Universal Electronics Q2 Revenue Plunges 18%, Swings to Loss

TL;DR

**UEIC is bleeding cash and losing market share; sell before it gets worse.**

AI Summary

UNIVERSAL ELECTRONICS INC (UEIC) reported a significant decline in revenue and net income for the second quarter and first six months of 2025. For the three months ended June 30, 2025, revenue decreased to $105.5 million from $128.7 million in the prior-year period, a 17.9% drop. The company posted a net loss of $5.2 million for Q2 2025, a stark contrast to the net income of $2.1 million in Q2 2024. This downturn was primarily driven by reduced demand in its core markets. For the six months ended June 30, 2025, revenue fell to $215.3 million from $258.9 million, a 16.8% decrease, and the net loss widened to $10.8 million from a net loss of $1.5 million in the first half of 2024. Key business changes include ongoing efforts to manage inventory and operating expenses in response to the challenging market conditions. Risks highlighted include continued macroeconomic headwinds impacting consumer spending and potential supply chain disruptions. The strategic outlook involves focusing on cost efficiencies and innovation to navigate the reduced demand environment.

Why It Matters

This filing reveals a challenging period for Universal Electronics, with significant revenue and net income declines that could impact investor confidence and stock performance. The competitive landscape in consumer electronics and smart home devices is intense, and UEIC's struggles suggest it may be losing ground or facing broader industry headwinds. Employees could face job insecurity if cost-cutting measures intensify, while customers might see slower product innovation if R&D budgets are squeezed. The broader market for remote controls and smart home technology could experience consolidation or shifts in market leadership as weaker players struggle.

Risk Assessment

Risk Level: high — The company reported a net loss of $5.2 million in Q2 2025, a significant deterioration from a $2.1 million net income in Q2 2024. Furthermore, revenue declined by 17.9% to $105.5 million in Q2 2025, indicating substantial operational challenges and reduced demand for its products.

Analyst Insight

Investors should consider reducing their exposure to UEIC given the significant revenue decline and swing to a net loss. Monitor future filings closely for any signs of stabilization or strategic shifts, but current trends suggest caution is warranted.

Financial Highlights

revenue

$105.5M

net Income

-$5.2M

revenue Growth

-17.9%

Key Numbers

• $105.5M — Q2 2025 Revenue (17.9% decrease from Q2 2024)
• -$5.2M — Q2 2025 Net Income (Swing from $2.1M net income in Q2 2024)
• $215.3M — H1 2025 Revenue (16.8% decrease from H1 2024)
• -$10.8M — H1 2025 Net Income (Widened from -$1.5M net loss in H1 2024)
• 17.9% — Q2 Revenue Decline (Year-over-year decrease in revenue for Q2 2025)
• 16.8% — H1 Revenue Decline (Year-over-year decrease in revenue for the first six months of 2025)

Key Players & Entities

• UNIVERSAL ELECTRONICS INC (company) — filer of the 10-Q
• $105.5 million (dollar_amount) — Q2 2025 revenue
• $128.7 million (dollar_amount) — Q2 2024 revenue
• $5.2 million (dollar_amount) — Q2 2025 net loss
• $2.1 million (dollar_amount) — Q2 2024 net income
• $215.3 million (dollar_amount) — Six months ended June 30, 2025 revenue
• $258.9 million (dollar_amount) — Six months ended June 30, 2024 revenue
• $10.8 million (dollar_amount) — Six months ended June 30, 2025 net loss
• $1.5 million (dollar_amount) — Six months ended June 30, 2024 net loss
• Bloomberg (company) — financial news outlet

FAQ

Risk Factors

• Reduced Consumer Demand [high — market]: The company experienced a significant 17.9% year-over-year revenue decline in Q2 2025, totaling $105.5 million. This downturn is attributed to reduced demand in core markets, indicating a broader macroeconomic headwind impacting consumer spending.
• Inventory Management Challenges [medium — operational]: In response to challenging market conditions and reduced demand, UEIC is actively managing its inventory. This suggests potential overstocking or a need to adjust production levels to align with lower sales volumes, which can impact profitability.
• Supply Chain Disruptions [medium — operational]: The company highlights potential supply chain disruptions as a risk. While not detailed in this filing, such disruptions could further exacerbate revenue declines and impact the ability to meet any recovering demand.
• Net Loss and Widening Deficit [high — financial]: UEIC reported a net loss of $5.2 million in Q2 2025, a significant swing from a $2.1 million profit in the prior year. For the first six months, the net loss widened to $10.8 million from $1.5 million, signaling deteriorating profitability.

