Raising 2025-2027 Estimates by Low Single Digits Following Record Terminal Shipments 
 
Q1 tops expectations.  Revenues grew 27% y/y while AEBITDA nearly tripled and beat our forecast by 33%.
Service revenues grew 30% y/y (best since 2Q15) as vessel count grew 29% y/y and 6% sequentially.  
Terminal shipments spike.  KVH shipped 3,100 terminals in Q1 vs. its prior best of 1,600 (3Q25).  KVH shipped ~5,700 terminals in 2025, which compares to a peak vessel count of 7,200 in the pre-LEO era.
Service margins remained steady in the mid-30s as KVH manages the decline of its GEO business, while investing in LEO.  Starlink prepayments are the key to LEO margins, while GEO margins will benefit from $7M in GEO contract roll-offs in 2026.
Starlink prepayments totaled $16M in Q1, with the remaining balance ($24M) to be paid over the next four quarters.  Excluding the prepayment, KVH generated $5.2M of free cash flow