UTStarcom Sees 17.3% Revenue Drop, Eyes AI Networking Prototype in 2H 2026
UTStarcom reported 2H25 revenue of $4.3 million (-17.3% y/y) with a $4.2 million loss, FY25 revenue of $9.0 million (-17.4%) with an $8.0 million loss, and cash down 20% to $42.4 million. The company is pivoting to AI networking and plans an optical circuit switching prototype due in 2H 2026.
1. Unaudited 2025 Financial Results
UTStarcom’s unaudited second-half 2025 results showed revenue of $4.3 million, down 17.3% year-over-year, with a $4.2 million net loss. Full-year 2025 revenue declined 17.4% to $9.0 million, net loss widened to $8.0 million, and cash balance fell 20% to $42.4 million.
2. Strategic Pivot to AI Networking
Recognizing AI networking as a major growth opportunity, UTStarcom has redirected R&D toward a purely optical circuit switching (OCS) solution for scale-up and scale-out AI data centers. The development began in 2H 2025, with a functional OCS prototype slated for debut in 2H 2026, aiming to lower latency, power consumption and network costs.
3. Carrier and International Orders
In 2H 2025 the company delivered its first China Telecom Research Institute order for 5G transport network routers under a frame agreement and received a European mobile operator order for its NetRing TN704ES. UTStarcom also continued global post-sale support for its NetRing PTN, SyncRing, IMS and SSTP products.