KVH Industries reported third‑quarter 2025 results, with total revenue of $28.5 million, a 2 % decline from the $29.0 million earned in the same quarter last year. Service revenue rose 10 % sequentially to $25.4 million, while product revenue fell 33 % to $3.1 million. Operating expenses dropped $1.7 million to $9.5 million, and the company posted a net loss of $6.9 million, translating to earnings per share of $‑0.36, a miss of $0.35 against the consensus estimate of $‑0.01.
The jump in service revenue was driven by a sharp increase in LEO‑centric airtime sales, which accounted for more than 40 % of the $25.4 million in service revenue, up from less than 15 % in the same period last year. The shift away from legacy GEO‑based VSAT services is reflected in a decline in VSAT sales, a trend that management attributes to growing competition from low‑cost alternatives that combine satellite and streaming capabilities.
Product revenue decline was largely a result of heavy discounting of Starlink and TracVision terminals, coupled with a $5.5 million inventory write‑down that the company recorded in the quarter. The write‑down was driven by reduced demand for certain hardware models and pricing pressure from competitors offering lower‑cost satellite terminals.
Operating expenses fell as a result of disciplined cost management, but the company still recorded a $1.1 million non‑cash impairment charge that was recognized in the prior year. The net loss of $6.9 million represents a significant swing from the $0.6 million loss reported in Q3 2024, underscoring the impact of the inventory write‑down and the continued transition to a higher‑margin LEO model.
In addition to the earnings report, KVH announced the acquisition of customer and vendor agreements from an Asia‑Pacific satellite services provider for approximately $3.1 million. The deal expands KVH’s distribution footprint in the region and supports the company’s strategy to broaden its maritime satellite communications reach.
Management highlighted the company’s ongoing transformation toward LEO services, noting that the shift is expected to improve margins over time. CEO Brent C. Bruun said the quarter’s results “reflect our ongoing efforts to transform our business model and operations despite challenging industry conditions.” Investors were disappointed by the earnings miss, which was driven by the inventory write‑down, the loss of product revenue, and the significant net loss.
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