What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-06 · 182 added, 113 removed, 469 unchanged (39% of the section changed)

4 unchanged sentences

(in thousands, except share and per share amounts)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

ASSETS (unaudited)

1 unchanged sentence

Cash and cash equivalents $ 57,720 $ 69,910

Accounts receivable, net of allowance for credit losses of $ 742 and $ 712 as of March 31, 2026 and December 31, 2025, respectively

Accounts receivable, net of allowance for credit losses of $ 970 and $ 712 as of June 30, 2026 and December 31, 2025, respectively

28,665 25,049

30 unchanged sentences

Authorized 30,000,000 shares;

21,294,283 and 21,294,655 shares issued at March 31, 2026 and December 31, 2025, respectively;

and 19,477,178 and 19,511,836 shares outstanding at March 31, 2026 and December 31, 2025, respectively

21,364,212 and 21,294,655 shares issued at June 30, 2026 and December 31, 2025, respectively;

and 19,293,315 and 19,511,836 shares outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 170,264 168,900

2 unchanged sentences

146,803 144,817

treasury stock at cost, common stock, 1,817,105 and 1,782,819 shares as of March 31, 2026 and December 31, 2025, respectively.

treasury stock at cost, common stock, 2,070,897 and 1,782,819 shares as of June 30, 2026 and December 31, 2025, respectively.

( 16,363 ) ( 13,833 )

6 unchanged sentences

(in thousands, except earnings per share amounts, unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Service $ 29,711 $ 23,049 $ 57,865 $ 44,691

11 unchanged sentences

Interest expense — — ( 6 ) —

Other income (expense), net 230 ( 9 )

Other (expense) income, net ( 104 ) 826 126 817

Income (loss) before income tax expense 366 1,035 1,079 ( 650 )

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AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Net income (loss) $ 163 $ 930 $ 751 $ ( 780 )

Other comprehensive (loss) income, net of tax:

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustment 104 278 ( 130 ) 1,000

Other comprehensive (loss) income, net of tax (1)

Total comprehensive income (loss) $ 354 $ ( 988 )

Other comprehensive income (loss), net of tax (1)

104 278 ( 130 ) 1,000

Total comprehensive income $ 267 $ 1,208 $ 621 $ 220

(1) Tax impact was nominal for all periods.

9 unchanged sentences

Shares Amount Shares Amount

Balance at March 31, 2026 21,294 $ 213 $ 169,295 $ ( 19,547 ) $ ( 4,395 ) ( 1,817 ) $ ( 14,039 ) $ 131,527

Net income — — — 163 — — — 163

Other comprehensive income — — — — 104 — — 104

Stock-based compensation — — 411 — — — — 411

Issuance of common stock under employee stock purchase plan 6 — 31 — — — — 31

Acquisition of treasury stock — — — — — ( 254 ) ( 2,324 ) ( 2,324 )

Exercise of stock options and issuance of restricted stock awards, net of forfeitures 64 1 527 — — — — 528

Balance at June 30, 2026 21,364 $ 214 $ 170,264 $ ( 19,384 ) $ ( 4,291 ) ( 2,071 ) $ ( 16,363 ) $ 130,440

Common Stock Additional

Capital Retained Deficit Accumulated

Comprehensive Loss Treasury Stock Total

Stockholders’

Shares Amount Shares Amount

Balance at December 31, 2025 21,295 $ 213 $ 168,900 $ ( 20,135 ) $ ( 4,161 ) ( 1,783 ) $ ( 13,833 ) $ 130,984

2 unchanged sentences

Stock-based compensation — — 717 — — — — 717

Issuance of common stock under employee stock purchase plan 6 — 31 — — — — 31

Acquisition of treasury stock — — — — — ( 288 ) ( 2,530 ) ( 2,530 )

Exercise of stock options and issuance of restricted stock awards, net of forfeitures 63 1 616 — — — — 617

Balance at June 30, 2026 21,364 $ 214 $ 170,264 $ ( 19,384 ) $ ( 4,291 ) ( 2,071 ) $ ( 16,363 ) $ 130,440

Common Stock Additional

Capital Retained Deficit Accumulated

Comprehensive Loss Treasury Stock Total

Stockholders’

Shares Amount Shares Amount

Balance at March 31, 2025 21,220 $ 212 $ 167,624 $ ( 14,462 ) $ ( 3,310 ) ( 1,487 ) $ ( 12,253 ) $ 137,811

Net income — — — 930 — — — 930

Other comprehensive income — — — — 278 — — 278

Stock-based compensation — — 434 — — — — 434

Acquisition of treasury stock — — — — — ( 211 ) ( 1,093 ) ( 1,093 )

Exercise of stock options and issuance of restricted stock awards, net of forfeitures 4 — 24 — — — — 24

Balance at June 30, 2025 21,224 $ 212 $ 168,082 $ ( 13,532 ) $ ( 3,032 ) ( 1,698 ) $ ( 13,346 ) $ 138,384

Common Stock Additional

9 unchanged sentences

Exercise of stock options and issuance of restricted stock awards, net of forfeitures ( 17 ) — 24 — — — — 24

Balance at March 31, 2025 21,220 $ 212 $ 167,624 $ ( 14,462 ) $ ( 3,310 ) ( 1,487 ) $ ( 12,253 ) $ 137,811

Balance at June 30, 2025 21,224 $ 212 $ 168,082 $ ( 13,532 ) $ ( 3,032 ) ( 1,698 ) $ ( 13,346 ) $ 138,384

See accompanying Notes to Unaudited Consolidated Financial Statements.

