Richard Prati has nearly 40 years of experience in equity research and investing, including close to two decades on Wall Street. He co-founded American Technology Research and successfully exited the firm in 2008. His work focuses on identifying inflection points—when companies transition from concept or skepticism into execution, commercial traction, and durable value creation. Coverage often emphasizes underfollowed businesses, non-promotional management teams, and situations where public market expectati ...

Core Insights - KVH Industries, Inc. (KVHI) is targeting revenue between $130 million and $145 million for 2026, driven by an accelerated strategy focused on Low Earth Orbit (LEO) airtime, subscriber growth, and high-value managed services [2] Management View - President, CEO & Director Brent Bruun emphasized a strategic transformation, indicating that 2025 marked the beginning of a deliberate repositioning of the business towards LEO airtime and managed services [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 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) Delaware 05-0420589 (State or Other ...

Core Insights - KVH Industries reported a full-year service revenue increase of 2% to $98.4 million, with underlying service revenue growth of 11% when excluding non-recurring U.S. Coast Guard revenue of $7.7 million from 2024 [1] - The fourth quarter service revenue reached $28.3 million, a 27% increase from the same quarter in 2024, driven by a significant contract for a second Starlink data pool, representing a 300% increase from the initial pool [2][6] - CEO Brent Bruun emphasized a fundamental transformation in the maritime connectivity market due to low Earth orbit (LEO) constellations, positioning the company's strategy around LEO airtime and managed services [3][4] Financial Performance - Full-year adjusted EBITDA was reported at $8.1 million, with Q4 adjusted EBITDA of $3.1 million; operating costs were reduced by approximately 17% [5][9] - The company provided guidance for 2026, projecting revenue between $100 million and $145 million and adjusted EBITDA between $11 million and $16 million [5][19] - Service gross profit for Q4 was $9.8 million, with a gross margin of 34%, and airtime depreciation expense represented 8% of service revenue [10] Subscriber Growth and Market Expansion - KVH expanded its subscriber base by approximately 2,000 vessels, ending 2025 with over 9,000 subscribed vessels, marking a 28% increase [6][7] - The company surpassed 1,000 CommBox Edge subscribers and integrated over 800 vessels and more than 4,400 land subscribers in the Asia Pacific region [8][6] - The installed base is viewed as a foundation for recurring revenue and additional services [7] Strategic Initiatives - Management is pivoting towards LEO connectivity, with a focus on scaling LEO-driven services and launching a vessel-based managed IT solution [6][19] - The board increased the share repurchase authorization from $10 million to $15 million, indicating confidence in the company's valuation and growth prospects [18] - The company is expected to see a decline in costs related to its legacy network in 2026, with a minimum bandwidth commitment reduction of $7 million compared to 2025 [11]

