Aircraft and Connectivity - As of December 31, 2025, the company had approximately 4,460 commercial aircraft equipped with in-flight connectivity (IFC) systems, with an expectation of adding 1,100 more under existing agreements[179] - The company provided Ka-band communication services to approximately 13,400 vessels as of December 31, 2025[179] - The company leverages its satellite fleet and partnerships to provide high-quality broadband and narrowband connectivity solutions across various sectors, including aviation, maritime, and government[177] Financial Performance - Total revenues for the three months ended December 31, 2025, increased by $33.3 million to $1,157.0 million, driven by a 2% increase in service revenues and a 6% increase in product revenues[214] - Total revenues for the nine months ended December 31, 2025, increased by $96.5 million to $3,469.0 million, with service revenues up by $42.3 million and product revenues up by $54.2 million[227] - Total revenues for the communication services segment increased by $15.8 million, or 1%, from $2,473.5 million in 2024 to $2,489.4 million in 2025, with service revenues up by $39.1 million[235] - The defense and advanced technologies segment revenues increased by $80.7 million, or 9%, from $899.0 million in 2024 to $979.6 million in 2025, driven by a $77.5 million increase in product revenues[237] Cost and Expenses - Cost of revenues for the three months ended December 31, 2025, rose by $16.3 million to $778.3 million, with a 2% increase in cost of service revenues and a 3% increase in cost of product revenues[215] - Total cost of revenues for the nine months ended December 31, 2025, increased by $48.0 million to $2,295.9 million, with a 7% increase in cost of product revenues[228] - Selling, general and administrative (SG&A) expenses decreased by $16.3 million, or 2%, from $761.6 million in 2024 to $745.3 million in 2025, primarily due to a $13.7 million decrease in selling costs[229] - Independent research and development (IR&D) expenses increased by $10.2 million, or 28%, to $46.9 million, supporting multi-orbit initiatives and next-generation encryption products[217] - Independent research and development (IR&D) expenses increased by $14.7 million, or 14%, from $108.7 million in 2024 to $123.4 million in 2025, driven by efforts supporting next-generation encryption products[230] Debt and Interest - Interest income surged by $147.9 million due to the recognition of $152.5 million from a lump sum payment received from Ligado[219] - Interest expense decreased by $7.0 million, reflecting a reduction in total outstanding indebtedness from $7.2 billion in 2024 to $6.4 billion in 2025[220] - Interest income rose by $128.0 million, primarily due to a $152.5 million recognition from a $420.0 million lump sum payment from Ligado, despite lower interest earned from reduced average invested balance[232] - Interest expense decreased by $34.3 million, attributed to a reduction in total outstanding indebtedness from $7.2 billion in 2024 to $6.4 billion in 2025[233] Taxation - The effective tax rate for the three months ended December 31, 2025, was 63%, compared to an effective tax rate of 7% in the prior year[221] - The company is subject to income taxes in the U.S. and various foreign jurisdictions, with potential changes in tax laws affecting the income tax provision[211] - Cash paid for income taxes during the first nine months of fiscal year 2026 was $79.2 million, down from $174.6 million in the prior year[253] Contracts and Revenue Recognition - Almost all revenues are derived from fixed-price contracts, with a small portion from cost-reimbursement contracts primarily in the defense segment[184] - The revenue recognition model applied is based on the five-step process under ASC 606, impacting how revenues are reported and recognized[189] - U.S. Government contracts typically involve performance-based payments (PBPs) or progress payments, with revenue recognized in excess of billings, leading to unbilled accounts receivable[192] - Revenue for long-term contracts is recognized over time based on the cost-to-cost measure of progress, which requires management estimates