Financial Data and Key Metrics Changes - The company reported a net loss of $56 million for Q1 fiscal 2026, compared to a net loss of $33 million in the same period of 2025, primarily due to increased depreciation and amortization and a higher income tax provision [6][19] - Revenue grew by 4% year over year, driven largely by double-digit growth in the defense and advanced technology segment [6][19] - Adjusted EBITDA increased by 1% year over year, reaching $408 million, with a 35% adjusted EBITDA margin [14][19] Business Line Data and Key Metrics Changes - Communication services revenue was $827 million, flat compared to the prior year, with growth in aviation and government SATCOM offset by declines in maritime and U.S. fixed broadband [21] - Aviation revenue grew by 14%, driven by a 9% year-over-year increase in commercial aircraft and service [21] - Defense and Advanced Technologies segment awards increased by 22% to $428 million, with revenue up 15% to $344 million, primarily from InfoSec and Cyber Defense [24][25] Market Data and Key Metrics Changes - The maritime business saw a 5% year-over-year decline in revenue, while fixed services and other revenue decreased by 13% due to a decline in U.S. fixed broadband subscribers [22][23] - The company ended the quarter with 172,000 fixed broadband subscribers and an average revenue per user of $115 [23] Company Strategy and Development Direction - The company aims to position fiscal 2026 as a launch year, focusing on optimizing the integration of ViaSat and Inmarsat resources to establish growth opportunities and enhance earnings power [10][11] - The strategy includes reducing capital intensity while investing for growth in target markets, with a goal to exit fiscal 2026 with a solid foundation for accelerated growth and cash generation [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as slow recovery in OEM aircraft delivery rates and pressures in U.S. fixed broadband until the ViaSat-three flight two is in service [13][14] - The company expects fiscal 2026 revenue to increase by low single digits year over year, with flattish adjusted EBITDA growth [28] Other Important Information - The company generated $60 million of positive free cash flow in the quarter, bringing the trailing twelve months total to $88 million [20] - Capital expenditures for the year are expected to be about $1.2 billion, including $250 million for the completion of the ViaSat-three constellation [29] Q&A Session Summary Question: How does Trellisware compare with mobile ad hoc networking peers? - Trellisware's system is based on a proprietary networking waveform designed for ad hoc mesh networking, while competitors like Silvis primarily use WiFi [39][40] Question: What is the general penetration of next-generation encryption products? - There is a significant upgrade cycle driven by the need for national security encryption systems to be robust against quantum computing [45][46] Question: Can Trellisware's technology be used for aerial platforms and weapon systems? - Yes, Trellisware's technology can extend to unmanned aerial vehicles and other platforms, although the initial focus has been on specific military applications [43][44] Question: What is the company's philosophy regarding potential business separations? - The company evaluates its portfolio based on synergy and capital needs, considering whether keeping businesses together provides benefits or if separation would be more advantageous [59][62] Question: How does the company view shared infrastructure in satellite operations? - The company believes shared infrastructure can reduce capital intensity and improve efficiency, allowing multiple operators to benefit from a common system [65][66]

Financial Performance - Viasat's Q1 FY2026 revenue increased to $1.171 billion, a 4% increase year-over-year[15] - Adjusted EBITDA for Q1 FY2026 was $408 million, a 1% increase year-over-year[15] - The company generated $60 million in free cash flow during the quarter, a $210 million improvement compared to the prior year period[12] Segment Highlights - Defense and Advanced Technologies (DAT) segment revenue grew by 15% year-over-year[15] - DAT segment awards increased by 22% year-over-year, driven by information security and cyber defense[15] - Communication Services (CS) segment Adjusted EBITDA increased 5% year-over-year[15] Backlog and Awards - Total backlog decreased to $3.549 billion, a 2% decrease year-over-year[15] - DAT backlog increased 49% year-over-year[15] - DAT awards increased 225% year-over-year in information security and cyber defense, reaching $224 million[36] Guidance - Viasat maintained its FY2026 guidance for total revenue to grow at a low single-digit rate[43] - Capital expenditures are expected to be approximately $1.2 billion[43]

