KVHI

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Chief Financial Officer - Anthony Pike Chief Executive Officer - Brent Bruun Operator: Good day and thank you for standing by. Welcome to the Q2 2026 KVH Industries, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Anthony Pike, Chief Financial Officer. Please go ahead. Anthony Pike: Thank you, operator. Good morning, everyone, and thank you for joining us today for KVH Industries' second quarter results, which are included in the earnings release we published earlier this morning. Joining me on the call is the company's Chief Executive Officer, Brent Bruun. A copy of the earnings release was filed with the SEC under Form 8-K this morning, and a copy of the release, along with a recording of today's call, will be available on our website at ir.kvh.com. This conference call contains certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in these statements. Words such as expect, may, intend, anticipate, will and similar expressions identify forward-looking statements which include projections, plans, initiatives and other future events. We undertake no obligation to update these statements, and you should review the cautionary statements in our most recently filed Form 10-K under the heading Risk Factors. We will also discuss adjusted EBITDA, a non-GAAP financial measure, and our press release defines this term and reconciles it to GAAP net income or loss. Brent? Brent Bruun: Good morning, everyone, and thank you for joining us. Over the last two quarterly calls, I have spoken about the momentum behind our transition to LEO-based connectivity. I'm pleased to say the momentum has continued through the second quarter, and our results demonstrate that we are executing well against our strategy. We are seeing strong demand for our solutions, continued growth in our recurring revenue base, and encouraging progress across several of our strategic initiatives. Total revenue for the second quarter was $33.7 million, an increase of $1.4 million, or 4%, sequentially from the first quarter, and up 27% from a year ago. Service revenue reached $29.7 million, increasing 6% sequentially and 29% year over year. This growth reflects the continued expansion of our subscriber base and reinforces the strength of a recurring revenue model. During the quarter, we shipped approximately 2,500 communication terminals. While below the record shipment level we achieved in the first quarter, this represents another quarter of strong demand and continues to support future subscriber growth. We ended the quarter with approximately 10,700 subscribing vessels, adding more than 1,000 net vessels during the quarter. That trend reflects the value customers see in our approach. Growth in LEO service sales driven by Starlink remains our fastest growing segment. Not every company in our space has navigated the shift successfully. We have, and the results show it. One of the most significant developments this quarter was the introduction of our new multi-network service plans. These plans give customers flexibility to subscribe to a block of data delivered across Starlink, OneWeb, or VSAT, depending on their needs. This is a key milestone in simplifying connectivity for our customers while giving them greater flexibility to take advantage of multiple satellite networks. Our Link content platform continues to expand. The new Link streaming service is now undergoing beta trials, and we expect to launch it very soon. This next phase expands the value of the platform by delivering streamed entertainment content that further enhances crew welfare and the onboard experience. Turning to our managed IT service offering, we're making progress converting early customer evaluations into ongoing commercial relationships. And we expect to see this reflected in our recurring revenue stream over the coming months. While still early, we're encouraged by the direction of these conversions, and we look to expand our role beyond connectivity and deliver broader technology solutions for our customers. In parallel, our land-based Starlink initiative continues to expand. We ended the quarter with approximately 1,600 sites, an increase of approximately 500 during the quarter. It's further evidence of the demand of our managed connectivity solutions beyond the maritime market and broadens our recurring revenue business model. Geographic expansion remains a priority. During the quarter, we strengthened our presence in Latin America by adding a dedicated regional sales leader and expanded our team in Athens, Greece, further enhancing our ability to support customers across Europe and surrounding markets. We also broadened our market reach by opening our first retail location in Fort Lauderdale. Alongside Starlink, the location offers a broad portfolio of communications equipment, including handheld devices and other connectivity solutions. It gives us a new channel to serve both commercial and recreational maritime customers while expanding our presence in an important maritime hub. So what did we do in the second quarter? continued revenue growth, approximately 10,700 subscribing vessels, the successful introduction of multi-network service plans, Link streaming entered beta trials, our first cybersecurity pilot engagements, solid growth in our land-based Starlink initiative, continued investment in our global footprint, and the opening of our first retail location. The transformation of KVH continues to gain momentum. We remain focused on disciplined execution, delivering innovative solutions for our customers, expanding our recurring revenue base and building long-term value as the communications market continues to transition to LEO-enabled connectivity. Thank you. And with that, I'll turn it over to Anthony. Anthony Pike: Thank you, Brent. So with respect to our second quarter financial results, service gross profit was $10.6 million, which is an increase of $0.8 million from the first quarter. Service gross margin was 36%, which was up slightly from 35% in the prior quarter. Airtime depreciation expense, which is a non-cash charge, represented 7% of service revenue in both the second and first quarters, which impacted these gross margins. As Brent mentioned, total subscribing vessels at the end of Q2 were approximately 10,700, which is up 11% from the prior quarter. The Q2 operating expenses totaled $10.4 million compared to operating expenses of $9.7 million in the prior quarter. This increase was in line with expectations and included $0.2 million in severance costs related to individuals who left the business at the end of the second quarter. Our adjusted EBITDA for the quarter was $3.0 million, and capital expenditure for the quarter was $1.3 million. Of the $1.3 million in capital expenditures during the quarter, we would note the following items as either temporary in nature or non-cash: $0.4 million related to our ongoing ERP project and the fit-out of our new US headquarters, which is now complete. The ERP project will be completed by the end of the year. And $0.2 million related to non-cash expenditure on VSAT antennas using our Agile rental program, where the inventory has already been purchased in prior periods. This adjusted EBITDA and capital expenditure compares to $2.8 million and $2.6 million in the first quarter of 2026, respectively. Our ending cash balance of $57.7 million