3 unchanged sentences

(in thousands, unaudited)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

Net income (loss) $ 751 $ ( 780 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:

Provision for credit losses 361 153

1 unchanged sentence

Deferred income taxes — 4

(Gain) loss on disposals of fixed assets ( 88 ) ( 27 )

(Gain) on disposals of fixed assets ( 130 ) ( 8 )

Gain on sale of fixed assets located at 50 Enterprise Center Middletown, Rhode Island

Compensation expense related to stock-based awards and employee stock purchase plan 717 771

Unrealized currency translation loss ( 75 ) 726

Unrealized currency translation (gain) loss ( 104 ) 915

Changes in operating assets and liabilities:

6 unchanged sentences

Accrued compensation, product warranty and other ( 2,781 ) ( 2,258 )

Net cash used in operating activities $ ( 8,259 ) $ ( 1,277 )

Net cash (used in) provided by operating activities $ ( 6,382 ) $ 3,819

Cash flows from investing activities:

2 unchanged sentences

Proceeds from sale of fixed assets 553 1,200

Net cash used in investing activities $ ( 2,362 ) $ ( 557 )

Proceeds from the sale of fixed assets located at 50 Enterprise Center Middletown, Rhode Island — 4,926

Net cash (used in) provided by investing activities $ ( 3,889 ) $ 2,611

Cash flows from financing activities:

1 unchanged sentence

Purchase of treasury stock ( 2,530 ) ( 1,256 )

Net cash used in by financing activities $ ( 114 ) $ ( 162 )

Net cash used in financing activities $ ( 1,886 ) $ ( 1,228 )

Effect of exchange rate changes on cash and cash equivalents ( 33 ) 157

Net decrease in cash and cash equivalents ( 10,757 ) ( 1,972 )

Net (decrease) increase in cash and cash equivalents ( 12,190 ) 5,359

Cash and cash equivalents at beginning of period 69,910 50,572

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These consolidated interim financial statements do not include all disclosures associated with annual financial statements and accordingly should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2025 filed on March 10, 2026 with the Securities and Exchange Commission.

The results for the three months ended March 31, 2026 are not necessarily indicative of operating results for the remainder of the year.

The results for the three and six months ended June 30, 2026 are not necessarily indicative of operating results for the remainder of the year.

Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions

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Foreign currency exchange gains and losses are recognized within “other expense, net” in the accompanying consolidated statements of operations.

The Company recorded net foreign currency exchange gains (losses), which are comprised of both realized and unrealized foreign currency exchange gains and losses, in its accompanying consolidated statements of operations of $ 76 and $( 31 ) for the three months ended March 31, 2026 and 2025, respectively.

The Company recorded net foreign currency exchange gains (losses), which are comprised of both realized and unrealized foreign currency exchange gains and losses, in its accompanying consolidated statements of operations of $( 13 ) and $( 101 ) for the three months ended June 30, 2026 and 2025, respectively, $ 62 and $( 132 ) for the six months ended June 30, 2026 and 2025, respectively.

The financial statements of the Company’s foreign subsidiaries located in the United Kingdom, Norway, India and Japan use the foreign subsidiaries’ respective local currencies as the functional currency.

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The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation .

Stock-based compensation expense was $ 302 and $ 335 , excluding $ 4 and $ 2 of compensation expense related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, there was $ 2,271 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 3.08 years.

As of March 31, 2026, there was $ 593 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 1.02 years.

Stock-based compensation expense was $ 413 and $ 432 , excluding $( 2 ) and $ 2 of compensation expense related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the three months ended June 30, 2026 and 2025, respectively, and $ 715 and $ 767 , excluding $ 2 and $ 4 of compensation expense related to ESPP, for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, there was $ 1,938 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.96 years.

As of June 30, 2026, there was $ 317 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 1.29 years.

Stock Options

During the three months ended March 31, 2026, 18 shares of common stock were issued upon the exercise of stock options.

During the three months ended June 30, 2026, 66 thousand shares of common stock were issued upon the exercise of stock options.

No shares were surrendered to the Company to satisfy minimum tax withholding obligations.

Additionally, during the three months ended March 31, 2026, 460 stock options were granted and 159 stock options expired, were canceled or were forfeited.

