u-blox (UBXN) H1 2025 earnings summary

Executive summary

• Revenue grew 32% year-over-year in H1 2025, driven by recovery in automotive and industrial segments and strong performance in Locate and Short Range.

• Completed divestment of the Cellular business in June 2025, now reported as discontinued operations, resulting in one-time charges and a wider net loss.

• Adjusted cash EBIT margin turned positive at 2.4%, a significant improvement from -27.7% a year ago.

• Free cash flow reached CHF 5.4 million, supported by cost reductions and improved working capital.

• Streamlined operations, reducing OpEx by nearly 30% and workforce by 20% to under 850 employees.

Financial highlights

• Revenue from continuing operations rose 32% year-over-year to CHF 123.4 million, with 34% growth at constant FX rates.

• Gross margin improved to 58.2% (up from 52.0%/51.8% year-over-year).

• Adjusted cash EBIT margin was 2.4%, up from -27.7% a year ago.

• Free cash flow for the period was CHF 5.4 million.

• Net cash position exceeded CHF 100 million at period end; company remains debt free.

Outlook and guidance

• Q3 2025 revenue guidance: CHF 60–70 million, implying 11% year-over-year and 6% sequential growth at midpoint.

• Adjusted cash EBIT margin expected between 0% and 10% for Q3, excluding restructuring costs.

• Full-year 2025 expected to deliver double-digit growth in core segments, supported by automotive and industrial markets.

• Geopolitical volatility, FX headwinds, and slow recovery in end markets are leading to cautious customer ordering and limited near-term visibility.

• Management expects no significant seasonal or cyclical revenue variations for the remainder of the year.