	$357M
2023	Robert J. Pera	$977k	$977k	($162M)
2024	Robert J. Pera	$810k	$810k	$530M
2025	Robert J. Pera	$631k	$631k	$627M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership93.1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$7M
The slice of the business handed to employees in shares this year, 0% of revenue, equal to 1% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Ubiquiti Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 5 tests turned up something to look into; the other 4 came back clean.

Look hereDid receivables and inventory outpace sales?21% → 29% of sales
Receivables and inventory grew from $140M to $900M while revenue grew 365%: working capital is climbing faster than sales (21% of revenue then, 29% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Communications Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
CIENCiena Corporation	$4.8B	43%	7.5%	9%	9%
FNFabrinet	$3.4B	12%	7.9%	17%	7%
SPBSpectrum Brands Holdings	$2.8B	34%	3.8%	3%	6%
UIUbiquiti Inc.	$2.6B	45%	33.0%	152%	26%
LFUSLittelfuse Inc.	$2.4B	38%	13.0%	10%	14%
FLNCFluence Energy Inc.	$2.3B	4%	-5.0%	-32%	-6%
VISNVistance Networks Inc.	$1.9B	37%	0.9%	-0%	10%
LITELumentum Holdings Inc.	$1.6B	32%	3.0%	3%	9%
Group median	—	36%	5.7%	6%	9%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Ubiquiti Inc. has delivered.

Today’s price $

Through the cycle, Ubiquiti Inc. earns about $667M on its 25.9% median owner-earnings margin. This year’s 24.4% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($667M) Net of stock comp (−$7M) Steady-state · maintenance capex ($748M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+5%/yr

Owner-earnings growth · ’16→’25+16%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $741M on 61M shares outstanding, per the 10-Q cover, as of 2026-05-07; net cash $321M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($20M) runs well above depreciation ($19M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $748M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh UI against another business →

Cite: Owner Scorecard, "Ubiquiti Inc. (UI), the owner's record," https://ownerscorecard.com/c/UI, data as of 2026-07-09.

Manual order: ← UHT its page in the Manual ULCC →

Industry order: ← SNT the Communications Equipment chapter UMAC →