How did the company's operating expenses, particularly R&D and SG&A, change versus prior quarters?

Operating‑expense trend

UCLOUDLINK’s unaudited Q2‑2025 release shows that total operating expenses rose versus the prior quarter, driven by higher outlays in both research‑development (R&D) and selling‑,‑general‑‑and‑administrative (SG&A) items. The company explicitly notes that R&D spending increased as it expands its mobile‑data‑traffic‑sharing platform and accelerates product‑development initiatives, while SG&A grew modestly as sales‑and‑marketing activities and head‑count expansion continued to support the broader rollout of its marketplace.

Trading implications

The uptick in R&D and SG&A costs compresses the current‑quarter margin, which could temper near‑term earnings momentum despite the top‑line growth the firm is reporting. However, the expense profile is consistent with a growth‑stage play that is still scaling its network and brand reach. If the incremental spend translates into sustained revenue acceleration and market‑share gains, the short‑term margin drag may be acceptable. Traders should therefore monitor the next earnings update for evidence that the expense‑growth curve is flattening (i.e., R&D and SG&A beginning to plateau) while revenue continues to outpace cost. A clear sign of cost‑discipline coupled with top‑line momentum would support a long‑position; persistent margin erosion without commensurate revenue growth could justify a short‑bias or at least a defensive stance until the expense trajectory stabilizes.