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KVH Industries (KVHI)
NASDAQ:KVHI
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KVH Industries (KVHI) AI Stock Analysis

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KVHI

KVH Industries

(NASDAQ:KVHI)

Rating:57Neutral
Price Target:
$5.50
▲(2.04% Upside)
KVH Industries' overall stock score is primarily influenced by its financial performance challenges, including negative profitability and cash flow issues. However, technical indicators show moderate bullish momentum, and the earnings call suggests a positive strategic shift towards LEO services, which could improve future prospects.

KVH Industries (KVHI) vs. SPDR S&P 500 ETF (SPY)

KVH Industries Business Overview & Revenue Model

Company DescriptionKVH Industries, Inc. designs, develops, manufactures, and markets mobile connectivity products and services for the marine and land mobile markets in the United States and internationally. The company operates through Mobile Connectivity and Inertial Navigation segments. The company offers mobile satellite TV and communications products; two-way satellite communications systems; onboard TracPhone terminals and hub equipment; data management software; and Iridium OpenPort hardware products and services. It also offers airtime plans that enable customers to obtain Internet and voice services; and value-added, and news and radio content services to retail customers. In addition, the company provides navigation, guidance, and stabilization products for the commercial and defense markets comprising precision fiber optic gyro-based systems; tactical navigation systems for tactical trucks and light armored vehicles; and commercial products, such as navigation and positioning systems for various applications consisting of precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization applications. Further, it offers content, maritime news, sporting content, and television programming delivery services; movie distribution services; and services and support for the mini-VSAT Broadband solution, as well as IoT connectivity as a service. The company sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles; and navigation products directly to the United States and foreign governments, and government contractors, as well as through authorized independent sales representatives. It also sells and leases its products directly to end users. KVH Industries, Inc. was founded in 1978 and is headquartered in Middletown, Rhode Island
How the Company Makes MoneyKVH Industries generates revenue through multiple key streams, primarily by selling its satellite communication systems and related services. The company operates a subscription-based model for its satellite communication services, providing customers with ongoing access to high-speed internet and content delivery at sea. Additionally, KVH earns revenue from the sale of its inertial navigation products, which are essential for a range of applications, including military and commercial maritime operations. Significant partnerships, particularly with satellite service providers and maritime operators, bolster KVH's market presence and help drive sales. The company's diverse clientele, spanning various industries, further contributes to its financial stability and growth potential.

KVH Industries Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: 3.26%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant sequential growth in revenue and adjusted EBITDA, an increase in the subscriber base, and successful transformation efforts towards LEO services offsetting legacy GEO declines. Despite year-over-year revenue decline and increased capital expenditures, the overall progress and strategic shifts suggest a positive outlook.
Q2-2025 Updates
Positive Updates
Increase in Subscriber Base
Subscriber base increased by more than 8%, resulting in over 8,000 subscribing vessels for the first time.
Sequential Revenue and Adjusted EBITDA Growth
Returned to sequential airtime and service revenue growth, with a $1.2 million increase in total revenue over Q1 2025. Adjusted EBITDA rose to $2.7 million, a $1.7 million increase compared to the first quarter.
LEO Revenue Growth
For the first time, the increase in LEO revenue more than offset the decline in revenue from the legacy VSAT business.
CommBox Edge Subscriber Growth
Increased CommBox Edge subscribers by 24% compared to the first quarter of 2025.
Sale of Headquarters Facility
Completed the sale of the headquarters facility at the end of June, contributing to a higher cash balance.
Stock Repurchase Program
Purchased more than 242,000 shares at a cost of roughly $1,250,000.
Negative Updates
Year-over-Year Revenue Decline
Revenue declined year-over-year in Q2 2025 to $26.6 million, primarily due to the loss of revenue from the VSAT airtime service, including the U.S. Coast Guard.
Increase in Capital Expenditures
Capital expenditures for the quarter were $2.4 million, up from $1.1 million in Q1 2025, driven by OneWeb units on the AgilePlan program.
Potential Future GEO Bandwidth Cost Increase
GEO bandwidth capacity costs may rise slightly in the second half of the year.
Company Guidance
In the Q2 2025 earnings call for KVH Industries, Inc., the company provided a comprehensive overview of their financial and operational performance, alongside updated guidance. Revenue for the second quarter stood at $26.6 million, marking a decline year-over-year but an increase of $1.2 million from Q1 2025, driven primarily by growth in LEO-based services. The subscriber base grew by 8.3% from the previous quarter, reaching over 8,000 vessels. Adjusted EBITDA rose to $2.7 million, up from $1 million in Q1, with airtime gross margin increasing to 35.8% from 31.5%. Despite a dip in GEO revenue, LEO revenue growth more than offset this decline, with strong demand for Starlink and OneWeb services. The company also announced a narrowed 2025 revenue guidance of $107 million to $114 million, and adjusted EBITDA guidance of $8 million to $12 million, citing better-than-expected gross profit margins. Notably, KVH completed the sale of its headquarters, contributing to an ending cash balance of $55.9 million, up by $7.3 million from the start of the quarter.

