Ubiquiti shares rise 5.11% intraday ahead of Q2 earnings report amid sanctions compliance concerns.

Ubiquiti surged 5.11% intraday trading amid anticipation of its upcoming fiscal second-quarter earnings report and scrutiny over sanctions compliance. The company faces allegations that its radio products reached Russian military units via third-country resellers, raising concerns about regulatory risks and human-rights litigation. Despite analysts forecasting a sequential decline in earnings and revenue, investors appear to be positioning for a potential repeat of November’s strong earnings beat, when the company exceeded estimates by 64%. The stock’s rally may reflect optimism about Ubiquiti’s ability to navigate supply constraints and maintain pricing power, even as compliance risks and a softer revenue environment weigh on long-term outlooks. The earnings report due Friday remains critical, with management’s response to the allegations and commentary on operational leverage likely to shape near-term sentiment.