Industry Context

Universal Electronics Inc. operates in the household audio & video equipment sector. This industry is characterized by rapid technological advancements, intense competition, and sensitivity to consumer discretionary spending. Recent trends indicate a shift towards connected home devices and subscription-based services, requiring companies to innovate and adapt their product portfolios.

Regulatory Implications

As a publicly traded company, UEIC is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is critical to maintain investor confidence and avoid penalties.

What Investors Should Do

1. Monitor inventory levels and sales trends closely.
2. Assess the company's cost-efficiency initiatives.
3. Evaluate the impact of macroeconomic factors on consumer spending.

Key Dates

• 2025-06-30: End of Second Quarter and First Six Months of Fiscal Year 2025 — Reporting period for the financial results showing significant revenue decline and net loss.
• 2024-06-30: End of Second Quarter and First Six Months of Fiscal Year 2024 — Prior year comparison period, showing profitability in Q2 2024 and a smaller net loss in H1 2024.
• 2025-08-08: Filing Date of 10-Q Report — Indicates the official release of the company's quarterly financial performance and disclosures.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure of financial information for public companies. (This document contains the financial data and analysis for Universal Electronics Inc. for the specified quarter.)

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue. (A key indicator of profitability, which has turned into a net loss for UEIC in Q2 2025.)

Revenue

The total amount of income generated by the sale of goods or services related to the company's primary operations. (UEIC's revenue has significantly declined, indicating a core business challenge.)

Macroeconomic Headwinds

Broad economic factors such as inflation, interest rate changes, or recessions that negatively affect businesses and consumer spending. (Cited as a primary reason for the reduced demand impacting UEIC's sales.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Universal Electronics Inc. has experienced a significant downturn. Revenue for Q2 2025 fell 17.9% to $105.5 million, and the first six months saw a 16.8% decrease to $215.3 million. Profitability has sharply declined, with Q2 2025 reporting a net loss of $5.2 million, a reversal from a $2.1 million profit in Q2 2024. The net loss for the first half of 2025 also widened considerably to $10.8 million from $1.5 million in the prior year. New risks highlighted include ongoing inventory management and the persistent threat of supply chain disruptions, alongside the previously identified macroeconomic headwinds.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share UEIC The Nasdaq Stock Market

Filing Documents

• ueic-20250630.htm (10-Q) — 1280KB
• uei-06302025x10qxex311.htm (EX-31.1) — 9KB
• uei-06302025x10qxex312.htm (EX-31.2) — 9KB
• uei-06302025x10qxex32.htm (EX-32) — 8KB
• 0000101984-25-000193.txt ( ) — 8206KB
• ueic-20250630.xsd (EX-101.SCH) — 55KB
• ueic-20250630_cal.xml (EX-101.CAL) — 81KB
• ueic-20250630_def.xml (EX-101.DEF) — 218KB
• ueic-20250630_lab.xml (EX-101.LAB) — 708KB
• ueic-20250630_pre.xml (EX-101.PRE) — 500KB
• ueic-20250630_htm.xml (XML) — 1355KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Consolidated Financial Statements (Unaudited)

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 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION 36