was down approximately $1.4 million from the beginning of the quarter. This was primarily driven by $2.3 million in stock repurchases. Giving effect to repurchases made subsequent to quarter end, we expect to conclude our full $15 million authorization within the current month. As a result, the program will then be complete. So overall, we are pleased with the second quarter's performance. As Brent stated, service revenue continues to grow and was up 6% compared to the first quarter of 2026 and 29% from the same quarter last year. We had another strong quarter for connectivity antenna shipments with over 2,500 units shipped, and subscribing connectivity vessels were up 11% quarter on quarter compared to a 7% increase in the first quarter. On a year-to-date basis, subscribing connectivity vessels have grown by 18%. We hope to build on this strong momentum in the second half of the year and remain very positive about the future. This concludes our prepared remarks, and I will now turn the call over to the operator to open the line for the Q&A portion of this morning's call. Operator? Operator: [Operator Instructions] Our first question comes from the line of Caleb Henry of Quilty Space. Your line is now open. Caleb Henry: First one is just on terminal shipments, the 2,500 I think versus 3,100 in the first quarter. Can you talk a little bit about what is driving the ups and downs there and what you see for the next couple quarters? Brent Bruun: Caleb, as I indicated last quarter, the 3,100 was really a high watermark, we felt. Potentially, we'll match that or beat that at some point, but we realized at the time that, that was a bit higher than what we expected. I think in the realm where we see now, which is about 2,500, we should be able to do somewhere in the 2,000 to 3,000 range on a go-forward basis, but that's hard to say as market dynamics are shifting constantly. Caleb Henry: Okay, thank you. And then I noticed in the earnings statement, it seemed like a little bit more discussion of OneWeb. I'm curious if you're seeing any customer patterns between who chooses Starlink, who chooses OneWeb, and then also who chooses VSAT, if there's any segmentation there or things that are noteworthy. Brent Bruun: Yes, in regards to who chooses what, Starlink is definitely the dominating force as far as connectivity. Customers are still looking for redundancy of network. In particular cases, customers are looking for an alternative to Starlink, which would then be OneWeb. Many of our vessels have 2 or more communication solutions on board. We have customers that actually have all 3 on board, Starlink, OneWeb, and VSAT. We're still shipping VSATs, primarily in tandem with either a OneWeb or Starlink, and in some cases, a OneWeb will be paired with a Starlink as well. So I don't know, Anthony, do you have any more color to add there? Anthony Pike: No, I think you covered it. Thanks, Brent. Caleb Henry: Okay. And for the GEO VSAT terminals or for vehicles that have decided to discontinue using that service, do those VSATs tend to stay on the vessel or are they typically going silent -- sorry, are they being removed? Brent Bruun: Well, if they own it, I'm not sure what they're doing with it, if you're leaving it on board. If it's in Agile, our rental program, they're required to de-install it and ship it back to us. Caleb Henry: Okay. And then last question from me. As far as GEO capacity that has been already procured, can you give us a sense of the timeline for where that rolls off and if it has any material impact on gross margins going forward? Brent Bruun: Well, the GEO capacity, we're in constant contact with SES. Previously, our arrangement was with -- our contract obligations were with Intelsat. We still have thousands of VSAT terminals in the market. So I wouldn't necessarily say there's an immediate roll-off of VSAT capacity. And we're just working with the provider to keep the service going as long as customers have a demand for it. Operator: Our next question comes from the line of Chris Quilty of Quilty Space. Your line is now open. Christopher Quilty: Just a follow-up on that last question. I didn't hear a change in the gross margin outlook. So presumably, the balancing of VSAT service revenues, which I think you noted this time was down substantially in the quarter. So that sounds like, you know, more than in the past, but you've been able to balance the cost with the revenue. Brent Bruun: Yes. We have been able to balance costs with revenue. As we enter 2027, we'll be able to further balance that cost, if you will. And we don't really anticipate any exposure in regard to VSAT obligations in regard to being mismatched with the revenue stream. Anthony... Anthony Pike: I'm sorry, the only thing I would add, Chris, is that from our 10-K, you can see that predominantly our commitment on the GEO bandwidth comes to an end at the end of this year. We have a small commitment for next year. And then, you know, on top of that, we've included in the press release, or if not it'd be in the 8-K later, that 55% of our revenue on the airtime now is driven from LEO. So obviously, if LEO becomes a bigger and bigger portion of that overall revenue, then it kind of de-risks a little bit in terms of the impact on the overall margin as a result of the compressed GEO margins. So you know, as Brent says, we feel fairly comfortable going forward. Christopher Quilty: Great. And CommBox, did you give the number of units shipped or how is that trending? Brent Bruun: Well, it's trending up. I'll defer to Anthony as far as unit shipments, and I don't believe we did disclose it. Anthony Pike: No, we haven't. But we've had pretty much 6, 7 quarters now, consistent number of shipments in the region of sort of 200 to 300 a quarter. Christopher Quilty: Got you. And how do we think about, I mean, you talked about managed services associated with that. I mean, how large of a revenue bundle would you generate from a vessel? Like, is this a material contributor or is it most of the profit on the hardware sale? Brent Bruun: Yes. It's definitely the most, the profit would be on the recurring revenue. As far as the size of the opportunity, it really depends on the end customer and what their requirements are, but we would anticipate as we further roll out our IT managed services and using the CommBox Edge as the backbone to increase our ARPUs. I wouldn't say significantly, but a nice uptick. I'd put it that way. Christopher Quilty: Great. Final question. I guess several months ago, Starlink closed their reseller channel. Can you talk about what impact, if any, that's had on your business? Brent Bruun: They closed their reseller channel for what they refer to as local priority, which is basically for brown water and land-based applications. They have not closed their reseller program for global priority, which is the bulk of our business with Starlink. Christopher Quilty: Great. And I know there's been both new products and new pricing plans that Starlink has come out with. Have those impacted the business in any way? Brent Bruun: Not at this point. Christopher Quilty: Good luck going forward. Brent Bruun: All right. Thank you, Chris. Anthony Pike: Thanks, Chris. Operator: Thank you. I am showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Kvh Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kvh Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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Shares