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U Blox Holding AG, with a market capitalization of $671 million, reported a substantial increase in its Q1 2025 revenue, rising 26% year-over-year at the group level. The company also noted significant improvements in profitability, with losses reduced by a factor of five over the past year. According to InvestingPro analysis, the stock appears to be overvalued at current levels, trading at $89.96. Despite these positive developments, the company’s stock price remained unchanged in the latest trading session.
Key Takeaways
- Q1 2025 revenue increased by 26% year-over-year.
- The LOCADE segment saw a 43% revenue growth.
- Profitability improved significantly, with a reduction in losses by a factor of five.
- The company anticipates a 15-35% revenue increase in Q2 2025 compared to Q2 2024.
Company Performance
U Blox’s overall performance in Q1 2025 was marked by substantial revenue growth, particularly in its LOCADE segment, which achieved a 43% increase year-over-year. The company’s focus on automated driving and mobile robotics contributed to its strong positioning in structural growth applications. InvestingPro data shows the company maintains a strong Financial Health Score of 2.01 (FAIR), supported by robust liquidity with a current ratio of 3.76. While short-range revenue is showing signs of recovery, cellular revenue remains weak, presenting a challenge for the company.
Financial Highlights
- Revenue: Increased by 26% year-over-year.
- LOCADE segment revenue: Increased by 43% year-over-year.
- Profitability: Losses reduced by a factor of five within 12 months.
- Expected Q2 2025 revenue: CHF 60-70 million, representing a 15-35% increase versus Q2 2024.
Outlook & Guidance
Looking ahead, U Blox expects continued revenue growth, with a projected increase of up to 16% from Q1 to Q2 2025. Analyst consensus gathered by InvestingPro suggests potential upside, with price targets ranging from $81.34 to $121.40. The company aims to achieve positive cash EBIT in Q2 2025, excluding the cellular segment. Strategic initiatives focus on growth markets, such as automated driving, while targeting break-even for the short-range segment in the second half of 2025. For deeper insights into U Blox’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro.
Executive Commentary
Stefan Tetala, CEO of U Blox, remarked, "We anticipated that in 2025, we would get out of the severe overstocking situation we experienced in 2024." He also highlighted the company’s resilience, stating, "We used this challenging environment as a catalyst to accelerate U Blox’s transformation into a more focused and resilient company."
Risks and Challenges
- Currency Headwinds: The company is experiencing headwinds from the U.S. Dollar, which could impact revenue.
- Cellular Revenue Weakness: Persistent weakness in cellular revenue presents a challenge.
- Global Trade Policy: Changes in global trade policy are being closely monitored as they could affect operations.
- Cost Management: Continued focus on stringent cost-saving measures is essential to maintain profitability.
- Market Competition: The competitive landscape in positioning technologies requires constant innovation and execution.
U Blox’s strategic focus on innovation and execution, coupled with its strong performance in growth markets, positions the company well for future growth. However, challenges such as currency fluctuations and weak cellular revenue remain areas of concern.
Full transcript - U Blox Holding AG (UBXN) Q1 2025:
Sandra, Chorus Call Operator, Chorus Call: Ladies and gentlemen, welcome to the uBlock’s Q1 twenty twenty five Trading Update Conference Call and Live Webcast. My name is Sandra, the Chorus Call operator. I would like to remind you that all participants are in listen only mode and the conference is being recorded. The presentation will be followed by a Q and A session. The conference must not be recorded for publication or broadcast.
At this time, it’s my pleasure to hand over to Rafael Duarte, Head of Investor Relations at uBlocks. Please go ahead, sir.
Rafael Duarte, Head of Investor Relations, uBlocks: Thank you, Sandra, welcome everyone joining us today. As usual, I’m here with our CEO, Stefan Tetala and CFO, Camilo Jaypur from our offices in Talville. We prepared a few slides on our Q1 trading update, which we will go through and then open for questions you may have. And over now to Stefan for the slides.
Stefan Tetala, CEO, uBlocks: Thank you, Rafael. Welcome, everybody. Well, nowadays, there’s little good news. And therefore, I’m even more happy to share good news from uBlocks today. Let’s go on Page two.
We anticipated that in 2025, we would get out of the severe overstocking situation we experienced in 2024. Indeed, revenue in the first quarter twenty twenty five confirms this assumption. We saw a revenue increase of 26 year over year on a group level. In LOCADE, we even achieved a 43% year over year revenue increase. Despite the low base in quarter one twenty twenty four, our strong position in structurally growing applications like automated driving is the main reason for this.
On this chart, you see that also our short range revenue is on a strong recovery path, while our cellular revenue development remains as weak as we expected. Let’s go to the next page, which is number four. There’s more good news. We continue to significantly improve our profitability. Our stringent cost saving measures and discipline show results.
Within twelve months, on a group level, we slashed losses by a factor of five. If we exclude our cellular business, our cash EBIT was positive in quarter one. This is driven by LOCADE, while short range is still expected to break even in the second half of twenty twenty five. We used this challenging environment as a catalyst to accelerate uBlock’s transformation into a more focused and resilient company. And needless to say that resilience has an even higher value today than yesterday.
In summary, we achieved the turnaround and are looking forward to further growth. This will make our P and L very beautiful. Let’s come to the guidance for quarter two twenty twenty five on Page five. We started 2025 with revenue growth and a significant improvement in profitability. We expect the positive momentum to continue into the second quarter when we target to reach a positive cash EBIT, excluding our cellular business.
Our sharpened focus on LOCADE and the stringent execution of our company transformation pays off. For the business excluding cellular, uBlocks expects revenue of CHF 60,000,000 to CHF 70,000,000 in the second quarter of twenty twenty five. This reflects an increase of 15% to 35% versus the same quarter in 2024 and a gradual increase of up to 16% versus the first quarter twenty twenty five. Based on this top line, our cash EBIT margin is expected to be between 010%, again, excluding our cellular business. You see, our P and L is on a good recovery path.
In the last weeks, we have faced a significant U. S. Dollar headwind as all of us know. For the guidance, we used a rate of 0.82 per U. S.
Dollar. At constant exchange rates, revenue would be about CHF 6,000,000 higher and cash EBIT would be four percentage point better. Of course, we are mindful of how global trade policy changes could affect our markets. The cost base adjustment we carried out in the last twelve months put us in a very solid position. We continue to monitor developments closely and maintain our strict cost discipline.
To conclude on Page six. We started our transformation journey in 2023. Many of the changes we have initiated have become visible. And I’m happy that now the new uBlocks is gaining traction. We go after the right growth markets like automated driving and mobile robotics.
We are the undisputed market leader in positioning based on our unique capabilities, and we doubled down on this. And finally, we see us fully on track to creating sustainable value in line with our strategic theme focus, innovate, execute. Thank you and looking forward to your questions now.
Sandra, Chorus Call Operator, Chorus Call: We will now begin the question and answer session. Session. It seems that we have no questions from the phone, sir. Back over to you for any closing remarks.
Rafael Duarte, Head of Investor Relations, uBlocks: Perfect. So I see that as a good sign that there are no question marks. So you know how to find us. If you have any questions, you can reach out. Thanks a lot.
Stefan Tetala, CEO, uBlocks: You, and have a good Thank you.
Sandra, Chorus Call Operator, Chorus Call: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you participating in the conference. You may now disconnect your lines. Goodbye.
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