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 ...

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, up approximately 3% year-over-year, driven by growth in DAT and communication services [21][22] - Adjusted EBITDA was $387 million, down 2%, primarily due to increased R&D investments and the impact of the government shutdown [23] - Net income improved to $25 million, an increase of $183 million, mainly due to higher interest income from Ligado's quarterly fees [22] - Free cash flow was $444 million, or $24 million excluding the lump sum payment from Ligado [23][24] - The net debt to trailing 12-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 increased by 15%, driven by a 9% rise in commercial aircraft in service [25] - Government SATCOM revenue grew 4%, indicating strong growth with U.S. and international governments [26] - Fixed services revenue declined by 20% due to a decrease in U.S. fixed broadband subscribers [28] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record high, up about 12% or $430 million, driven by strong awards in government SATCOM and DAT [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 networks, and new defense technology [6][10] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while enhancing competitive positioning in fast-growing markets [11][15] - 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, particularly regarding the deployment of ViaSat-3 satellites [20][32] - The company anticipates that the entry into service of ViaSat-3 Flights 2 and 3 will catalyze future growth in both government and commercial franchises [31][32] - 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 innovation and customer value [12] - A divestiture of the minority interest in Navarino is expected to close in March, subject to regulatory approval [24] - The company plans to invest in next-generation mobile user terminals and additional sources of LEO bandwidth for government and aero customers [9] 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 [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 [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 [50][51] Question: Addressable markets for competitive advantages - Management identified broadband and L-band markets as key growth areas, emphasizing government applications and sovereign ownership trends [56][57] Question: Evaluation of government assets and potential separation - Management acknowledged the complexity of managing key dependencies and emphasized a thorough evaluation process for maximizing shareholder value [88]

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]

Core Insights - ViaSat (VSAT) reported quarterly earnings of $0.79 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, and a notable improvement from a loss of $1.23 per share a year ago [1] - The earnings surprise of +1,404.76% highlights the company's strong performance, following a previous quarter where it also exceeded expectations [2] - Revenue for the quarter was $1.16 billion, slightly missing the Zacks Consensus Estimate by 0.85%, but showing growth from $1.12 billion year-over-year [3] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] - The current consensus EPS estimate for the upcoming quarter is $0.13, with expected revenues of $1.19 billion, and for the current fiscal year, the estimate is $0.44 on revenues of $4.66 billion [8] Stock Movement and Outlook - ViaSat shares have increased by approximately 15.2% since the beginning of the year, outperforming the S&P 500, which gained 0.5% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [7] Industry Context - The Wireless Equipment industry, to which ViaSat belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook for companies within this sector [9] - Another company in the same industry, Ubiquiti Inc. (UI), is expected to report quarterly earnings of $2.81 per share, reflecting a year-over-year increase of +23.3% [10]

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]

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Q3 FY2026 Earnings Results February 5, 2026 Forward-looking statements This presentation contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements regarding projections of earnings, revenue, Adjusted EBITDA, net leverage, free cash flow, capital expenditures, investments, costs, expected cost savings and s ...

Financial Performance - Q3 FY2026 revenue was $1.2 billion, a 3% year-over-year increase, driven by a 9% growth in the Defense and Advanced Technologies segment and a 1% increase in the Communication Services segment [16]. - Net income for Q3 FY2026 was $25 million, an improvement from a net loss of $158 million in Q3 FY2025, primarily due to higher interest income from the deferral of Ligado's quarterly fees [16]. - Adjusted EBITDA for Q3 FY2026 was $387 million, a 2% decrease year-over-year, with a 3% decline in the Communication Services segment partially offset by a 7% increase in the Defense and Advanced Technologies segment [16]. - Revenues for Q3 FY26 increased by 3% year-over-year to $1,157.0 million, compared to $1,123.8 million in Q3 FY25 [65]. - Net income for Q3 FY26 was $25.0 million, a significant improvement from a net loss of $158.4 million in Q3 FY25 [65]. - Adjusted EBITDA for Q3 FY26 decreased by 2% to $387.0 million, compared to $393.3 million in Q3 FY25 [65]. - Diluted net income per share for Q3 FY26 was $0.18, compared to a loss of $1.23 per share in Q3 FY25 [72]. Segment Performance - Defense and Advanced Technologies segment revenue increased 9% year-over-year to $332 million, driven by strong growth in tactical networking and information security [34]. - Communication Services segment revenue increased 1% year-over-year to $825 million, with aviation service revenues growing by 15% [25]. - Defense and Advanced Technologies segment revenues increased by 9% to $331.7 million in Q3 FY26, with new contract awards down by 8% to $300.0 million [66]. - Communication Services segment revenues grew by 1% to $825.3 million in Q3 FY26, while new contract awards decreased by 11% to $671.3 million [66]. Awards and Backlog - Awards for Q3 FY2026 were $971 million, a 10% decline year-over-year, with Communication Services awards decreasing by 11% [16]. - The backlog for the Defense and Advanced Technologies segment reached $1.2 billion, a 27% increase year-over-year [34]. - Backlog as of Q3 FY26 increased by 12% to $3,967.3 million, compared to $3,541.2 million in Q3 FY25 [65]. Cash Flow and Liquidity - Operating cash flow for the quarter was $307 million, an increase of $87 million YoY, excluding a $420 million Ligado lump sum payment [44]. - Free cash flow for the quarter improved to $24 million, a $57 million increase compared to the prior year quarter, excluding the Ligado payment [46]. - Viasat ended Q3 FY2026 with $2.5 billion in available liquidity, consisting of $1.35 billion in cash and $1.14 billion in borrowing capacity [47]. - Net cash provided by operating activities for Q3 FY2026 was $282,242,000, a decrease from $726,888,000 in Q2 FY2026 [81]. - Free cash flow for Q3 FY2026 was $68,543,000, compared to $444,167,000 in Q2 FY2026, representing a significant decline of 84.6% [81]. Future Outlook - The company expects low single-digit YoY revenue growth and flat YoY Adjusted EBITDA for FY2026 [54]. - The Defense and Advanced Technologies segment is projected to achieve mid-teens YoY revenue growth, driven by strong demand in information security and cyber defense [54]. - Viasat anticipates capital expenditures between $1.0 billion and $1.1 billion for FY2026, including approximately $350 million for Inmarsat-related expenditures [54]. - The company expects to generate positive free cash flow for FY2026 and FY2027, excluding non-recurring Ligado payments [51]. - Future growth is expected to be fueled by the completion and entry into service of the second and third VS-3 satellites, enhancing global capacity [50]. Strategic Initiatives - The company is focused on three key areas for revenue growth: VS-3, multi-orbit capabilities, and new frontier defense technology [6]. - VS-3 F2 was launched successfully, with expectations for service entry by May 2026, and VS-3 F3 is anticipated to launch shortly thereafter [6]. - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance shareholder value [8].

CARLSBAD, Calif., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today published its third quarter fiscal year 2026 financial results. The letter to shareholders and accompanying webcast slides are available on the Investor Relations section of the company's website. Conference Call DetailsAs previously announced, Management will host a conference call to discuss the results today, Thursday, February 5, 2026 at 2:30 p.m. PT (5:30 p.m. ET). Access ...

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