Education
About Us
Working with TipRanks
Follow Us
KVH Industries (KVHI)
NASDAQ:KVHI
Top Page
KVH Industries
(NASDAQ:KVHI)
Select Model
Select Model
Rating:58Neutral
Price Target:
$7.50
▲(26.05% Upside)
KVHI scores mid-range primarily due to weak profitability and a sharp TTM revenue decline, partially offset by a low-leverage balance sheet and improved recent cash generation. Technicals are supportive with price above key moving averages and positive MACD, while valuation is constrained by negative earnings and no dividend. The latest earnings call adds some support from subscriber/service revenue growth and liquidity improvement, but margin pressure and inventory write-downs remain key risks.
Positive Factors
Subscriber Growth
The growth in vessel subscribers indicates strong demand for KVH's services, enhancing recurring revenue streams and market position in maritime communications.
Service Revenue Increase
The increase in service revenue reflects successful strategic initiatives and strengthens the company's financial stability through enhanced cash flow.
Strategic Acquisition
The acquisition expands KVH's customer base and geographic reach, potentially improving margins and supporting long-term revenue growth.
Negative Factors
Product Gross Profit Decline
The decline in product gross profit due to inventory write-downs and reduced demand may impact profitability and necessitate cost management strategies.
Decreased Airtime Margins
Falling airtime margins could pressure overall profitability, requiring strategic adjustments to maintain competitive pricing and cost efficiency.
Price Reductions Impact
Price reductions, while potentially boosting sales volume, have negatively impacted margins, challenging the company's ability to sustain profitability.
KVH Industries (KVHI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$134.86M
Dividend YieldN/A
Average Volume (3M)86.11K
Price to Earnings (P/E)―
Beta (1Y)0.08
Revenue Growth-9.26%
EPS Growth36.90%
CountryUS
Employees247
SectorCommunication Services
Sector Strength97
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.36
Shares Outstanding19,573,252
10 Day Avg. Volume167,146
30 Day Avg. Volume86,115
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)0.80
Price to Sales (P/S)0.97
P/FCF Ratio-5.37
Enterprise Value/Market Cap0.48
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit2.51
Enterprise Value/Ebitda-26.86
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KVH Industries Business Overview & Revenue Model
Company DescriptionKVH Industries, Inc. is a global leader in mobile communication and inertial navigation systems. Operating primarily in the maritime, automotive, and aerospace sectors, KVHI develops and delivers innovative satellite communications solutions, including satellite antennas and connectivity services. The company is also known for its high-performance fiber optic gyros and positioning systems that enhance navigation and motion sensing for various applications.
How the Company Makes MoneyKVH Industries generates revenue through multiple streams, primarily from the sale of satellite communications hardware, subscription services for satellite data connectivity, and sales of inertial navigation systems. The company offers products like its TracPhone satellite antennas, which are sold along with monthly service plans for data and voice communications to maritime customers. Additionally, KVHI's mobile broadband services, such as the mini-VSAT Broadband service, provide ongoing subscription revenue. The company also partners with various maritime and automotive companies, enhancing its market reach and driving sales through integrated solutions and services. Furthermore, KVH's focus on research and development helps maintain a competitive edge, ensuring that they meet the evolving demands of their markets.
KVH Industries Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
KVH Industries demonstrated strong growth in vessel subscribers and service revenue, reinforced by strategic acquisitions and asset sales. However, the company faced challenges with declining product gross profit and reduced airtime margins, primarily due to inventory write-downs and price reductions.Q3-2025 Updates
Positive Updates
Record Vessel Subscriber Growth
KVH Industries reported a new record for vessel subscriber growth, with the total subscribing vessel count increasing by 11% to approximately 9,000 compared to the second quarter, and up 26% year-to-date.
Service Revenue Growth
Service revenue for Q3 was $25.4 million, a 10% increase from the prior quarter and a 4% increase from Q3 2024, despite a significant decrease in U.S. Coast Guard revenue since the third quarter of last year.
Successful Acquisition in Asia Pacific
KVH completed the acquisition of a maritime communications customer base in the Asia Pacific, adding over 500 vessels to their service and increasing annual top-line revenue.
Sale of Middletown Facility
The sale of the Middletown, Rhode Island facility was successfully closed, generating approximately $8 million in net proceeds.
Cash Balance Increase
Ending cash balance was $72.8 million, up approximately $16.9 million from the beginning of the quarter.
Negative Updates
Product Gross Profit Decline
Reported Q3 product gross profit was negative $6.8 million compared to a positive $0.3 million in the prior quarter, including a $5.5 million write-down of VSAT inventory due to reduced demand and pricing.
Decreased Airtime Gross Margin
Airtime gross margin was 31.9%, down by 3.9% compared to the prior quarter due to a decrease in GEO airtime margins.
Price Reductions Impact Margins
Price reductions on Starlink and H-Series VSAT antennas led to a $1.6 million reduction in profitability.
