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Viasat Reports Wider-Than-Expected Q3 Loss on Flat Revenues
VSATViaSat(VSAT) ZACKS·2025-02-07 16:26

Core Viewpoint - Viasat, Inc. reported disappointing third-quarter fiscal 2025 results, with both adjusted earnings and revenues falling short of expectations [1] Financial Performance - The company's revenues remained relatively flat year over year at 1.12billion,missingtheconsensusestimateby1.12 billion, missing the consensus estimate by 2 million [5] - Viasat incurred a net loss of 158.4million,oralossof158.4 million, or a loss of 1.23 per share, compared to a net loss of 124.4million,oralossof99centspershareintheprior−yearquarter[3]−Excludingnon−recurringitems,thenon−GAAPnetincomewas124.4 million, or a loss of 99 cents per share in the prior-year quarter [3] - Excluding non-recurring items, the non-GAAP net income was 14.7 million, or 11 cents per share, down from 29.7million,or24centspershareintheprior−yearperiod[4]RevenueBreakdown−Productrevenuesincreasedto29.7 million, or 24 cents per share in the prior-year period [4] Revenue Breakdown - Product revenues increased to 314.4 million from 303.1millionintheyear−agoquarter,whilenetsalesfromservicesdecreasedto303.1 million in the year-ago quarter, while net sales from services decreased to 809.4 million from 825.5million[5]−RevenuesfromtheCommunicationServicessegmentwere825.5 million [5] - Revenues from the Communication Services segment were 820.3 million, down 6% from 874.9millionintheyear−agoquarter,primarilyduetodeclinesinU.S.fixedbroadbandservices[6]−TheDefenseandAdvancedTechnologiessegmentsawrevenuesof874.9 million in the year-ago quarter, primarily due to declines in U.S. fixed broadband services [6] - The Defense and Advanced Technologies segment saw revenues of 303.4 million, up 20% year over year, driven by growth in information security and cyber defense [7] Operational Metrics - The company reported an operating income of 21.2millioncomparedtoanoperatinglossof21.2 million compared to an operating loss of 43.9 million in the prior-year quarter [8] - Adjusted EBITDA was 393.3million,upfrom393.3 million, up from 383.1 million in the year-ago quarter, reflecting a 3% growth primarily from the DAT segment [8] Cash Flow and Liquidity - Viasat generated an operating cash flow of 219million,anincreasefrom219 million, an increase from 134 million in the prior-year period, driven by decreased working capital and lower cash taxes [9] - As of December 31, 2024, the company had 1.56billionincashandcashequivalents,withanetdebtof1.56 billion in cash and cash equivalents, with a net debt of 5.66 billion [9] - Capital expenditures declined 40% year over year to $253 million, mainly due to lower satellite expenditures and ground infrastructure costs [9] Future Outlook - For fiscal 2025, Viasat expects revenues to be flat to slightly up year over year, with adjusted EBITDA from continuing operations predicted to increase by mid-single digits [10] - Management anticipates year-over-year revenue growth and modest adjusted EBITDA growth for fiscal 2026 [11]