KVH Industries (KVHI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $26.6 million, down 7% year-over-year but up sequentially, with LEO revenue growth offsetting legacy VSAT declines and subscriber base surpassing 8,000 vessels.

• Net income reached $0.9 million, reversing a $2.4 million loss in Q2 2024, aided by cost reductions and a $1.3 million gain from a property sale.

• Adjusted EBITDA rose to $2.7 million, a $1.7 million increase over Q1 2025.

• The company is transitioning to a multi-orbit, LEO-focused service provider, winding down manufacturing by end of 2026, and focusing on third-party hardware.

• Workforce was reduced by 20% in 2024, incurring $3.9 million in severance charges.

Financial highlights

• Q2 2025 net sales: $26.6 million (down 7% YoY); net income: $0.9 million; adjusted EBITDA: $2.7 million.

• Airtime gross margin increased to 35.8% from 31.5% in the prior quarter; excluding depreciation, it was 46.4%.

• Operating expenses were $9.5 million, down 2% sequentially and 15% year-over-year.

• Cash and cash equivalents at June 30, 2025: $55.9 million, up $7.3 million from the start of the quarter.

• Product gross profit was $0.3 million, up from break-even in Q1.

Outlook and guidance

• 2025 revenue guidance updated to $107 million–$114 million and adjusted EBITDA to $8 million–$12 million.

• Management expects sufficient liquidity for at least 12 months, with ongoing cost control and transition to third-party hardware.

• CapEx expected to decrease in the second half of the year after a spike due to a large OneWeb fleet rollout.

• Gross profit margins expected to remain strong, offsetting slightly lower ARPUs.

• Anticipates continued competitive pressure from LEO entrants and further declines in VSAT-related revenues.