KVH Industries, Inc.

Thank you for standing by. My name is Roselle, and I will be your operator today. At this point, I would like to welcome everyone to the Q2 2025 KVH Industries Inc. Earnings Conference. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keyboard. If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to Anthony Pipe, Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, everyone. And thank you for joining us today for KVH Industries' second quarter results, which are included in the earnings release we published earlier this morning. Joining me on the call is the company's Chief Executive Officer, Brent Bruin. Before I get into the numbers, a few standard statements. Firstly, if you would like a copy of the earnings release, or if you would like to listen to a recording of today's call, both will be available on our website. And if you are listening via the web, please feel free to submit questions to ir.kvh.com. Further, this conference call will contain certain forward-looking statements that are subject to numerous assumptions and uncertainties that may cause our actual results to differ materially from those expressed in these statements. We undertake no obligation to update or revise any of these statements. We will also discuss adjusted EBITDA, which is a non-GAAP financial measure. You will find a definition of this measure in our press release, as well as a reconciliation to comparable GAAP numbers. We encourage you to review the cautionary statements made in our SEC filings. specifically those under the heading Risk Factors in our Q2 2025 Form 10Q, which will be filed later today. The company's other SEC filings are available directly from the Investor Information section of our website. Now, to talk you through the highlights of our second quarter, I'll turn the call over to Brent.

Thank you, Anthony, and good morning, everyone. Our second quarter results reflect our successful ongoing efforts to transform our business model and operations. Compared to the first quarter of this year, revenue is up, adjusted EBITDA is up, and our subscriber base is up, up more than 8%, resulting in more than 8,000 subscribing vessels for the first time. Looking at our high-level results in more detail, our revenue declined year over year in the second quarter to $26.6 million. primarily due to the loss of revenue from our VSAT airtime service, which includes the loss of the U.S. Coast Guard. However, we returned to sequential airtime and service revenue growth for the first time since the second quarter of 2023. This led to a $1.2 million increase in total revenue over our first quarter 2025 results, airtime gross margin rose more than 4% sequentially, and our adjusted EBITDA rose to $2.7 million a $1.7 million increase compared to the first quarter. We also shipped more than 1,300 communication terminals for the second consecutive quarter. These shipments included Starlink terminals, ongoing orders for our TrackNet and TrackPhone VSATs, and OneWeb terminals. By delivering on our strategic initiatives, we believe we have reached an inflection point in our transition from a geo-based hardware and service company to a multi-orbit, LEO-focused service provider. For the first time, the increase in our LEO revenue more than offset the decline in revenue from our legacy VSAP business. Starlink terminals and service demand remain strong across the commercial maritime and leisure marine markets during the second quarter. We're also rapidly expanding our Starlink land sales, especially in Latin America, to support schools, villages, and other municipal and commercial facilities. We remain on target to deplete our prepaid Starlink data pool by year-end as planned. The prepaid pool has been a vital contributor to improvement in our profitability. We are now in discussions with Starlink regarding a renewal. We are also pleased with the steady growth we are achieving in OneWeb following the launch of the service at the end of January. Our Combox Edge communications gateway also continued to thrive in the second quarter. due in part to its easy integration with Starlink and OneWeb, along with our VSAT and cellular services. In addition, we have started to deploy our Combox Edge secure suite for commercial fleets, expanding the value of this product. Compared to the first quarter of 2025, we increased Combox Edge subscribers by 24%. Commercial maritime demand for crew welfare and content also remains strong. we now have more than 1,000 vessels subscribing to our KVH Link entertainment and news service. Looking at our overall business operations, we completed the sale of our headquarters facility at the end of June and expect to complete the sale of our factory facility in September. We have recently leased a new combined headquarters, production, and warehouse facility in Bristol, Rhode Island, and expect to relocate there in early 2026. And lastly, We bought back shares during the second quarter under the terms of the stock repurchase program approved by our board in December 2024. Through the end of the second quarter, we purchased more than 242,000 shares at a cost of roughly $1,250,000. So, in conclusion, we reached a significant inflection point in the second quarter. Our transformation as an integrated service provider accelerated. Our LEO revenue growth more than offset the decline in our legacy geo-based VSAT business. New services continue to grow. New services contributed to growth in subscribers, revenue, gross profit, and cash. We reduced our operating expenses significantly, and we have the resources and new service pipeline needed for an exciting future. Now I'll turn the call back to Anthony to discuss the numbers. Anthony?