[Letter to Shareholders](index=2&type=section&id=Fellow%20Shareholders) Viasat reported stronger than expected Q1 FY2026 results with 4% year-over-year revenue growth, driven by the Defense segment [Overview and Strategic Priorities](index=2&type=section&id=Fellow%20Shareholders) Viasat achieved stronger than expected Q1 FY2026 results, driven by Defense segment growth, while progressing on ViaSat-3 satellites and focusing on integration, cash flow, and deleveraging - Progress on ViaSat-3 satellites is a high priority, with VS-3 F2 expected to ship for launch by the end of September 2025 and VS-3 F3 undergoing environmental testing preparations[5](index=5&type=chunk) - The VS-3 F1 satellite services continue to scale, having served over **60,000 flights** to date[6](index=6&type=chunk) - The strategic focus for FY2026 is to optimize Viasat and Inmarsat integration, enhance competitive positions, reduce capital intensity, and improve cash flow to deleverage the balance sheet[8](index=8&type=chunk) Q1 FY2026 vs Q1 FY2025 Financial Summary | Metric | Q1 FY2026 | Q1 FY2025 | Change | Note | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | - | - | +4% YoY | Driven by double-digit growth in Defense and Advanced Technologies | | **Adjusted EBITDA** | - | - | +1% YoY | Driven by growth in information security and cyber defense | | **Net Loss** | $56 million | $33 million | Increased | Primarily due to higher depreciation, amortization, and income tax provision | [Financial Highlights](index=3&type=section&id=Q1%20FY2026%20Financial%20Results) Viasat's Q1 FY2026 revenue grew 4% to $1.17 billion, driven by Defense, while net loss widened to $56 million [Q1 FY2026 Financial Summary](index=3&type=section&id=Q1%20FY2026%20Financial%20Results) In Q1 FY2026, Viasat's revenue grew 4% year-over-year to $1.17 billion, propelled by a 15% increase in the Defense and Advanced Technologies segment, while net loss widened to $56 million due to higher depreciation and tax provisions - Revenue growth was primarily driven by a **15% YoY increase** in the Defense and Advanced Technologies segment, while the Communication Services segment revenue remained flat[13](index=13&type=chunk) - The increase in net loss was mainly due to higher depreciation and amortization and a larger income tax provision, which offset improved operating performance[13](index=13&type=chunk) - New awards in the Defense and Advanced Technologies segment grew **22% YoY**, while Communication Services awards declined **7% YoY**[13](index=13&type=chunk) Q1 FY2026 Financial Summary | Metric | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1,171 million | $1,126 million | +4% | | **Adjusted EBITDA** | $408 million | $404 million | +1% | | **Net Loss** | ($56.4 million) | ($32.9 million) | +71% | | **New Awards** | $1,183 million | $1,162 million | +2% | | **Backlog** | $3,549 million | $3,640 million | -2% | [Segment Performance](index=4&type=section&id=Segment%20Performance) Viasat's segment performance shows flat Communication Services revenue offset by strong Defense and Advanced Technologies growth [Communication Services](index=4&type=section&id=Communication%20Services) The Communication Services segment reported flat year-over-year revenue at $827 million, as aviation growth was offset by declines in fixed and maritime services, while Adjusted EBITDA grew 5% - Service revenue growth in aviation (**+14% YoY**) and government satcom (**+4% YoY**) was offset by declines in FS&O (**-13% YoY**) and maritime services (**-5% YoY**)[22](index=22&type=chunk) - Key business developments include a binding term sheet with Ligado Networks for a **$568 million settlement**, over **1,000 vessel orders** for the NexusWave service, and selection by LATAM Group to implement the Viasat Amara connectivity service[24](index=24&type=chunk) - Commercial and business aviation aircraft in service grew to approximately **4,130** and **2,050**, respectively, while U.S. fixed broadband subscribers ended the quarter at approximately **172,000**[22](index=22&type=chunk) Communication Services Metrics | Metric | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | **Awards** | $754 million | $811 million | -7% | | **Revenue** | $827 million | $827 million | 0% | | **Adj. EBITDA** | $322 million | $308 million | +5% | [Defense and Advanced Technologies](index=5&type=section&id=Defense%20and%20Advanced%20Technologies) The Defense and Advanced Technologies segment achieved strong revenue growth of 15% year-over-year to $344 million, driven by information security, despite a 10% decline in Adjusted EBITDA due to lower IP licensing and increased R&D - Revenue growth was primarily driven by an **84% YoY increase** in information security and cyber defense product revenues and a **20% increase** in space and mission systems product revenues[34](index=34&type=chunk) - The segment's backlog increased **49% YoY** to **$1.1 billion**[33](index=33&type=chunk) - Key contract awards include **$224 million** for high-assurance encryption products and selection by the U.S. Space Force for the Enterprise Space Terminal program to develop optical laser communications[36](index=36&type=chunk) Defense and Advanced Technologies Metrics | Metric | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | **Awards** | $428 million | $351 million | +22% | | **Revenue** | $344 million | $300 million | +15% | | **Adj. EBITDA** | $87 million | $96 million | -10% | [Balance Sheet, Cash Flows and Liquidity](index=6&type=section&id=Balance%20Sheet%2C%20Cash%20Flows%20and%20Liquidity) Viasat demonstrated significant improvement in cash generation, producing $258 million in operating cash flow and $60 million in