Viasat Reports Wider-Than-Expected Q3 Loss on Flat Revenues

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 $1.12 billion, missing the consensus estimate by $2 million [5] - Viasat incurred a net loss of $158.4 million, or a loss of $1.23 per share, compared to a net loss of $124.4 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 $29.7 million, or 24 cents per share in the prior-year period [4] Revenue Breakdown - Product revenues increased to $314.4 million from $303.1 million in the year-ago quarter, while net sales from services decreased to $809.4 million from $825.5 million [5] - Revenues from the Communication Services segment were $820.3 million, down 6% from $874.9 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 $21.2 million compared to an operating loss of $43.9 million in the prior-year quarter [8] - Adjusted EBITDA was $393.3 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 $219 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 $1.56 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]