v3.26.1
Segment Information
 3 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

Note 10 — Segment Information

The Company reports its results in two separate segments consisting of communication services and defense and advanced technologies. The Company's segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance.

The Company’s reportable segments (communication services and defense and advanced technologies) have been determined based upon their market and economic characteristics while also giving consideration to the structure and management of various business lines. The reportable segments are primarily determined based upon industry categories and core competencies relating to product or service end market distribution, operations, and servicing and distinguished by the type of customer and, to a lesser extent, the related contractual requirements.

The Company’s communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including IFC services), government satcom services, maritime services (including narrowband and safety of communication capabilities), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services.

The Company’s defense and advanced technologies segment develops and offers a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateways, modems and waveforms. The more regulated government environment for defense, encryption and other products is subject to unique contractual requirements and possesses economic characteristics that differ from the communication services segment. The Company’s defense and advanced technologies segment revenues are primarily derived from products and services in the Company’s information security and cyber defense, space and mission systems, tactical networking, and advanced technologies and other business lines, which are provided to government and commercial customers.

The Company's Chief Operating Decision Maker (CODM) is the Company's Chairman of the Board and Chief Executive Officer. Segment operating profits (losses) are the primary measure used by the Company's CODM to evaluate segment operating performance. The CODM regularly reviews budget-to-actual variances of segment operating profits (losses) when evaluating segment performance and allocating resources to each segment.

Segment revenues, expenses and operating profits (losses) for the three months ended June 30, 2026 and 2025 were as follows:

 

 

Three Months Ended

 

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

 

 

(In thousands)

Revenues:

 

 

 

 

 

 

 

Communication services

 

 

 

 

 

 

 

Aviation services

 

$

324,381

 

 

$

292,892

 

 

Government satcom services

 

 

211,734

 

 

 

191,768

 

 

Maritime services

 

 

109,502

 

 

 

117,801

 

 

Fixed services and other services

 

 

127,425

 

 

 

174,737

 

 

Total services

 

 

773,042

 

 

 

777,198

 

 

Total products

 

 

52,041

 

 

 

50,173

 

 

Total communication services revenues

 

 

825,083

 

 

 

827,371

 

 

Defense and advanced technologies

 

 

 

 

 

 

 

Total services

 

 

59,396

 

 

 

49,172

 

 

Information security and cyber defense products

 

 

93,991

 

 

 

102,148

 

 

Space and mission systems products

 

 

66,860

 

 

 

87,973

 

 

Tactical networking products

 

 

92,570

 

 

 

68,279

 

 

Advanced technologies and other products

 

 

18,643

 

 

 

36,111

 

 

Total products

 

 

272,064

 

 

 

294,511

 

 

Total defense and advanced technologies revenues

 

 

331,460

 

 

 

343,683

 

 

Elimination of intersegment revenues

 

 

—

 

 

 

—

 

 

Total revenues

 

$

1,156,543

 

 

$

1,171,054

 

 

Expenses:

 

 

 

 

 

 

 

Communication services

 

 

 

 

 

 

 

Depreciation

 

$

221,193

 

 

$

246,749

 

 

Stock-based compensation expense

 

 

14,153

 

 

 

8,312

 

 

Other than acquired intangible assets amortization (1)

 

 

11,234

 

 

 

14,009

 

 

Acquisition and transaction related expenses

 

 

2,890

 

 

 

7,874

 

 

Other segment items (2)

 

 

513,184

 

 

 

509,551

 

 

Total communication services expenses (3)

 

 

762,654

 

 

 

786,495

 

 

Defense and advanced technologies

 

 

 

 

 

 

 

Depreciation

 

 

12,515

 

 

 

10,952

 

 

Stock-based compensation expense

 

 

10,038

 

 

 

6,395

 

 

Other than acquired intangible assets amortization (1)

 

 

5,281

 

 

 

4,893

 

 

Acquisition and transaction related expenses

 

 

1,166

 

 

 

1,851

 

 

Other segment items (2)

 

 

252,563

 

 

 

248,055

 

 

Total defense and advanced technologies expenses (3)

 

 

281,563

 

 

 

272,146

 

 

Total expenses

 

$

1,044,217

 

 

$

1,058,641

 

 

Operating profits (losses):

 

 

 

 

 

 

 

Communication services

 

$

62,429

 

 

$

40,876

 

 

Defense and advanced technologies

 

 

49,897

 

 

 

71,537

 

 

Elimination of intersegment operating profits (losses)

 

 

—

 

 

 

—

 

 

Segment operating profit (loss) before corporate

 

 

112,326

 

 

 

112,413

 

 

Corporate:

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(65,018

)

 

 

(65,741

)

 

Interest income

 

 

15,391

 

 

 

14,290

 

 

Interest expense

 

 

(82,304

)

 

 

(100,357

)

 

(Loss) gain on extinguishment of debt, net

 

 

—

 

 

 

(288

)

 

Other income (expense), net

 

 

(306

)

 

 

(5,164

)

 

Income (loss) before income taxes

 

$

(19,911

)

 

$

(44,847

)

 

 

 

(1)
Including amortization of capitalized cloud computing implementation costs.
(2)
Other segment items include operating expenses such as cost of service and product revenues, selling, general and administrative expenses, IR&D expenses and related activities excluding allocable portion of depreciation, other than acquired intangibles amortization, stock-based compensation, and certain significant items that are disclosed under each segment.
(3)
For the three months ended June 30, 2026 and 2025, IR&D expense and related activities, including allocable depreciation, stock-based compensation and other expenses were $28.4 million and $19.2 million, respectively, for the communication services segment, and $17.1 million and $15.0 million, respectively, for the defense and advanced technologies segment.

The CODM is not regularly provided assets on a segment basis, therefore, such information is not presented.

The Company distinguishes revenues from external customers by geographic area based on customer location. Revenues by geographic area for the three months ended June 30, 2026 and 2025 were as follows:

 

 

 

Three Months Ended

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

 

(In thousands)

 

U.S. customers

 

$

788,423

 

 

$

815,333

 

Non-U.S. customers (each country individually insignificant)

 

 

368,120

 

 

 

355,721

 

Total revenues

 

$

1,156,543

 

 

$

1,171,054