KVH Industries Reports Second Quarter 2025 Results
KVH Industries (NASDAQ:KVHI) reported Q2 2025 financial results, showing mixed performance amid business transformation. Total revenues reached $26.6 million, up 5% quarter-over-quarter but down 7% year-over-year. The company achieved net income of $0.9 million ($0.05 per share), compared to a net loss of $2.4 million in Q2 2024.
Key highlights include airtime revenue of $21.1 million (up 5% QoQ), sale of 50 Enterprise Center generating $4.9 million in net cash, and maritime airtime subscribers growing 8% sequentially to over 8,000 vessels. The company is successfully transitioning from GEO-based services to LEO-focused operations, with LEO services now representing over 30% of airtime services sales, up from less than 10% year-over-year.
KVH Industries (NASDAQ:KVHI) ha comunicato i risultati finanziari del secondo trimestre 2025, evidenziando una performance mista durante la trasformazione aziendale. I ricavi totali hanno raggiunto 26,6 milioni di dollari, in aumento del 5% rispetto al trimestre precedente ma in calo del 7% rispetto all'anno precedente. L'azienda ha registrato un utile netto di 0,9 milioni di dollari (0,05 dollari per azione), rispetto a una perdita netta di 2,4 milioni di dollari nel secondo trimestre 2024.
I punti salienti includono un ricavo da airtime di 21,1 milioni di dollari (in crescita del 5% trimestre su trimestre), la vendita di 50 Enterprise Center che ha generato 4,9 milioni di dollari in liquidità netta, e un aumento dell'8% sequenziale degli abbonati airtime marittimi, che superano ora le 8.000 imbarcazioni. L'azienda sta con successo passando da servizi basati su GEO a operazioni focalizzate su LEO, con i servizi LEO che rappresentano ora oltre il 30% delle vendite di servizi airtime, rispetto a meno del 10% dell'anno precedente.
KVH Industries (NASDAQ:KVHI) informó los resultados financieros del segundo trimestre de 2025, mostrando un desempeño mixto en medio de una transformación empresarial. Los ingresos totales alcanzaron los 26,6 millones de dólares, un aumento del 5% trimestre a trimestre pero una disminución del 7% interanual. La compañía logró un ingreso neto de 0,9 millones de dólares (0,05 dólares por acción), en comparación con una pérdida neta de 2,4 millones en el segundo trimestre de 2024.
Los aspectos destacados incluyen un ingreso por airtime de 21,1 millones de dólares (aumento del 5% trimestre a trimestre), la venta de 50 Enterprise Center que generó 4,9 millones de dólares en efectivo neto, y un crecimiento secuencial del 8% en suscriptores de airtime marítimo, superando ahora las 8.000 embarcaciones. La empresa está realizando con éxito la transición de servicios basados en GEO a operaciones centradas en LEO, con los servicios LEO representando ahora más del 30% de las ventas de servicios de airtime, frente a menos del 10% interanual.
KVH Industries (NASDAQ:KVHI)는 사업 전환 과정에서 혼재된 성과를 보이며 2025년 2분기 재무 결과를 발표했습니다. 총 매출은 2,660만 달러로 전 분기 대비 5% 증가했지만 전년 동기 대비 7% 감소했습니다. 회사는 90만 달러 순이익(주당 0.05달러)을 기록했으며, 이는 2024년 2분기의 240만 달러 순손실과 비교됩니다.
주요 내용으로는 2,110만 달러의 항공 시간 매출(전 분기 대비 5% 증가), 50개의 Enterprise Center 판매로 490만 달러의 순현금 창출, 그리고 해상 항공 시간 가입자가 전 분기 대비 8% 증가하여 8,000척 이상의 선박을 확보한 점이 있습니다. 회사는 GEO 기반 서비스에서 LEO 중심 운영으로 성공적으로 전환 중이며, LEO 서비스는 항공 시간 서비스 매출의 30% 이상을 차지하며 전년 대비 10% 미만에서 크게 증가했습니다.
KVH Industries (NASDAQ:KVHI) a publié ses résultats financiers du deuxième trimestre 2025, affichant une performance mitigée en pleine transformation de l'entreprise. Le chiffre d'affaires total a atteint 26,6 millions de dollars, en hausse de 5 % par rapport au trimestre précédent mais en baisse de 7 % par rapport à l'année précédente. La société a réalisé un bénéfice net de 0,9 million de dollars (0,05 dollar par action), contre une perte nette de 2,4 millions au deuxième trimestre 2024.
