Ubiquiti Inc. has announced a share repurchase program to buy back up to $500 million worth of its shares. The program, which expires on September 30, 2026, aims to strengthen the company's financial position and potentially boost shareholder value. This move reflects the company's confidence in its future prospects and ability to generate cash flow.
Ubiquiti Inc. (NYSE: UI) has initiated a significant share repurchase program, authorizing the company to buy back up to $500 million worth of its common stock. The program, which expires on September 30, 2026, aims to strengthen the company's financial position and potentially boost shareholder value. This move reflects Ubiquiti's confidence in its future prospects and ability to generate cash flow.
The announcement comes on the heels of the company's strong fiscal fourth-quarter results, where revenues surged 49.6% year-over-year to $759.2 million, and adjusted earnings per share (EPS) reached $3.54 [2]. The company's Board of Directors authorized the new share buyback program, which is expected to be funded through the company's cash flows.
In addition to the share repurchase program, Ubiquiti declared a $0.80 per share cash dividend payable on September 8, 2025, to shareholders of record at the close of business on September 2, 2025. The company intends to pay regular quarterly cash dividends of at least $0.80 per share during each quarter of fiscal 2026, subject to final determination by the Board each quarter [1, 3].
Ubiquiti's decision to initiate a share repurchase program underscores its commitment to returning value to shareholders. The move is expected to reduce the number of outstanding shares, potentially leading to an increase in earnings per share. This, in turn, could make the company more attractive to investors.
The company's robust financial performance and strong cash flow position have enabled it to embark on this share repurchase program. As of the end of fiscal 2025, Ubiquiti reported revenues of $2.6 billion and a GAAP diluted EPS of $11.76 [3].
References:
[1] https://www.nasdaq.com/articles/ubiquiti-initiates-stock-repurchase-program
[2] https://seekingalpha.com/news/4488296-ubiquiti-surges-as-q4-results-top-estimates-boosts-buyback-program-by-500m
[3] https://www.businesswire.com/news/home/20250821094897/en/Ubiquiti-Inc.-Reports-Fourth-Quarter-Fiscal-2025-Financial-Results

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