Financial Data and Key Metrics Changes - In Q3 2025, Telesat reported consolidated revenues of $101 million, a decrease of $37 million compared to the same quarter in 2024 [7] - Adjusted EBITDA decreased by $49 million to $47 million, with an adjusted EBITDA margin of 46% [7][8] - Operating expenses increased by $12 million to $58 million, primarily due to higher headcount growth in Telesat Lightspeed and increased legal and professional fees [9] - The company recorded a net loss of $121 million in Q3 2025, compared to a net income of $68 million in Q3 2024 [10] Business Line Data and Key Metrics Changes - In the GEO segment, revenue decline was attributed to a lower rate on the renewal of a long-term agreement with DISH and the expiration of a separate agreement [3][4] - The LEO segment is progressing well with satellite development, ground infrastructure, and software, with strong interest in Telesat Lightspeed from AERO and government users [4] Market Data and Key Metrics Changes - Interest in Telesat Lightspeed is particularly strong among AERO and government users, with expectations of increased defense spending in Canada [21][22] - The company has a minimum revenue commitment of $60 million per year from the Canadian government for rural broadband connectivity, which is separate from defense commitments [24] Company Strategy and Development Direction - Telesat is focused on optimizing its capital structure and enhancing financing options, including the distribution of equity in Telesat Lightspeed to a subsidiary [5] - The company plans to launch its first satellites in late 2026, with expectations to enter global service by the end of 2027 [27][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in defense due to increased government spending commitments [22] - The company reiterated its guidance for 2025, expecting revenues between $405 million and $425 million and adjusted EBITDA between $170 million and $190 million [12][13] Other Important Information - Telesat's total leverage ratio was calculated at 8.676 times, with compliance in all covenants of its credit agreements [13] - The company has approximately $480 million in cash and short-term investments, along with $2 billion available under funding agreements with the Government of Canada and Quebec [13] Q&A Session Summary Question: Status of debt negotiations - Management indicated it is too early to determine the outcome of debt negotiations with holders [17] Question: Guidance on EBITDA and GEO revenue - Management explained that underspending in LEO was offset by increased professional fees related to refinancing, clarifying the guidance situation [19][20] Question: Demand from the defense sector - Management confirmed strong interest from the defense sector, particularly in relation to rural broadband and defense spending commitments [21][22] Question: Rationale behind LEO equity carve-out - The rationale was to optimize capital structure and enhance funding flexibility, with no current plans to raise more equity [29][30] Question: Spectrum transactions in the industry - Management noted that while they have the capability to launch a direct-to-device network, their focus remains on deploying Lightspeed [32] Question: Launch timeline and testing - Management confirmed a gap of two to four months between the first launch of Pathfinder satellites and subsequent launches [36] Question: Partnership with Farcast - Management highlighted the collaboration with Farcast to develop innovative user terminals for Lightspeed [40] Question: Interest in space-based data centers for AI - Management expressed that while they see AI's potential in network efficiency, they are not planning to leverage Lightspeed for space-based data centers [44] Question: Gateway ground network progress - Management reported good progress in building out the gateway ground network, with several teleports already announced [52]