UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-28082 KVH Industries, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or ...

KVH Industries (KVHI) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0Thank you for standing by. My name is Roselle, and I will be your operator today. At this time, I would like to welcome everyone to the q two twenty twenty five KVH Industries Inc. Earnings conference call. All lines have been placed on mute to prevent any background noise.After the speaker remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by th ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: KVH Industries, Inc. Chris Watson 401-845-2441 IR@kvh.com KVH Industries Reports Second Quarter 2025 Results MIDDLETOWN, RI, August 7, 2025 — 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 web ...

FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended: March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-28082 KVH Industries, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation o ...

Financial Data and Key Metrics Changes - Revenue for the first quarter declined year over year to $25.4 million, primarily due to lower revenue from VSAT airtime service, including the loss of U.S. Coast Guard revenue [6][12] - Airtime gross margin improved to 31.5% in Q1 from 28.2% in the previous quarter, with adjusted EBITDA for the quarter at $1 million [14][17] - Ending cash balance decreased by approximately $2 million to $48.6 million, driven by movements in working capital [17] Business Line Data and Key Metrics Changes - Subscriber base increased by 5% to over 7,400 subscribing vessels, recovering from the decline experienced in 2023 [8][15] - Quarterly shipments of connectivity terminals exceeded 1,300 units, marking the fifth consecutive record quarter, with significant increases in Starlink terminals [7][10] - Product gross profit was breakeven compared to a positive $300,000 in the prior quarter, with expectations for product margins to remain about breakeven [16] Market Data and Key Metrics Changes - Starlink revenue continued to increase as a percentage of total revenue, with strong demand in both commercial and leisure markets [6][9] - Approximately 30% of Starlink activations in Q1 were hybrid configurations, showcasing the company's ability to deliver multi-orbit managed solutions [9] Company Strategy and Development Direction - The company is transitioning from a GEO-focused business model to a primarily LEO-based mobile connectivity market, with ongoing double-digit annual growth in subscribers [18] - The addition of OneWeb to the product and service portfolio is expected to enhance offerings and market reach [12][13] - The company is closely managing GEO bandwidth commitments, anticipating continued pressure on GEO margins while benefiting from strong LEO margins [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic initiatives, highlighting record-breaking subscriber growth and increased product shipments [13][14] - The company is monitoring tariffs but does not expect them to have a material impact on costs due to prior component purchases [12][13] - Management acknowledged challenges ahead but remains optimistic about the path forward, particularly with the growth of the LEO business [14] Other Important Information - The company is in the process of selling its headquarters and factory facilities, expecting to close the sale of the headquarters before the end of the quarter [12] - Share buybacks were initiated under a program approved by the Board of Directors, with over 30,000 shares purchased at a cost of approximately $163,000 [12][13] Q&A Session Summary Question: Breakdown of LEO margins - The majority of the margin is derived from actual airtime, with strong underlying LEO bandwidth margins [20][21] Question: Optimization of plans for customers - Current plans are well optimized, but changes in pricing and terminal access charges are anticipated [22][23] Question: Concerns about market saturation - The market is significantly larger than before, and saturation is not expected in the foreseeable future [25][26] Question: Expansion beyond maritime applications - The existing sales team is handling land-based applications, with no immediate hiring plans but efforts to identify new service providers [27][28] Question: Coast Guard contract revenue roll-off - Negative variance from the Coast Guard contract is expected through the third quarter, with a smaller impact in the fourth quarter [30][32] Question: Future buyback efforts - The company is continuing to buy back shares, with expectations for a larger number to be disclosed in the next quarter [33]