During the three months ended March 31, 2025, the Company issued less than 1 shares of common stock upon the exercise of stock options.

Additionally, during the three months ended June 30, 2026, no stock options were granted and 84 thousand stock options expired, were canceled or were forfeited.

During the three months ended June 30, 2025, 6 thousand shares of common stock were issued upon the exercise of stock options.

No shares were surrendered to the Company to satisfy minimum tax withholding obligations.

Additionally, during the three months ended March 31, 2025, 525 stock options were granted and 63 stock options expired, were canceled or were forfeited.

Additionally, during the three months ended June 30, 2025, 50 thousand stock options were granted and 64 thousand stock options expired, were canceled or were forfeited.

During the six months ended June 30, 2026, 84 thousand shares of common stock were issued upon the exercise of stock options.

No shares were surrendered to the Company to satisfy minimum tax withholding obligations.

Additionally, during the six months ended June 30, 2026, 460 thousand stock options were granted and 243 thousand stock options expired, were canceled or were forfeited.

During the six months ended June 30, 2025, 6 thousand shares of common stock were issued upon the exercise of stock options.

No shares were surrendered to the Company to satisfy minimum tax withholding obligations.

Additionally, during the six months ended June 30, 2025, 575 thousand stock options were granted and 127 thousand stock options expired, were canceled or were forfeited.

The Company has historically estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model.

The weighted average assumptions utilized to determine the fair value of options granted during the three months ended March 31, 2026 and 2025 are as follows:

Three Months Ended March 31,

The weighted average assumptions utilized to determine the fair value of options granted during the six months ended June 30, 2026 and 2025 are as follows:

Six Months Ended June 30,

Risk-free interest rate 3.66 % 3.95 %

2 unchanged sentences

Dividend yield 0 % 0 %

As of March 31, 2026, there were 1,543 options outstanding with a weighted average exercise price of $ 6.48 per share and 484 options exercisable with a weighted average exercise price of $ 7.47 per share.

As of March 31, 2025, there were 1,415 options outstanding with a weighted average exercise price of $ 7.33 per share and 531 options exercisable with a weighted average exercise price of $ 9.02 per share.

As of June 30, 2026, there were 1,393 thousand options outstanding with a weighted average exercise price of $ 6.44 per share and 442 thousand options exercisable with a weighted average exercise price of $ 7.41 per share.

As of June 30, 2025, there were 1,397 thousand options outstanding with a weighted average exercise price of $ 7.19 per share and 510 thousand options exercisable with a weighted average exercise price of $ 8.96 per share.

Restricted Stock

During the three months ended March 31, 2026, no shares of restricted stock were granted and 18 shares of restricted stock were forfeited.

Additionally, during the three months ended March 31, 2026, 60 shares of restricted stock vested.

During the three months ended March 31, 2025, no shares of restricted stock were granted and 21 shares of restricted stock were forfeited.

Additionally, during the three months ended March 31, 2025, 83 shares of restricted stock vested.

As of March 31, 2026 and 2025, the Company had no unvested outstanding options and no outstanding shares of restricted stock that were subject to performance-based or market-based vesting conditions.

During the three months ended June 30, 2026, no shares of restricted stock were granted and 3 thousand shares of restricted stock were forfeited.

Additionally, during the three months ended June 30, 2026, 52 thousand shares of restricted stock vested.

During the three months ended June 30, 2025, no shares of restricted stock were granted and 1 thousand shares of restricted stock were forfeited.

Additionally, during the three months ended June 30, 2025, 63 thousand shares of restricted stock vested.

During the six months ended June 30, 2026, no shares of restricted stock were granted and 21 thousand shares of restricted stock were forfeited.

Additionally, during the six months ended June 30, 2026, 112 thousand shares of restricted stock vested.

During the six months ended June 30, 2025, no shares of restricted stock were granted and 22 thousand shares of restricted stock were forfeited.

Additionally, during the six months ended June 30, 2025, 146 thousand shares of restricted stock vested.

As of June 30, 2026 and 2025, the Company had no unvested outstanding options and no outstanding shares of restricted stock that were subject to performance-based or market-based vesting conditions.

(b) Employee Stock Purchase Plan

The Company's ESPP affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85 % of the fair market value of the common stock on the first or last day of the offering period, whichever is lower.

During the three months ended March 31, 2026 and 2025, no shares were issued under the ESPP.

The Company recorded compensation charges related to the ESPP of $ 4 and $ 2 for the three months ended March 31, 2026 and 2025, respectively.

During the three months ended June 30, 2026 and 2025, 6 thousand shares and no shares were issued under the ESPP, respectively.

During the six months ended June 30, 2026 and 2025, 6 thousand and no shares were issued under the ESPP, respectively.

