Satellite company KVH Q2 revenue down 7% on US Coast Guard contract downgrade
KVH reported a 7% decline in Q2 2025 revenue, attributed to a downgrade in its US Coast Guard contract. However, net income improved to $0.9 million from a $2.4 million loss last year, and adjusted EBITDA exceeded analyst expectations. The company is transitioning to low Earth orbit (LEO) services, which now account for over 30% of airtime sales, and anticipates continued growth in maritime subscribers. Operating expenses were reduced by $2.3 million, mainly due to lower salaries and benefits.
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Overview
- KVH Q2 2025 net income $0.9 mln, up from $2.4 mln loss last year
- Revenue for Q2 2025 fell 7% yr/yr due to Coast Guard contract downgrade
- Adjusted EBITDA beats analyst expectations
Outlook
- KVH sees increased competition from low-cost LEO alternatives
- Company notes LEO services now over 30% of airtime sales
- KVH anticipates continued growth in maritime airtime subscribers
- Company highlights transition to LEO-focused service offerings
Result Drivers
- LEO TRANSITION - KVH’s shift to LEO cservices drove a sequential increase in revenue, offsetting declines in legacy GEO services
- SUBSCRIBER GROWTH - Maritime airtime subscribers grew 8% sequentially, driven by demand for Starlink and OneWeb services
- COST REDUCTION - Operating expenses decreased by $2.3 mln, primarily due to lower salaries and benefits
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q2 EPS $0.05
Q2 Beat $2.70 $2.38
Adjusted mln mln (1
EBITDA Analyst)
Q2 $9.50
Operatin mln
g
Expenses
Press Release: (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
