KVH Industries Q2 Revenue Jumps 27% on Starlink/OneWeb Surge, but Net Income Slips to $0.2M
KVHI sits 91% above its 52-week low of $5.09.
Summary
KVH Industries reported Q2 2026 revenue of $33.7 million, up 27% year-over-year, driven by surging LEO service adoption from Starlink and OneWeb. Net income fell to $0.2 million from $0.9 million a year ago as higher service costs and operating expenses offset the revenue gains.
Key Events · Earnings and Guidance · KVHI
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Revenue Surges 27% to $33.7M
Total Q2 revenue rose 27% year-over-year to $33.7 million, driven by a 29% jump in service revenue to $29.7 million. Airtime revenue climbed 31% to $27.8 million, fueled by subscriber growth for Starlink and OneWeb LEO services.
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LEO Services Now Majority of Airtime
LEO service sales represented over 55% of airtime revenue in Q2 2026, up from less than 32% a year ago, as VSAT sales declined sharply. This marks a fundamental shift in KVH's connectivity business toward next-generation satellite networks.
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Net Income Drops to $0.2M Despite Revenue Growth
Net income fell to $0.2 million ($0.01 per share) from $0.9 million ($0.05 per share) in Q2 2025, as costs of service sales rose $4.9 million and operating expenses increased $0.9 million. Non-GAAP adjusted EBITDA was $3.0 million, up from $2.7 million.
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Strong Balance Sheet with $57.7M Cash
Cash and equivalents stood at $57.7 million as of June 30, 2026, down from $69.9 million at year-end 2025. The company has a $15 million share repurchase authorization in place.
Analysis · KVHI · Technology
A powerful shift in business mix defines KVH's second quarter — LEO services from Starlink and OneWeb now drive over half of airtime revenue, up from less than a third a year ago. That transition powered 27% total revenue growth, but higher costs of service and operating expenses compressed net income to just $0.2 million from $0.9 million a year earlier. The company is successfully pivoting to next-generation connectivity, yet the margin story is still evolving. With $57.7 million in cash and a $15 million buyback authorization, KVH has the balance sheet to navigate the transition, but investors will watch whether the top-line momentum can translate into sustained profitability.
At the time of this filing, KVHI was trading at $9.71 on NASDAQ in the Technology sector, with a market capitalization of approximately $189.5M. The 52-week trading range was $5.09 to $13.00. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.