free cash flow for Q1 FY2026 [Cash Flow and Capital Structure](index=6&type=section&id=Balance%20Sheet%2C%20Cash%20Flows%20and%20Liquidity) Viasat significantly improved cash generation in Q1 FY2026, with $258 million in operating cash flow and $60 million in free cash flow, while maintaining a stable capital structure and $2.3 billion in liquidity after debt redemption - The YoY increase in operating cash flow was primarily due to a decline in working capital and the timing of interest payments[38](index=38&type=chunk) - During the quarter, Viasat redeemed the remaining **$442.6 million** aggregate principal amount of its senior notes due 2025[41](index=41&type=chunk) Q1 FY2026 Cash Flow and Liquidity | Metric | Q1 FY2026 | YoY Change/Note | | :--- | :--- | :--- | | **Operating Cash Flow** | $258 million | +$107 million YoY | | **Capital Expenditures** | $198 million | -34% YoY | | **Free Cash Flow** | $60 million | +$210 million YoY | | **Net Debt** | $5.6 billion | Flat sequentially | | **Liquidity** | $2.3 billion | Consists of $1.2 billion cash and $1.1 billion undrawn credit | [Outlook](index=7&type=section&id=Outlook) Viasat reaffirms its FY2026 guidance for low single-digit revenue growth and flattish Adjusted EBITDA, with improved capital expenditure outlook and expected positive free cash flow in H2 FY2026 [Fiscal Year 2026 Guidance](index=7&type=section&id=Outlook) Viasat reaffirms its FY2026 guidance for low single-digit revenue growth and flattish Adjusted EBITDA, with an improved capital expenditure outlook of approximately $1.2 billion and an expected inflection to positive free cash flow in the second half - **Revenue:** Continue to expect low single-digit YoY growth[48](index=48&type=chunk) - **Adjusted EBITDA:** Continue to expect flattish YoY performance[48](index=48&type=chunk) - **Capital Expenditures:** Now expect approximately **$1.2 billion**, an improvement of **$100 million** from prior guidance[48](index=48&type=chunk) - **Free Cash Flow:** Continue to expect an inflection to positive free cash flow in the second half of FY2026[48](index=48&type=chunk) - Guidance by segment remains consistent: Communication Services revenue is expected to be flat, while Defense and Advanced Technologies revenue is projected to grow in the mid-teens[48](index=48&type=chunk) [Viasat Satellite Roadmap](index=8&type=section&id=Viasat%20Satellite%20Roadmap) The satellite roadmap details the progress of Viasat's key satellite programs aimed at expanding global capacity and coverage [Satellite Fleet Status and Timeline](index=8&type=section&id=Viasat%20Satellite%20Roadmap) Viasat's satellite roadmap outlines the status of key programs, with ViaSat-3 F1 and GX-10A/B in service, ViaSat-3 F2 and F3 anticipated for early to mid-2026 service entry, and GX-7/8/9 and Inmarsat-8 planned for 2027 and 2028 - The in-service date for ViaSat-3 F3 has been slightly adjusted to better reflect potential schedule uncertainties post-shipment[5](index=5&type=chunk) Satellite Fleet Status and Timeline | Satellite | Status | Anticipated Service Entry | | :--- | :--- | :--- | | **ViaSat-3 F1** | In service | - | | **ViaSat-3 F2** | Assembly, Integration & Test (AI&T) | Early 2026 | | **ViaSat-3 F3** | Assembly, Integration & Test (AI&T) | Early - Mid 2026 | | **GX-10A/B** | In service | - | | **GX-7/8/9** | Design | 2027 | | **Inmarsat-8** | Design | 2028 | [Appendix](index=9&type=section&id=Appendix) The appendix provides essential disclaimers regarding forward-looking statements and detailed financial reconciliations [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor warning, advising that statements concerning future financial performance, satellite launches, strategic plans, and market trends are forward-looking and subject to significant risks and uncertainties - The shareholder letter contains forward-looking statements regarding financial projections (revenue, Adjusted EBITDA, free cash flow), satellite performance, strategic initiatives, and market trends[60](index=60&type=chunk) - Actual results could differ materially due to various risk factors, including satellite launch or operational failures, competition, changes in government spending, and the final approval and execution of the Ligado settlement[60](index=60&type=chunk) [Financial Reconciliations and Statements](index=11&type=section&id=Financial%20Reconciliations%20and%20Statements) This section presents detailed financial data and reconciliations to supplement the main report, including consolidated statements, non-GAAP metric reconciliations, and revenue breakdowns by segment - The appendix provides detailed reconciliations for non-GAAP measures, including GAAP Net Income to Adjusted EBITDA, GAAP Net Income to Non-GAAP Net Income, and Net Cash from Operating Activities to Free Cash Flow[72](index=72&type=chunk)[73](index=73&type=chunk)[81](index=81&type=chunk) Q1 FY26 vs Q1 FY25 Financial Summary | (In millions, except per share) | Q1FY26 | Q1FY25 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenues** | $1,171.1 million | $1,126.5 million | 4% | | **Net loss (GAAP)** | ($56.4 million) | ($32.9 million) | 71% | | **Adjusted EBITDA** | $408.5 million | $403.9 million | 1% | | **Diluted EPS (GAAP)** | ($0.43) | ($0.26) | 65% | Q1 FY26 vs Q1 FY25 Segment Results Summary | (In millions) | Q1FY26 | Q1FY25 | YoY Change | | :--- | :--- | :--- | :--- | | **Communication Services** | | | | | Revenues | $827.4 million | $826.8 million | 0% | | Adjusted EBITDA | $321.5 million | $307.7 million | 5% | | **Defense and Advanced Technologies** | | | | | Revenues | $343.7 million | $299.7 million | 15% | | Adjusted EBITDA | $86.9 million | $96.3 million | (10)% |

