This was primarily driven by $2.3 million in stock repurchases. Giving effect to repurchases made subsequent to quarter end, we expect to conclude our full $15 million authorization within the current month. As a result, the program will then be complete. So overall, we are pleased with the second quarter's performance. As Brent stated, service revenue continues to grow and was up 6% compared to the first quarter of 2026 and 29% from the same quarter last year. We had another strong quarter for connectivity antenna shipments with over 2,500 units shipped and subscribing connectivity vessels were up 11% quarter on quarter compared to a 7% increase in the first quarter. On a year-to-date basis, subscribing connectivity vessels have grown by 18%. We hope to build on this strong momentum in the second half of the year and remain very positive about the future. This concludes our prepared remarks and I will now turn the call over to the operator to open the line for the Q&A portion of this morning's call. Operator?

Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Our first question comes from the line of Caleb Henry of Quilty Space. Your line is now open.

Hey, guys. Thanks for the questions. First one is just on terminal shipments, the 2,500, I think, versus 3,100 in the first quarter. Can you talk a little bit about what is driving the sort of ups and downs there and what you see for the next couple quarters?

Well, hi, Caleb. Good morning. You know, as I indicated last quarter, the 3,100 was really a high watermark, we felt. Potentially we'll match that or beat that at some point, but we realized at the time that that was a bit higher than what we expected. I think in the realm where we see now, which is about 2,500, we should be able to do somewhere in the 2,000 to 3,000 range on a go-forward basis, but that's hard to say as market dynamics are shifting constantly.

Okay, thank you. And then I noticed in the earnings statement, it seemed like a little bit more discussion of OneWeb. I'm curious if you're seeing any customer patterns between who chooses Starlink, who chooses OneWeb, and then also who chooses VSAT, if there's any segmentation there or things that are noteworthy.

Yeah, you know, in regards to who chooses what, you know, Starlink is definitely the dominating force as far as connectivity. customers are still looking for redundancy of network. In particular cases, customers are looking to an alternative to Starlink, which would then be OneWeb. Many of our vessels have two or more communication solutions on board. So we have customers that actually have all three on board, Starlink, OneWeb, and VSAT. We're still shipping VSATs. primarily in tandem with either a OneWeb or a Starlink. And in some cases, a OneWeb will be paired with a Starlink as well. So, I don't know. Anthony, do you have any more color to add there?

No, I think you covered it.

Okay. And for the Geo VSAT terminals or for vehicles that have decided to discontinue using that service, do those Vsats tend to stay on the vessel or are they typically going silent? Sorry, are they being removed?

Well, if they own it, I'm not sure what you're doing with it. If you're leaving it on board, if it's an agile, you know, or rental program, they're required to deinstall it and ship it back to us. Okay. Okay.

And then last question from me, as far as geocapacity that has been already procured, you know, can you give us a sense of the timeline for where that rolls off and if it has any material impact on gross margins going forward?

Well, the geocapacity, you know, we're in constant contact with SES previously. Our engagement was with our contract allegations were with Intelsat. We still have thousands of VSAT terminals in the market, so I wouldn't necessarily say there's an immediate roll-off of VSAT capacity, and we're just working with the provider to keep the service going as long as customers have a demand for it.

Got it. Thanks, guys. You're welcome. Our next question comes from the line of Chris Quilty of Quilty Space. Your line is now open.

Just to follow up on that last question, I didn't hear a change in the gross margin outlook. So presumably the, you know, balancing of VSAT, you know, service revenues, which I think you noted this time was down substantially in the quarter. So that sounds like, you know, more than in past, but you've been able to balance the cost with the revenue.

We have been able to balance costs with revenue. As we enter 2027, we'll be able to further balance that cost, if you will. And we don't really anticipate any exposure in regard to VSAT obligations in regard to being mismatched with the revenue stream. Anthony?

Well, sorry, the only thing I would add, Chris, is that, you know, from our 10K, you can see that, you know, predominantly our commitment on the geo-bandwidth comes to an end at the end of this year. You know, we have a small commitment for next year. And then, you know, on top of that, you know, including the press release, or if not, being a K later, that 55% of our revenue on the airtime now is driven from LEOP. So obviously if LEO becomes a bigger and bigger portion of that overall revenue, then it kind of de-risks a little bit in terms of the impact on the overall margin as a result of the compressed geo margins. So, you know, as Brent says, we feel fairly comfortable going forward.

Great. And Combox, did you give a number of units shipped or how is that trending?

Well, it's trending up. I'll defer to Anthony as far as unit shipments, and I don't believe we did disclose it.

No, we haven't. But we've had pretty much six, seven quarters now, consistent number of shipments in the region of sort of 200 to 300 a quarter.

Gotcha. And how do we think about, I mean, you've talked about managed services associated with that. I mean, how large of a revenue bundle would you generate from a vessel? Like, is this a material contributor or is it most of the profit on the hardware sale?

It's definitely the most of the profit would be on the recurring revenue. As far as the size of the opportunity, it really depends on the end customer and what their requirements are. But we would anticipate as we further roll out our IT managed services, and using the Combox Edge as the backbone to increase ARPU's, I wouldn't say significantly, but a nice uptick, put it that way.

Great. Final question, I guess several months ago, Starlink closed their reseller channel. Can you talk about what impact, if any, that's had on your business?

they closed their reseller channel for what they refer to as local priority, which is basically for groundwater and land-based applications. They have not closed their reseller program for global priority, which is the bulk of our business with Starlink.

Great. And I know there's been both new products and new pricing plans that Starlink has come out with. have those impacted the business in any way?

Not at this point.

Good luck going forward.

All right. Thank you, Chris. Thanks, Chris.

Thank you. I am showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.