Korean launch provider INNOSPACE has selected Viasat’s rocket telemetry service for its first ever commercial launch. It will also mark the first time this service will be used in a commercial mission carrying satellite payloads. LONDON, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today announced it will provide its launch telemetry service for INNOSPACE (KS: 462350) – a South Korean satellite launch service company. The mission, currently targ ...

Financial Data and Key Metrics Changes - For Q2 FY 2026, the company reported a net loss of $61 million, an improvement from a net loss of $138 million in Q2 FY 2025, primarily due to a favorable service revenue mix, lower depreciation and amortization, and reduced SG&A expenses [5][17] - Revenue grew by 2% year-over-year to $1.1 billion, with adjusted EBITDA increasing by 3% to $385 million, resulting in a 34% adjusted EBITDA margin [15][17] - Free cash flow for the quarter was $69 million, contributing to a trailing 12-month free cash flow of $147 million, marking three consecutive quarters of positive free cash flow [13][16] Business Line Data and Key Metrics Changes - In the Communication Services segment, awards increased by 35% to $1.03 billion, while revenue grew by 1% to $837 million, driven by growth in Aviation and Government Satcom [18][21] - The Defense and Advanced Technologies (DAT) segment saw awards decline by 9% to $467 million, but revenue increased by 3% to $304 million, supported by growth in InfoSec and Cyber [21][23] - Fixed Services and Other revenue decreased by 16% due to a decline in U.S. fixed broadband subscribers, ending the quarter with 150,000 subscribers [20][17] Market Data and Key Metrics Changes - The backlog increased to $3.9 billion, up approximately $140 million year-over-year, despite the sale of the energy system integration business [17][12] - The DAT segment backlog reached a record of $1.2 billion, up 31% year-over-year and 14% sequentially [7][17] - The company noted a significant uptick in interest for commercial mobile space networks, indicating a growing market for direct-to-consumer device connectivity [9] Company Strategy and Development Direction - The company is focused on launching the ViaSat-3 satellites, which are expected to significantly enhance bandwidth capacity and drive growth in Communication Services [7][8] - A strategic review is ongoing regarding capital allocation and the potential separation of government and commercial businesses to enhance competitive positioning [10][29] - The company aims to optimize its capital structure and reduce leverage, targeting a leverage ratio of 3x net debt adjusted EBITDA or lower [14][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth trajectory supported by increased reliance on space-based assets for national security and growing demand for resilient communications [8][24] - The company anticipates continued variability in quarterly performance but expects fiscal 2026 revenue to increase by low single digits year-over-year [23][24] - Management highlighted the potential impact of a U.S. government shutdown on DAT awards and adjusted EBITDA, estimating a delay of up to $100 million in awards [25] Other Important Information - The company plans to spend approximately $1.2 billion in capital expenditures for the year, with a significant portion allocated to the completion of ViaSat-3 [26][28] - The company has moved $175 million in cash from Inmarsat to Viasat, with expectations to transfer a total of $400 million to $500 million over time [28] Q&A Session Summary Question: Update on evaluating the possibility of a split and vertical integration opportunities - Management indicated that they are continuously evaluating options for vertical integration and dual-use systems, with no specific timeline for completion [32][33] Question: Spectrum ownership and monetization strategies - Management confirmed that their spectrum position is substantial and globally coordinated, and they are exploring ways to derive value from it while fulfilling public interest obligations [36][39] Question: Details on the Equatys project and ideal customers - The Equatys project aims to modernize infrastructure for spectrum allocations, with discussions ongoing with regional operators and the European Space Agency [40][43] Question: Backlog growth and recognition cadence - Management emphasized that backlog growth is strong, and they are focused on converting this into future revenue, particularly with the upcoming capacity from Flight 2 [52][54] Question: Defense bookings and demand signals in Europe - Management noted increasing demand for sovereign capabilities in national security, particularly in Europe, and expects this trend to continue [90][91]

Core Insights - Viasat, Inc. has launched the HaloNet portfolio, which integrates space and terrestrial networks into a unified service offering aimed at enhancing near-Earth communications [1][9] - HaloNet is designed to support simultaneous connectivity to thousands of space vehicles across various orbital inclinations, serving missions up to 1,100 km in low Earth orbit and medium Earth orbit [2] - The platform addresses the growing demand for agile, reliable, and secure communications infrastructure as government and commercial LEO operations expand [3] Product Features - HaloNet offers a turnkey launch and orbital communications solution, combining multi-band GEO-relay and Direct-to-Earth satellite communications [2][4] - Key services include secure telemetry and command links, real-time data relay during launches, high-capacity data transmission, and mobile command capabilities [4][5] - The system ensures secure and adaptable data transport with speeds ranging from tens of Kbps to over 10 Gbps through dynamic routing [5] Business Performance - Viasat's Satellite Services business is experiencing growth, with increasing average revenue per user (ARPU) and revenues driven by a solid retail distribution network [6] - The company reported strong first-quarter fiscal 2026 results, exceeding Zacks Consensus Estimates, with growth in aviation services, information security, and space systems [7] - For fiscal 2026, management anticipates low single-digit revenue growth and flat adjusted EBITDA year over year [7] Stock Performance - Viasat currently holds a Zacks Rank 2 (Buy), with shares increasing by 58.1% over the past year, outperforming the Wireless Equipment industry's growth of 29.7% [8]