Space Economy▼2
KVH Industries Stock Falls 22% After Q2 Earnings as Revenue Rises 27% on LEO Growth
KVH Industries shares dropped 21.9% since reporting second-quarter 2026 results, even as revenue climbed 26.7% to $33.7 million, driven by strong growth in low-earth-orbit connectivity services. Net income fell to $0.2 million, or $0.01 per share, from $0.9 million, or $0.05 per share, a year earlier, partly due to a prior-year gain of $1.3 million from a property sale. Airtime revenues rose 31%, with LEO services accounting for more than 55% of airtime sales, up from less than 32% a year ago, while total subscribing vessels reached approximately 10,700, up 11% sequentially. Adjusted EBITDA increased 13.8% to $3 million, but profitability was pressured by a 33.8% rise in cost of sales and higher operating expenses. Management did not provide formal guidance but expects quarterly terminal shipments of 2,000 to 3,000 and plans to cease most manufacturing by the end of 2026.