| Segment Revenues, Expenses and Operating Profits (Losses) |
Segment revenues, expenses and operating profits (losses) for the three and six months ended September 30, 2026 and 2025 were as follows:
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Three Months Ended |
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Six Months Ended |
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September 30,
2026 |
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September 30,
2025 |
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September 30,
2026 |
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September 30,
2025 |
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(In thousands) |
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Revenues: |
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Communication services |
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Aviation services |
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$ |
325,840 |
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$ |
300,732 |
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$ |
650,221 |
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$ |
593,624 |
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Government satcom services |
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203,103 |
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195,800 |
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414,837 |
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387,568 |
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Maritime services |
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108,661 |
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117,594 |
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218,163 |
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235,395 |
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Fixed services and other services |
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120,532 |
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155,691 |
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247,957 |
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330,428 |
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Total services |
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758,136 |
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769,817 |
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1,531,178 |
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1,547,015 |
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Total products |
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56,390 |
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66,838 |
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108,431 |
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117,011 |
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Total communication services revenues |
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814,526 |
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836,655 |
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1,639,609 |
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1,664,026 |
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Defense and advanced technologies |
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Total services |
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62,459 |
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51,693 |
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121,855 |
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100,865 |
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Information security and cyber defense products |
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120,520 |
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94,928 |
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214,511 |
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197,076 |
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Space and mission systems products |
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81,310 |
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78,231 |
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148,170 |
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166,204 |
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Tactical networking products |
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96,982 |
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74,193 |
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189,552 |
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142,472 |
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Advanced technologies and other products |
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4,199 |
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5,193 |
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22,842 |
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41,304 |
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Total products |
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303,011 |
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252,545 |
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575,075 |
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547,056 |
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Total defense and advanced technologies revenues |
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365,470 |
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304,238 |
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696,930 |
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647,921 |
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Elimination of intersegment revenues |
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— |
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— |
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— |
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— |
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Total revenues |
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$ |
1,179,996 |
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$ |
1,140,893 |
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$ |
2,336,539 |
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$ |
2,311,947 |
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Expenses: |
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Communication services |
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Depreciation |
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$ |
234,762 |
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$ |
240,219 |
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$ |
455,955 |
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$ |
486,968 |
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Stock-based compensation expense |
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19,128 |
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12,490 |
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33,281 |
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20,802 |
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Other than acquired intangible assets amortization (1) |
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15,172 |
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4,739 |
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26,406 |
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18,748 |
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Acquisition and transaction related expenses |
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2,184 |
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3,480 |
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5,074 |
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11,354 |
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Other segment items (2) |
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519,741 |
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504,342 |
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1,032,925 |
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1,013,893 |
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Total communication services expenses (3) |
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790,987 |
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765,270 |
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1,553,641 |
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1,551,765 |
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Defense and advanced technologies |
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Depreciation |
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13,754 |
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12,451 |
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26,269 |
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23,403 |
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Stock-based compensation expense |
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15,040 |
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7,632 |
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25,078 |
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14,027 |
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Other than acquired intangible assets amortization (1) |
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6,684 |
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6,650 |
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11,965 |
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11,543 |
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Acquisition and transaction related expenses |
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949 |
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1,600 |
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2,115 |
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3,451 |
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Other segment items (2) |
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280,426 |
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246,446 |
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532,989 |
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494,501 |
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Total defense and advanced technologies expenses (3) |
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316,853 |
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274,779 |
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598,416 |
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546,925 |
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Total expenses |
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$ |
1,107,840 |
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$ |
1,040,049 |
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$ |
2,152,057 |
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$ |
2,098,690 |
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Operating profits (losses): |
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Communication services |
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$ |
23,539 |
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$ |
71,385 |
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$ |
85,968 |
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$ |
112,261 |
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Defense and advanced technologies |
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48,617 |
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29,459 |
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98,514 |
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100,996 |
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Elimination of intersegment operating profits (losses) |
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— |
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— |
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— |
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— |
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Segment operating profit (loss) before corporate |
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72,156 |
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100,844 |
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184,482 |
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213,257 |
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Corporate: |
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Amortization of acquired intangible assets |
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(65,007 |
) |
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(65,069 |
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(130,025 |
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(130,810 |
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Interest income |
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15,362 |
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12,525 |
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30,753 |
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26,815 |
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Interest expense |
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(101,957 |
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(93,487 |
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(184,261 |
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(193,844 |
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(Loss) gain on extinguishment of debt, net |
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— |
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— |
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— |
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(288 |
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Other income (expense), net |
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92 |
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— |
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(214 |
) |
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(5,164 |
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Income (loss) before income taxes |
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$ |
(79,354 |
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$ |
(45,187 |
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$ |
(99,265 |
) |
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$ |
(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.
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