KVH Industries reported a sharp increase in third-quarter revenue, led by growth in satellite connectivity services and sales of low-Earth-orbit (LEO) terminals. The company’s net loss narrowed substantially from a year earlier, while adjusted EBITDA improved.
The results also show the ongoing shift in KVH’s service mix toward LEO and away from VSAT. KVH said it narrowed its 2026 outlook and raised the low end of its range, though the revised figures were not included in the release text provided.
Key details
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Revenue rose 35% year over year to $38.4 million, and increased 14% from the second quarter. Growth came from both recurring services and LEO terminal sales.
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Service revenue increased 30% year over year to $33.0 million, and was up 11% sequentially. More LEO subscribers drove the growth, partly offset by lower VSAT service revenue.
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LEO accounted for 58% of service revenue, up from 51% in the second quarter and 39% a year earlier. KVH attributed the rising share to LEO growth and customers moving from VSAT.
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Service gross profit rose 28% year over year to $11.1 million, but increased 5% from the prior quarter. Service gross margin was 34%—unchanged from a year earlier but down from 36% in the second quarter.
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The net loss narrowed to $0.6 million, or $0.03 per share, from a loss of $6.9 million, or $0.36 per share, in the third quarter of 2025. Both periods included non-cash inventory write-downs: $2.3 million this quarter and $5.5 million a year earlier.
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Adjusted EBITDA was $3.9 million, compared with $1.4 million a year earlier and $3.0 million in the second quarter. KVH attributed the year-over-year improvement to growth in service gross profit.
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KVH ended the quarter with $50.7 million in cash and no debt. It repurchased $10.7 million of its shares during the quarter.
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The company narrowed its 2026 outlook and raised the lower end of its range. The release text provided did not give the revised guidance figures.
Plain-English implications
Service growth is increasingly tied to LEO: it now represents more than half of service revenue, while lower VSAT revenue partially offsets that expansion. KVH also reported higher service gross profit and adjusted EBITDA than a year ago, alongside a narrower net loss. The quarter-end balance sheet showed cash and no debt, even after the company’s share repurchases.