v3.26.3
Segment Information
 6 Months Ended
Sep. 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, cybersecurity, 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 and six months ended September 30, 2026 and 2025 were as follows:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

September 30,
2026

 

 

September 30,
2025

 

 

September 30,
2026

 

 

September 30,
2025

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Communication services

 

 

 

 

 

 

 

 

 

 

 

 

Aviation services

 

$

325,840

 

 

$

300,732

 

 

$

650,221

 

 

$

593,624

 

Government satcom services

 

 

203,103

 

 

 

195,800

 

 

 

414,837

 

 

 

387,568

 

Maritime services

 

 

108,661

 

 

 

117,594

 

 

 

218,163

 

 

 

235,395

 

Fixed services and other services

 

 

120,532

 

 

 

155,691

 

 

 

247,957

 

 

 

330,428

 

Total services

 

 

758,136

 

 

 

769,817

 

 

 

1,531,178

 

 

 

1,547,015

 

Total products

 

 

56,390

 

 

 

66,838

 

 

 

108,431

 

 

 

117,011

 

Total communication services revenues

 

 

814,526

 

 

 

836,655

 

 

 

1,639,609

 

 

 

1,664,026

 

Defense and advanced technologies

 

 

 

 

 

 

 

 

 

 

 

 

Total services

 

 

62,459

 

 

 

51,693

 

 

 

121,855

 

 

 

100,865

 

Information security and cyber defense products

 

 

120,520

 

 

 

94,928

 

 

 

214,511

 

 

 

197,076

 

Space and mission systems products

 

 

81,310

 

 

 

78,231

 

 

 

148,170

 

 

 

166,204

 

Tactical networking products

 

 

96,982

 

 

 

74,193

 

 

 

189,552

 

 

 

142,472

 

Advanced technologies and other products

 

 

4,199

 

 

 

5,193

 

 

 

22,842

 

 

 

41,304

 

Total products

 

 

303,011

 

 

 

252,545

 

 

 

575,075

 

 

 

547,056

 

Total defense and advanced technologies revenues

 

 

365,470

 

 

 

304,238

 

 

 

696,930

 

 

 

647,921

 

Elimination of intersegment revenues

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total revenues

 

$

1,179,996

 

 

$

1,140,893

 

 

$

2,336,539

 

 

$

2,311,947

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Communication services

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

$

234,762

 

 

$

240,219

 

 

$

455,955

 

 

$

486,968

 

Stock-based compensation expense

 

 

19,128

 

 

 

12,490

 

 

 

33,281

 

 

 

20,802

 

Other than acquired intangible assets amortization (1)

 

 

15,172

 

 

 

4,739

 

 

 

26,406

 

 

 

18,748

 

Acquisition and transaction related expenses

 

 

2,184

 

 

 

3,480

 

 

 

5,074

 

 

 

11,354

 

Other segment items (2)

 

 

519,741

 

 

 

504,342

 

 

 

1,032,925

 

 

 

1,013,893

 

Total communication services expenses (3)

 

 

790,987

 

 

 

765,270

 

 

 

1,553,641

 

 

 

1,551,765

 

Defense and advanced technologies

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

13,754

 

 

 

12,451

 

 

 

26,269

 

 

 

23,403

 

Stock-based compensation expense

 

 

15,040

 

 

 

7,632

 

 

 

25,078

 

 

 

14,027

 

Other than acquired intangible assets amortization (1)

 

 

6,684

 

 

 

6,650

 

 

 

11,965

 

 

 

11,543

 

Acquisition and transaction related expenses

 

 

949

 

 

 

1,600

 

 

 

2,115

 

 

 

3,451

 

Other segment items (2)

 

 

280,426

 

 

 

246,446

 

 

 

532,989

 

 

 

494,501

 

Total defense and advanced technologies expenses (3)

 

 

316,853

 

 

 

274,779

 

 

 

598,416

 

 

 

546,925

 

Total expenses

 

$

1,107,840

 

 

$

1,040,049

 

 

$

2,152,057

 

 

$

2,098,690

 

Operating profits (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Communication services

 

$

23,539

 

 

$

71,385

 

 

$

85,968

 

 

$

112,261

 

Defense and advanced technologies

 

 

48,617

 

 

 

29,459

 

 

 

98,514

 

 

 

100,996

 

Elimination of intersegment operating profits (losses)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Segment operating profit (loss) before corporate

 

 

72,156

 

 

 

100,844

 

 

 

184,482

 

 

 

213,257

 

Corporate:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(65,007

)

 

 

(65,069

)

 

 

(130,025

)

 

 

(130,810

)

Interest income

 

 

15,362

 

 

 

12,525

 

 

 

30,753

 

 

 

26,815

 

Interest expense

 

 

(101,957

)

 

 

(93,487

)

 

 

(184,261

)

 

 

(193,844

)

(Loss) gain on extinguishment of debt, net

 

 

—

 

 

—

 

 

 

—

 

 

 

(288

)

Other income (expense), net

 

 

92

 

 

—

 

 

 

(214

)

 

 

(5,164

)

Income (loss) before income taxes

 

$

(79,354

)

 

$

(45,187

)

 

$

(99,265

)

 

$

(90,034

)

 

 

(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 and six months ended September 30, 2026, IR&D expense and related activities, including allocable depreciation, stock-based compensation and other expenses were $33.6 million and $62.0 million, respectively, for the communication services segment, and $26.2 million and $43.2 million, respectively, for the defense and advanced technologies segment. For the three and six months ended September 30, 2025, IR&D expense and related activities, including allocable depreciation, stock-based compensation and other expenses were $21.7 million and $40.8 million, respectively, for the communication services segment, and $20.6 million and $35.6 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 and six months ended September 30, 2026 and 2025 were as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

 

 

(In thousands)

 

U.S. customers

 

$

799,153

 

 

$

779,662

 

 

$

1,587,576

 

 

$

1,594,995

 

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

 

 

380,843

 

 

 

361,231

 

 

 

748,963

 

 

 

716,952

 

Total revenues

 

$

1,179,996

 

 

$

1,140,893

 

 

$

2,336,539

 

 

$

2,311,947