Financial Data and Key Metrics Changes - Revenue for the first quarter declined year over year to $25.4 million, primarily due to lower revenue from VSAT airtime service, including the loss of U.S. Coast Guard revenue [6][12] - Airtime gross margin increased to 31.5% from 28.2% in the prior quarter, with adjusted EBITDA for the quarter at $1 million [14][17] - Ending cash balance was $48.6 million, down approximately $2 million from the beginning of the quarter [17] Business Line Data and Key Metrics Changes - Subscriber base increased by 5%, reaching over 7,400 subscribing vessels, recovering from the decline experienced in 2023 [8][15] - Quarterly shipments of connectivity terminals exceeded 1,300 units, marking the fifth consecutive record quarter, with significant increases in Starlink terminals [7][10] - Product gross profit was breakeven compared to a positive $300,000 in the prior quarter, with expectations for product margins to remain about breakeven [16] Market Data and Key Metrics Changes - Starlink revenue continued to increase as a percentage of total revenue, driven by strong demand in commercial and leisure markets [6][8] - The company is seeing significant interest in OneWeb terminals, especially outside the U.S. [11][12] Company Strategy and Development Direction - The company is transitioning from a GEO-focused business model to a primarily LEO-based mobile connectivity market, with ongoing double-digit annual growth in subscribers [18] - The launch of the Commvox Edge Secure Suite aims to enhance cybersecurity for vessel communications [10][11] - The company is managing GEO bandwidth commitments carefully, anticipating continued pressure on GEO margins while focusing on strong LEO margins [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic initiatives, highlighting record-breaking subscriber growth and increased product shipments [13][14] - The company is optimistic about generating positive cash flow moving forward, despite challenges in the GEO segment [18] Other Important Information - The company expects to close the sale of its headquarters before the end of the quarter and anticipates the factory sale to close in Q3 [12] - Share buybacks were initiated, with over 30,000 shares purchased at a cost of approximately $163,000 [13] Q&A Session Summary Question: LEO margins breakdown - The majority of the margin comes from actual airtime, with strong underlying LEO bandwidth margins [20][21] Question: Optimization of plans for customers - Current plans are well optimized, but changes in pricing and terminal access charges are expected later this year [22][23] Question: Potential saturation in the maritime market - The market is much larger than before, and saturation is not anticipated in the foreseeable future [25][26] Question: Expansion beyond maritime applications - The existing sales team is handling land-based applications, with no new hires but efforts to identify service providers for land opportunities [27][28] Question: Coast Guard contract revenue roll-off - Negative variance from the Coast Guard contract is expected through the third quarter, with minimal revenue in the fourth quarter [29][32] Question: Future buyback efforts - The company is continuing to buy back shares, with larger numbers expected to be disclosed in the next quarter [33]

Revenue Performance - Total revenues decreased by 13% in Q1 2025 to $25.4 million from $29.3 million in Q1 2024, primarily due to the transition to LEO satellite services and the downgrade of the U.S. Coast Guard contract[7] - Airtime revenue decreased by $3.5 million, or 15%, to $20.0 million in Q1 2025 compared to Q1 2024, with the U.S. Coast Guard contract downgrade accounting for a $2.5 million reduction[7] - Service revenues for Q1 2025 were $21.6 million, a decrease of $3.4 million compared to Q1 2024, primarily due to the decline in airtime service sales[9] - Product revenues for Q1 2025 were $3.8 million, a decrease of 11% compared to Q1 2024, with notable declines in TracVision and accessory sales[10] Profitability and Loss - Net loss in Q1 2025 was $1.7 million, or $0.09 per share, an improvement from a net loss of $3.2 million, or $0.16 per share, in Q1 2024[7] - GAAP net loss improved from $(3,163) thousand in Q1 2024 to $(1,710) thousand in Q1 2025, representing a reduction of about 46%[29] - Non-GAAP adjusted EBITDA was $1.0 million in Q1 2025, down from $2.0 million in Q1 2024[7] - Non-GAAP adjusted EBITDA decreased from $1,971 thousand in Q1 2024 to $1,007 thousand in Q1 2025, a decline of approximately 48.9%[29] Operational Metrics - Subscribing vessels increased by 5% sequentially, with service now delivered to over 7,400 active vessels, marking an all-time high[6] - Quarterly connectivity terminal shipments exceeded 1,300 units, representing the fifth consecutive quarter of record terminal shipments[6] Expenses and Cost Management - Operating expenses decreased by $4.0 million to $9.7 million in Q1 2025 compared to $13.7 million in Q1 2024, driven by a reduction in salaries and benefits[11] - Employee termination and other variable costs significantly decreased from $2,177 thousand in Q1 2024 to $3 thousand in Q1 2025, a reduction of approximately 99.9%[29] Balance Sheet and Financial Position - Total assets decreased from $155,081 million in December 2024 to $151,434 million in March 2025, a decline of approximately 2.1%[27] - Total current liabilities decreased from $15,872 million in December 2024 to $13,057 million in March 2025, a reduction of about 17.7%[27] - Stockholders' equity slightly decreased from $138,625 million in December 2024 to $137,811 million in March 2025, a decline of approximately 0.6%[27] - Accounts receivable increased from $21,624 million in December 2024 to $23,197 million in March 2025, an increase of about 7.3%[27] - Inventories decreased from $22,953 million in December 2024 to $21,982 million in March 2025, a decline of approximately 4.2%[27] - Deferred revenue increased from $1,039 million in December 2024 to $1,806 million in March 2025, an increase of approximately 73.6%[27] Financial Performance Indicators - Interest income improved from $(911) thousand in Q1 2024 to $(567) thousand in Q1 2025, indicating a positive change in financial performance[29] - KVH launched its OneWeb service, providing a second LEO option to customers worldwide, alongside increased shipments of the CommBox Edge Communications Gateway[6]