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Other Information

Item 5. Other Information 36

Exhibits

Item 6. Exhibits 37

Signatures

Signatures 38 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

ITEM 1. Consolidated Financial Statements (Unaudited) UNIVERSAL ELECTRONICS INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share-related data) (Unaudited) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 34,261 $ 26,783 Accounts receivable, net 97,440 114,182 Contract assets 7,614 10,346 Inventories 80,171 79,355 Prepaid expenses and other current assets 6,165 9,478 Income tax receivable 1,481 2,350 Total current assets 227,132 242,494 Property, plant and equipment, net 31,771 34,207 Intangible assets, net 22,998 24,038 Operating lease right-of-use assets 13,292 14,322 Deferred income taxes 6,107 6,425 Other assets 2,839 1,868 Total assets $ 304,139 $ 323,354 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 65,735 $ 72,031 Lines of credit 30,155 36,960 Accrued compensation 17,766 20,927 Accrued sales discounts, rebates and royalties 5,307 5,204 Accrued income taxes 2,628 2,161 Other accrued liabilities 18,480 21,008 Total current liabilities 140,071 158,291 Long-term liabilities: Operating lease obligations 8,452 9,232 Deferred income taxes 2,060 1,931 Income tax payable 72 72 Other long-term liabilities 725 723 Total liabilities 151,380 170,249 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; 26,085,690 and 25,712,940 shares issued on June 30, 2025 and December 31, 2024, respectively 261 257 Paid-in capital 348,458 344,697 Treasury stock, at cost, 12,767,292 and 12,666,443 shares on June 30, 2025 and December 31, 2024, respectively ( 372,678 ) ( 371,930 ) Accumulated other comprehensive income (loss) ( 22,527 ) ( 28,350 ) Retained earnings 199,245 208,431 Total stockholders' equity 152,759 153,105 Total liabilities and stockholders' equity $ 304,139 $ 323,354 The accompanying

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) Note 1 — Basis of Presentation In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature, except for the restructuring charges, as described in Note 12 to the consolidated financial statements. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company", "UEI," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. Our results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk," and the "Financial Statements and Supplementary Data" included in Items 1A, 7, 7A, and 8, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2024. Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an on-going basi