Les points clés incluent un chiffre d'affaires airtime de 21,1 millions de dollars (en hausse de 5 % d'un trimestre à l'autre), la vente de 50 Enterprise Center générant 4,9 millions de dollars de trésorerie nette, et une croissance séquentielle de 8 % des abonnés airtime maritime, dépassant désormais les 8 000 navires. L'entreprise réussit sa transition des services basés sur GEO vers des opérations centrées sur LEO, les services LEO représentant désormais plus de 30 % des ventes de services airtime, contre moins de 10 % l'année précédente.
KVH Industries (NASDAQ:KVHI) meldete die Finanzergebnisse für das zweite Quartal 2025 und zeigte dabei eine gemischte Performance im Zuge der Unternehmensumstellung. Die Gesamterlöse erreichten 26,6 Millionen US-Dollar, was einem Anstieg von 5 % gegenüber dem Vorquartal, aber einem Rückgang von 7 % gegenüber dem Vorjahr entspricht. Das Unternehmen erzielte einen Nettoertrag von 0,9 Millionen US-Dollar (0,05 US-Dollar je Aktie), verglichen mit einem Nettoverlust von 2,4 Millionen US-Dollar im zweiten Quartal 2024.
Zu den wichtigsten Highlights zählen Luftzeit-Umsätze von 21,1 Millionen US-Dollar (plus 5 % gegenüber dem Vorquartal), der Verkauf von 50 Enterprise Centern, der 4,9 Millionen US-Dollar Nettogeld einbrachte, sowie ein sequentielles Wachstum der maritimen Luftzeit-Abonnenten um 8 % auf über 8.000 Schiffe. Das Unternehmen vollzieht erfolgreich den Übergang von GEO-basierten Diensten zu LEO-fokussierten Operationen, wobei LEO-Dienste nun über 30 % der Luftzeit-Service-Umsätze ausmachen, gegenüber weniger als 10 % im Vorjahresvergleich.
- None.
- Total revenue declined 7% YoY to $26.6 million
- Product revenues decreased 11% YoY to $3.6 million
- U.S. Coast Guard contract downgrade reduced airtime revenue by $2.5 million
- Service revenues decreased by $1.6 million YoY
- Facing increased competition from low-cost alternatives in global leisure segment
Insights
KVH shows signs of business model transition with sequential revenue growth despite year-over-year declines as LEO services expand while legacy GEO business contracts.
KVH Industries has reached what appears to be an inflection point in its strategic transition from a GEO-satellite hardware provider to a multi-orbit LEO-focused service company. The Q2 2025 results paint a mixed picture – while revenues declined
The key highlight is KVH's shift toward LEO satellite services, which now represent over
Financially, KVH returned to profitability with net income of
The company has made significant operational adjustments, with operating expenses decreasing by
The subscriber metrics reveal promising momentum – maritime airtime subscribers grew
MIDDLETOWN, R.I., Aug. 07, 2025 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), reported financial results for the quarter ended June 30, 2025 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 2025 Highlights
- Total revenues in the second quarter of 2025 increased
$1.2 million , or5% , to$26.6 million from$25.4 million in the first quarter of 2025. Total revenues decreased by7% in the second quarter of 2025 from$28.7 million in the second quarter of 2024, due to the downgrade of the U.S. Coast Guard contract in the third quarter of 2024 and the ongoing customer transition to low earth orbit (“LEO”) satellite services.
- Airtime revenue increased
$1.0 million , or5% , to$21.1 million in the second quarter of 2025 from$20.0 million in the first quarter of 2025. Airtime revenue decreased$1.9 million , or8% , in the second quarter of 2025 compared to the second quarter of 2024. The U.S. Coast Guard contract downgrade reduced airtime revenue by$2.5 million year-over-year.
- We completed the sale of 50 Enterprise Center in June 2025, resulting in a gain of
$1.3 million and net cash of$4.9 million .
- Net income in the second quarter of 2025 was
$0.9 million , or$0.05 per share, compared to a net loss of$2.4 million , or$0.12 per share, in the second quarter of 2024.