Financial Data and Key Metrics Changes - In Q4 2025, service revenue increased to $28.3 million, a 27% rise from Q4 2024 [4] - Full-year service revenue grew 2% to $98.4 million, with underlying service revenue increasing by 11% when excluding non-recurring US Coast Guard revenue [4][10] - Adjusted EBITDA for the full year was $8.1 million, with Q4 adjusted EBITDA at $3.1 million, reflecting operational leverage as the business scales [7][12] - Service gross profit was $9.8 million in Q4, up $1.1 million from the prior quarter, maintaining a service gross margin of 34% [10] Business Line Data and Key Metrics Changes - The subscriber base grew by approximately 2,000 vessels, a 28% increase, ending the year with over 9,000 vessels under contract [5][10] - CommBox Edge subscribers surpassed 1,000, which will be integral to the upcoming vessel-based managed IT solution [5] - Operating expenses in Q4 totaled $10.5 million, including $0.9 million in non-recurring costs related to acquisitions and restructuring [11] Market Data and Key Metrics Changes - The maritime connectivity market is shifting from GEO technology to LEO constellations, allowing for high-speed connectivity at sea [3] - KVH contracted for a second Starlink data pool, representing a 300% increase from the initial pool, with an 18-month commitment valued at $45 million [4] Company Strategy and Development Direction - KVH is repositioning its business around LEO airtime, subscriber growth, and high-value managed services, which began to pay off in 2025 [3][4] - The company aims to transition from connectivity to a broader managed service relationship with customers [5] - The board has authorized an increase in the share repurchase program from $10 million to $15 million, reflecting confidence in the company's growth and valuation [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in KVH's direction, citing financial strength, positive cash flow, and no debt as key factors [8] - The guidance for 2026 includes revenue expectations of $100-$145 million and adjusted EBITDA of $11-$16 million [13] Other Important Information - The company completed the integration of a maritime communications customer base in the Asia Pacific region, adding over 800 vessels and more than 4,400 land-based subscribers [6] - Operating costs related to the legacy network are expected to decrease in 2026, improving gross margins [10] Q&A Session Summary Question: Regarding the acquisition, is the $2.5 million a good run rate for the business going forward? - Management confirmed that $2.5 million is a close estimate for the net impact of the acquisition [16] Question: Will the company actively convert the acquired customers to LEO services? - Management stated they will work with the customer base to provide the best available solutions, focusing on LEO services [17] Question: Should similar margin trends be expected with the new data pool? - Management indicated that margins are expected to remain consistent, with a slight impact from the terminal access charge [18][19] Question: Can the product margins maintain break-even, or will it become a loss leader? - Management plans to maintain break-even or slightly better margins, emphasizing that it enables airtime [21]

Financial Data and Key Metrics Changes - In Q4 2025, service revenue increased to $28.3 million, a 27% rise from Q4 2024 [4] - Full year service revenue grew 2% to $98.4 million, with underlying service revenue increasing by 11% when excluding non-recurring U.S. Coast Guard revenue [4][10] - Adjusted EBITDA for the full year was $8.1 million, with Q4 adjusted EBITDA at $3.1 million, reflecting operational leverage [7][12] - Service gross profit was $9.8 million in Q4, up $1.1 million from the prior quarter, with a service gross margin of 34% [10] Business Line Data and Key Metrics Changes - The subscriber base grew by approximately 2,000 vessels, a 28% increase, ending the year with over 9,000 vessels under contract [5] - CommBox Edge subscribers surpassed 1,000, which will be integral to the upcoming managed IT solution [5] - Operating expenses in Q4 totaled $10.5 million, including $0.9 million in non-recurring costs related to acquisitions and restructuring [11] Market Data and Key Metrics Changes - The maritime connectivity market is shifting from GEO to LEO technology, with KVH positioned to lead this transformation [3] - The company contracted for its second Starlink data pool, a 300% increase from the initial pool, representing a $45 million commitment over 18 months [4] Company Strategy and Development Direction - KVH's strategy focuses on LEO airtime, subscriber growth, and high-value managed services, which began to pay off in 2025 [3][4] - The company aims to transition from legacy services to a LEO-driven maritime SatComs market, enhancing its recurring revenue business [13] - The board has authorized an increase in the share repurchase program from $10 million to $15 million, reflecting confidence in the company's valuation [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in KVH's direction, citing financial strength, positive cash flow, and no debt as key factors for future growth [8] - The guidance for 2026 includes revenue expectations of $100-$145 million and adjusted EBITDA of $11-$16 million [13] Other Important Information - The company successfully integrated a maritime communications customer base in the Asia Pacific region, adding over 800 vessels and 4,400 land-based subscribers [6] - Operating costs related to the legacy network are expected to decrease in 2026 due to reduced bandwidth commitments [10] Q&A Session Summary Question: Regarding the acquisition, is the $2.5 million a good run rate for the business going forward? - Management confirmed that $2.5 million is a close estimate for the net impact of the acquisition [16] Question: Will the company actively convert acquired customers to LEO services? - Management stated they will work with the customer base to provide the best available solutions, focusing on LEO services [17] Question: Should similar margin trends be expected with the new data pool? - Management indicated that margins should remain consistent, with a slight impact from a terminal access charge [18][19] Question: Can the company maintain break-even on product margins? - Management aims to maintain break-even or slightly better, as it serves as an enabler for airtime [21]

Financial Data and Key Metrics Changes - In Q4 2025, service revenue increased to $28.3 million, a 27% rise from Q4 2024 [4] - Full-year service revenue grew 2% to $98.4 million, with underlying service revenue increasing by 11% after excluding $7.7 million in non-recurring US Coast Guard revenue [4] - Adjusted EBITDA for the full year was $8.1 million, with Q4 adjusted EBITDA at $3.1 million, reflecting operational leverage as the business scales [6][12] - Service gross profit was $9.8 million in Q4, up $1.1 million from the prior quarter, with a service gross margin of 34% [10] Business Line Data and Key Metrics Changes - The subscriber base grew by approximately 2,000 vessels, a 28% increase, ending the year with over 9,000 vessels under contract [5] - CommBox Edge subscribers surpassed 1,000, which will be integral to the upcoming vessel-based managed IT solution [5] - Operating expenses in Q4 totaled $10.5 million, including $0.9 million in non-recurring costs related to an acquisition and restructuring [11] Market Data and Key Metrics Changes - The maritime connectivity market is shifting from GEO technology to LEO constellations, allowing vessels to access high-speed connectivity [3] - KVH contracted for its second Starlink data pool, a 300% increase from the initial pool, representing a $45 million commitment over 18 months [4] Company Strategy and Development Direction - KVH is repositioning its business around LEO airtime, subscriber growth, and high-value managed services, which began to pay off in 2025 [3] - The company aims to expand its market presence and deliver differentiated high-value services, leveraging its growing subscriber base and new satellite technologies [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in KVH's direction, citing financial strength, positive free cash flow, and no debt as key factors [7] - Guidance for 2026 includes revenue expectations of $100-$145 million and adjusted EBITDA of $11-$16 million [13] Other Important Information - The board authorized an increase in the share repurchase program from $10 million to $15 million as a means to return value to shareholders [8] - The company is focused on transitioning from legacy networks to a LEO-driven maritime SatComs market [13] Q&A Session Summary Question: Regarding the acquisition, is $2.5 million a good run rate for the business going forward? - Management confirmed that $2.5 million is a close estimate for the net impact of the acquisition [15] Question: Will the company actively convert acquired customers to LEO services? - Management stated they will work with the customer base to provide the best available solutions, focusing on LEO services [16] Question: Should similar margin trends be expected with the new data pool? - Management indicated that margins are expected to remain consistent, with a slight impact from a terminal access charge [17][18] Question: Can the product margins maintain break-even, or will it become a loss leader? - Management aims to maintain break-even margins, viewing it as an enabler for airtime [19]

Revenue Performance - Total revenues for Q4 2025 increased by 7% sequentially to $30.5 million, and by 13% year-over-year from $26.9 million in Q4 2024[6] - Service revenues for Q4 2025 were $28.3 million, a 27% increase compared to Q4 2024, driven by a $5.2 million increase in airtime service sales[9] - Full year 2025 revenue was $111.0 million, a decrease of 2% compared to $113.8 million in 2024[12] - Service revenues for 2025 were $98.4 million, a 2% increase year-over-year, primarily due to LEO service sales growth[13] - Net sales for Q4 2025 reached $30,519,000, a 13% increase from $26,917,000 in Q4 2024[27] Service and Product Sales - LEO service sales represented over 45% of airtime service sales in Q4 2025, compared to less than 20% in Q4 2024, reflecting a significant shift in market dynamics[9] - Product revenues for 2025 decreased by 27% to $12.6 million, largely due to declines in Starlink and TracVision product sales[14] - Service sales contributed $28,328,000, up from $22,324,000, reflecting a 27% year-over-year growth[27] - Product sales decreased to $2,191,000 from $4,593,000, a decline of 52% compared to the previous year[27] Profitability and Income - Net income for Q4 2025 was $0.3 million, or $0.02 per share, a recovery from a net loss of $4.3 million, or $0.22 per share, in Q4 2024[6] - The company reported a net income of $331,000 for Q4 2025, a significant improvement from a net loss of $4,310,000 in Q4 2024[27] - Non-GAAP adjusted EBITDA for Q4 2025 was $3.1 million, up from $0.5 million in Q4 2024[6] - Non-GAAP adjusted EBITDA for Q4 2025 was $3,062,000, compared to $512,000 in Q4 2024, indicating a substantial increase[31] Expenses and Cost Management - Operating expenses decreased by $7.9 million to $39.2 million in 2025, primarily due to reductions in salaries and benefits[15] - Total costs and expenses for Q4 2025 were $31,446,000, compared to $30,122,000 in Q4 2024, representing a 4% increase[27] - The company incurred research and development expenses of $385,000 in Q4 2025, down from $1,668,000 in Q4 2024, a reduction of 77%[27] Cash and Equity Position - Cash and cash equivalents increased to $69,910,000 in 2025 from $50,572,000 in 2024, marking a 38% rise[29] - Total assets decreased slightly to $151,500,000 in 2025 from $155,081,000 in 2024[29] - Stockholders' equity decreased to $130,984,000 in 2025 from $138,625,000 in 2024, a decline of 6%[29] Share Repurchase Program - The company authorized an increase in its share repurchase program from $10 million to $15 million, reflecting confidence in its stock valuation[6]

Core Viewpoint - KVH Industries, Inc. reported financial results for Q4 and the full year of 2025, highlighting a transformation in the maritime connectivity market driven by LEO satellite technology and increased competition. The company is positioned to leverage these changes, with significant investments in Starlink and a growing subscriber base for its services [3][4]. Financial Highlights - Q4 2025 revenue was $30.5 million, a 13% increase from $26.9 million in Q4 2024, primarily due to a $6.0 million increase in service sales [5][6]. - Service revenue for Q4 2025 reached $28.3 million, up 27% compared to Q4 2024, driven by a $5.2 million increase in airtime service sales [7]. - Product revenue for Q4 2025 was $2.2 million, a 52% decrease from Q4 2024, attributed to declines in Starlink and VSAT product sales [8]. - The company reported a net income of $0.3 million in Q4 2025, compared to a net loss of $4.3 million in Q4 2024 [5][6]. - For the full year 2025, total revenue was $111.0 million, a 2% decrease from $113.8 million in 2024 [10]. Operational Insights - Operating expenses for Q4 2025 increased slightly to $10.5 million from $10.3 million in Q4 2024, mainly due to higher professional fees related to the acquisition of a maritime satellite service business [9]. - The company’s operating expenses for the full year decreased by $7.9 million to $39.2 million in 2025, primarily due to reductions in salaries and benefits [13]. Strategic Initiatives - KVH has increased its investment in Starlink threefold to meet growing demand and has surpassed 1,000 CommBox Edge subscribers [3]. - The Board of Directors has authorized an increase in the share repurchase program from $10 million to $15 million, indicating confidence in the company's valuation [4]. Market Position - The maritime connectivity market is experiencing a fundamental transformation, with KVH positioned to capitalize on the growth of LEO satellite services, which now represent over 45% of airtime service sales [3][7].

Financial Results Announcement - KVH Industries, Inc. will announce its financial results for the fourth quarter and fiscal year ending December 31, 2025, on March 10, 2026 [1] - The announcement will be followed by an investor conference call at 9:00 a.m. ET, hosted by the CEO and CFO [1] Conference Call Details - A live broadcast of the conference call will be available online at investors.kvh.com [2] - An audio replay of the call will be accessible on the website for at least two weeks after the event [2] - Investors can submit questions during or after the call via email [2] Company Overview - KVH Industries, Inc. is a global leader in maritime and mobile connectivity through the KVH ONE network [3] - The company was founded in 1982 and is headquartered in Middletown, RI, with operations in research, development, and manufacturing [3] - KVH provides connectivity solutions for various sectors, including commercial maritime, leisure marine, military/government, and land mobile applications [3]