UTStarcom (UTSI) AI Stock Analysis

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UTStarcom

(NASDAQ:UTSI)

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Rating:42Neutral

Price Target:$2.00▲(4.17% Upside)

Action:upgraded

Date:09/23/26

The overall score is very low, driven primarily by the company's severe financial distress. Core operations are deeply unprofitable and burning cash at an unsustainable rate, which is a critical risk. While the balance sheet has minimal debt, this is outweighed by the rapid destruction of shareholder equity. Technicals offer only a faint short-term positive signal against a bearish long-term trend, and the negative P/E ratio confirms the lack of earnings power.

Positive Factors

Low Balance-Sheet LeverageMinimal debt reduces refinancing and interest-rate exposure, giving UTStarcom greater financial flexibility than a highly levered peer. This capital structure can help preserve strategic options and provide some resilience while management works to restore profitability and stabilize operations.

Negative Factors

Severe UnprofitabilityExtremely negative operating and net margins indicate that current revenue does not cover the cost of delivering products and running the business. Unless margins recover materially, continued losses can erode the equity base, limit reinvestment capacity, and weaken the sustainability of operations.

UTStarcom (UTSI) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $17.47M
Dividend Yield: ―
Average Volume (3M): 11.17K
Price to Earnings (P/E): -1.1
Beta (1Y): 0.81
Revenue Growth: -21.23%
EPS Growth: -52.50%
Country: US
Employees: 206
Sector: Technology
Sector Strength: 61
Industry: Communication Equipment

UTStarcom Business Overview & Revenue Model

Company Description

UTStarcom Holdings Corp. functions as a telecommunications infrastructure provider, specializing in the development of technology to deliver bandwidth for diverse applications like cloud services, mobile communication, and streaming. The company's gl...

UTStarcom Financial Statement Overview

Summary

Financial health is critically weak. The income statement shows deeply negative margins (TTM net margin -104.3%) and declining revenue. Cash flow is severely negative with an unsustainable burn rate (TTM FCF -$16.5M). The only mitigating factor is a low-debt balance sheet, but equity is eroding rapidly.

Income Statement

18Very Negative

Balance Sheet

55Neutral

Cash Flow

12Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.52M	8.98M	10.88M	15.75M	14.03M	15.92M
Gross Profit	743.00K	1.05M	2.91M	4.39M	2.67M	-1.09M
EBITDA	-11.97M	-7.28M	-7.06M	-5.38M	-4.18M	-4.95M
Net Income	-15.14M	-7.95M	-4.37M	-3.85M	-5.00M	-5.83M
Balance Sheet
Total Assets	47.58M	55.91M	68.20M	77.48M	88.92M	108.22M
Cash, Cash Equivalents and Short-Term Investments	29.21M	41.09M	50.90M	49.97M	54.50M	53.80M
Total Debt	572.00K	1.13M	1.59M	2.84M	3.12M	4.91M
Total Liabilities	16.82M	19.41M	22.97M	26.10M	31.56M	39.82M
Stockholders Equity	30.76M	36.50M	45.23M	51.38M	57.36M	68.40M
Cash Flow
Free Cash Flow	-16.52M	-9.24M	-4.62M	-4.73M	7.01M	18.63M
Operating Cash Flow	-15.91M	-8.82M	-4.46M	-4.48M	7.26M	18.98M
Investing Cash Flow	-2.46M	-1.04M	-158.00K	-255.00K	-250.00K	1.75M
Financing Cash Flow	0	0	0	4,000	7,000	0

UTStarcom Technical Analysis

Technical Analysis SentimentNegative

Last Price1.92

Price Trends

50DMA2.23Negative

100DMA2.33Negative

200DMA2.43Negative

Market Momentum

MACD-0.10Positive

RSI33.36Neutral

STOCH28.16Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTSI, the sentiment is Negative. The current price of 1.92 is below the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.23, and below the 200-day MA of 2.43, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 33.36 is Neutral, neither overbought nor oversold. The STOCH value of 28.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UTSI.

UTStarcom Risk Analysis

UTStarcom disclosed 54 risk factors in its most recent earnings report. UTStarcom reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

UTStarcom Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

UTSI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AIRG	48Neutral	$52.46M	-7.49	-22.99%	―	-3.80%	-3.78%
INSG	43Neutral	$74.50M	-10.61	137.34%	―	-3.55%	-51.74%
UTSI	42Neutral	$18.23M	-1.11	-45.03%	―	-21.23%	-52.50%
AMPG	39Underperform	$68.14M	-5.63	-20.04%	―	8.45%	20.97%

* Technology Sector Average

Performance Comparison

UTSI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
UTSI	UTStarcom Holdings	1.92	-0.50	-20.82%
AIRG	Airgain Inc	3.97	-0.04	-1.00%
INSG	Inseego	4.03	-6.81	-62.82%
AMPG	AmpliTech Group	2.25	-0.79	-25.99%
FKWL	Franklin Wireless Corp	1.97	-3.01	-60.44%

UTStarcom Corporate Events

UTStarcom Posts Wider Loss as It Ramps AI Network Push in First Half 2026

Aug 14, 2026

UTStarcom reported unaudited financial results for the first half of 2026 on August 14, 2026, highlighting steep revenue and margin pressure as it navigates a strategic transition toward AI data center networking. Revenue fell 26.1% year on year to $...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 23, 2026

UTStarcom AI Stock Analysis