of KVH Industries, Inc. KVHI have lost 21.9% since the company reported its earnings for the quarter ended June 30, 2026, against the S&P 500 Index’s 0.3% gain over the same period. Over the past month, KVHI shares have plunged 14.3%, while the S&P 500 has gained 2.9%. KVH Industries reported second-quarter 2026 revenues of $33.7 million, up 26.7% from $26.6 million a year earlier. Net income fell to $0.2 million, or $0.01 per share, from $0.9 million, or $0.05 per share, in the prior-year quarter. Service revenues increased 28.9% to $29.7 million from $23 million, while product revenues rose 12.3% to $4 million from $3.6 million. KVHI operates as a single reportable segment. Airtime revenues increased 31% year over year, driven by higher Starlink and OneWeb subscribers, while LEO service growth was partly offset by lower VSAT service sales. KVH Industries ended the quarter with approximately 10,700 subscribing vessels, up 11% sequentially after adding more than 1,000 net vessels. The company shipped approximately 2,500 communications terminals during the quarter. Land-based Starlink installations reached approximately 1,600 sites, increasing by about 500 during the quarter. Service gross profit was $10.6 million, while service gross margin was 36%, slightly above 35% in the first quarter. Adjusted EBITDA increased 13.8% to $3 million from $2.7 million a year earlier. KVH Industries, Inc. price-consensus-eps-surprise-chart | KVH Industries, Inc. Quote CEO Brent Bruun said that the company continued to gain momentum in its transition toward LEO-based connectivity, citing recurring revenue growth and subscriber expansion. KVH Industries introduced multi-network service plans allowing customers to use data across Starlink, OneWeb or VSAT. Its Link streaming service entered beta trials, while early managed IT evaluations were being converted into commercial relationships. KVHI also expanded its Latin American sales presence, added personnel in Athens and opened its first retail location in Fort Lauderdale. The revenue increase primarily reflected a $6.6 million rise in airtime service sales. LEO services represented more than 55% of airtime service sales, up from less than 32% a year earlier. Product growth reflected increases of $0.7 million in Starlink sales and $0.3 million in OneWeb sales, partly offset by declines in TracVision and VSAT Broadband products. Profitability faced cost pressure. Total cost of sales increased 33.8% to $23.4 million, faster than revenue growth. Product costs reached 107.2% of product sales compared with 91.7% a year ago, reflecting higher manufacturing and other unabsorbed expenses. Operating expenses increased to $10.4 million from $9.5 million, including higher salaries, professional fees and bad-debt expense. Net income also faced an unfavorable year-over-year comparison because second-quarter 2025 results included a $1.3 million gain from the sale of the 50 Enterprise Center property. Management did not provide formal revenue or earnings guidance. Bruun said that quarterly communications-terminal shipments could generally run between 2,000 and 3,000, while cautioning that market dynamics remain fluid. Management expects the Link streaming service to launch soon and managed IT conversions to contribute to recurring revenues over the coming months. KVH Industries also expects most of its GEO bandwidth commitment to expire at the end of 2026, with only a small commitment remaining in 2027. KVHI purchased subscriber relationships in May 2026, contributing to $0.6 million of intangible assets acquired during the first half. The acquired relationships are being amortized over 10 years. Separately, KVH Industries continues its staged manufacturing wind-down and expects to cease substantially all manufacturing activity by the end of 2026 as it shifts toward multi-orbit, multi-channel communications solutions and third-party hardware. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KVH Industries, Inc. (KVHI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance growth was primarily driven by the continued transition to LEO-based connectivity, with service revenue increasing 29% year-over-year. Management reported 11% sequential growth in subscribing vessels, driven by the value customers see in the company's approach and strong demand for Starlink-driven LEO service sales. The introduction of multi-network service plans is a strategic milestone designed to simplify connectivity by allowing customers to use data across different satellite networks based on specific needs. Operational focus is shifting toward higher-value managed IT services and cybersecurity to expand the company's role beyond basic connectivity. Geographic expansion in Latin America and Europe, alongside a new retail presence in Fort Lauderdale, is intended to capture both commercial and recreational maritime demand. The land-based Starlink initiative grew to approximately 1,600 sites, demonstrating successful diversification of the recurring revenue model beyond the maritime sector. Management expects terminal shipments to stabilize in the range of 2,000 to 3,000 units per quarter, acknowledging the previous quarter's 3,100 units as a high watermark. The new Link streaming service is currently in beta trials with a full commercial launch expected in the near term to enhance crew welfare offerings. Recurring revenue is expected to benefit in coming months from the conversion of early managed IT service evaluations into commercial contracts. The company anticipates concluding its $15 million stock repurchase authorization within the current month. Management expects to complete the ongoing ERP project by the end of the year, while the headquarters fit-out is already complete. Service gross margins were impacted by airtime depreciation, a non-cash charge representing 7% of service revenue. Operating expenses included $0.2 million in severance costs related to staff departures at the end of the second quarter. The company is actively managing the roll-off of GEO capacity obligations, with major commitments ending in late 2026 to align costs with declining VSAT revenue. LEO-driven airtime now accounts for 55% of total airtime revenue, significantly de-risking the margin profile as legacy GEO contracts expire. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management characterized the previous record of 3,100 shipments as an outlier and expects a normalized range of 2,000 to 3,000 units. Future shipment volumes remain difficult to predict precisely due to constantly shifting market dynamics. Starlink is currently the dominant force in connectivity, but customers frequently maintain two or more solutions for redundancy. VSAT terminals are now primarily shipped in tandem with LEO solutions rather than as standalone primary systems. Management clarified that Starlink only closed the reseller channel for 'local priority' (land and brown water) applications. The 'global priority' reseller program, which constitutes the bulk of KVH's Starlink business, remains unaffected. CommBox shipments have remained consistent at approximately 200 to 300 units per quarter for the last several quarters. The primary value lies in recurring revenue rather than hardware margins, with managed IT services expected to provide a 'nice uptick' in ARPU.

Interested in KVH Industries, Inc.? Here are five stocks we like better. Revenue and subscribers grew strongly: Second-quarter revenue rose 27% year over year to $33.7 million, while service revenue increased 29% to $29.7 million. KVH added more than 1,000 net subscribing vessels, ending the quarter with approximately 10,700. KVH expanded its LEO connectivity strategy: The company launched multi-network plans spanning Starlink, OneWeb and VSAT, began beta trials of its Link streaming service, and grew its land-based Starlink business to about 1,600 sites. LEO services represented 55% of airtime revenue. Profitability improved while cash funded buybacks: Service gross margin increased to 36% and adjusted EBITDA rose to $3 million, despite higher operating expenses. Cash ended at $57.7 million after $2.3 million in share repurchases, with the company expecting to complete its $15 million repurchase authorization during the current month. KVH Industries (NASDAQ:KVHI) reported second-quarter revenue growth as demand for low-Earth-orbit, or LEO, connectivity services continued to expand, supported by subscriber additions, Starlink-related sales and new multi-network offerings. Total revenue reached $33.7 million in the second quarter, up $1.4 million, or 4%, from the first quarter and 27% from the prior-year period. Service revenue was $29.7 million, rising 6% sequentially and 29% year over year. → 3 Drone Stocks That Should Soar After the Summer Slump Chief Executive Officer Brent Bruun said the results reflected continued progress in the company’s transition toward LEO-based connectivity. “We are seeing strong demand for our solutions, continued growth in our recurring revenue base, and encouraging progress across several of our strategic initiatives,” Bruun said. KVH shipped approximately 2,500 communication terminals during the quarter, below the record 3,100 terminals shipped in the first quarter but still representing strong demand, according to management. The company ended the quarter with about 10,700 subscribing vessels, adding more than 1,000 net vessels during the period. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Chief Financial Officer Anthony Pike said subscribing vessels increased 11% from the prior quarter, compared with 7% growth in the first quarter. Year to date, subscribing connectivity vessels have increased 18%. During the question-and-answer session, Bruun said the company expects quarterly terminal shipments generally to range between 2,000 and 3,000 units, though he cautioned that market conditions remain subject to change. → Jersey Mike's Serves Fresh Gains After IPO Stumble Starlink remains the dominant connectivity choice among customers, Bruun said, though vessel operators continue to seek network redundancy. Some vessels use combinations of Starlink, OneWeb and VSAT services, while KVH continues to ship VSAT terminals primarily alongside Starlink or OneWeb equipment. During the quarter, KVH introduced multi-network service plans that allow customers to purchase blocks of data that can be delivered through Starlink, OneWeb or VSAT networks. Bruun described the offering as a step toward simplifying connectivity management while giving customers more flexibility across satellite networks. The company’s Link streaming service entered beta trials during the quarter and is expected to launch soon, according to Bruun. The service is intended to add streamed entertainment content to KVH’s Link Content platform and support crew welfare and onboard experiences. KVH also said it is converting early managed IT service evaluations into commercial customer relationships. Bruun said the company expects those conversions to begin contributing to recurring revenue in the coming months. The company is using its CommBox Edge platform as part of the managed-services offering and expects the service to provide what Bruun described as “a nice uptick” in average revenue per user over time. The company’s land-based Starlink initiative grew to approximately 1,600 sites at quarter end, an increase of about 500 sites during the quarter. KVH said the growth expands its managed-connectivity business beyond maritime markets. KVH also added a regional sales leader in Latin America, expanded its Athens, Greece team and opened its first retail location in Fort Lauderdale. The new location sells Starlink and other communications equipment, including handheld devices, and serves commercial and recreational maritime customers. Service gross profit was $10.6 million, up $0.8 million from the first quarter. Service gross margin increased to 36% from 35% in the prior quarter. Pike said non-cash airtime depreciation expense represented 7% of service revenue in both the first and second quarters. Operating expenses totaled $10.4 million, compared with $9.7 million in the first quarter. The increase included $200,000 in severance costs related to employees who left the business at the end of the second quarter. Adjusted EBITDA was $3 million, compared with $2.8 million in the first quarter. Capital expenditures were $1.3 million, down from $2.6 million in the prior quarter. Of second-quarter capital expenditures, $400,000 related to an enterprise resource planning project and the fit-out of KVH’s new U.S. headquarters, which management said is complete. The ERP project is expected to be completed by year-end. KVH ended the quarter with $57.7 million in cash, down approximately $1.4 million from the beginning of the quarter. Pike said the decline was primarily due to $2.3 million in stock repurchases. Including repurchases completed after quarter end, the company expects to complete its full $15 million share repurchase authorization during the current month. Management said it does not expect a material mismatch between its legacy GEO VSAT capacity obligations and related revenue. Pike said that, based on disclosures in the company’s annual report, most GEO bandwidth commitments end at the close of 2026, with a smaller commitment remaining for 2027. LEO services accounted for 55% of the company’s airtime revenue, Pike said, which he said reduces the overall effect of lower GEO margins as LEO becomes a larger portion of the business. Bruun said Starlink’s closure of its reseller channel for “local priority” service, used for brown-water and land-based applications, has not affected the bulk of KVH’s Starlink business because the company primarily serves the “global priority” category. He also said recent Starlink product and pricing changes have not affected KVH’s business so far. KVH Industries, Inc develops and manufactures mobile connectivity, inertial navigation, and stabilization systems for maritime, land mobile and defense markets. Its Satellite Communications Group delivers a range of mobile VSAT and broadband systems under the TracPhone and TracNet brands, offering high-speed data, voice and TV programming for commercial and leisure vessels. The company pairs its hardware offerings with the OneCare global network and service platform, providing 24/7 support and coverage across major satellite constellations. The Inertial Systems Group at KVH produces fiber-optic and hemispherical resonator gyros, inertial measurement units (IMUs) and related inertial navigation products for aerospace, unmanned platforms and precision stabilization applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "KVH Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

BRISTOL, R.I., Aug. 06, 2026 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), reported financial results for the quarter ended June 30, 2026 today. The company will hold a conference call to discuss these results at 9:00 a.m. ET today, which can be accessed at investors.kvh.com. Following the call, a replay of the webcast will be available through the company’s website. Second Quarter 2026 Highlights Total revenues in the second quarter of 2026 increased sequentially from the first quarter of 2026 by $1.4 million, or 4%, to $33.7 million. Total revenues increased by 27% in the second quarter of 2026 from $26.6 million in the second quarter of 2025, due to a $6.7 million increase in service sales and a $0.4 million increase in product sales. Service revenue increased sequentially from the first quarter of 2026 by $1.6 million, or 6%, to $29.7 million in the second quarter of 2026. Service revenue increased by $6.7 million, or 29%, in the second quarter of 2026 compared to the second quarter of 2025. Airtime revenue increased $1.4 million, or 5%, to $27.8 million in the second quarter of 2026 from $26.4 million in the first quarter of 2026. Airtime revenue increased $6.6 million, or 31%, in the second quarter of 2026 compared to the second quarter of 2025. The increase in airtime revenue was primarily due to an increase in subscribers for both Starlink and OneWeb. Net income in the second quarter of 2026 was $0.2 million, or $0.01 per share, compared to a net income of $0.9 million, or $0.05 per share, in the second quarter of 2025. Non-GAAP adjusted EBITDA was $3.0 million in the second quarter of 2026, compared to $2.7 million in the second quarter of 2025. Commenting on the company’s second quarter results, Brent C. Bruun, KVH’s Chief Executive Officer, said, “Our second quarter results reflected the strength of our strategy—accelerating growth in LEO services, driven by Starlink, as we continue to outpace much of our industry through this transition. We are seeing growth in recurring service revenue, expansion of our subscriber base, and meaningful progress on strategic initiatives, including our new bundled multi-network service offerings. We remain focused on delivering innovative connectivity solutions for our customers while creating long-term value for our shareholders.” Second Quarter Financial Summary Revenue was $33.7 million for the second quarter of 2026, an increase of 27% compared to $26.6 million in the second quarter of 2025. Service revenues for the second quarter were $29.7 million, an increase of $6.7 million compared to the second quarter of 2025. The increase in service sales was primarily due to a $6.6 million increase in our airtime service sales, which reflected a substantial increase in LEO service sales driven by an increase in subscribers for both Starlink and OneWeb. This increase in LEO service sales was partially offset by a substantial decrease in VSAT service sales, which was driven primarily by a decrease in VSAT subscribers. For the three months ended June 30, 2026, LEO service sales represented over 55% of airtime service sales, as compared to less than 32% for the three months ended June 30, 2025. The increase in LEO service sales as a percentage of total airtime sales resulted from both the substantial increase in LEO service sales and the substantial decrease in VSAT service sales. Product revenues for the second quarter were $4.0 million, an increase of 12% compared to the second quarter of 2025. The increase in product sales was primarily due to a $0.7 million increase in Starlink product sales and a $0.3 million increase in OneWeb product sales, partially offset by a $0.5 million decrease in TracVision product sales and a $0.2 million decrease in VSAT Broadband product sales. Competition from low-cost alternatives to VSAT, which include streaming capabilities, has had a significant impact on sales of our TracVision products. Our operating expenses increased $0.9 million to $10.4 million for the second quarter of 2026, compared to $9.5 million in the second quarter of 2025. The increase was primarily due to a $0.4 million increase in salaries, benefits and taxes, a $0.3 million increase in professional fees, a $0.3 million increase in bad debt expense, a $0.1 million increase in amortization expense and a $0.1 million increase in computer expenses, partially offset by a $0.3 million decrease in warranty expense and a $0.1 million decrease in facilities expenses. Six Months Ended June 30 Financial Summary Revenue was $66.0 million for the six months ended June 30, 2026, an increase of 27% compared to $52.0 million for the six months ended June 30, 2025. Service revenues for the six months ended June 30, 2026 were $57.9 million, an increase of 29% compared to the six months ended June 30, 2025. The increase in service sales was primarily due to an overall $12.7 million increase in our airtime service sales, which reflected a substantial increase in LEO service sales driven by an increase in subscribers for both Starlink and OneWeb, and a substantial decrease in VSAT subscribers. For the six months ended June 30, 2026, LEO service sales represented over 50% of airtime service sales, as compared to less than 30% for the six months ended June 30, 2025. The increase in LEO service sales as a percentage of total airtime sales resulted from both a substantial increase in LEO service sales and a substantial decrease in VSAT service sales. Competing LEO service providers have continued to expand their product and service offerings, further heightening competition in the global leisure segment and in commercial and government markets. Product revenues for the six months ended June 30, 2026 were $8.2 million, an increase of 11% compared to the six months ended June 30, 2025. The increase in product sales was primarily due to a $1.0 million increase in Starlink product sales, a $0.9 million increase in OneWeb product sales, and a $0.4 million increase in accessory and service parts product sales, partially offset by a $1.0 million decrease in TracVision product sales and a $0.5 million decrease in VSAT Broadband product sales. Competition from low-cost alternatives to VSAT, which include streaming capabilities, has had a significant impact on sales of our TracVision products. Our operating expenses increased $0.9 million to $20.1 million in the six months ended June 30, 2026, compared to $19.2 million in the six months ended June 30, 2025. This increase was primarily due to a $0.5 million increase in salaries, benefits and taxes, a $0.3 million increase in computer expenses, a $0.2 million increase in professional fees, a $0.2 million increase in bad debt expense and a $0.2 million increase in amortization expense, partially offset by a $0.4 million decrease in warranty expense and a $0.2 million decrease in dues and subscriptions. Conference Call Details KVH Industries will host a conference call today at 9:00 a.m. ET through the company’s website. The conference call can be accessed at investors.kvh.com and listeners are welcome to submit questions pertaining to the earnings release and conference call to [email protected]. The audio archive will be available on the company website within three hours of the completion of the call. Non-GAAP Financial Measures This release provides non-GAAP financial information as a supplement to our condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (“GAAP”). Management uses these non-GAAP financial measures internally in analyzing financial results to assess operational performance. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The non-GAAP financial measures used in this press release adjust for specified items that can be highly variable or difficult to predict. Management generally uses these non-GAAP financial measures to facilitate financial and operational decision-making, including evaluation of our historical operating results and comparison to competitors’ operating results. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting our business. Some limitations of non-GAAP adjusted EBITDA include the following: non-GAAP adjusted EBITDA represents net income (loss) before, as applicable, interest income, net, income tax expense (benefit), depreciation, amortization, stock-based compensation expense, goodwill impairment charges, long-lived assets impairment charges, charges for disposal of discontinued projects, loss on unfavorable future contracts, employee termination and other variable costs, executive separation costs, prior period tax settlements, transaction-related and other variable legal and advisory fees, certain inventory write-downs, excess purchase order obligations, gains on sales of real estate and other fixed assets, gains and losses on sale of subsidiaries, and foreign exchange transaction gains and losses. Other companies, including companies in KVH’s industry, may calculate these non-GAAP financial measures differently or not at all, which will reduce their usefulness as a comparative measure. Because non-GAAP financial measures exclude the effect of items that increase or decrease our reported results of operations, management strongly encourages investors to review our consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release. About KVH Industries, Inc. KVH Industries, Inc. is a global leader in maritime and mobile connectivity delivered via the KVH ONE network. The company, founded in 1982, is based in Bristol, RI, with more than a dozen offices around the globe. KVH provides connectivity solutions for commercial maritime, leisure marine, military/government, and land mobile applications on vessels and vehicles, including the TracNet, TracPhone, and TracVision product lines, the KVH ONE OpenNet Program for non-KVH antennas, AgilePlans Connectivity as a Service (CaaS), and the KVH Link crew wellbeing content service. This press release contains forward-looking statements that involve risks and uncertainties. For example, forward-looking statements include statements regarding projected financial results, the anticipated benefits of our restructuring and other initiatives, demand for LEO-enabled connectivity, anticipated cost savings, our investment plans, our development goals, and the potential impact of our future initiatives on revenue, competitive positioning, profitability, and orders. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Actual results could differ materially from the results projected in or implied by the forward-looking statements made in this press release. Factors that might cause these differences include, but are not limited to: continued increasing competition, particularly from lower-cost providers, low earth orbit satellite systems and other telecommunications systems, especially in the global leisure market, which is significantly reducing demand for geosynchronous satellite services, including ours; generally lower product and service margins from reseller arrangements; increased financial dependence on reseller arrangements with a small number of airtime providers; the risk that sales of Starlink and OneWeb terminals will continue to slow down, decrease or become less profitable; the risk that we will be unable to consume the prepaid block of Starlink Mobile Priority data within the contract period, requiring us to expense the unused portion; potential hardware and software competition for our new CommBox product offerings; potential additional significant charges for excess and obsolete inventory; potential modification or discontinuation of customer and vendor contracts recently acquired from a third-party satellite service provider, which could result in material charges for impairment of acquired intangible assets; unanticipated obstacles to implementation of our manufacturing wind-down; unanticipated costs and expenses arising from the wind-down; unanticipated effects of the wind-down on our ongoing business; risks associated with the relocation of our operations, including potential disruptions; potential increases in LEO airtime expenses; potential reductions in gross margins arising from minimum purchase obligations to vendors in excess of our needs; risks associated with increased customer reliance on third-party hardware; the lack of future product differentiation; new service offerings from hardware providers; potential customer delays in selecting our services; the uncertain impact of continuing industry consolidation; the risk that companies that supply us with satellite network capacity, including Starlink, may vertically integrate, sell directly to end customers, expand their reseller networks or otherwise compete with us, or may cease providing capacity to us or do so on less favorable terms; the risk that our OpenNet program is leading to further reductions in sales of our satellite products; the risk that our current and future non-exclusive arrangements with Starlink and OneWeb will not provide material benefits; uncertainty regarding customer responses to new product and service introductions; challenges and potential additional expenses in retaining our employees, particularly in the current competitive labor market characterized by rising wages; the challenges of meeting customer expectations with a smaller employee base; uncertainties created by our new business strategy, which may impact customer recruitment and retention; the uncertain impact of ongoing disruptions in our supply chain and associated increases in our costs; the uncertain impact of inflation, particularly with respect to fuel costs, and fears of recession; potentially higher interest rates driven by increased government borrowing; the uncertain impact of the wars in Ukraine and the Middle East (including Iran) and international tensions in Asia, including the impact of dramatic shifts in U.S. geopolitical priorities; unanticipated changes or disruptions in our markets; technological breakthroughs by competitors; changes in customer priorities or preferences; increasing customer terminations; unanticipated liabilities, charges and write-offs; potential losses or expenses arising from cybersecurity breaches; the potential that competitors will design around or invalidate our intellectual property rights; a history of losses; continued fluctuations in quarterly results; the uncertain impact of recent and ongoing dramatic changes in both U.S. and foreign trade policy, including actual and potential new or higher tariffs and trade barriers, as well as trade wars with other countries; potentially inflationary impacts of tariffs and budget deficits; unanticipated obstacles in our product and service development, cost engineering and manufacturing efforts; adverse impacts of currency fluctuations, including potential further weakening of the U.S. dollar; our ability to successfully commercialize our new initiatives without unanticipated additional expenses or delays; reduced sales to companies in or dependent upon the turbulent oil and gas industry; the impact of extended economic weakness on the sale and use of marine vessels and recreational vehicles; continued challenges of maintaining our market share in the market for airtime services; the risk that declining sales of the TracNet H-series and TracPhone V-HTS series products and related services will continue to reduce airtime gross margins; the risk that reduced product sales will continue to erode product gross margins and lead to increased losses; potential continuing declines or changes in customer demand, due to economic, weather-related, seasonal, and other factors, particularly with respect to the TracNet H-series and TracPhone V-HTS series; exposure for potential intellectual property infringement; changes in tax and accounting requirements or assessments; and export restrictions, delays in procuring export licenses, and other international risks. These and other factors are discussed in more detail in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 10, 2026, as they may be updated by subsequently filed Quarterly Reports on Form 10-Q. Copies are available through our Investor Relations department and website, investors.kvh.com. We do not assume any obligation to update our forward-looking statements to reflect new information and developments. KVH Industries, Inc., has used, registered, or applied to register its trademarks in the USA and other countries around the world, including but not limited to the following marks: KVH, KVH ONE, TracPhone, TracVision, AgilePlans, CommBox, and TracNet. Other trademarks are the property of their respective companies.

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Record connectivity unit shipments of approximately 3,100 units were driven by seasonal preparation in leisure and fishing sectors and increased affordability of Starlink hardware. The company is successfully navigating a structural shift to Low Earth Orbit (LEO) services, which now represent over 45% of airtime revenue compared to less than 30% a year ago. Management attributes the decline in stand-alone VSAT subscribers to an ongoing industry-wide shift toward LEO services, though they continue to view VSAT as a key component of their broader multi-orbit offering. Strategic expansion into managed IT and crew welfare content (Link platform) is designed to evolve the company from a connectivity provider to a comprehensive maritime solutions partner. Geographic growth efforts are focused on India and Latin America, where the company is positioning itself to capture demand for both legacy VSAT and emerging LEO services. Service revenue remained flat sequentially due to typical seasonal patterns, including suspended vessels during the first quarter. Record Q1 shipments are expected to serve as a leading indicator for increased subscriber activations starting in the second quarter. The company is exploring an additional LEO service provider to further diversify its multi-orbit portfolio and enhance customer flexibility. The planned introduction of live-stream content to the Link platform is intended to increase its value to customers and crew while enhancing crew morale and the onboard experience. Infrastructure investments, including a new ERP system and U.S. headquarters, are on track for completion within 2026. Expansion in India and Latin America will involve incremental headcount and marketing costs, though management states these are already embedded in existing guidance. Cash balance decreased by $10.8 million primarily due to a $16 million bulk data purchase installment paid to Starlink. Operating expenses decreased sequentially following the absence of $0.8 million in nonrecurring acquisition and restructuring costs from the prior quarter. Airtime depreciation continues to impact service gross margins, representing 7% of service revenue in the current quarter. Management noted that while geopolitical conflicts in the Middle East have not yet impacted results, historical trends suggest idle vessels often increase bandwidth usage. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified that while they do not necessarily expect to maintain this specific record rate, the surge was driven by seasonal prep for fishing and leisure fleets and low-data plan sales in Asia-Pac. The typical lag from shipment to service activation remains 60 to 90 days. Management noted that while Starlink and OneWeb licenses are still pending or in trial phases, KVH is actively positioning its VSAT and multi-orbit solutions to capture the market as LEO becomes available. A new paywall feature was introduced to enable point-of-sale purchases, with plans to allow KVH to sell crew bandwidth directly through the application. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Record shipments: KVH shipped about 3,100 connectivity units in Q1 (a ~70% increase over the prior peak) and finished the quarter with roughly 9,600 subscribing vessels, positioning future activations to rise as shipments convert to service. LEO momentum: LEO services made up more than 45% of airtime revenue in Q1 (up from under 30% a year earlier) and are nearly overtaking legacy VSAT, signaling a clear strategic shift to multi‑orbit/LEO offerings. Financial snapshot: Adjusted EBITDA was $2.8M (vs. $3.1M prior quarter) and KVH ended Q1 with $59.2M in cash, down about $10.8M mainly due to $16M in installment payments to Starlink, while service gross margin held near 35%. Interested in KVH Industries, Inc.? Here are five stocks we like better. KVH Industries (NASDAQ:KVHI) reported first-quarter 2026 revenue of $32.3 million, up sequentially from the fourth quarter of 2025, as the company pointed to record connectivity terminal shipments and continued momentum in its transition toward low Earth orbit (LEO) services. Chief Executive Officer Brent Bruun said the “shift to LEO” the company highlighted last quarter “continues to gain traction,” adding that the quarter’s results reflected “sustained demand for our solutions, along with strong execution across the organization.” → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Bruun said the company shipped approximately 3,100 connectivity units during the quarter, which he described as a record level and a 70% increase over the previous high set in the third quarter of 2025. During the Q&A, Bruun confirmed the 3,100 figure and said the prior peak was roughly 1,800 to 1,850 units. Management characterized equipment shipments as a key input to its recurring revenue model. Bruun said the shipments are “the foundation of our recurring revenue model and a leading indicator for future subscriber activations,” and noted the company anticipates activation growth moving into the second quarter. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches KVH ended the quarter with about 9,600 subscribing vessels, which Bruun said reflected “continued adoption” in the maritime market. CFO Anthony Pike added that subscribing connectivity vessels were up 7% quarter-over-quarter and 30% year-over-year. Asked by Quilty Space analyst Chris Quilty whether the shipment level was sustainable and what typically happens between shipment and service start, Bruun said activation generally takes “60 to 90 days,” and he did not expect shipments to remain at the same pace every quarter. He described the quarter as “particularly high” and attributed some of the volume to seasonal factors, including vessels preparing for leisure and fishing seasons. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Bruun said the company is seeing the LEO transition show up clearly in revenue mix. LEO services represented more than 45% of KVH’s airtime revenue in the first quarter, up from less than 30% a year earlier. Pike added that LEO airtime revenue was “very close to overtaking” legacy VSAT airtime revenue “for the first time.” Bruun said KVH’s standalone VSAT subscriber base decreased during the quarter, which he framed as expected given what he called an industry-wide shift toward LEO. He said the company still views VSAT as an important part of its portfolio as customers migrate to its “broader multi-orbit offering.” On geographic expansion, Bruun highlighted growth opportunities in India and Latin America, where KVH is focusing on partnerships and market presence. Quilty asked whether those efforts would require incremental spending, and Bruun said there would be additional costs tied to expanding the sales team and marketing, but “not beyond what we had anticipated this year,” adding that the budget is included in the company’s guidance. Discussing India specifically, Bruun said Starlink had not yet received a full license and that OneWeb was “further along.” He said KVH is focusing on “both VSAT, OneWeb, and Starlink when it’s ready to go.” He also noted Starlink had made its antennas “even more affordable,” while saying OneWeb was not a major driver of the quarter’s shipment surge. Beyond connectivity, Bruun said KVH is working to expand its onboard role with newer offerings. He said the company’s managed IT service is “gaining traction,” with the service being evaluated on a number of vessels. While he described the effort as early-stage, he said feedback has been positive and framed it as a step toward becoming a broader solutions provider. Bruun also discussed progress with KVH’s Link content platform, which he said addresses crew welfare by delivering onboard content intended to improve morale and experience. He said KVH plans to introduce live stream content in the coming months to increase the platform’s value to customers and crew. In response to a question about CommBox, Bruun said KVH recently introduced a paywall designed to enable point-of-sale purchases for customers, depending on customers setting up a payment stream. He added that KVH plans to expand functionality so that “the point-of-sale application” would come to KVH, allowing the company to “sell crew bandwidth directly.” Pike reported service gross profit of $9.8 million, consistent with the prior quarter. Service gross margin was 35%, up slightly from 34% in the fourth quarter. He noted airtime depreciation expense represented 7% of service revenue in the first quarter, compared with 8% in the fourth quarter, and said the non-cash charge affected gross margins. Operating expenses totaled $9.7 million, down from $10.5 million in the prior quarter. Pike said fourth-quarter operating expenses included $0.8 million of non-recurring acquisition transaction costs, along with some restructuring costs. Adjusted EBITDA was $2.8 million, compared with $3.1 million in the fourth quarter of 2025. Capital expenditures were $2.6 million, up from $2.4 million in the prior quarter. Pike said first-quarter capex included: $1.0 million related to KVH’s ongoing ERP project and the fit-out of its new U.S. headquarters, both expected to be completed in 2026 $0.4 million related to non-cash expenditure on VSAT antennas used in the company’s Agile rental program, where inventory had been purchased in prior periods KVH ended the quarter with $59.2 million in cash, down about $10.8 million from the start of the quarter. Pike attributed the decline primarily to $16 million in installment payments to Starlink tied to a bulk purchase of data. Quilty asked whether geopolitical developments, including the situation involving Iran, influenced demand or shipments. Bruun said the shipment surge was not related to Iran and later said KVH was not seeing any meaningful impact from the conflict. He added that if vessels are idle, “they’re still using bandwidth,” and referenced COVID-era patterns where usage increased when crews were stuck onboard for extended periods. Quilty also asked Pike whether anything had changed in KVH’s expectations for the margin profile tied to rolling off GEO capacity commitments. Pike said nothing had changed, describing the decline as steady and more predictable in recent times. Closing prepared remarks, Pike said management was encouraged by the quarter’s performance, pointing to record shipments, subscriber growth, and LEO airtime revenue nearing parity with legacy VSAT as evidence of progress in KVH’s strategy to transition to a LEO-driven maritime satellite communications market. KVH Industries, Inc develops and manufactures mobile connectivity, inertial navigation, and stabilization systems for maritime, land mobile and defense markets. Its Satellite Communications Group delivers a range of mobile VSAT and broadband systems under the TracPhone and TracNet brands, offering high-speed data, voice and TV programming for commercial and leisure vessels. The company pairs its hardware offerings with the OneCare global network and service platform, providing 24/7 support and coverage across major satellite constellations. The Inertial Systems Group at KVH produces fiber-optic and hemispherical resonator gyros, inertial measurement units (IMUs) and related inertial navigation products for aerospace, unmanned platforms and precision stabilization applications. The article "KVH Industries Q1 Earnings Call Highlights" was originally published by MarketBeat.