KVH Industries (KVHI) investor relations material

Executive summary

• Revenue for Q1 2026 rose 27% year-over-year to $32.3 million, driven by strong LEO service sales and a 10% increase in product sales, with record shipments of 3,100 connectivity units and a 70% increase over the previous high, especially in leisure and fishing sectors.

• Net income reached $0.6 million ($0.03 per share), reversing a net loss of $1.7 million in Q1 2025, reflecting improved operating performance and cost management.

• Subscriber base grew to approximately 9,600 vessels, up 7% from the prior quarter and 30% year-over-year, reflecting continued adoption of solutions.

• The company is executing a staged wind-down of manufacturing operations, aiming to cease most manufacturing by end of 2026 and focus on integrated communications solutions.

• Significant investments were made in Starlink Global Priority data, with $21 million paid through February 2026 and further payments scheduled through Q1 2027.

Financial highlights

• Service revenue increased 30% year-over-year to $28.2 million, with LEO services representing over 45% of airtime revenue, up from less than 30% a year ago.

• Product revenue grew 10% year-over-year to $4.2 million, led by OneWeb and Starlink hardware.

• Adjusted EBITDA was $2.8 million, down from $3.1 million in Q4 2025 but up from $1.0 million in Q1 2025.

• Operating expenses were $9.7 million, down from $10.5 million in Q4 2025 and flat year-over-year.

• Cash and cash equivalents totaled $59.2 million at quarter-end, with working capital of $101.7 million.

Outlook and guidance

• Management expects continued growth in LEO service sales and subscriber activations in Q2, supported by record unit shipments and ongoing transition away from VSAT.

• Incremental costs for expansion in India and Latin America are included in current guidance.

• Sufficient liquidity is projected for at least the next twelve months, supported by strong cash reserves and working capital.

• No significant changes expected in margin profile for GEO capacity contracts.

• Forward-looking statements caution about heightened competition, cost pressures, and risks from supply chain and market volatility.