The Company recorded compensation charges related to the ESPP of $( 2 ) and $ 2 for the three months ended June 30, 2026 and 2025, respectively, and $ 2 and $ 4 for the six months ended June 30, 2026 and 2025, respectively.

The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the three months ended March 31, 2026 and 2025, respectively:

Three Months Ended March 31,

The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the three and six months ended June 30, 2026 and 2025, respectively:

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Cost of service sales $ 6 $ 6 $ 12 $ 13

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General and administrative 334 305 593 602

$ 411 $ 434 $ 717 $ 771

(d) Accumulated Other Comprehensive Loss (AOCL)

Comprehensive income (loss) includes net income (loss), unrealized gains and losses from foreign currency translation, and unrealized gains and losses on available for sale marketable securities.

The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income (loss).

The balances for the three months ended March 31, 2026 and 2025 are as follows:

The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income.

The balances for the three months ended June 30, 2026 and 2025 are as follows:

Foreign Currency Translation Total Accumulated Other Comprehensive Loss

Balance, March 31, 2026 $ ( 4,395 ) $ ( 4,395 )

Other comprehensive income 104 104

Balance, June 30, 2026 $ ( 4,291 ) $ ( 4,291 )

Foreign Currency Translation Total Accumulated Other Comprehensive Loss

Balance, March 31, 2025 $ ( 3,310 ) $ ( 3,310 )

Other comprehensive income 278 278

Balance, June 30, 2025 $ ( 3,032 ) $ ( 3,032 )

The balances for the six months ended June 30, 2026 and 2025 are as follows:

Foreign Currency Translation Total Accumulated Other Comprehensive Loss

Balance, December 31, 2025 $ ( 4,161 ) $ ( 4,161 )

Other comprehensive loss ( 130 ) ( 130 )

Balance, March 31, 2026 $ ( 4,395 ) $ ( 4,395 )

Balance, June 30, 2026 $ ( 4,291 ) $ ( 4,291 )

Foreign Currency Translation Total Accumulated Other Comprehensive Loss

1 unchanged sentence

Other comprehensive income 1,000 1,000

Balance, March 31, 2025 $ ( 3,310 ) $ ( 3,310 )

Balance, June 30, 2025 $ ( 3,032 ) $ ( 3,032 )

(5) Net Income (Loss) per Common Share

1 unchanged sentence

Diluted net income per share incorporates the dilutive effect of common stock equivalent options, warrants and other convertible securities, if any, as determined with the treasury stock accounting method.

For the three months ended March 31, 2025, since there was a net loss, the company excluded 1,141 shares in underlying outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these convertible securities would have reduced the net loss per share.

For the three and six months ended June 30, 2026, the computation of diluted weighted-average common shares outstanding excludes 151 thousand and 166 thousand weighted average anti-dilutive stock-based awards outstanding, respectively.

For the three months ended June 30, 2025 , the computation of diluted weighted-average common shares outstanding excludes 1,396 thousand weighted average anti-dilutive stock-based awards outstanding.

For the six months ended June 30, 2025, since there was a net loss, the company excluded 1,252 thousand shares in underlying outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these convertible securities would have reduced the net loss per share.

A reconciliation of the basic and diluted weighted average common shares outstanding is as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Weighted average common shares outstanding—basic 19,394 19,401 19,363 19,446

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(6) Inventories

Inventories are stated at the lower of cost or net realizable value using the first-in first-out costing method.

Inventories as of March 31, 2026 and December 31, 2025 include the costs of material, labor, and factory overhead.

Inventories are stated at the lower of cost or net realizable value using the first-in first-out weighted-average costing method.

Inventories as of June 30, 2026 and December 31, 2025 include the costs of material, labor, and factory overhead.

Components of inventories consist of the following:

9 unchanged sentences

$ 19,770 $ 7,980

In the fourth quarter of 2025, KVH entered into an agreement to purchase a block of Starlink Global Priority data for $ 45.0 million.

In the fourth quarter of 2025, KVH entered into an agreement to purchase a block of Starlink Global Priority data for $ 45,000 .

The agreement provided KVH flexibility in the development and sales of custom, cost-effective airtime plans using Starlink's Global Priority service.

We made an upfront payment of $ 5.0 million upon entry into the agreement, a payment of $ 10.0 million in January 2026 and a payment of $ 6.0 million in February 2026.

The remainder of the $ 45.0 million obligation is due in quarterly payments from the second quarter of 2026 through the first quarter of 2027.

We made an upfront payment of $ 5,000 upon entry into the agreement, a payment of $ 10,000 in January 2026 and payments of $ 6,000 in each of February 2026 and May 2026.

The remaining $ 18,000 obligation will be paid in three quarterly payments through the first quarter of 2027.

(8) Property and Equipment

Property and equipment, net, as of March 31, 2026 and December 31, 2025 consist of the following:

Property and equipment, net, as of June 30, 2026 and December 31, 2025 consist of the following:

2026 December 31,

6 unchanged sentences

$ 21,043 $ 22,032

Depreciation expense was $ 2,240 and $ 2,784 for the three months ended March 31, 2026 and 2025, respectively.