Core Insights - Viasat, Inc. has released its first quarter fiscal year 2026 financial results, which are available on the Investor Relations section of its website [1] Group 1: Financial Results - The financial results for the first quarter of fiscal year 2026 were published in a letter to shareholders [1] Group 2: Conference Call - Viasat will host a conference call on August 5, 2025, at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time, with specific dial-in numbers provided for participants [2] - A live webcast of the conference call will be available, and the call will be archived for approximately one month [3] Group 3: Company Overview - Viasat is a global communications company focused on connecting people and devices worldwide, with operations in 24 countries [4] - The company aims to develop a comprehensive global communications network to provide high-quality, reliable, and secure connections [4] - In May 2023, Viasat completed the acquisition of Inmarsat, enhancing its capabilities and resources [4]

Core Viewpoint - ViaSat's stock experienced a significant increase of 24% following an upgrade to "outperform" by analyst Louie DiPalma, who predicts the stock could more than double in the next 12 months [1][3]. Group 1: Analyst Insights - DiPalma utilized a sum-of-the-parts valuation method to assess ViaSat, which operates in commercial broadband, narrowband communications, and has a defense technology division [3]. - The defense technology segment contributes approximately 27% of ViaSat's revenue and is responsible for all of the company's profits [4]. - There is speculation that ViaSat may spin off or conduct an IPO for its defense technology business, which raises concerns about the remaining value of the company post-IPO [4][5]. Group 2: Financial Projections - ViaSat is projected to become free cash flow positive later this year, with an anticipated $568 million payment expected in 2026 [5]. - The completion and launch of the final two ViaSat-3 satellites are expected to enhance the likelihood of achieving positive free cash flow [5]. - Despite the optimistic outlook, there are doubts regarding the feasibility of these projections, as ViaSat has not generated positive free cash flow since 2008, with some analysts predicting it may not occur until 2027 [6]. Group 3: Investment Sentiment - The overall sentiment towards ViaSat stock remains cautious, with some analysts still considering it a sell based on historical performance and cash flow challenges [6][7].

CARLSBAD, Calif., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ:VSAT) (“Viasat” or “the Company”), a global leader in satellite communications, today issued the following statement in response to a letter from Carronade Capital Management. "Viasat consistently engages in dialogue with its shareholders and welcomes constructive input focused on maximizing shareholder value. As a leader in satellite infrastructure and connectivity, in-flight connectivity and critical military and government communica ...