of total costs at completion[193] - A one percent variance in future cost estimates on open fixed-price contracts as of December 31, 2025, would change income (loss) before income taxes by an insignificant amount[193] - The evaluation of transaction price for performance obligations may require significant judgments, including estimating variable consideration based on performance metrics and customer discretion[194] - The purchase price for business combinations is allocated to the estimated fair values of acquired assets and liabilities, with goodwill recorded when consideration exceeds fair value[203] Cash Flow and Investments - Cash and cash equivalents stood at $1.3 billion as of December 31, 2025, with no outstanding borrowings and $594.8 million available under the revolving credit facility[245] - Cash provided by operating activities for the first nine months of fiscal year 2026 was $1.3 billion, a $657.8 million increase from $609.7 million in the prior year period[253] - Cash used in investing activities increased to approximately $663.7 million in the first nine months of fiscal year 2026, compared to $524.9 million in the prior year period, reflecting a $138.8 million increase[254] - Cash used in financing activities for the first nine months of fiscal year 2026 was approximately $867.5 million, an increase of $431.6 million from $435.9 million in the prior year period, primarily due to early repayment of debt[255] Strategic Changes and Future Outlook - The company completed the divestiture of its energy services system integration business in December 2024, which had minimal strategic synergies with core growth businesses[180] - The company anticipates future growth opportunities in markets prioritizing technology solutions, although predicting contract awards remains challenging[187] - The firm backlog as of December 31, 2025, totaled $3,967.3 million, with $2,790.8 million in communication services and $1,176.5 million in defense and advanced technologies[240] - Total new awards for the nine months ended December 31, 2025, were approximately $3.7 billion, compared to $3.5 billion for the same period in 2024[242] - The company expects to incur additional operating costs when launching new satellites, similar to the ramp-up period experienced with ViaSat-2[261] - The company anticipates continued investment in IR&D to support leadership in satellite and space technologies, with investment levels depending on various factors[258] Currency Risk Management - The company conducts its business primarily in U.S. dollars but is exposed to fluctuations in foreign currency exchange rates due to international operations[273] - A five percent variance in foreign currencies would result in an insignificant change in income (loss) before income taxes for the three and nine months ended December 31, 2025 and 2024[273] - The company's objective in managing foreign currency risk is to reduce earnings and cash flow volatility associated with exchange rate fluctuations[273] - The company may enter into foreign currency forward contracts to mitigate risks related to foreign currency denominated assets, liabilities, and transactions[273] Asset Valuation and Impairments - No material impairments were recorded for the three and nine months ended December 31, 2025 and 2024, indicating stable asset valuations[204] - The company assesses the realizability of deferred tax assets quarterly, establishing a valuation allowance if it is more likely than not that some deferred tax assets will not be realized[208] - Accruals for uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities[210] Indebtedness - As of December 31, 2025, total outstanding indebtedness was $6.4 billion, including various senior secured notes and term loan facilities[262] - The effective interest rates on outstanding borrowings as of December 31, 2025 were 8.87% for the 2022 Term Loan Facility, 9.34% for the 2023 Term Loan Facility, and 9.55% for the Inmarsat Term Loan Facility[272] - The company recorded a loss of $11.6 million and $11.9 million in (loss) gain on extinguishment of debt for the three and nine months ended December 31, 2025, respectively[251]

