Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, up approximately 3% year-over-year, reflecting growth in both DAT and communication services [21][22] - Adjusted EBITDA was $387 million, down 2%, primarily due to $10 million of incremental R&D investments related to growth initiatives [23] - Net income improved to $25 million, an increase of $183 million, mainly due to higher interest income recognized during the quarter [22] - Cash flow from operations was $727 million, or $307 million excluding the lump sum payment from Legato, resulting in free cash flow of $444 million [21][23] - The net debt to trailing twelve-month adjusted EBITDA ratio improved to 3.25 times, down from approximately 3.7 times a year ago [24] Business Line Data and Key Metrics Changes - Communication services awards were $671 million, down 11%, reflecting lower aviation awards and the effects of the government shutdown [24] - Maritime awards grew 25%, while revenue was $825 million, up 1%, with solid growth in aviation and government SATCOM [25] - Aviation revenue grew 15%, driven by a 9% increase in commercial aircraft in service [25] - Government SATCOM revenue increased by 4%, indicating strong growth with U.S. and international governments [26] - Fixed services and other revenue declined by 20%, with U.S. fixed broadband subscribers continuing to decrease [28] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record for the company, up about 12% or $430 million, largely due to strong awards in the second quarter [22] - The global space economy is projected to grow from $626 billion in 2025 to $1 trillion by 2034, indicating significant market opportunities [16] Company Strategy and Development Direction - The company focuses on three key areas for revenue growth: ViaSat-3, multi-orbit systems, and new frontier defense technology [6] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while positioning the company to deliver differentiated value in fast-growing space and defense markets [11] - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and operational targets, emphasizing the importance of bringing ViaSat-3 flights 2 and 3 into service [20][32] - The company anticipates that the capabilities of the new satellites will catalyze future growth in both government and commercial franchises [31] - Management acknowledged the impact of the government shutdown on operations and expects similar effects in the fourth quarter [31] Other Important Information - The company is committed to reducing capital intensity while enhancing its reputation for reliable innovation and customer value [12] - The Equatys Mobile Satellite Services partnership is expected to leverage technical innovation and reduce capital costs for targeted business segments [13] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launches - Management confirmed that Flight 3 will likely have a shorter orbit raise period of about 2 months compared to Flight 2's 100 days [43] Question: Strategic review process and timing - Management indicated that the successful deployment of Flights 2 and 3, along with macro market conditions, will influence the timing of strategic decisions [45][46] Question: Thoughts on data centers in space and AI - Management noted that the feasibility of data centers in space hinges on power generation efficiency and expressed no plans to enter the data center business [51][52] Question: Addressable markets for competitive advantages - Management identified broadband and L-band markets as key areas for growth, particularly in mobile platforms and government applications [56][57] Question: Evaluation of government assets and potential separation - Management stated that a thorough evaluation is ongoing regarding the management of key dependencies if a separation occurs [85][86]

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, an increase of approximately 3% year-over-year, driven by growth in DAT and communication services [18][20] - Adjusted EBITDA was $387 million, down 2%, primarily due to increased R&D investments and the impact of the government shutdown [21][26] - Net income improved to $25 million, a significant increase of $183 million compared to the previous year, mainly due to higher interest income [20] - Free cash flow was $444 million, or $24 million excluding a lump sum payment from Legato, with trailing twelve-month free cash flow exceeding $200 million [21][22] Business Line Data and Key Metrics Changes - Communication services awards were $671 million, down 11%, affected by lower aviation awards and the government shutdown [22] - Maritime revenue grew 25%, while overall maritime revenue declined 3% due to a decrease in vessels in service [24][25] - Defense and Advanced Technologies (DAT) revenue was $332 million, up 9%, driven by strong growth in InfoSec and cyber defense [26][29] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record high, up about 12% or $430 million, largely