Core Viewpoint - Carronade Capital Management advocates for the separation of Viasat's Defense and Advanced Technologies (DAT) segment through a spin-off or IPO, suggesting this could unlock significant shareholder value, potentially raising the stock price to between $50 and $100+ per share [4][23]. Summary by Sections Strategic Review and Separation Proposal - Carronade emphasizes that the current valuation of Viasat does not reflect the true value of its DAT segment, which is seen as a high-growth, high-margin defense technology platform [2][4]. - The firm believes that separating DAT would allow both DAT and the Communications Services segments to pursue focused growth strategies and improve financial flexibility [2][22]. Financial Performance and Valuation - DAT has shown strong financial performance, with a nearly 17% revenue growth over the last 12 months and an EBITDA margin of 28% [6]. - The backlog for DAT grew by 50% year-over-year, indicating robust demand and a favorable book-to-bill ratio of 1.2x [6][15]. - Carronade's analysis suggests that Viasat's stock could be valued at over $50 per share based on a conservative EBITDA multiple compared to its peers in the defense technology sector [10][19]. Market Position and Growth Potential - The DAT segment is positioned in critical growth areas such as tactical networking, advanced encryption, and drone technology, which are expected to drive future growth [7][11]. - Carronade notes that despite the strong performance of DAT, the market undervalues it due to broader concerns regarding the Communications Services segment, which has a nearly 20% short interest [8][9]. Communications Services Segment - The Communications Services segment is expected to generate consistent positive free cash flow, supported by long-term contracts in the in-flight connectivity business and growth in government and maritime sectors [18][20]. - Carronade believes that the market has misunderstood the potential of the Communications Services segment, which could benefit from the deployment of new satellites and a shift towards higher-margin services [17][19]. Conclusion and Call to Action - Carronade urges Viasat's management to prioritize the separation of DAT as a key outcome of the strategic review, asserting that this move would be well-received by investors and would enhance the visibility and valuation of both segments [3][22][23].

As a key provider to cloud data centers today, Viasat will develop a next-generation high-assurance, high-speed Ethernet Data Encryptor (EDE) for protecting classified data across government cloud data centers and transport networks CARLSBAD, Calif., July 30, 2025 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today announced it was selected by the U.S. Government to build a next-generation Ethernet Data Encryptor (EDE) solution as part of a sole-source multi-m ...

Core Viewpoint - Viasat, Inc. will release its first quarter fiscal year 2026 financial results on August 5, 2025, after market close, and will host a conference call and webcast on the same day [1][2]. Company Overview - Viasat is a global communications company with a mission to connect everyone and everything in the world, operating in 24 countries [3]. - The company aims to develop a global communications network that provides high-quality, reliable, secure, affordable, and fast connections, impacting lives positively [3]. - In May 2023, Viasat completed the acquisition of Inmarsat, enhancing its capabilities and resources [3].

Core Insights - AST SpaceMobile and Viasat are leading providers in satellite broadband access, with AST SpaceMobile focusing on a global cellular broadband network in space, while Viasat operates GEO satellites for high-speed internet access [2][3] AST SpaceMobile - AST SpaceMobile has launched its first five commercial satellites, known as Bluebird, which feature the largest commercial communications arrays at 693 square feet, providing non-continuous service across the U.S. [5] - The company has a patent portfolio of over 3,650 patents related to direct-to-cell satellite technology, enhancing its competitive position [5][6] - Partnerships with major carriers like AT&T and Verizon have been established to expand cellular coverage and eliminate dead zones in the U.S. [6] - Despite advancements, AST SpaceMobile faces challenges from macroeconomic conditions and competition from companies like SpaceX's Starlink and Globalstar, which may pressure its financial performance [7] Viasat - Viasat is investing in the ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of its predecessor, ViaSat-2, and aims to cover one-third of the world [8][9] - The company has shown strong growth in key metrics such as ARPU and revenues, driven by a solid retail distribution network and increasing adoption of in-flight Wi-Fi services [10] - Viasat's competitive advantages include bandwidth economics, global coverage, and flexibility, positioning it well in the market [10] - However, Viasat also faces challenges from competition, price reductions, and operational risks associated with complex technology [11] Financial Performance - AST SpaceMobile has seen a significant stock price increase of 325.1% over the past year, while Viasat's stock has declined by 4.2% [8][15] - The Zacks Consensus Estimate for AST SpaceMobile's 2025 sales indicates a year-over-year growth of 1314.6%, while Viasat's sales growth is projected at 2.7% [12][14] - Viasat's shares trade at a price/sales ratio of 0.43, significantly lower than AST SpaceMobile's 76.3, indicating a more attractive valuation for Viasat [15] Market Position - AST SpaceMobile is ranked 4 (Sell) by Zacks, while Viasat is ranked 5 (Strong Sell), reflecting differing market perceptions [19] - Despite AST SpaceMobile's higher growth expectations, Viasat has demonstrated steady revenue growth over the years, indicating a more stable business model [20]