Depreciation expense was $ 2,110 and $ 2,500 for the three months ended June 30, 2026 and 2025, respectively, and $ 4,350 and $ 5,284 for the six months ended June 30, 2026 and 2025, respectively.

Certain revenue-generating hardware assets are utilized by the Company in the delivery of the Company's airtime services, media and other content.

As of March 31, 2026 and December 31, 2025, the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets.

As of June 30, 2026 and December 31, 2025, the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets.

In the third quarter of 2024, the Company commenced its plan to sell the warehouse building and surface parking lot located at 75 Enterprise Center in Middletown, Rhode Island (“75 Enterprise Center”).

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The Company also entered into an agreement with the buyer to lease this property for the period October 2025 through the end of March 2026, which was subsequently extended through April 30, 2026.

Total lease expense under this agreement was $ 0.2 million.

Total lease expense under this agreement was approximately $ 200 .

The Company has now fully migrated its Rhode Island operations to the leased facility located in Bristol, Rhode Island.

Additionally, in the third quarter of 2024, the Company commenced its plan to sell the property, building, improvements, and land located at 50 Enterprise Center in Middletown, Rhode Island (“50 Enterprise Center”).

In March 2025, the Company entered into an agreement with a buyer to sell 50 Enterprise Center for $ 5.3 million.

In March 2025, the Company entered into an agreement with a buyer to sell 50 Enterprise Center for approximately $ 5,300 .

The sale was completed in June 2025.

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Warranty and related costs are reflected within sales, marketing and support in the accompanying consolidated statements of operations.

As of March 31, 2026 and December 31, 2025, the Company had accrued product warranty costs of $ 654 and $ 644 , respectively.

As of June 30, 2026 and December 31, 2025, the Company had accrued product warranty costs of $ 656 and $ 644 , respectively.

The following table summarizes product warranty activity during 2026 and 2025:

Three Months Ended

Six Months Ended

Beginning balance $ 644 $ 607

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Unobservable inputs that are supported by little or no market activity and are developed based on the best information available given the circumstances.

No financial assets or liabilities were measured at fair value based upon the ASC 820 fair value hierarchy as of March 31, 2026 or December 31, 2025.

No financial assets or liabilities were measured at fair value based upon the ASC 820 fair value hierarchy as of June 30, 2026 or December 31, 2025.

The carrying amount of certain financial instruments approximates fair value due to their short-term, highly liquid nature.

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The Company’s non-financial assets, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and subsequently re-measured if indications of impairment exist.

There was no impairment of the Company's non-financial assets noted during the three months ended March 31, 2026 and 2025.

There was no impairment of the Company's non-financial assets noted during the six months ended June 30, 2026 and 2025.

The Company does not have any liabilities that are recorded at fair value on a non-recurring basis.

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Accordingly, the Company's asset groups were determined to be its reporting units (MBB and Media).

The changes in the carrying amount of intangible assets during the three months ended March 31, 2026 are as follows:

The changes in the carrying amount of intangible assets during the six months ended June 30, 2026 are as follows:

Intangible Assets

2 unchanged sentences

Intangible assets acquired in asset acquisition 648

Balance at March 31, 2026

Intangible assets arose from the purchase of the maritime satellite service business of a satellite services provider operating in the Asia-Pacific region in October 2025, the purchase of distribution rights from Kognitive Networks Inc.

Balance at June 30, 2026

in October 2023 and the purchase of KVH Industries Norway AS in September 2010.

The assets that are related to the purchase of the maritime satellite service business of a satellite services provider are being amortized on a straight-line basis over the estimated useful life of 9 years.

The assets that are related to the purchase of customer relationships in May 2026 are being amortized on a straight-line basis over the estimated useful life of 10 years.

The assets that are related to the distribution rights from Kognitive Networks are being amortized on a straight-line basis over the estimated useful life of 3 years.

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Acquired intangible assets are subject to amortization.

The following table summarizes acquired intangible assets at March 31, 2026 and December 31, 2025, respectively:

The following table summarizes acquired intangible assets at June 30, 2026 and December 31, 2025, respectively:

Gross Carrying Amount Accumulated Amortization Net Carrying Value

March 31, 2026

June 30, 2026

Subscriber relationships $ 733 $ 70 $ 663

9 unchanged sentences

$ 6,993 $ 3,276 $ 3,717

Amortization expense related to intangible assets was $ 205 and $ 104 for the three months ended March 31, 2026 and 2025, respectively.

Amortization expense related to intangible assets was $ 206 and $ 106 for the three months ended June 30, 2026 and 2025, respectively, and $ 411 and $ 210 for the six months ended June 30, 2026 and 2025, respectively.

Amortization expense was categorized as general and administrative expense.