KVH Industries Financial Statement Overview

Summary
KVH Industries faces significant profitability issues with declining revenues and negative margins. The balance sheet remains strong with low leverage, but cash flow challenges could impede future growth. Continued financial restructuring may be needed to improve operational efficiency and cash generation.
Income Statement
45
Neutral
The company has faced consistent revenue declines and negative profitability. Net profit margin is negative, indicating losses. Though gross profit margin remains high, EBIT and EBITDA margins are negative, reflecting operational challenges.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, declining total assets and stockholders' equity over recent years could signal potential challenges ahead.
Cash Flow
50
Neutral
Operating cash flow has been negative in recent years, impacting free cash flow. The company shows an ability to generate cash through investing activities, but overall cash flow remains a concern due to negative free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue107.92M113.83M132.38M138.88M171.77M158.73M
Gross Profit32.97M35.22M37.87M52.60M59.80M57.61M
EBITDA5.44M2.67M-1.67M9.96M1.43M-10.09M
Net Income-6.29M-11.05M-15.42M-3.92M-9.76M-21.94M
Balance Sheet
Total Assets152.04M155.08M172.63M200.53M168.79M183.59M
Cash, Cash Equivalents and Short-Term Investments55.93M50.57M69.77M76.74M24.52M37.72M
Total Debt1.21M1.23M1.07M2.17M3.14M13.96M
Total Liabilities13.66M16.46M25.26M43.87M39.82M51.71M
Stockholders Equity138.38M138.63M147.37M156.66M128.98M131.88M
Cash Flow
Free Cash Flow274.00K-20.59M-9.40M-5.55M-15.89M-17.22M
Operating Cash Flow6.11M-13.17M2.53M8.89M2.91M-3.08M
Investing Cash Flow40.55M52.39M-14.71M375.00K-6.71M-9.29M
Financing Cash Flow-1.21M110.00K2.34M708.00K2.65M7.13M

KVH Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.39
Price Trends
50DMA
5.34
Positive
100DMA
5.22
Positive
200DMA
5.39
Positive
Market Momentum
MACD
0.04
Negative
RSI
59.91
Neutral
STOCH
73.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVHI, the sentiment is Positive. The current price of 5.39 is above the 20-day moving average (MA) of 5.33, above the 50-day MA of 5.34, and above the 200-day MA of 5.39, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 73.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KVHI.

KVH Industries Risk Analysis

KVH Industries disclosed 31 risk factors in its most recent earnings report. KVH Industries reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

KVH Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$266.16M11.1149.88%3.65%26.30%317.51%
60
Neutral
$42.44B3.87-13.01%4.03%1.90%-42.25%
57
Neutral
$107.28M-4.46%-12.22%71.69%
55
Neutral
$154.34M33.64111.75%-10.99%
53
Neutral
$50.71M-21.97%6.84%49.74%
45
Neutral
$56.44M-43.88%-12.02%-615.33%
$47.02M-4.62%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KVHI
KVH Industries
5.39
0.77
16.67%
CMTL
Comtech Telecommunications
2.05
-1.28
-38.44%
FEIM
Frequency Electronics
29.01
15.33
112.06%
AIRG
Airgain
4.33
-3.33
-43.47%
INSG
Inseego
11.04
-1.98
-15.21%
FKWL
Franklin Wireless
4.28
0.13
3.13%

KVH Industries Corporate Events

Executive/Board ChangesShareholder Meetings
KVH Industries Elects New Directors at Annual Meeting
Neutral
Jun 6, 2025

At the annual meeting of stockholders on June 4, 2025, KVH Industries‘ shareholders voted to elect Brent C. Bruun and Joseph Spytek as Class II directors for a three-year term expiring in 2028. They also approved, on a non-binding basis, the compensation of the company’s named executive officers and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its leadership and financial oversight.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025