Company Guidance
During the Q3 2025 earnings call for KVH Industries, guidance highlighted positive momentum with several key metrics. The company reported a 10% sequential increase in service revenue to $25.4 million, and a 4% increase from Q3 2024, despite a significant drop in U.S. Coast Guard revenue compared to last year. The subscriber base for vessels grew by 11% from the second quarter, reaching approximately 9,000 vessels, marking a 26% increase year-to-date. KVH achieved record shipments of 1,600 satellite communication terminals in the quarter, driven by demand for Starlink and OneWeb LEO services. The sale of their Middletown, Rhode Island facility generated $8 million in net proceeds, and the acquisition of a customer base in the Asia Pacific region is expected to add over 800 vessels to their network. Operating expenses remained flat at $9.5 million, while adjusted EBITDA was reported at $1.4 million. Capital expenditure for the quarter was $1.6 million. The company anticipates improved product margins in Q4 and is negotiating a new data pool with Starlink to support ongoing subscriber growth.KVH Industries Financial Statement Overview
Summary
Financials are mixed: the income statement is weak with steep TTM revenue decline (-48%), compressed gross margin (~24%), and ongoing operating/net losses, but the balance sheet is strong with very low leverage (debt-to-equity ~0.04) and sizable equity. Cash flow improved to positive operating (~$14.1M) and free cash flow (~$8.2M), though durability is not yet proven given continuing net losses.Income Statement
TTM (Trailing-Twelve-Months) revenue fell sharply (-48%), extending a multi-year pattern of declining sales. Profitability remains weak: gross margin compressed to ~24% (down from ~31% in 2024) and operating results are still meaningfully negative (EBIT margin ~-13%), with net losses continuing (net margin ~-11%). The main positive is that losses are not dramatically worse than recent years, but the overall trajectory shows deteriorating scale and sustained unprofitability.28
Negative
Balance Sheet
The balance sheet is a relative strength, with very low leverage (TTM debt-to-equity ~0.04) and a sizable equity base (~$131M) supporting the asset base (~$150M). This conservative capital structure provides flexibility and lowers financial risk. The key weakness is returns: equity continues to generate losses (TTM return on equity ~-8.8%), indicating the company is not translating its capital base into profits.74
Positive
Cash Flow
Cash generation improved materially in TTM (Trailing-Twelve-Months), with positive operating cash flow (~$14.1M) and positive free cash flow (~$8.2M), a sharp turnaround from 2024 when both were negative. That said, cash flow quality is somewhat mixed because the business is still reporting net losses, and prior years show volatility in cash generation. Overall, the current cash flow picture is encouraging but not yet proven durable.53
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.41M | 113.83M | 132.38M | 138.75M | 133.91M | 158.73M |
| Gross Profit | 25.61M | 35.22M | 37.87M | 52.50M | 45.82M | 57.61M |
| EBITDA | -2.40M | 2.67M | -1.67M | 9.96M | 3.00M | -10.09M |
| Net Income | -12.02M | -11.05M | -15.42M | 24.03M | -9.76M | -21.94M |
Balance Sheet | ||||||
| Total Assets | 150.28M | 155.08M | 172.63M | 196.25M | 168.79M | 183.59M |
| Cash, Cash Equivalents and Short-Term Investments | 72.80M | 50.57M | 69.77M | 76.74M | 24.52M | 37.72M |
| Total Debt | 4.61M | 1.23M | 1.07M | 2.17M | 3.14M | 13.96M |
| Total Liabilities | 19.23M | 16.46M | 25.26M | 37.82M | 39.82M | 51.71M |
| Stockholders Equity | 131.05M | 138.63M | 147.37M | 158.44M | 128.98M | 131.88M |
Cash Flow | ||||||
| Free Cash Flow | 8.16M | -20.59M | -9.40M | -5.55M | -15.89M | -17.22M |
| Operating Cash Flow | 14.12M | -13.17M | 2.53M | 8.89M | 2.91M | -3.08M |
| Investing Cash Flow | 45.64M | 52.39M | -14.71M | 375.00K | -6.71M | -9.29M |
| Financing Cash Flow | -1.31M | 110.00K | 2.34M | 708.00K | 2.65M | 7.13M |
KVH Industries Technical Analysis
Neutral
5.95
Price Trends
6.69
Positive
6.23
Positive
5.75
Positive
Market Momentum
0.06
Positive
46.90
Neutral
10.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVHI, the sentiment is Neutral. The current price of 5.95 is below the 20-day moving average (MA) of 7.16, below the 50-day MA of 6.69, and above the 200-day MA of 5.75, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.90 is Neutral, neither overbought nor oversold. The STOCH value of 10.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $85.79M | -9.63 | -10.53% | ― | -4.61% | 63.88% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $134.86M | -11.01 | -8.78% | ― | -9.26% | 36.90% | |
52 Neutral | $174.22M | -2.49 | -7.88% | ― | -1.89% | 76.61% | |
48 Neutral | $44.35M | -25.83 | -6.86% | ― | 9.55% | 65.17% | |
46 Neutral | $86.48M | -2,370.97 | -99.36% | ― | -17.72% | 8.82% |
* Communication Services Sector Average
KVHI
KVH Industries
6.82
0.78
12.91%
CMTL
Comtech Telecommunications
5.77
3.67
174.76%
OCC
Optical Cable
4.90
-0.57
-10.42%
SILC
Silicom
19.37
2.31
13.54%
FKWL
Franklin Wireless
4.18
-0.81
-16.23%
MOB
Mobilicom Ltd. ADR
7.35
4.46
154.33%
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.