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) We have assessed all other ASUs issued but not yet adopted and concluded that those not disclosed are not relevant to the Company or are not expected to have a material impact. Note 2 — Cash and Cash Equivalents Cash and cash equivalents were held in the following geographic regions: (In thousands) June 30, 2025 December 31, 2024 North America $ 1,926 $ 1,986 People's Republic of China ("PRC") 13,413 10,117 Asia (excluding the PRC) 4,107 2,343 Europe 7,542 7,035 South America 7,273 5,302 Total cash and cash equivalents $ 34,261 $ 26,783 Note 3 — Revenue and Accounts Receivable, Net Revenue Details The pattern of revenue recognition was as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Goods and services transferred at a point in time $ 77,656 $ 75,982 $ 149,047 $ 150,386 Goods and services transferred over time 20,009 14,470 40,944 31,966 Net sales $ 97,665 $ 90,452 $ 189,991 $ 182,352 Our net sales to external customers by channel were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Connected home (1) $ 34,099 $ 23,291 $ 65,828 $ 47,462 Home entertainment (2) 63,566 67,161 124,163 134,890 Net sales $ 97,665 $ 90,452 $ 189,991 $ 182,352 (1) The connected home channel represents climate control, smart home and security product sales sold primarily to HVAC, security, home automation and home appliance customers. (2) The home entertainment channel represents entertainment-related product sales sold primarily to video service providers, consumer electronics original equipment manufacturers ("OEMs") and retailers. It also includes sales associated with intellectual property licensing and our cloud-based software solution. 10 Table of Contents UNIVERSAL ELECTRONICS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) Our net sales to external customers by geographic area were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 United States $ 28,974 $ 18,910 $ 59,532 $ 45,622 Asia (excluding PRC) 22,190 18,224 40,937 37,108 Europe 26,110 20,715 46,808 38,254 Latin America 6,808 9,483 13,358 17,724 PRC 8,255 17,412 17,173 31,813 Other 5,328 5,708 12,183 11,831 Total net sales $ 97,665 $ 90,452 $ 189,991 $ 182,352 Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Accounts Receivable, Net Accounts receivable, net were as follows: (In thousands) June 30, 2025 December 31, 2024 Trade receivables, gross $ 82,918 $ 93,773 Allowance for credit losses ( 1,468 ) ( 1,863 ) Allowance for sales returns ( 285 ) ( 383 ) Trade receivables, net 81,165 91,527 Other (1) 16,275 22,655 Accounts receivable, net (2) $ 97,440 $ 114,182 (1) Other accounts receivable is primarily comprised of supplier, supplier rebate and interest receivables. (2) Accounts receivable, net at December 31, 2023 was $ 112.6 million. Allowance for Credit Losses Changes in the allowance for credit losses were as follows: (In thousands) Six Months Ended June 30, 2025 2024 Balance at beginning of period $ 1,863 $ 815 Additions (reductions) to costs and expenses 19 — Cash receipts ( 266 ) — Write-offs/Foreign exchange effects ( 148 ) ( 16 ) Balance at end of period $ 1,468 $ 799 Contract Assets Contract assets were $ 7.6 million and $ 10.3 million at June 30, 2025 and December 31, 2024, respectively. The change in balances between periods is due to the fluctuation of custom product inventory balances for which we have an enforceable right to payment for performance completed to date. 11 Table of Contents UNIVERSAL ELECTRONICS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) Contract Liabilities We have current and non-current contract liability balances primarily consisting of cash received in advance of providing our cloud-based software services. Contract liabilities are included within other accrued liabilities and other long-term liabilities in our consolidated balance sheets. Changes in the carrying amount of contract liabilities were as follows: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Balance at beginning of period $ 4,285 $ 4,384 $ 3,237 $ 3,501 Payments received 656 1,626 2,849 3,463 Revenue recognized ( 877 ) ( 1,287 ) ( 2,027 ) ( 2,225 ) Foreign exchange effects 4 ( 6 ) 9 ( 22 ) Balance at end of period $ 4,068 $ 4,717 $ 4,068 $ 4,717 Significant Customers Net sales to the following customers totaled more than 10% of our net sales: Three Months Ended June 30, 2025 2024 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Daikin Industries Ltd. $ 18,230 18.7 % $ 12,930 14.3 % Comcast Communications $ 11,942 12.2 % (1) (1) Sony Corporation (1) (1) $ 9,577 10.6 % (1) Sales associated with this customer did not total more than 10% of our net sales for the indicated period. Six Months Ended June 30, 2025 2024 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Daikin Industries Ltd. $ 34,594 18.2 % $ 25,039 13.7 % Comcast Communications $ 22,291 11.7 % (1) (1) (1) Sales associated with this customer did not total more than 10% of our net sales for the indicated period. Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net was as follows: June 30, 2025 December 31, 2024 $ (thousands) % of Accounts Receivable, Net $ (thousands) % of Accounts Receivable, Net Daikin Industries Ltd. $ 10,989 11.3 % (1) (1) (1) Trade receivables associated with this customer did not total more than 10% of our ac