As of March 31, 2026, the total weighted average remaining useful lives of the definite-lived intangible assets was 7.8 years.

Estimated future amortization expense for intangible assets recorded by the Company at March 31, 2026 is as follows:

As of June 30, 2026, the total weighted average remaining useful lives of the definite-lived intangible assets was 8.1 years.

Estimated future amortization expense for intangible assets recorded by the Company at June 30, 2026 is as follows:

Years ending December 31, Amortization

1 unchanged sentence

Total amortization expense $ 3,954

As of March 31, 2026, the Company's goodwill is associated with the purchase of the maritime satellite service business of a satellite services provider operating in the Asia-Pacific region in October 2025.

As of June 30, 2026, the Company's goodwill is associated with the purchase of the maritime satellite service business of a satellite services provider operating in the Asia-Pacific region in October 2025.

Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired.

The changes in the carrying amount of goodwill during the three months ended March 31, 2026 is as follows:

Balance at December 31, 2025

Acquisitions of goodwill —

Balance at March 31, 2026

The carrying amount of goodwill remained unchanged during the six months ended June 30, 2026, with a balance of $ 732 .

(13) Revenue from Contracts with Customers

2 unchanged sentences

Disaggregation of Revenue

The following table summarizes net sales from contracts with customers for the three months ended March 31, 2026 and 2025:

Three Months Ended

The following table summarizes net sales from contracts with customers for the three and six months ended June 30, 2026 and 2025:

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Service - over time $ 29,711 $ 23,049 $ 57,865 $ 44,691

7 unchanged sentences

The Company offers a comprehensive family of mobile satellite antenna services and products that provide access to the internet, television, and VoIP services while on the move.

Service sales of airtime service accounted for 82 % and 79 % of the Company's consolidated net sales for the three months ended March 31, 2026 and 2025, respectively.

Service sales of airtime service accounted for 82 % and 80 % of the Company's consolidated net sales for the three months ended June 30, 2026 and 2025, respectively, and 82 % and 80 % of the Company's consolidated net sales for the six months ended June 30, 2026 and 2025, respectively.

The balance of service sales are comprised of distribution of commercially licensed entertainment and news, product repairs, and extended warranty sales.

Product sales accounted for 13 % and 15 % of the Company's consolidated net sales for the three months ended March 31, 2026 and 2025, respectively.

Product sales accounted for 12 % and 13 % of the Company's consolidated net sales for the three months ended June 30, 2026 and 2025, respectively, and 12 % and 14 % of the Company's consolidated net sales for the six months ended June 30, 2026 and 2025, respectively.

No other single product class accounts for 10% or more of the Company's consolidated net sales.

1 unchanged sentence

Revenues from international locations primarily include Singapore, Canada, South American countries, European Union countries and other European countries, and countries in Africa, the Middle East and Asia/Pacific, including India.

Revenues are based upon customer location, and revenues from international locations represented 76 % and 80 % of consolidated net sales for the three months ended March 31, 2026 and 2025, respectively.

Sales to Singapore customers represented 21 % and 23 % of the Company's consolidated net sales for the three months ended March 31, 2026 and 2025, respectively.

No other individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended March 31, 2026 or 2025.

Revenues are based upon customer location, and revenues from international locations represented 75 % and 78 % of consolidated net sales for the three months ended June 30, 2026 and 2025, respectively, and 76 % and 79 % of consolidated net sales for the six months ended June 30, 2026 and 2025, respectively.

Sales to Singapore customers represented 22 % and 21 % of the Company's consolidated net sales for the three months ended June 30, 2026 and 2025, respectively.

No other individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended June 30, 2026 or 2025.

Sales to Singapore customers represented 22 % and 22 % of the Company's consolidated net sales for the six months ended June 30, 2026 and 2025, respectively.

No other individual foreign country represented 10% or more of the Company's consolidated net sales for the six months ended June 30, 2026 or 2025.

Business and Credit Concentrations

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To mitigate these risks, the Company maintains cash and cash equivalents with reputable and nationally recognized financial institutions.

As of March 31, 2026, substantially all of the cash and cash equivalents were held by Bank of America, N.A.

As of June 30, 2026, substantially all of the cash and cash equivalents were held by Bank of America, N.A.

Concentrations of risk with respect to trade accounts receivable are generally limited due to the large number of customers and their dispersion across several geographic areas.

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The Company establishes allowances for credit losses and evaluates, on a monthly basis, the adequacy of those reserves based upon expected losses, historical experience and its expectation for future collectability concerns.

No customers accounted for 10% or more of consolidated net sales for the three months ended March 31, 2026.

One customer accounted for 13 % of consolidated net sales for the three months ended March 31, 2025.

No other customers accounted for 10% or more of consolidated net sales for the three months ended March 31, 2025.

One customer accounted for approximately 14 % and 16 % of accounts receivable at March 31, 2026 and December 31, 2025, respectively.

