Universal Electronics Reports Slight Increase in Net Sales and Improved Operating Loss in Q1 2025

Universal Electronics Inc. reported a slight increase in net sales for the first quarter of 2025, reaching $92.3 million, up 0.5% from $91.9 million in the same period last year. The company's gross profit remained stable at $26.1 million, maintaining a gross margin of 28.3%. However, Universal Electronics experienced an operating loss of $3.8 million, an improvement from the $6.9 million loss reported in the first quarter of 2024. The net loss for the quarter was $6.3 million, compared to a loss of $8.6 million in the prior year.

The company’s financial performance was influenced by a decrease in selling, general, and administrative expenses, which fell to $22.6 million from $24.0 million year-over-year. This reduction was attributed to lower professional services costs and a stronger U.S. dollar, which provided additional savings. Research and development expenses also decreased to $7.2 million from $7.8 million, primarily due to reduced third-party product development costs and a reduction in headcount. The company did not incur any factory restructuring charges in the latest quarter, contrasting with the $1.1 million recorded in the previous year.

In terms of operational metrics, Universal Electronics reported a decrease in accounts receivable and contract assets, which contributed to cash inflows of $10.5 million during the quarter. The company’s inventory management improved, leading to a decrease in inventories by $3.0 million. The cash and cash equivalents at the end of the quarter stood at $27.4 million, a slight increase from $26.8 million at the end of 2024. The company’s available borrowing resources also increased to $36.1 million, up from $32.3 million.

Strategically, Universal Electronics is focusing on expanding its product offerings and market presence. The company aims to build a long-term revenue pipeline by engaging with leading brands in the HVAC sector and deploying its UEI TIDE family of products in various channels. Additionally, the company plans to enhance its software offerings and explore potential acquisitions to strengthen its market position. The management remains cautious about macroeconomic conditions, including potential tariffs and reduced consumer spending, which could impact future performance.

Looking ahead, Universal Electronics anticipates continued challenges from external market conditions but remains committed to optimizing its operations and expanding its product lines. The company expects to leverage its existing resources and strategic initiatives to navigate these challenges and drive future growth.