Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 5

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 (benefit)4.0 (8.2)(1.3)(9.5)Income tax expense (benefit)0.4 — 0.2 0.1 Net income (loss)3.6 %(8.2)%(1.5)%(9.6)%

Three months ended June 30, 2025 and 2024 

Net Sales

Our net sales for the three months ended June 30, 2025 and 2024 were as follows: 

ChangeFor the three months ended June 30,2025 vs. 202420252024$%(dollars in thousands)Service$23,049 $24,674 $(1,625)(7)%Product3,574 3,999 (425)(11)%Net sales$26,623 $28,673 $(2,050)(7)%

Net sales decreased by $2.1 million, or 7%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Service sales decreased by $1.6 million, or 7%, to $23.0 million for the three months ended June 30, 2025 from $24.7 million for the three months ended June 30, 2024. The decrease in service sales was primarily due to a $1.9 million decrease in our airtime service sales, which reflected a $2.5 million reduction in sales related to the U.S. Coast Guard contract downgrade in the third quarter of 2024, as well as a decrease in other VSAT subscribers. These decreases in VSAT service sales were partially offset by an increase in LEO service sales. For the three months ended June 30, 2025, LEO services sales represented over 30% of airtime services sales, as compared to less than 10% for the three months ended June 30, 2024. The increase in LEO service sales as a percentage of total airtime sales resulted from both a substantial increase in LEO service sales and a substantial decrease in VSAT service sales. Alternative solutions offered by recent LEO entrants have heightened competition in the global leisure segment and in commercial and government markets.

26

Product sales decreased by $0.4 million, or 11%, to $3.6 million for the three months ended June 30, 2025 from $4.0 million for