Key Takeaways VSAT reported fiscal Q3 net income of $25M, reversing a prior-year loss, while adjusted EPS topped estimates.VSAT revenues rose to $1.15B, led by government satcom, aviation services, and defense technologies growth.Viasat expects fiscal 2026 low single-digit revenue growth with adjusted EBITDA projected to be flat.Viasat, Inc. (VSAT) reported mixed third-quarter fiscal 2026 results, wherein the bottom line beat the Zacks Consensus Estimate, but the top line missed the same.The company’s top l ...

Please [+] Follow me for coverage on deeply discounted stocks. To dive deeper beyond the ideas in this article, get do-it-yourself tips and tricks by clicking on the blue button beside my name. Subscribe to the DIY Value Investing Free Or Full Level to get alerts separate from the alerts you normally get when following me.In November 2025, Viasat, Inc. ( VSAT ) reported second-quarter results that initially sent shares lower. Thanks to soaring stock markets, particularly in both orbital rockets and satellit ...

Core Insights - The space ETF UFO has shown strong performance, returning 7.8% in January, outperforming the category average of 2.9% [1] - The fund targets companies involved in various aspects of the space industry, including satellites, rocketry, and ground equipment [1] - Three top-performing stocks in January were MDA Space Ltd. (46% return), AST SpaceMobile Inc. (53.1% return), and ViaSat Inc. (31.1% return) [1] Fund Overview - UFO, launched in 2019, charges a fee of 75 basis points and tracks the S-Network Space index, which includes fewer than 50 stocks as of January 30th [1] - The index categorizes investments into non-diversified space firms (at least 50% revenue from space) and diversified firms engaged in space activities [1] Company Highlights - MDA Space Ltd., Canada's largest space firm, received an upgraded outlook rating from Morgan Stanley and operates the main robotic arm on the International Space Station [1] - ViaSat Inc. also received an upgraded rating from Morgan Stanley and is preparing for a new satellite commercial service launch [1] - AST SpaceMobile Inc. focuses on satellite networking services, contributing to the overall strong performance of the ETF [1]

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ViaSat (VSAT) reported $1.16 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 3%. EPS of $0.79 for the same period compares to -$1.23 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.17 billion, representing a surprise of -0.85%. The company delivered an EPS surprise of +1404.76%, with the consensus EPS estimate being $0.05.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Viasat (NasdaqGS:VSAT) Q3 2026 Earnings call February 05, 2026 05:30 PM ET Company ParticipantsEdison Yu - DirectorGary Chase - CFOJustin Lang - VP of Aerospace and Defense Equity ResearchLisa Curran - SVP of Investor RelationsMark Dankberg - Chairman and CEOMike Crawford - Senior Managing Director and Head of the Discovery GroupRic Prentiss - Managing Director of Communications ServicesConference Call ParticipantsRyan Koontz - Managing Director and Research AnalystSebastiano Petti - Senior Research Analyst ...

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, up approximately 3% year-over-year, reflecting growth in both DAT and communication services [21][22] - Adjusted EBITDA was $387 million, down 2%, primarily due to $10 million of incremental R&D investments related to growth initiatives [23] - Net income improved to $25 million, an increase of $183 million, mainly due to higher interest income recognized during the quarter [22] - Cash flow from operations was $727 million, or $307 million excluding the lump sum payment from Legato, resulting in free cash flow of $444 million [21][23] - The net debt to trailing twelve-month adjusted EBITDA ratio improved to 3.25 times, down from approximately 3.7 times a year ago [24] Business Line Data and Key Metrics Changes - Communication services awards were $671 million, down 11%, reflecting lower aviation awards and the effects of the government shutdown [24] - Maritime awards grew 25%, while revenue was $825 million, up 1%, with solid growth in aviation and government SATCOM [25] - Aviation revenue grew 15%, driven by a 9% increase in commercial aircraft in service [25] - Government SATCOM revenue increased by 4%, indicating strong growth with U.S. and international governments [26] - Fixed services and other revenue declined by 20%, with U.S. fixed broadband subscribers continuing to decrease [28] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record for the company, up about 12% or $430 million, largely due to strong awards in the second quarter [22] - The global space economy is projected to grow from $626 billion in 2025 to $1 trillion by 2034, indicating significant market opportunities [16] Company Strategy and Development Direction - The company focuses on three key areas for revenue growth: ViaSat-3, multi-orbit systems, and new frontier defense technology [6] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while positioning the company to deliver differentiated value in fast-growing space and defense markets [11] - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and operational targets, emphasizing the importance of bringing ViaSat-3 flights 2 and 3 into service [20][32] - The company anticipates that the capabilities of the new satellites will catalyze future growth in both government and commercial franchises [31] - Management acknowledged the impact of the government shutdown on operations and expects similar effects in the fourth quarter [31] Other Important Information - The company is committed to reducing capital intensity while enhancing its reputation for reliable innovation and customer value [12] - The Equatys Mobile Satellite Services partnership is expected to leverage technical innovation and reduce capital costs for targeted business segments [13] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launches - Management confirmed that Flight 3 will likely have a shorter orbit raise period of about 2 months compared to Flight 2's 100 days [43] Question: Strategic review process and timing - Management indicated that the successful deployment of Flights 2 and 3, along with macro market conditions, will influence the timing of strategic decisions [45][46] Question: Thoughts on data centers in space and AI - Management noted that the feasibility of data centers in space hinges on power generation efficiency and expressed no plans to enter the data center business [51][52] Question: Addressable markets for competitive advantages - Management identified broadband and L-band markets as key areas for growth, particularly in mobile platforms and government applications [56][57] Question: Evaluation of government assets and potential separation - Management stated that a thorough evaluation is ongoing regarding the management of key dependencies if a separation occurs [85][86]

