Thank you for standing by and welcome to the uCloudLink Group Incorporated First Quarter 2026 Earnings Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the call over to Mr. Shi Chao Gao, Company, Investor Relations. Please go ahead.

Okay, thank you for being here. hello everyone and thank you for joining us on your colleague first of quarter two thousand twenty-six earnings call the earnings release on our earnings presentation are now available on our IR website at IR door your clothing dot-com joining me on today's call are mr. to ping pong co-founder and chairman of the board of directors mr. chau hui chen co-founder director and the chief executive officer and mr. e motion chief financial officer mr. Chen will begin with an overview of our recent business highlights mr. Xu will then discuss our financial and original highlights for the quarter they will all be available to take your questions in the QA section that follows before we proceed please note that this call may contain four looking statements made pursue to the safe harbor perversions of their previous securities litigation reform act of 1995 these four looking statements are based on measurements current expectations and observations that involve known and unknown risks uncertainties and other factors not under company's control which may cause actual results performance or achievements of the company to be massively different from the results performance or expectations projected or implied by these for looking statements all for looking statements are expressly qualified in their entity by their cartonary station statements risk factors and details of the company's feelings with the SEC the company does not assume any application of reverse or update any for looking statements as a result of new information future events change in market conditions or otherwise except as required by law please also note that you call links earning press release and these conference call include discussions of an audit gap financial information and an audit non gap financial measures you calling his press release contents are regulations of the unouted non-GAAP measures to the most directly comparable unouted GAAP measures. I will now turn the call over to Mr. Chen. Please go ahead. Thank you, Daniel.

And good morning or evening. We delivered total revenues of US dollar $16.9 million in the fourth quarter of 2026. These results come despite significant external headwinds, including microeconomic volatility, weak travel demand, rising energy prices, memory chipset cost increase, and the conflict-related supply chain disruption. More importantly, our new product lines have continued to warm up and scale, gradually offsetting the negative impact on our traditional business for these external headwinds. With the continued ramp up of new products, such as the platform and the Unicor Pro, revenues from our new business lines are increasing following an initial market one-up period over the past two quarters. Each of these new products continue to make significant strategic progress during the quarter, laying the groundwork for accelerating commercial momentum going forward. Our three new growth engine, Glaucombe Line, Glaucombe IoT, and Glaucombe Thin, they were remarkable year-over-year revenue growth of over 400%, 300%, and 170%, respectively. To accelerate commercialization and capture early market leadership, we strategically increase marketing spending during the quarter on the platform and broader PEPGO ecosystem. While these investments will attempt near-term profitability and the cash flow, we are confident they will yield substantial long-term payoffs and contribute to sustainable growth going forward. I will now review the highlights for each of our key business lines. I will start with the Papago ecosystem. Building on the exceptional global media attention and the market validation received at NWC 2026 and the CEX 2026 with the unveiling of our Papago ecosystem and the all-new webcam. We launched the better version of the PetGo app during the quarter. This differentiated and pioneering AI power plus social platform for the pet technology industry leverages AI technologies and the platform to enable pets and their owners to communicate seamlessly by effectively transforming the pet ownership experience into the into an interactive social and connected community. We are fostering parallel engagement and continuous interaction. PepperGo also allows pet owners to manage their pet care journey across three stages, before, during, and after activities. This social platform is expected to complete commercial validation in Q2, 2026, and begin driving growth starting in Q3, 2026. During the quarter, average monthly active user, MAU, reached 1,397, and early beta feedback has been overwhelmingly positive, reinforcing our confidence in its user adoption and strong growth potential. Moving on to our global midlife business line, we continue to drive exponential growth with industry-first innovations. Our Unicor Pro gains strong traction during the quarter, with the sales volume and market adoption accelerating rapidly, by enabling a lighter, more convenient lifestyle with secure and reliable connectivity, freeing users from cumbersome devices, while ensuring seamless protective experience. Glucomi Live Solutions saw average daily activity user during the quarter increased 559.9% year over the year. Turning to Glucomi Internet of Things, IoT, our forward-looking strategy is already beginning to generate initial results. The business maintains its strong growth trajectory with user adoption and revenue contribution continuing to expand rapidly year over the year. We continue to solidify our strategy position to capture additional market share in high growth sector, such as in-car, infotainment, and security cameras. Average DAU for Glocomi IoT increased by 246.5% compared to the fourth quarter of the year 2025, And as of March 31st, 2026, our total IoT solutions in-store base reached 2.93 million. For our global missing business line, our ETH solution continues to gain strong traction and growth momentum, with average DAU increasing 193.6 year-over-year during the quarter. This validates both our carrier partnership model and its market positioning as a permanent secondary theme for users. Furthermore, our carrier insurance program has gained pilot deployment, providing a highly effective low capex solutions for operators that enhance their global roaming capability. This model is gaining strong traction and is welcomed by both operators and users, confirming a robust product market fit. Lastly, the launch of our cutting-edge Mirgo G50 Mars, the world's first sky-to-ground integrated mobile connectivity hub is expected to serve as a powerful growth engine for the coming quarter. The Mirgo G50 mask is redefining the connectivity what it matters most. In conflict-affected market with disruptive terrestrial network, its resilient connectivity is a critical differentiator. Powered by our AI-driven hypercom technologies, it seamlessly switches between the terrestrial in-flight, home Wi-Fi, creating a unique one-hub global freedom experience. It also enables satellite-based two-way messaging and emerging SOS, extending connectivity from ocean to desert. We expect this product to reach commercial deployment in the second quarter of year 2026. Looking behind its market potential, the Mirgo G50 mark not only represents our high-end brand aspirations, but also focus on driving increased sales and elevating our brand across the entire portfolio of mobile connectivity solutions. Looking ahead, we remain in the early high-growth stages of our transformation. Throughout 2026, we will continue investing strategically in our new flows engines. The strong market validation from MWC 2026 and the CES 2026, positive PEPAGO beta feedback and the sustained momentum in global IOT demonstrate how our diversified business strategy remains firmly on track. Looking at the coming quarter, we expect our traditional business to gradually stabilize, reaching a level where further downside is limited. At the same time, our new business line will continue to grow, driven by ongoing product rent paths and the market adoption. Together, if this due momentum, our traditional business stabilizing and our new business scaling up continues as we expect. It is expected to further offset the external headwind that had impact our performance. As a result, we believe the second quarter of the 2026 will be a turning point in our overall business trajectory with a return to positive year-over-year growth. We are building towards sustainable growth by scaling our user base globally and bridging the digital device in cross-border connectivities as well as the emotional distance between people and their past while creating long-term value for our shareholders with that discipline of a team it optimism in mind we are confident that we have the right strategy in place to drive sustainable growth going forward. For the second quarter of the 2026, we expect total revenues to be between US dollar 19.5 million and US dollar 22.5 million representing an increase of 0.5 percent to 16 percent compared to the same period of year 2021. I will now turn the call over to Mr. Shi.

