ueic-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________

FORM 10-Q

_______________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-21044

_______________________________________

UNIVERSAL ELECTRONICS INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware

33-0204817

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer
Identification No.)

15147 N. Scottsdale Road, Suite H300, Scottsdale, Arizona 85254-2494

(Address of principal executive offices and zip code)

(480) 530-3000

(Registrant's telephone number, including area code)

_____________________


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	UEIC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 13,169,997 shares of Common Stock, par value $0.01 per share, of the registrant were outstanding on May 6, 2025.

UNIVERSAL ELECTRONICS INC.

INDEX


			Page Number
PART I. FINANCIAL INFORMATION			3
Item 1. Consolidated Financial Statements (Unaudited)			3
Consolidated Balance Sheets			3
Consolidated Statements of Operations			4
Consolidated Statements of Comprehensive Income (Loss)			5
Consolidated Statements of Stockholders' Equity			6
Consolidated Statements of Cash Flows			7
Notes to Consolidated Financial Statements			8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			32
Item 4. Controls and Procedures			33
PART II. OTHER INFORMATION			33
Item 1. Legal Proceedings			33
Item 1A. Risk Factors			34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			34
Item 5. Other Information			34
Item 6. Exhibits			35
Signatures			36

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. Consolidated Financial Statements (Unaudited)

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share-related data)

(Unaudited)


	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	27,389	$	26,783

Accounts receivable, net	106,007		114,182
Contract assets	9,530		10,346
Inventories	77,455		79,355
Prepaid expenses and other current assets	9,943		9,478
Income tax receivable	1,830		2,350
Total current assets	232,154		242,494
Property, plant and equipment, net	32,612		34,207

Intangible assets, net	23,401		24,038
Operating lease right-of-use assets	13,555		14,322
Deferred income taxes	6,561		6,425
Other assets	2,328		1,868
Total assets	$	310,611	$	323,354
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	69,083	$	72,031
Lines of credit	31,015		36,960
Accrued compensation	20,005		20,927
Accrued sales discounts, rebates and royalties	4,605		5,204
Accrued income taxes	2,872		2,161
Other accrued liabilities	21,749		21,008
Total current liabilities	149,329		158,291
Long-term liabilities:
Operating lease obligations	8,576		9,232

Deferred income taxes	1,939		1,931
Income tax payable	72		72
Other long-term liabilities	726		723
Total liabilities	160,642		170,249
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding	—		—
Common stock, $0.01 par value, 50,000,000 shares authorized; 25,844,736 and 25,712,940 shares issued on March 31, 2025 and December 31, 2024, respectively	258		257
Paid-in capital	346,639		344,697
Treasury stock, at cost, 12,707,153 and 12,666,443 shares on March 31, 2025 and December 31, 2024, respectively	(372,313)		(371,930)
Accumulated other comprehensive income (loss)	(26,772)		(28,350)
Retained earnings	202,157		208,431
Total stockholders' equity	149,969		153,105
Total liabilities and stockholders' equity	$	310,611	$	323,354

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended March 31,
	2025		2024
Net sales	$	92,326	$	91,900
Cost of sales	66,243		65,912
Gross profit	26,083		25,988
Research and development expenses	7,231		7,821
Selling, general and administrative expenses	22,606		24,011
Factory restructuring charges (Note 12)	—		1,064

Operating income (loss)	(3,754)		(6,908)
Interest income (expense), net	(353)		(922)

Other income (expense), net	52		(80)
Income (loss) before provision for income taxes	(4,055)		(7,910)
Provision for income taxes	2,219		739
Net income (loss)	$	(6,274)	$	(8,649)

Earnings (loss) per share:
Basic	$	(0.48)	$	(0.67)
Diluted	$	(0.48)	$	(0.67)
Shares used in computing earnings (loss) per share:
Basic	13,083		12,902
Diluted	13,083		12,902

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2025		2024
Net income (loss)	$	(6,274)	$	(8,649)
Other comprehensive income (loss):
Change in foreign currency translation adjustment	1,578		(1,591)
Comprehensive income (loss)	$	(4,696)	$	(10,240)

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(In thousands)

(Unaudited)

The following summarizes the changes in total equity for the three months ended March 31, 2025:


	Common Stock Issued			Common Stock in Treasury			Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Totals
	Shares	Amount		Shares	Amount
Balance at December 31, 2024	25,713	$	257	(12,666)	$	(371,930)	$	344,697	$	(28,350)	$	208,431	$	153,105
Net loss											(6,274)		(6,274)
Currency translation adjustment									1,578				1,578
Shares issued for employee benefit plan and compensation	124	1					158						159
Purchase of treasury shares				(41)	(383)								(383)

Shares issued to directors	8	—					—						—
Employee and director stock-based compensation							1,784						1,784

Balance at March 31, 2025	25,845	$	258	(12,707)	$	(372,313)	$	346,639	$	(26,772)	$	202,157	$	149,969

The following summarizes the changes in total equity for the three months ended March 31, 2024:


	Common Stock Issued			Common Stock in Treasury			Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Totals
	Shares	Amount		Shares	Amount
Balance at December 31, 2023	25,346	$	253	(12,460)	$	(369,973)	$	336,938	$	(20,758)	$	232,460	$	178,920
Net loss											(8,649)		(8,649)
Currency translation adjustment									(1,591)				(1,591)
Shares issued for employee benefit plan and compensation	156	2					299						301
Purchase of treasury shares				(140)	(1,230)								(1,230)

Shares issued to directors	6						—						—
Employee and director stock-based compensation							1,904						1,904

Balance at March 31, 2024	25,508	$	255	(12,600)	$	(371,203)	$	339,141	$	(22,349)	$	223,811	$	169,655

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

UNIVERSAL ELECTRONICS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	(6,274)	$	(8,649)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	4,051		4,668
Provision for credit losses	19		—
Deferred income taxes	(90)		(3)
Shares issued for employee benefit plan	159		301
Employee and director stock-based compensation	1,784		1,904





Changes in operating assets and liabilities:
Accounts receivable and contract assets	10,514		11,007
Inventories	2,956		4,132
Prepaid expenses and other assets	(58)		(3,051)
Accounts payable and accrued liabilities	(5,298)		(12,517)
Accrued income taxes	1,221		(567)
Net cash provided by (used for) operating activities	8,984		(2,775)
Cash flows from investing activities:
Purchase of Blue Chip Swap securities (Note 15)	(1,250)		—
Sale of Blue Chip Swap securities (Note 15)	1,088		—

Acquisitions of property, plant and equipment	(1,042)		(1,347)
Acquisitions of intangible assets	(703)		(1,019)
Net cash provided by (used for) investing activities	(1,907)		(2,366)
Cash flows from financing activities:
Borrowings under lines of credit	18,000		24,000
Repayments on lines of credit	(24,000)		(33,000)

Treasury stock purchased	(383)		(1,230)

Net cash provided by (used for) financing activities	(6,383)		(10,230)
Effect of foreign currency exchange rates on cash and cash equivalents	(88)		(466)
Net increase (decrease) in cash and cash equivalents	606		(15,837)
Cash and cash equivalents at beginning of period	26,783		42,751
Cash and cash equivalents at end of period	$	27,389	$	26,914

Supplemental cash flow information:
Income taxes paid	$	1,161	$	777
Interest paid	$	635	$	1,368

SEC Form 10-Q filed by Universal Electronics Inc.