Ubiquiti sold 23.5 percent more in its fourth quarter and its reported profit rose 6.8 percent, and the whole of that gap is a tax benefit from a year ago

The record is real and the profit line does not look like one.

Ubiquiti reported revenue of $937.3m for the three months to 30 June, against $759.2m a year earlier and $788.2m in the quarter before. Full-year revenue reached $3.274bn, up 27.2 percent on $2.574bn. GAAP net income for the quarter was $284.9m, against $266.7m. That is a rise of 6.8 percent on a rise of 23.5 percent in sales, and read alone it invites the wrong conclusion.

The company explains it in a paragraph most readers will skip. Last year's fourth quarter carried an $8.5m income tax benefit arising from an intercompany transfer of intangible properties, and under GAAP the resulting $53.7m deferred tax asset was recognised immediately. So the base is inflated, not the current quarter deflated. On the non-GAAP measure, which strips that recognition out, net income rose 33.6 percent to $286.5m and diluted earnings per share rose by the same proportion, to $4.73 from $3.54.

One platform is carrying all of it

Enterprise Technology revenue went from $680.1m to $868.3m in the quarter, and from $2.254bn to $2.972bn across the year. Service Provider Technology went the other way, $79.0m to $69.0m in the quarter and $319.3m to $301.9m across the year. Every dollar of growth and rather more came from one side of the business.

Geographically North America did most of the work, $507.4m against $379.9m. Europe, the Middle East and Africa rose to $331.6m from $303.8m.

The warning is in the margin discussion

Gross margin was 45.8 percent, up from 45.1 percent a year earlier and down from 47.0 percent in the March quarter. The company attributes the sequential fall to higher component costs and higher shipping costs, and then says plainly that component costs may continue to rise, that availability may remain constrained, and that both may press on gross margin in the near term unless it can pass the cost through in pricing.

That is a company with a record quarter telling you where the next one could go wrong.

Operating expenses were $89.3m, with research and development at $53.0m for the quarter and $204.2m for the year, up $34.5m. Interest and other swung to $3.1m of income from $3.2m of expense, which the company puts down to lower debt and higher interest income.

The buyback was extended rather than enlarged

The board approved a $500m repurchase programme on 21 August 2025, due to expire on 30 September 2026. On 20 August it moved that expiry to 30 September 2027. The authorisation is the same $500m it was a year ago. The filing gives no figure for what has been bought under it.

The dividend is $1.00 a share, payable 8 September to holders of record on 31 August, and the board says it intends to pay at least that in every quarter of fiscal 2027.