Universal Electronics Reports 8% Sales Increase and $2.9 Million Net Loss in Q2 2025

Universal Electronics Inc. reported its financial results for the second quarter of 2025, revealing a net sales increase of 8% to $97.7 million, compared to $90.5 million in the same period last year. The company's gross profit also rose to $29.2 million, resulting in a gross margin of 29.9%, up from 28.7% in the prior year. Despite these improvements, Universal Electronics recorded a net loss of $2.9 million for the quarter, an improvement from a loss of $8.2 million in the second quarter of 2024. The company attributed the loss to increased operational efficiencies and a favorable currency exchange impact, which offset some of the challenges faced in the home entertainment segment.

For the first half of 2025, Universal Electronics reported total net sales of $190.0 million, up from $182.4 million in the same period of 2024. The connected home segment saw significant growth, with sales rising to $65.8 million from $47.5 million, driven by new projects with major climate control and home automation customers. However, the home entertainment segment experienced a decline, with sales falling to $124.2 million from $134.9 million, primarily due to reduced demand for basic remote controls in Latin America and lower television sales.

Operationally, the company has been focusing on restructuring its manufacturing footprint, including plans to shut down its Mexico facility by the end of 2025. This decision is part of a broader strategy to optimize production capabilities and reduce costs in response to changing market demands. As of June 30, 2025, Universal Electronics had cash and cash equivalents of $34.3 million, an increase from $26.8 million at the end of 2024, and available borrowing resources of $34.6 million under its credit lines.

Looking ahead, Universal Electronics aims to build a long-term revenue pipeline by securing new product design wins and expanding its technology offerings in smart home and climate control solutions. The company is also exploring potential acquisitions to enhance its capabilities and market presence. Despite the positive trajectory in sales and operational improvements, management remains cautious about macroeconomic conditions, including potential tariffs and reduced consumer spending, which could impact future performance.