ViaSat (VSAT) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to a loss of $1.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1,404.76%. A quarter ago, it was expected that this provider of satellite and wireless networking technology would post a loss of $0.11 per share when it actually produced earnings of $0.09, delivering a surprise of +181.82% ...

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, an increase of approximately 3% year-over-year, driven by growth in DAT and communication services [18][20] - Adjusted EBITDA was $387 million, down 2%, primarily due to increased R&D investments and the impact of the government shutdown [21][26] - Net income improved to $25 million, a significant increase of $183 million compared to the previous year, mainly due to higher interest income [20] - Free cash flow was $444 million, or $24 million excluding a lump sum payment from Legato, with trailing twelve-month free cash flow exceeding $200 million [21][22] Business Line Data and Key Metrics Changes - Communication services awards were $671 million, down 11%, affected by lower aviation awards and the government shutdown [22] - Maritime revenue grew 25%, while overall maritime revenue declined 3% due to a decrease in vessels in service [24][25] - Defense and Advanced Technologies (DAT) revenue was $332 million, up 9%, driven by strong growth in InfoSec and cyber defense [26][29] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record high, up about 12% or $430 million, largely due to strong awards in government SATCOM and DAT [19] - The global space economy is projected to grow from $626 billion in 2025 to $1 trillion by 2034, indicating significant market opportunities [13][14] Company Strategy and Development Direction - The company is focused on three key areas for revenue growth: ViaSat-3, multi-orbit networks, and new defense technology [5][6] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while positioning the company to deliver differentiated value in fast-growing space and defense markets [9][12] - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance competitive positioning [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and operational targets, emphasizing the importance of the upcoming launches of ViaSat-3 Flight 2 and Flight 3 [17][30] - The company anticipates that the capabilities of the new satellites will catalyze future growth in both government and commercial franchises [29][30] - Management acknowledged the impact of the government shutdown on operations and expects similar effects in the fourth quarter [29] Other Important Information - The company is committed to reducing capital intensity while enhancing innovation and customer value [10][33] - A strategic partnership with Space42 aims to develop a shared space infrastructure to reduce capital costs and improve service delivery [11][34] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launches - Management confirmed that Flight 3 will have a shorter orbit raise period of about two months compared to Flight 2's 100 days [42] Question: Strategic review process and timing - Management indicated that the successful deployment of Flight 2 and Flight 3, along with macro market conditions, will influence the timing of strategic decisions [44][45] Question: Thoughts on data centers in space and AI - Management stated that the feasibility of data centers in space hinges on power generation efficiency and expressed interest in partnerships for communication capabilities [49][51] Question: Competitive landscape for D2D players - Management highlighted the importance of spectrum allocation and national security considerations in the competitive landscape for mobile satellite services [66][68] Question: Evaluation of government assets and potential separation - Management acknowledged the complexity of managing key dependencies and emphasized a thorough evaluation process to enhance shareholder value [84][85] Question: Position in information security and competitive threats - Management expressed optimism about growth in the information security sector, citing increased urgency and market size as favorable factors [86]