- Non-GAAP adjusted EBITDA (which excludes the gain on the sale of 50 Enterprise Center) was
$2.7 million in the second quarter of 2025, compared to$2.6 million in the second quarter of 2024.
Commenting on the company’s second quarter results, Brent C. Bruun, KVH’s Chief Executive Officer, said, “Our second quarter results reflect our ongoing efforts to transform our business model and operations despite challenging industry conditions. Compared to the first quarter of this year, revenues were up
“By delivering on our strategic initiatives, we believe we have also reached an inflection point in our transition from a GEO-based hardware and services company to a multi-orbit, LEO-focused service provider. For the first time, the increase in our LEO revenue from the immediately preceding quarter more than offset the decline in revenue from our legacy GEO-based VSAT business. Simultaneously, our maritime airtime subscribers grew by
Financial Highlights - (in millions, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| GAAP Results | ||||||||||||||||
| Revenue | $ | 26.6 | $ | 28.7 | $ | 52.0 | $ | 57.9 | ||||||||
| Loss from operations | $ | (0.4 | ) | $ | (2.9 | ) | $ | (2.6 | ) | $ | (6.7 | ) | ||||
| Net income (loss) | $ | 0.9 | $ | (2.4 | ) | $ | (0.8 | ) | $ | (5.5 | ) | |||||
| Net income (loss) per share | $ | 0.05 | $ | (0.12 | ) | $ | (0.04 | ) | $ | (0.29 | ) | |||||
| Non-GAAP Adjusted EBITDA | $ | 2.7 | $ | 2.6 | $ | 3.7 | $ | 4.6 | ||||||||
Second Quarter Financial Summary
Revenue was
Service revenues for the second quarter were
Product revenues for the second quarter were
Our operating expenses decreased by
Six Months Ended June 30 Financial Summary
Revenue was
Service revenues for the six months ended June 30, 2025 were
Product revenues for the six months ended June 30, 2025 were
Our operating expenses decreased
Other Recent Announcement
- May 7, 2025 – KVH Launches CommBox Edge Secure Suite for Advanced Cybersecurity Threat Detection & Response
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 ir@kvh.com. 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, gains on sales of real estate and other fixed assets, 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, transaction-related and other variable legal and advisory fees, irregular inventory write-downs, excess purchase order obligations, 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 Middletown, 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, anticipated cost savings, our investment plans, our development goals, and the potential impact of our future initiatives on revenue, competitive positioning, profitability, and orders. 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 reducing demand for geosynchronous satellite services, including ours; the impact of lower revenue from the U.S. Coast Guard; potentially lower product and service margins from reseller arrangements; the risk that sales of Starlink terminals will slow down or decrease; potential hardware and software competition for our new CommBox product offerings; 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; the 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 our OpenNet program will lead 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; contingencies and termination rights applicable to pending and future property and asset sales; 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 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; 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 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, 2025. 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.
| KVH INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Sales: | ||||||||||||||||
| Service | $ | 23,049 | $ | 24,674 | $ | 44,691 | $ | 49,712 | ||||||||
| Product | 3,574 | 3,999 | 7,346 | 8,228 | ||||||||||||
| Net sales | 26,623 | 28,673 | 52,037 | 57,940 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Costs of service sales | 14,210 | 15,469 | 28,445 | 29,513 | ||||||||||||
| Costs of product sales | 3,277 | 4,299 | 7,017 | 9,607 | ||||||||||||
| Research and development | 916 | 2,326 | 2,103 | 5,364 | ||||||||||||
| Sales, marketing and support | 5,010 | 5,334 | 9,970 | 10,718 | ||||||||||||