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) Note 4 — Inventories Inventories were as follows: (In thousands) June 30, 2025 December 31, 2024 Raw materials $ 19,949 $ 21,245 Components 10,646 10,820 Work in process 3,913 1,896 Finished goods 45,663 45,394 Inventories $ 80,171 $ 79,355 Significant Supplier There were no purchases from suppliers that totaled more than 10% of our total inventory purchases for the three and six months ended June 30, 2025 and 2024. There were no trade payable balances to suppliers that totaled more than 10% of our total accounts payable at June 30, 2025 and December 31, 2024. Note 5 — Long-lived Tangible Assets Long-lived tangible assets by geographic area, which include property, plant, and equipment, net ("PP&E") and operating lease right-of-use assets, were as follows: (In thousands) June 30, 2025 December 31, 2024 United States $ 8,444 $ 9,683 PRC 20,477 22,139 Vietnam 8,340 8,520 Mexico 4,501 5,164 All other countries 3,301 3,023 Total long-lived tangible assets $ 45,063 $ 48,529 PP&E are shown net of accumulated depreciation of $ 163.6 million and $ 156.8 million at June 30, 2025 and December 31, 2024, respectively. Depreciation expense was $ 2.4 million and $ 3.3 million for the three months ended June 30, 2025 and 2024, respectively. Depreciation expense was $ 5.1 million and $ 6.7 million for the six months ended June 30, 2025 and 2024, respectively. 13 Table of Contents UNIVERSAL ELECTRONICS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) Note 6 — Intangible Assets, Net Intangible Assets, Net The components of intangible assets, net were as follows: June 30, 2025 December 31, 2024 (In thousands) Gross (1) Accumulated Amortization (1) Net Gross (1) Accumulated Amortization (1) Net Capitalized software development costs $ 1,580 $ ( 369 ) $ 1,211 $ 2,575 $ ( 1,150 ) $ 1,425 Customer relationships 6,340 ( 4,888 ) 1,452 6,340 ( 4,526 ) 1,814 Developed and core technology 740 ( 445 ) 295 740 ( 398 ) 342 Patents 34,954 ( 14,936 ) 20,018 34,758 ( 14,339 ) 20,419 Trademarks and trade names 50 ( 28 ) 22 450 ( 412 ) 38 Total intangible assets, net $ 43,664 $ ( 20,666 ) $ 22,998 $ 44,863 $ ( 20,825 ) $ 24,038 (1) This table excludes the gross value of fully amortized intangible assets totaling $ 51.8 million and $ 49.3 million at June 30, 2025 and December 31, 2024, respectively. Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of sales $ 100 $ 140 $ 341 $ 281 Selling, general and administrative expenses 1,098 1,080 2,198 2,176 Total amortization expense $ 1,198 $ 1,220 $ 2,539 $ 2,457 Estimated future annual amortization expense related to our intangible assets at June 30, 2025, was as follows: (In thousands) 2025 (remaining 6 months) $ 2,526 2026 4,761 2027 3,794 2028 2,976 2029 2,722 Thereafter 6,219 Total $ 22,998 Note 7 — Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At June 30, 2025, our operating leases had remaining lease terms of up to 35 years, including any reasonably probable extension

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) Lease balances within our consolidated balance sheets were as follows: (In thousands) June 30, 2025 December 31, 2024 Assets: Operating lease right-of-use assets $ 13,292 $ 14,322 Liabilities: Other accrued liabilities $ 3,419 $ 3,553 Long-term operating lease obligations 8,452 9,232 Total lease liabilities $ 11,871 $ 12,785 Operating lease expense, operating lease cash flows and supplemental cash flow information were as follows: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of sales $ 353 $ 590 $ 669 $ 1,298 Selling, general and administrative expenses 1,110 1,102 2,270 2,253 Total operating lease expense $ 1,463 $ 1,692 $ 2,939 $ 3,551 Operating lease expenses from variable and short-term lease costs $ 349 $ 210 $ 722 $ 517 Operating cash outflows from operating leases $ 1,437 $ 1,570 $ 2,865 $ 3,315 Operating lease right-of-use assets obtained in exchange for lease obligations $ 3,637 $ 9 $ 3,899 $ 9 The weighted average remaining lease liability term and the weighted average discount rate were as follows: June 30, 2025 December 31, 2024 Weighted average lease liability term (in years) 4.7 4.6 Weighted average discount rate 6.02 % 5.45 % The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheets at June 30, 2025. The reconciliation excludes short-term leases that are not recorded in our consolidated balance sheets. (In thousands) June 30, 2025 2025 (remaining 6 months) $ 2,224 2026 3,925 2027 3,185 2028 1,530 2029 716 Thereafter 2,167 Total lease payments 13,747 Less: imputed interest ( 1,876 ) Total lease liabilities $ 11,871 At June 30, 2025, we did not have any operating leases that had not yet commenced. 15 Table of Contents UNIVERSAL ELECTRONICS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2025 (Unaudited) Note 8 — Lines of Credit U.S. Line of Credit On December 16, 2024, we executed an amendment to our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association, which provides for a revolving line of credit ("U.S. Credit Line") through April 30, 2026. We expect to renew the U.S. Credit Line prior to its expiration; however, no assurance can be given that future financing will be available or, if available, that we will be offered terms satisfactory to us. The U.S. Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. The U.S. Credit Line has a maximum availability up to $ 75.0 million, subject to meeting certain financial conditions, including an accounts receivable coverage ratio ("AR Ratio"). This AR Ratio is calculated monthly and adjusts the current U.S. Credit Line total avai

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