One customer accounted for 22 % and 29 % of long-term accounts receivable included in other non-current assets on the consolidated balance sheets related to sales-type leases at March 31, 2026 and December 31, 2025, respectively.

No customers accounted for 10% or more of consolidated net sales for the six months ended June 30, 2026.

One customer accounted for 12 % of consolidated net sales for the six months ended June 30, 2025.

No other customers accounted for 10% or more of consolidated net sales for the six months ended June 30, 2025.

One customer accounted for approximately 14 % and 16 % of accounts receivable at June 30, 2026 and December 31, 2025, respectively.

One customer accounted for 15 % and 29 % of long-term accounts receivable included in other non-current assets on the consolidated balance sheets related to sales-type leases at June 30, 2026 and December 31, 2025, respectively.

Certain components from third parties used in the Company’s products are procured from single sources of supply.

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(14) Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2026 was 17.5 % compared with ( 1.5 )%, for the three months ended March 31, 2026.

The Company’s effective tax rate for the three and six months ended June 30, 2026 was 55.5 % and 30.4 %, respectively, compared with 10.1 % and ( 20.0 )%, for the three and six months ended June 30, 2025, respectively.

The effective income tax rate is based on estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable periods, including retroactive changes in tax legislation, settlements of tax audits or assessments, and the resolution or identification of tax position uncertainties.

For the three months ended March 31, 2026 and 2025, the effective tax rates differed from the statutory tax rate primarily due to the Company maintaining a valuation allowance reserve on its U.S.

For the three and six months ended June 30, 2026 and 2025, the effective tax rates differed from the statutory tax rate primarily due to the Company maintaining a valuation allowance reserve on its U.S.

deferred tax assets, discrete tax adjustments and the composition of income from foreign jurisdictions taxed at lower rates.

As of March 31, 2026 and December 31, 2025, the Company had reserves for uncertain tax positions of $ 817 and $ 793 , respectively.

There were no material changes during the three months ended March 31, 2026 to the Company’s reserve for uncertain tax positions.

The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of March 31, 2026 may decrease $ 9 in the next twelve months as a result of a lapse of statutes of limitations and settlements with taxing authorities.

As of June 30, 2026 and December 31, 2025, the Company had reserves for uncertain tax positions of $ 840 and $ 793 , respectively.

There were no material changes during the six months ended June 30, 2026 to the Company’s reserve for uncertain tax positions.

The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of June 30, 2026 may decrease $ 9 in the next twelve months as a result of a lapse of statutes of limitations and settlements with taxing authorities.

The Company’s tax jurisdictions include the United States, the United Kingdom, Denmark, Cyprus, Norway, Brazil, Singapore, Japan and India.

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The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment.

Lease expense was $ 116 and $ 271 for the three months ended March 31, 2026 and 2025, respectively.

Short-term operating lease costs were $ 24 and $ 22 for the three months ended March 31, 2026 and 2025, respectively.

Maturities of lease liabilities as of March 31, 2026 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Lease expense was $ 595 and $ 235 for the three months ended June 30, 2026 and 2025, respectively, and $ 711 and $ 506 for the six months ended June 30, 2026 and 2025, respectively.

Short-term operating lease costs were $ 17 and $ 24 for the three months ended June 30, 2026 and 2025, respectively, and $ 41 and $ 46 for the six months ended June 30, 2026 and 2025, respectively.

Maturities of lease liabilities as of June 30, 2026 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2026 $ 528

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The Company has fully migrated its Rhode Island operations to this leased facility.

The Company's costs of sales and operational expenditures will include lease expense at the rate of approximately $ 0.6 million for the first year of the lease (excluding three months of free rent), with fixed annual increases thereafter.

The Company's costs of sales and operational expenditures will include lease expense at the rate of approximately $ 0.6 million per year.

The lease agreement is for a term of 87 months with an option to extend the lease an additional 10 years.

This lease agreement resulted in a right of use asset and operating lease liabilities of approximately $ 3,600 as of March 31, 2026.

This lease agreement resulted in a right of use asset and operating lease liabilities of approximately $ 3,600 as of June 30, 2026.

The Company enters into leases with certain customers primarily for the TracNet and TracPhone VSAT systems.

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The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component.

The current portion of the net investment in these leases was $ 2,490 as of March 31, 2026 and the non-current portion of the net investment in these leases was $ 2,187 as of March 31, 2026.

The current portion of the net investment in these leases was $ 2,748 as of June 30, 2026 and the non-current portion of the net investment in these leases was $ 2,192 as of June 30, 2026.

The current portion of the net investment in the leases is included in accounts receivable, net of allowance for credit losses on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets.

Interest income from sales-type leases was $ 90 and $ 102 during the three months ended March 31, 2026 and 2025, respectively.

