What guidance did Kvh Industries's management provide for the next earnings period?

Did Kvh Industries beat or miss consensus estimates last quarter?

What were the key takeaways from Kvh Industries's earnings call?

What does Kvh Industries do and what are its main business segments?

What is Kvh Industries's latest dividend and current dividend yield?

What is Kvh Industries's gross profit margin?

What factors drove the changes in Kvh Industries's revenue and profit?

What is the revenue and EPS growth rate for Kvh Industries year over year?

- **Revenue Growth**: Q3 service revenue up 10% QoQ, driven by LEO airtime and 1,600 terminals shipped.
- **Subscriber Surge**: Vessel count up 26% YTD, with Starlink and hybrid installations leading expansion.
- **Strategic Moves**: $7.8M facility sale and 800-vessel acquisition to expand land-based services.
- **Financial Resilience**: Flat OpEx, $1.4M EBITDA, and $72.8M cash despite GEO margin challenges.
- **LEO Momentum**: Record shipments and negotiations for additional Starlink data commitments.

**【Management Opening Remarks】**
- Anthony Pike provided standard disclaimers and introduced the earnings release, emphasizing forward-looking statements and non-GAAP measures.

**【CEO Commentary】**
- **Service Revenue Growth**: Q3 service revenue reached $25.4M, up 10% QoQ and 4% YoY, driven by LEO airtime demand.
- **Subscriber Expansion**: Total subscribing vessels rose 11% QoQ to ~9,000, up 26% YTD, with Starlink and OneWeb hybrid installations leading growth.
- **Terminal Shipments**: 1,600 terminals shipped (new quarterly record), reflecting strong demand for LEO services.
- **Strategic Acquisitions**: Acquired 800 vessels in Asia Pacific, adding 500 net subscribers and expanding land-based services.
- **Starlink Data Pool**: Negotiating additional data commitments to sustain margins and meet subscriber needs.
- **Asset Optimization**: Sold Middletown, RI facility for $7.8M, reducing CapEx and improving cash flow.

**【CFO Financial Commentary】**
- **Airtime Margins**: GEO gross margin declined 3.9% QoQ to 31.9% due to declining revenue against fixed costs; LEO margins remained stable.
- **Product Gross Profit**: Negative $6.8M (vs +$0.3M prior quarter) due to $5.5M VSAT inventory write-down and price reductions.
- **Cost Management**: Flat OpEx at $9.5M, adjusted EBITDA of $1.4M, and cash balance up 27% to $72.8M.
- **CapEx Reduction**: $1.6M Q3 vs $2.4M prior quarter, reflecting disciplined spending.

**【Q&A Highlights】**
- **LEO Demand**: Growth spread across regions, with competitive wins and new installs driven by price/performance of Starlink.
- **Starlink Pricing**: Margins impacted by price reductions; negotiating credits for inventory on hand.
- **OneWeb vs Starlink**: Customers opt for diversity, with hybrid installations combining LEO and VSAT services.
- **Coast Guard Impact**: Minimal Q4 2025 impact as contract expired in Sep '24.
- **CommBox Adoption**: 36% QoQ revenue growth, with cybersecurity features well-received.
- **AWS Entry**: Anticipated market entry; testing needed to assess competitiveness.
- **Acquisition Impact**: 500 net vessels to be added in Q4, expanding land-based SATCOM services.
- **Geopolitical Trends**: No significant impact from tariffs or geopolitical tensions on maritime demand.

KVH Industries, Inc. (KVHI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KVHI

KVHI fundamentals

You can ask Aime