KVH Industries Reports Fourth Quarter and Full Year 2024 Results

KVH Industries, Inc., a global leader in maritime and mobile connectivity, has released its financial results for the fourth quarter and full year ended December 31, 2024. The company reported a decrease in total revenues and a net loss for the period, reflecting challenges in the market and strategic shifts in its product offerings.

Financial Highlights

For the fourth quarter of 2024, KVH Industries reported total revenues of $26.9 million, a 14% decrease from $31.5 million in the same period of 2023. The company also reported a net loss of $4.3 million, or $0.22 per share, compared to a net loss of $12.2 million, or $0.63 per share, in the fourth quarter of 2023. Non-GAAP adjusted EBITDA was $0.5 million, down from $2.3 million in the fourth quarter of 2023.

Business and Operational Highlights

KVH Industries experienced a 20% decrease in airtime revenue, which fell to $20.8 million in the fourth quarter of 2024. This decline was partly due to a $2.2 million reduction related to the U.S. Coast Guard contract downgrade. However, product revenues increased by 24% to $4.6 million, driven by a $1.2 million increase in Starlink product sales.

For the full year 2024, total revenues were $113.8 million, a 14% decrease from $132.4 million in 2023. Service revenues decreased by 16% to $96.4 million, while product revenues saw a slight decline of 2% to $17.4 million.

Strategic Initiatives and Corporate Developments

KVH Industries has made significant strides in integrating Starlink into its product and service portfolio, shipping over 1,000 Starlink terminals in the fourth quarter and achieving more than 2,300 activations in 2024. The company also expanded its multi-orbit, multi-channel portfolio with the addition of OneWeb, CommBox Edge, and the TracNet Coastal global 5G and Wi-Fi communication system.

Recent corporate developments include partnerships with Seaspan and Vroon, as well as the introduction of new TracNet Coastal and TracNet Coastal Pro 5G/Wi-Fi terminals and cellular data plans.

Management's Perspective

Brent C. Bruun, KVH’s Chief Executive Officer, commented on the results, stating, "Our recent results validate our strategic decision to integrate Starlink fully into our product and service portfolio. We are in a stronger position now than a year ago, and I believe we are on the path toward renewed growth and profitability."

Future Outlook

Looking ahead, KVH Industries anticipates revenue for the full year 2025 to be in the range of $115 million to $125 million, with adjusted EBITDA expected to be between $9 million and $15 million. The company aims to continue leveraging its strategic initiatives to drive growth and improve profitability.

SEC Filing: KVH INDUSTRIES INC \DE\ [ KVHI ] - 8-K - Mar. 06, 2025