Thank you, Mr. Chen. Hello, everyone. I will go over our operational and financial highlights for the first quarter, 2026. Average daily active user, DAU, and monthly active user, MAU, represent the average number of unique users engaging with our Glogamy service on a daily and monthly basis, respectively. Both metrics show strong growth momentum in the first quarter. Average DAU in the first quarter was 354,789, representing an increase of 10.2% from 321,836 in the first quarter of the 2025. Glocomy IoT, Glocomy Thin, and Glocomy Life all deliver significant gains with average DAU up 246.5%, 193.6% and 559.9% respectively from the same period last year. Average DAUs from our glocomy meal goal fitness declined by 5.8% year-over-year. Average MAUs were 337,274, representing an increase of 6% from 695,599 in the first quarter of 2005. Average MA yields from our Glocombe IOT, Glocombe Thin and Glocombe Live Fitness saw an increase of 142.1%, 76.8% and 609% respectively from the same period last year. Average MA yields from our global miracle thinners decreased by 7.3% years over year. In the first quarter of 2016, average DATs were 327,615 with 13,414 owned by the company and 314,201 not owned by the company, representing an increase of 6.1% from the first quarter of 2025. During the quarters, 58.6% of DATs were from Eucalypt Link 1.0 International Data Connectivity Service, and 41.4% were from Eucalypt Link 2.0 Local Data Connectivity Service. In March 2026, the average daily data usage per terminal was 1.57 gigabyte. Average MATs in the first quarter were 702,805, representing an increase of 3.7% from 652,810 in the first quarter to 75. Growth was driven by a strong momentum across our three new growth engines with average MAD for Globally IoT, Globally SIM and Globally Live, increasing 135%, 74.1% and 806.1% respectively. From the same period last year, average MADs from Globomy meal goal business, which we previously referred to as Globomy mobile fixed broadband business, decreased by 4.1% year over year. As platform is a newly launched business, we've only just begun to see user adoption and engagement growth during the quarter. In the first quarter, average DAU and MAUs were 1,097 and 1,397, respectively, while average DATs and MAUs were platform reached 368 and 789, reflecting the growing traction of this new offering. As of March 31st, 2026, the company had 212 patents with 183 approved and 29 pending approval and a pool of SIM card from 397 M&Os globally. Total revenue for the first quarter 2016 for 69.9 million dollars representing a decrease of 10.1% from 18.7 million years dollars in the same period 2025 revenue from service were 13.3 million dollars representing a decrease of 6.3 percent from 14.2 million years dollars in the same period 2025 revenue from service contributed 79.9% of total revenue during the first quarter of 2026 compared to 75.7% in the same period last year. Geographically speaking, during the first quarter of 2026, Japan contributed 32%. Maine and China contributed 30.3%. North America contributed 70.3%. and other countries and regions contributed the remaining 20.4% compared to 40.4%, 31.2%, 12.9% and 15.5% respectively in the same period, 2025. Our gross profit was $8.3 million compared to $9.7 million in the same period, 2025. Overall, gross margin in the first quarter, 2026, was 49.1% compared to 51.7% in the same period, 2025. Gross margins on service was 54.5% in the first quarter, 2026, compared to 57.3% in the same period, 2025. Excluding share-based compensations, total operating expenses were 10.8% million compared to 9.9 million US dollars in the same period, 2025. Late loss in the first quarter, 2026, was 3.5 million US dollars compared to a late loss of 0.6 million US dollars in the same period, 2025. Adjusted EBITDA was negative $2.0 million in the first quarter of 2026, compared to a positive $1.4 million in the same period of 2025. For the first quarter of 2026, we recall an operating cash outflow of $8.7 million compared compared to an inflow of $0.2 million in same period in 2025. For the first quarter, 2026, our capital expenditure were $30,000 compared to $300,000 in same period, 2025. Turning the balance sheet items, our cash and cash equivalents were $28 million as of March 31st, 2026, compared to $32.8 million as of December 31st, 2025. We continue to strengthen our financial position and believe we are well positioned to drive continued growth in our business. So, operators, please open up for Q&A. Thanks.