Core Viewpoint - KVH Industries, Inc. has launched the CommBox™ Edge Secure Suite, a cybersecurity service designed to detect, prevent, and report threats to maritime communications and operations, enhancing the security of vessels and fleets [1][2][3]. Product Features - The Secure Suite actively identifies and blocks harmful traffic in real time, reducing risks to vessel communications and network security [1]. - It is compatible with CommBox Edge 6, Edge 2 belowdeck appliances, and the CommBox Edge virtual machine option, making it a versatile upgrade [1]. - The service includes an Intrusion Prevention System (IPS), active quarantine capabilities, and a cloud-based Threat Dashboard for comprehensive cybersecurity [3][4]. Deployment and Integration - CommBox Edge Secure Suite is designed for rapid, easy, and affordable deployment, maximizing IT resources while optimizing communications [2]. - It supports various wide area network (WAN) options, including VSAT, low earth orbit (LEO) services, and 5G cellular, accommodating up to thirty onboard local area networks [4]. Advanced Technology - The Secure Suite utilizes advanced cybersecurity technology from Cisco Talos and Cisco Snort to monitor and respond to cyber threats in real time [7]. - It captures detailed threat logs for analysis and actionable insights, ensuring compliance with industry standards and enhancing network performance [7]. Company Overview - KVH Industries, Inc. is a global leader in maritime and mobile connectivity, providing solutions for commercial maritime, leisure marine, military/government, and land mobile applications [8]. - The company was founded in 1982 and is headquartered in Middletown, RI, with operations worldwide [8].

Core Insights - KVH Industries reported a revenue of $25.4 million for Q1 2025, a decrease of 13% from $29.3 million in Q1 2024, attributed to the transition to LEO satellite services and a downgrade of the U.S. Coast Guard contract [6][7] - The company experienced a net loss of $1.7 million, or $0.09 per share, an improvement from a net loss of $3.2 million, or $0.16 per share, in the same quarter last year [5][7] - The CEO highlighted a 5% sequential increase in subscribing vessels and a growth in gross profit, indicating effective cost management and positive impacts from strategic initiatives [3][4] Financial Performance - Total revenues decreased by 13% year-over-year to $25.4 million, with airtime revenue down 15% to $20.0 million, largely due to the U.S. Coast Guard contract downgrade [6][7][8] - Service revenues were $21.6 million, down $3.4 million from the previous year, primarily due to a $3.5 million decrease in airtime service sales [8] - Product revenues fell to $3.8 million, an 11% decrease compared to Q1 2024, with declines in TracVision and accessory sales, partially offset by increases in Starlink and CommBox Edge product sales [9] Cost Management - Operating expenses decreased by $4.0 million to $9.7 million compared to Q1 2024, driven by a reduction in salaries, benefits, and taxes [10] - Non-GAAP adjusted EBITDA was $1.0 million for Q1 2025, down from $2.0 million in Q1 2024, reflecting the impact of lower revenues [5][7][26] Business Developments - The company reported record connectivity terminal shipments of over 1,300 units for the fifth consecutive quarter, serving more than 7,400 active vessels [4] - KVH launched its OneWeb service, providing an additional LEO option for customers, alongside the integration of Starlink into its offerings [4]

Company Overview - KVH Industries, Inc. is a global leader in maritime and mobile connectivity, operating through the KVH ONE network [3] - The company was founded in 1982 and is headquartered in Middletown, RI, with research, development, and manufacturing operations also in Middletown and over a dozen offices worldwide [3] - KVH provides connectivity solutions for various sectors including commercial maritime, leisure marine, military/government, and land mobile applications, featuring product lines such as TracNet, TracPhone, and TracVision [3] Financial Results Announcement - KVH Industries will announce its financial results for the first quarter ending March 31, 2025, on May 7, 2025 [1] - An investor conference call will be held at 9:00 a.m. ET, hosted by CEO Brent Bruun and CFO Anthony Pike [1] Investor Engagement - A live broadcast of the conference call will be available online at investors.kvh.com, with an audio replay accessible for at least two weeks post-call [2] - Investors can submit questions during or after the call via email to IR@kvh.com [2]