The future undiscounted cash flows from these leases as of March 31, 2026 are:

Interest income from sales-type leases was $ 69 and $ 101 during the three months ended June 30, 2026 and 2025, respectively, and $ 159 and $ 203 during the six months ended June 30, 2026 and 2025, respectively.

The future undiscounted cash flows from these leases as of June 30, 2026 are:

Remainder of 2026 $ 1,859

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The Board concluded that the Company should discontinue its capital-intensive manufacturing activities and concentrate its efforts on growing sales of its multi-orbit, multi-channel, integrated communications solutions, which in recent years have constituted the largest portion of the Company’s overall revenues.

The Company expects that it will continue its product manufacturing activities for a period of time in order to generate a targeted amount of inventory of maritime satellite connectivity and satellite television terminals to meet anticipated demand and that it will cease substantially all manufacturing activity by the end of 2026.

The Company expects that it will continue its product manufacturing activities for the next six months in order to generate a targeted amount of inventory of maritime satellite connectivity and satellite television terminals to meet anticipated demand and that it will cease substantially all manufacturing activity by the end of 2026.

The Company expects to continue to facilitate customer transition to third-party hardware products compatible with the Company’s mobile satellite communications services.

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This is reviewed against budgeted expectations to assess segment performance and allocate resources.

The Company’s segment net income for the three months ended March 31, 2026 and 2025 consisted of the following:

Three Months Ended

The Company’s segment net income for the three and six months ended June 30, 2026 and 2025 consisted of the following:

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Service $ 29,711 $ 23,049 $ 57,865 $ 44,691

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Cost of product sales

VSAT 561 590 960 1,184

LEO 2,016 1,133 4,041 2,588

TracVision & land mobile

300 700 571 1,320

Other (2) 1,424 854 3,129 1,925

4,301 3,277 8,701 7,017

Research and development

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Other (3) 116 82 253 280

805 916 1,531 2,103

Sales, marketing and support

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Other (4) 1,385 1,251 2,585 2,760

5,237 5,010 10,306 9,970

General and administrative

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Other (5) 1,270 1,166 2,505 2,187

Long-lived asset impairment charge — —

4,363 3,580 8,245 7,115

Other segment items (6) ( 239 ) ( 1,300 ) ( 945 ) ( 1,833 )

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(3) Includes facilities and other less significant expenses

(4) Includes marketing expenses, external commissions, travel and entertainment, facilities expense, warranty expense and other less significant expenses

(5) Includes the financing fees, facilities expense, computer expenses, depreciation and amortization and other less significant expenses

(4) Includes marketing expenses, external commissions, travel and entertainment, facilities expenses, warranty expenses and other less significant expenses

(5) Includes the financing fees, facilities expenses, computer expenses, depreciation and amortization and other less significant expenses

(6) Other segment items includes interest income;

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and income tax expense (benefit) line items on the face of the income statement

Regarding the Company's long-lived assets of $ 26,451 for the period end March 31, 2026, $ 9,797 of these assets are located inside of the United States.

Regarding the Company's long-lived assets of $ 25,507 for the period ended June 30, 2026, $ 10,432 of these assets are located inside of the United States.

Regarding the assets located outside of the United States, $ 5,009 are located in Singapore.

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(18) Share Buyback Program

On December 9, 2024, the Board of Directors of the Company authorized a share repurchase program pursuant to which the Company may purchase outstanding shares of the Company’s common stock for an aggregate purchase price of up to $ 10,000 .

On March 6, 2026, the Board of Directors of our Company authorized an increase in the size of the repurchase program from $ 10,000 to $ 15,000 .

On March 6, 2026, the Board of Directors of our Company authorized an increase in the size of the repurchase program from $ 10.0 million to $ 15.0 million.

Under the program, the Company, at management’s discretion, may repurchase shares from time to time through various means, including on the open market, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement.

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The program does not obligate the Company to repurchase any minimum number or dollar amount of shares, and the program may be modified, suspended or terminated at any time without prior notice.

During the three months ended March 31, 2026, the Company repurchased 34 shares of common stock in open market transactions at a cost of approximately $ 206 .

During the three months ended June 30, 2026, the Company repurchased 254 thousand shares of common stock in open market transactions at a cost of approximately $ 2.3 million.

During the six months ended June 30, 2026, the Company repurchased 288 thousand shares of common stock in open market transactions at a cost of approximately $ 2.5 million.

Except as noted above, there were no other repurchase programs outstanding.

(19) Business Combination

On October 8, 2025 (the “Closing Date”), the Company entered into an agreement (the “Agreement”) to purchase the maritime satellite service business of a satellite services provider operating in the Asia-Pacific region (the “Seller”).

On October 8, 2025 (the “Closing Date”), the Company entered into an agreement to purchase the maritime satellite service business of a satellite services provider operating in the Asia-Pacific region (the “Seller”).

The transfer of control from the Seller to the Company is referred to as the “Acquisition”.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements