KVH Industries Reports Third Quarter 2025 Results

Core Insights - KVH Industries reported strong third-quarter results with a focus on airtime revenue and subscriber growth, achieving record vessel subscriber growth and communication terminal shipments [3][4][5] Financial Performance - Total revenue for Q3 2025 was $28.5 million, a sequential increase of 7% from Q2 2025 but a 2% decrease from $29.0 million in Q3 2024 [5][6] - Service revenue increased by 10% from the prior quarter and 4% year-over-year, reaching $25.4 million, driven by a $0.7 million increase in airtime service sales [4][7] - Product revenue decreased by 33% year-over-year to $3.1 million, primarily due to declines in Starlink, VSAT Broadband, and TracVision product sales [8][12] - The net loss for Q3 2025 was $6.9 million, or $0.36 per share, compared to a net loss of $1.2 million, or $0.06 per share, in Q3 2024 [4][6][30] - Non-GAAP adjusted EBITDA for Q3 2025 was $1.4 million, down from $2.9 million in Q3 2024 [4][30] Subscriber Growth - The total subscribing vessel count increased by a record 11% to approximately 9,000 compared to Q2 2025, marking a 26% increase year-to-date [4][5] - LEO service sales represented over 40% of airtime service sales in Q3 2025, up from less than 15% in Q3 2024, indicating a strategic shift towards low-earth orbit services [7][11] Operating Expenses - Operating expenses decreased by $1.7 million to $9.5 million in Q3 2025 compared to $11.3 million in Q3 2024, attributed to lower professional fees and a reduction in dues and subscriptions [9][13] Recent Developments - The company completed the sale of 75 Enterprise Center in September 2025, generating net cash of $7.8 million [5] - KVH linkHUB Media Server received CREST Cybersecurity Accreditation on September 3, 2025, enhancing its product offerings [15]