UCL

Business Transition Strategy

• The legacy uCloud 1.0 international connectivity business remains under pressure from macroeconomic headwinds, geopolitical tensions limiting cross-border travel from China, and sharp increases in component costs
• Management expects the fast-growing uCloud 2.0 local data connectivity business to fully offset the ongoing contraction of the 1.0 segment by Q3 2026
• Key growth segments including Globomi IoT and Unicorp Pro have exited the initial launch phase, with steadily rising revenue contribution and key strategic milestones achieved for accelerated commercialization

New Segment Growth Highlights

• Globami IoT: 392.4% YoY revenue growth, total installed base reached 3.34 million units with 210% YoY net add growth; strong adoption in high-growth verticals including in-car infotainment and security cameras, with consistent operating profitability
• Pet AI Ecosystem Platform: Completed a major upgrade to a dedicated pet AI agent, capable of sensing pet conditions and emotional states to support owners across all stages of pet care; the platform creates new value opportunities in pet health, veterinary care, safety, and data analytics; marketing and branding efforts have generated hundreds of millions of views across major social platforms
• Globomi Life & Globomi Scene: Globomi Life saw 801.6% YoY DAU growth reflecting strong market adoption, while Globomi Scene achieved 132% YoY DAU growth; the company's eSIM solution holds leading market share in China with stabilizing share across East Asia and Asia Pacific
• Premium Hardware: The Mirgo G50 Max, a pioneering sky-to-ground integrated 5G mobile connectivity hub covering nearly 100 countries, has established a leading position in the $500+ premium MiFi segment; newly launched 4G and 5G CPE products completed small-batch market validation with positive feedback, and large orders are currently under negotiation for accelerated deployment in Q3 2026

Operational & User Metrics

• Total average DAUs grew 13.3% YoY to 376,376; Globomi IoT, Globomi Scene, and Globomi Life achieved 277.3%, 132%, and 801.6% YoY DAU growth respectively, while legacy business DAUs declined 7.3% YoY
• Total average MAUs grew 6.6% YoY to 744,966; the new growth segments all saw triple-digit or high double-digit MAU growth, with legacy business MAUs declining 10.1% YoY
• As of June 30 2026, the company holds 212 patents (184 approved, 28 pending) and access to SIM cards from 398 MNOs globally; it won multiple industry awards recognizing its technology and market leadership

• For Q3 2026, management expects total revenue in the range of $19 million to $22 million, representing a change of -10.4% to +3.8% compared to Q3 2025
• For full-year 2026, management revised its full-year revenue guidance to a range of $75 million to $85 million, downward from its prior unrevealed range, to account for persistent macroeconomic challenges and global trade headwinds that are expected to continue impacting broader industry conditions
• All guidance reflects management's current view of market, operating, and demand conditions and is subject to change

uCloud Link reported total Q2 2026 revenue of $18.2 million, a 5.9% year-over-year (YoY) decline from $19.4 million in Q2 2025. Revenue contribution for each product segment is as follows:

• Global Near-goal (legacy uCloud 1.0 international connectivity): $15.5 million, 85.2% of total revenue, representing a 13.1% YoY decline
• Globami SIM: $1.3 million, 7.1% of total revenue, representing a 78% YoY increase
• Globami IoT: $0.8 million, 4.4% of total revenue, representing a 392.4% YoY increase
• Globomi Life: $0.5 million, 2.7% of total revenue, representing a 12.1% YoY decline
• Half Home Business: $0.1 million, 0.5% of total revenue (incomplete reporting, positive YoY growth)

Geographically, Japan contributed 36% of total revenue, mainland China contributed 30.3%, North America contributed 13.5%, and other regions contributed 20.2%. Service revenue totaled $13.3 million (72.9% of total revenue), a 9.2% YoY decline. Overall gross profit was $9.2 million with a 50.2% gross margin, compared to $10.2 million and 52.8% gross margin in Q2 2025. Service gross margin was 59.1% in Q2 2026, up from 56.6% YoY.

• Persistent macroeconomic headwinds, geopolitical tensions, and cross-border travel restrictions continue to pressure the legacy international connectivity business, leading to overall revenue decline
• The company has experienced a 5x to 10x increase in memory chip costs, driven largely by AI-related semiconductor demand, which has negatively impacted gross margins and near-term cash flow
• Pricing adjustments to offset higher component costs require careful consideration of customer acceptance, creating uncertainty around future margin recovery
• Supply chain volatility for semiconductors and other electronic components like PCBs has led to uneven order volume across quarters and near-term revenue volatility for newer hardware segments
• Forward-looking statements are inherently subject to unknown risks and uncertainties that could cause actual results to differ materially from management projections, with no obligation to update projections unless required by law

Q: What actions is uCloud Link taking to offset large memory chip cost increases and what other semiconductor supply chain issues is the company facing? / A: Memory chip costs have increased 5-10x driven by AI-related demand, which has raised input costs for the company's hardware products. To address this, uCloud Link proactively increased inventory of memory chips in advance, which negatively impacted near-term cash flow to delay the need for immediate price hikes. The company has also implemented product design revisions to reduce memory requirements for hardware, and implemented phased retail price increases in the second half of 2026, while balancing customer acceptance of higher prices. The company is also seeing cost increases for other components including PCBs.

Q: Why did Globomi Life revenue decline YoY in Q2 2026 even as average DAUs grew sharply over the same period? / A: Globomi Life revenue reflects quarterly hardware delivery volume, which was slightly lower in Q2 2026 due to supply chain volatility and memory chip price increases. The company pulled forward customer orders into Q1 2026 ahead of expected price hikes, leading to lower order volume in Q2. DAU counts reflect cumulative active hardware from all historical sales, so DAUs continue to grow dramatically as more devices are installed in the market YoY. Despite the Q2 revenue dip, first half 2026 revenue is up sharply compared to the first half of 2025.