KVH Industries, Inc.

Good day and thank you for standing by. Welcome to the Q1 2026 KVH Industries Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Anthony Pike, CFO. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us today for KVH Industries' first 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. A copy of the earnings release was filed with the SEC under Form 8K this morning and a copy of the release along with a recording of today's call will be available on our website at ar.kvh.com. This conference call contains certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in these statements. Words such as expect, may, intend, anticipate, will and similar expressions identify forward-looking statements, which include projections, plans, initiatives and other future events. We undertake no obligation to update these statements and you should review the cautionary statements in our most recently filed Form 10-K under the heading Risk Factors. We will also discuss adjusted EBITDA, a non-GAAP financial measure, and our press release defines this term and reconciles it to GAAP net income or loss. Brent.

Good morning, everyone, and thank you for joining us. The shift to LEO that we highlighted last quarter continues to gain traction, and our first quarter results demonstrate that KVH is successfully capitalizing on this momentum. We are encouraged by the results that reflect sustained demand for our solutions along with strong execution across the organization. Total revenue for the quarter came in at $32.3 million, increasing sequentially from the fourth quarter of 2025. This growth was primarily driven by strong shipments of our communication terminals, which continue to see healthy demand across our core markets. and those shipments are the foundation of our recurring revenue model and a leading indicator for future subscriber activations. As expected, service revenue was consistent with the previous quarter. The first quarter typically reflects seasonal patterns in our business, where service revenue is either flat or slightly down compared to the fourth quarter. This trend has held steady over the past several years, and this quarter was no exception. One of the highlights of the quarter was our record level of connectivity unit shifts. We shipped approximately 3,100 units, a 70% increase over our previous high achieved in the third quarter of 2025. This milestone reflects both strong market demand and our team's ability to execute at scale. Importantly, the shipments position us well for anticipated activation growth as we move into the second quarter. Which brings me to our subscriber base. We ended the quarter with approximately 9,600 vessels. This reflects continued adoption of our solutions and the strength of our value proposition in the maritime market. And within that base, the shift I described is visible in the numbers. LEO services now represent over 45% of our airtime revenue, up from less than 30% a year ago. Our standalone VSAT subscriber base saw a decrease during the quarter, as expected, reflecting the ongoing industry-wide shift toward LEO. We continue to view this business as an important part of our portfolio as customers migrate to our broader multi-orbit offering. And we are exploring an additional LEO service that will further strengthen our multi-orbit offering. giving customers more choice and flexibility for their onboard connectivity. Additionally, we are working to expand our onboard role beyond connectivity. We are seeing encouraging progress in our newer service offerings. In particular, our IT service is gaining traction, with the service currently being evaluated on a number of vessels. While still early, feedback has been positive and we see this as an important step toward expanding our role as a broader solutions provider. We also remain focused on our existing differentiated value-added services. In addition to managed IT, we have made meaningful progress with our linked content platform. Crew welfare has always been important in maritime operations, and it has gained even greater attention in recent years. Our link service directly addresses this need by delivering content that enhances crew morale and onboard experience. We are encouraged by the traction we are seeing and are continuing to invest in the platform. In the coming months, we plan to introduce live stream content, further increasing its value to customers and crew alike. Finally, we continue to focus on expanding our global footprint. We see significant opportunities in key growth regions, particularly India and Latin America, where demand for reliable connectivity solutions is increasing. Our efforts in these regions are aimed at strengthening partnerships, increasing market presence, and capturing long-term growth opportunities. So, in conclusion, here is what we delivered in the first quarter. Record shipments, a growing subscriber base, Leo Mix shifting exactly as planned, managed IT in early trials, a content platform expanding its reach, and a geographic footprint linked to market opportunities. The shift is real, and we're capturing it. Last quarter, I said I've never been more confident in KVH's direction. Q1 only strengthens that conviction. We remain firmly focused on discipline and execution as we advance our transition to LEO-based solutions. Thank you. And with that, I'll turn it over to Anthony. Thank you, Brent.