| General and administrative | 3,580 | 4,134 | 7,115 | 9,425 | ||||||||||||
| Total costs and expenses | 26,993 | 31,562 | 54,650 | 64,627 | ||||||||||||
| Loss from operations | (370 | ) | (2,889 | ) | (2,613 | ) | (6,687 | ) | ||||||||
| Interest income | 579 | 876 | 1,146 | 1,787 | ||||||||||||
| Other income (expense), net | 826 | (366 | ) | 817 | (564 | ) | ||||||||||
| Income (loss) before income tax expense (benefit) | 1,035 | (2,379 | ) | (650 | ) | (5,464 | ) | |||||||||
| Income tax expense (benefit) | 105 | (3 | ) | 130 | 75 | |||||||||||
| Net income (loss) | $ | 930 | $ | (2,376 | ) | $ | (780 | ) | $ | (5,539 | ) | |||||
| Net income (loss) per common share | ||||||||||||||||
| Basic | $ | 0.05 | $ | (0.12 | ) | $ | (0.04 | ) | $ | (0.29 | ) | |||||
| Diluted | $ | 0.05 | $ | (0.12 | ) | $ | (0.04 | ) | $ | (0.29 | ) | |||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 19,401 | 19,381 | 19,446 | 19,333 | ||||||||||||
| Diluted | 19,441 | 19,381 | 19,446 | 19,333 | ||||||||||||
| KVH INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, unaudited) | ||||||
| June 30, 2025 | December 31, 2024 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 55,931 | $ | 50,572 | ||
| Accounts receivable, net | 25,350 | 21,624 | ||||
| Inventories, net | 20,258 | 22,953 | ||||
| Prepaid expenses and other current assets | 13,627 | 16,016 | ||||
| Current assets held for sale | 7,833 | 11,410 | ||||
| Total current assets | 122,999 | 122,575 | ||||
| Property and equipment, net | 24,071 | 27,014 | ||||
| Intangible assets, net | 636 | 828 | ||||
| Right of use assets | 1,275 | 1,361 | ||||
| Other non-current assets | 2,919 | 3,146 | ||||
| Deferred income tax asset | 141 | 157 | ||||
| Total assets | $ | 152,041 | $ | 155,081 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Accounts payable and accrued expenses | $ | 10,982 | 14,173 | |||
| Deferred revenue | 1,459 | 1,039 | ||||
| Current operating lease liability | 651 | 660 | ||||
| Total current liabilities | 13,092 | 15,872 | ||||
| Long-term operating lease liability | 562 | 569 | ||||
| Deferred income tax liability | 3 | 15 | ||||
| Stockholders’ equity | 138,384 | 138,625 | ||||
| Total liabilities and stockholders’ equity | $ | 152,041 | $ | 155,081 | ||
| KVH INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND NON-GAAP ADJUSTED EBITDA (in thousands, unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income (loss) - GAAP | $ | 930 | $ | (2,376 | ) | $ | (780 | ) | $ | (5,539 | ) | |||||
| Income tax expense (benefit) | 105 | (3 | ) | 130 | 75 | |||||||||||
| Interest income, net | (579 | ) | (876 | ) | (1,146 | ) | (1,787 | ) | ||||||||
| Depreciation and amortization | 2,606 | 3,738 | 5,494 | 6,985 | ||||||||||||
| Non-GAAP EBITDA | 3,062 | 483 | 3,698 | (266 | ) | |||||||||||
| Stock-based compensation expense | 434 | 722 | 771 | 1,244 | ||||||||||||
| Long-lived assets impairment charge | — | — | — | — | ||||||||||||
| Disposal of a discontinued project | 287 | — | 287 | — | ||||||||||||
| Loss on an unfavorable future contract | 12 | — | 12 | — | ||||||||||||
| Employee termination and other variable costs | 26 | 1,183 | 29 | 3,360 | ||||||||||||
| Prior period tax settlement | — | — | — | — | ||||||||||||
| Transaction-related and other variable legal and advisory fees | 66 | — | 66 | — | ||||||||||||
| Irregular inventory write-down | — | — | — | — | ||||||||||||
| Excess purchase order obligations | — | — | — | — | ||||||||||||
| Gain on sale of fixed assets, including real estate | (1,330 | ) | — | (1,330 | ) | — | ||||||||||
| Loss on sale of a subsidiary | — | — | — | — | ||||||||||||
| Foreign exchange transaction loss | 101 | 248 | 132 | 269 | ||||||||||||
| Non-GAAP adjusted EBITDA | $ | 2,658 | $ | 2,636 | $ | 3,665 | $ | 4,607 | ||||||||
| Contact: | KVH Industries, Inc. Chris Watson 401-845-2441 IR@kvh.com |
FAQ
What were KVH Industries' (KVHI) Q2 2025 earnings per share?
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What percentage of KVHI's airtime services sales came from LEO services in Q2 2025?
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How did the U.S. Coast Guard contract downgrade affect KVHI's revenue?
