KVH Industries Reports Improved Net Loss of $780,000 for First Half of 2025

KVH Industries, Inc. reported a net loss of $780,000 for the six months ended June 30, 2025, a significant improvement compared to a net loss of $5.5 million during the same period in 2024. The company's revenue for the first half of 2025 totaled $52.0 million, down 10% from $57.9 million in the prior year. This decline was primarily driven by a decrease in service sales, which fell to $44.7 million from $49.7 million, largely due to a $4.9 million reduction in airtime service sales linked to a downgrade of a contract with the U.S. Coast Guard. Product sales also decreased by 11%, from $8.2 million to $7.3 million, reflecting competitive pressures and pricing strategies.

In terms of operational efficiency, KVH's total costs and expenses decreased to $54.7 million for the first half of 2025, down from $64.6 million in the previous year. This reduction was attributed to lower costs of service and product sales, which fell by 4% and 27%, respectively. The company reported a loss from operations of $2.6 million, an improvement from a loss of $6.7 million in the prior year. The decrease in operating losses was supported by a reduction in research and development expenses, which dropped significantly from $5.4 million to $2.1 million, as the company streamlined its operations amid changing market conditions.

KVH has been actively restructuring its operations, including a staged wind-down of its manufacturing activities in Middletown, Rhode Island, which is expected to be completed by the end of 2026. This decision was made in response to reduced demand for hardware products and increased competition. The company has also reduced its workforce by approximately 20%, resulting in severance charges of about $3.9 million. Despite these challenges, KVH has expanded its service offerings, including the launch of its KVH ONE hybrid network and the introduction of new terminals for Starlink and OneWeb services.

As of June 30, 2025, KVH reported total assets of $152.0 million, a slight decrease from $155.1 million at the end of 2024. The company maintained a strong cash position with $55.9 million in cash and cash equivalents, up from $50.6 million at the end of the previous year. Looking ahead, KVH anticipates continued challenges in the competitive landscape but remains focused on enhancing its service offerings and transitioning customers to third-party hardware products compatible with its mobile satellite communications services. The company expects to have sufficient funds to meet its working capital requirements for at least the next twelve months, contingent on achieving its anticipated revenue and expense targets.