Thank you. Thank you. We will now begin the question and answer session. To ask a question, you may press star than 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star, then two. If you are on a speakerphone, please pick up the handset to ask your question. And our first question today will come from Theodore O'Neill with Lynchfield Hills Research. Please go ahead.

Thank you for taking my questions. My first question is about the G50 Max. and in your prepared remarks you talking about this being interesting to market it's in conflict zones and I'm hoping that it's a shrinking market not a growing market so could you talk about some other markets where this g50 max would be appropriate and I think you mentioned at sea and I'm thinking perhaps the very remote rural areas as well yeah so origin so our G max is our high-end product is a 5g we can know our 5g in over hundreds of countries

that's most popular we can offer in the 5g in the world so compare like the other our competitor like AT&T maybe just 75 so the first advantage is we can provide the maximize coverage of 5G worldwide. That's first. And the second, we can provide about a certified airline for the in-cabin, in-cabin 4G, 5G connection. The second, that means the business traveler in the air cabin they can serve in and then it's about the satellite SOS and the messaging so no matter you are in the outdoor or in a comfort area you can get you never lost the connection and the number four is if you are in the office and in a home you of course you can get Wi-Fi available but Wi-Fi sometimes is a non reliable sometimes it's unreliable during this case you we can back up by the 5G and 4G with the multi-carrier that enable your remote work and remote study and remote meeting never fell down so we balance the best courage and the best so that means one device and the one account you can enjoy the global best courage and the best Atari so that's why we believe that one device for every scenario not only at home at the office consult the people have to bring the multi-device multi-package a home Wi-Fi in-capping Wi-Fi we have long-mean eSIM or long-mean or local multi-carrier tariff then you can get the similar coverage and the solution and now with our solution one device simply the one device one account you can get the best coverage in the time that's our purpose okay thank you um my next question is about the in-car infotainment and security cameras can you give us any more detail about about the actual market share or the growth of that it's exposure that business yes I think that about our IOT business yeah we embed our cloud theme and hypercon solution into the you know in car infotainment and that's carplay the majorly CarPlay devices this majorly CarPlay devices is come from China major top 10 this partner or embed our solution let me so plug our this car CarPlay device not only can get the entertainment in a car but also the can can get a network in the car so almost the top 10 these these provider all use our solution so that's for car infotainment and for a camera so I think the car now a more and more you know 4G camera they use that in the in the traditional they need a product sim card inside that means if the carrier network has some problem or coverage adjustment and you have to go to the high place to replace Simca for the camera it's very uncommon in but with our solutions because 4G is more popular the price is similar like Wi-Fi camera you can see the 4G camera the volume of the market share in the camera market is bigger and bigger so for this big for the 4G camera I think that currently more and more is the top from China provider embed our software solution into their camera that means that user and you still can use the same slot to put into same car but it's expensive and coverage is poor but use our solution not only get a benefit from a better target but also can get cross-carrier coverage. You can see our market share in this market grows dramatically. So you can see our installation volume is about 2.9 million pieces for shipment. in the six year in the six months later they will turn into the package and with our in the operation about from shipment to the user and adopt our solution need at six months so you can see six months later we get we will get more use the fun morning user than currently thank you and my last question is about supply chain issues you mentioned in the prepared remarks about memory prices being a headwind but I was also wondering are you seeing any supply chain supply chain issues in terms of availability yes I think compared last year memory chip is almost five to ten times higher so that's a heavy impact you know the the I think that the the cost of the device so we have many we think a lot of ways one side we have a lot of deficit we have a you know but also the week try to you know redesign to to reduce the memory size and to lower the cost and also we look in the instead of the Chinese local memory so all these we can overcome some part of the memory price going up but we can't offset the total because the price is too high that's definitely we have some impact to our selling price you can see our and not only 2b and 2c selling price for the device is higher, about 20%, 30% up, than compared last year.

Thank you very much.

Again, if you have a question, please press star, then 1. As there are no further questions at this time, I would like to hand the call back over to Mr. Gao for any closing remarks. Please go ahead.

Once again, for joining us today, if you have further questions, please feel free to contact your colleagues investor relations through the contact information provided on our website or speak to our investor relations forum criticism adversary we look forward to speaking with you or gain our massive quarterly call thank you that does conclude our conference for today thank you for your participation you may now disconnect