Segments, Significant Customers, Supplier and Service Providers and Geographic Information
The Company’s operations are primarily located in the United States and the Company operates in one business segment, providing global satellite communications services and products. Its Chief Executive Officer has been determined to be the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance.
The CODM evaluates the segment operating performance based on consolidated net income and reviews components of cost of services, including certain costs related to delivering engineering and other support services, which is considered a significant expense. Costs to support engineering and other support services, included within cost of services in the accompanying consolidated statements of operations and comprehensive income, were $110.1 million, $93.7 million and $77.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. The CODM considers budget-to-actual forecast and prior view-to-current view variances on a monthly and quarterly basis for evaluating performance and making decisions about allocating capital and other resources on a consolidated basis.
The Company derived approximately 29%, 28% and 25% of its total revenue in the years ended December 31, 2025, 2024 and 2023, respectively, from prime contracts with the U.S. government or subcontracts with prime contractors with U.S. government contracts. For the years ended December 31, 2025, 2024 and 2023, no single commercial customer accounted for more than 10% of the Company’s total revenue.
Approximately 46% and 51% of the Company’s accounts receivable balance at December 31, 2025 and 2024, respectively, was due from prime contracts or subcontracts with agencies of the U.S. government. As of December 31, 2025 and 2024, no single commercial customer accounted for more than 10% of the Company’s total accounts receivable balance.
The Company contracts for the manufacture of its subscriber equipment primarily from a limited number of manufacturers and utilizes other sole source suppliers for certain component parts of its devices. Should events or circumstances prevent the manufacturer or the suppliers from producing the equipment or component parts, the Company’s business could be adversely affected until the Company is able to move production to other facilities of the manufacturer or secure a replacement manufacturer or an alternative supplier for such component parts.
The following table summarizes net property and equipment by geographic area:
| | | | | | | | | | | |
| December 31, |
| | 2025 | | 2024 |
| | (In thousands) |
| | | |
| United States | $ | 369,337 | | | $ | 449,012 | |
| Satellites in orbit | 1,607,403 | | | 1,630,121 | |
| All others | 1,413 | | | 1,411 | |
| Total | $ | 1,978,153 | | | $ | 2,080,544 | |
The following table summarizes revenue by geographic area:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | (In thousands) | | |
| United States | $ | 479,039 | | | $ | 437,984 | | | $ | 431,476 | |
| Canada | 84,114 | | | 88,386 | | | 65,772 | |
Other countries (1) | 308,506 | | | 304,312 | | | 293,475 | |
| Total | $ | 871,659 | | | $ | 830,682 | | | $ | 790,723 | |
(1)No single country in this group represented more than 10% of revenue.
Revenue is attributed to geographic area based on the billing address of the distributor. Service location and the billing address are often not the same. The Company’s distributors sell services directly or indirectly to end users, who may be located or use the Company’s products and services elsewhere. The Company does not know the geographical distribution of end users because it does not contract directly with them.
The Company is exposed to foreign currency exchange fluctuations from sales made and costs incurred in foreign currencies.