KVH (KVHI) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, March 10, 2026 astatine 8:53 AM CDT 10 min read

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March 10, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Brent C. Bruun

• Chief Financial Officer — Anthony Pike

• Operator

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Brent C. Bruun: Good morning, everyone, and convey you for joining us. The maritime connectivity marketplace is undergoing a cardinal transformation, and 2025 was the twelvemonth KVH Industries, Inc. proved it is positioned to pb it. Let maine explicate what I mean. For years, the maritime outer manufacture was built connected GEO technology: reliable, established, but constricted successful velocity and capacity. The accomplishment of LEO constellations changed everything. Vessels that erstwhile relied connected humble bandwidth tin present entree high-speed, always-on connectivity astatine sea. New providers are entering the market, lawsuit expectations are rising, and the addressable accidental is expanding rapidly. KVH Industries, Inc. saw this displacement coming.

We made a deliberate strategical determination to reposition our concern astir LEO airtime, subscriber growth, and high-value managed services. 2025 was the twelvemonth that strategy began to wage off. Here is what we delivered. In the 4th quarter, work gross grew to $28.3 million, a 27% summation from 2024. We contracted for our 2nd Starlink information pool, a 300% summation from our archetypal pool, representing a $45 cardinal 18-month commitment. We made this committedness with confidence. Demand for LEO airtime crossed our lawsuit basal is beardown and growing. And we delivered our strongest adjusted EBITDA 4th of the year. For the afloat year, work gross grew 2% to $98.4 million. That header fig understates the existent momentum successful our business.

Stripping retired the $7.7 cardinal successful U.S. Coast Guard gross that did not reoccur successful 2025, underlying work gross grew 11%, a meaningful reflection of what our halfway maritime connectivity concern looks like. We grew our subscriber basal by astir 2,000 vessels, a 28% increase, ending the twelvemonth with much than 9,000 vessels nether contract. That is simply a important and increasing installed basal that generates recurring gross and creates the level for everything we are building. We surpassed 1,000 CommBox Edge subscribers. CommBox Edge volition beryllium integral to our vessel-based managed IT solution, which we program to present successful the coming weeks.

This is the adjacent section for KVH Industries, Inc., moving beyond connectivity into a broader, higher-value managed work narration with our customers. We besides expanded our planetary footprint, successfully completing the integration of a maritime communications lawsuit basal successful the Asia-Pacific region, adding much than 800 vessels and much than 4,400 land-based subscribers. And we delivered $8.1 cardinal successful adjusted EBITDA for the afloat year, including $3.1 cardinal successful the 4th fourth alone, reflecting the operating leverage we are opening to make arsenic the concern scales. None of this happened by accident. We made deliberate choices: investing successful LEO capacity, increasing our subscriber base, reducing operating costs by 17%, and selling our Middletown installation to fortify our equilibrium sheet.