due to strong awards in government SATCOM and DAT [19] - The global space economy is projected to grow from $626 billion in 2025 to $1 trillion by 2034, indicating significant market opportunities [13][14] Company Strategy and Development Direction - The company is focused on three key areas for revenue growth: ViaSat-3, multi-orbit networks, and new defense technology [5][6] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while positioning the company to deliver differentiated value in fast-growing space and defense markets [9][12] - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance competitive positioning [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and operational targets, emphasizing the importance of the upcoming launches of ViaSat-3 Flight 2 and Flight 3 [17][30] - The company anticipates that the capabilities of the new satellites will catalyze future growth in both government and commercial franchises [29][30] - Management acknowledged the impact of the government shutdown on operations and expects similar effects in the fourth quarter [29] Other Important Information - The company is committed to reducing capital intensity while enhancing innovation and customer value [10][33] - A strategic partnership with Space42 aims to develop a shared space infrastructure to reduce capital costs and improve service delivery [11][34] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launches - Management confirmed that Flight 3 will have a shorter orbit raise period of about two months compared to Flight 2's 100 days [42] Question: Strategic review process and timing - Management indicated that the successful deployment of Flight 2 and Flight 3, along with macro market conditions, will influence the timing of strategic decisions [44][45] Question: Thoughts on data centers in space and AI - Management stated that the feasibility of data centers in space hinges on power generation efficiency and expressed interest in partnerships for communication capabilities [49][51] Question: Competitive landscape for D2D players - Management highlighted the importance of spectrum allocation and national security considerations in the competitive landscape for mobile satellite services [66][68] Question: Evaluation of government assets and potential separation - Management acknowledged the complexity of managing key dependencies and emphasized a thorough evaluation process to enhance shareholder value [84][85] Question: Position in information security and competitive threats - Management expressed optimism about growth in the information security sector, citing increased urgency and market size as favorable factors [86]

Financial Data and Key Metrics Changes - In Q4, the company reported revenue of $1.15 billion, GAAP net income of $246 million, and adjusted EBITDA of $375 million, reflecting a 32.7% adjusted EBITDA margin [19] - For fiscal year 2025, total revenue was $4.5 billion, with a GAAP net loss of $575 million and adjusted EBITDA of $1.55 billion, resulting in a 34.2% adjusted EBITDA margin, which grew 4% year-over-year [23][24] - The company generated over $900 million in operating cash flow, marking a more than 30% increase from fiscal year 2024 [28] Business Line Data and Key Metrics Changes - Communications services revenue declined by 4%, primarily due to a drop in fixed services, while government SATCOM and aviation service revenue showed strength [20] - The commercial aviation business grew, serving 4,030 aircraft, a 10% increase, with a backlog of 1,600 aircraft, up 18% [20] - Government SATCOM revenue increased by 16%, while maritime revenue decreased by 8% as expected [21] Market Data and Key Metrics Changes - The company is experiencing challenges in U.S. fixed broadband revenue due to capacity constraints, with fixed services and other revenue down 19% year-over-year [22] - The Direct Access Technology (DAT) business saw revenue growth of 11% for the quarter and 17% for the year, including a one-time revenue impact of $95 million from a legal settlement [22] Company Strategy and Development Direction - The company aims to reduce capital intensity and generate sustainable cash flow while reinforcing competitive positions and unlocking portfolio value [15] - The focus is on enhancing financial transparency with new reporting segments and disclosures, and developing an open architecture standards-based ecosystem for non-terrestrial networks [7][9] - The company is committed to integrating third-party capacity and optimizing its satellite fleet to improve service quality and reliability [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained free cash flow generation by the second half of fiscal year 2026, despite facing macroeconomic headwinds [27][38] - The company anticipates modest revenue growth with flattish adjusted EBITDA for fiscal year 2026, while emphasizing the importance of launching flights two and three of the ViaSat-three constellation [25][27] - Management highlighted the importance of understanding demand patterns to effectively compete in the mobility markets [70] Other Important Information - The company is actively pursuing claims related to the Legato bankruptcy, with potential cash payments excluded from financial outlooks [12][35] - The company has a healthy backlog and is focused on reducing leverage, aiming for a target of around three times debt to EBITDA [57] Q&A Session Summary Question: Update on the strategic review process for the Defense and Advanced Technology segment - Management confirmed that the strategic review is ongoing and that the business is performing well, with evaluations of future cash flows being conducted [44] Question: Confidence in the satellite launch schedule for Flight 2 - Management indicated that the corrective actions for the satellite anomaly are nearing completion and that the satellite is still on track for delivery to the launch site this summer, though there is a possibility of a delay into early 2026 [46] Question: Timeline and magnitude regarding Legato - Management stated that the amount owed from Legato is in excess of $500 million, and while specifics on timing are difficult to provide, they are actively monitoring the situation [54] Question: Competitive landscape for in-flight connectivity solutions - Management emphasized that their performance metrics for both narrow and wide-body aircraft are strong, and they are confident in their ability to meet customer demands with their ViaSat-three architecture [61][62] Question: Long-term vision for the company - Management articulated that growth is the primary focus, with an emphasis on maintaining market share in commercial aviation and maritime sectors while delivering high-quality service [67][68]

Financial Data and Key Metrics Changes - In Q4, the company reported revenue of $1.15 billion, GAAP net income of $246 million, and adjusted EBITDA of $375 million, reflecting a 32.7% adjusted EBITDA margin [19] - For fiscal year 2025, total revenue was $4.5 billion, with a GAAP net loss of $575 million and adjusted EBITDA of $1.55 billion, representing a 34.2% adjusted EBITDA margin, which grew 4% year-over-year [23][24] - The company generated over $900 million in operating cash flow, marking more than 30% growth from fiscal year 2024 [28] Business Line Data and Key Metrics Changes - Communications services revenue declined by 4%, primarily due to a drop in fixed services, while government SATCOM and aviation service revenue showed strength [20][21] - The commercial aviation business grew, with service aircraft increasing by 10% to 4,030, and backlog up 18% to 1,600 [20] - Government SATCOM revenue increased by 16%, while maritime revenue decreased by 8% as expected [21] Market Data and Key Metrics Changes - The company is experiencing challenges in U.S. fixed broadband revenue due to capacity constraints, with fixed services and other revenue down 19% year-over-year [22] - The DAT business saw revenue growth of 11% for the quarter and 17% for the year, including a one-time revenue impact of $95 million from a legal settlement [22] Company Strategy and Development Direction - The company aims to reduce capital and operating costs for mobile satellite services and enhance government maritime and aeronautical safety services [9] - A focus on integrating ViaSat-three satellites into the global network is expected to improve user experience and network efficiency [6] - The company is pursuing a strategic review of its Defense and Advanced Technology segment to enhance value and competitiveness [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained free cash flow generation by the second half of fiscal year 2026, despite facing macroeconomic headwinds [27] - The company anticipates modest revenue growth in fiscal year 2026, with flattish adjusted EBITDA expected to be within 1% of the previous year [24][25] - Management highlighted the importance of launching flights two and three of the ViaSat-three constellation to support future growth [27] Other Important Information - The company is actively addressing its debt structure, with plans to use available cash to redeem near-term maturities and leverage momentum for long-term debt management [35] - The company has a healthy backlog and is focused on capital efficiency to reduce capital intensity in its business model [28] Q&A Session Summary Question: Update on the strategic review process for the Defense and Advanced Technology segment - The strategic review is ongoing, with the business performing well and evaluations of future cash flows being conducted [43] Question: Confidence in the satellite launch schedule for Flight 2 - Management is optimistic about the schedule, with corrective actions nearing completion and the satellite expected to be delivered to the launch site this summer [45] Question: Timeline and magnitude regarding Legato litigation - The company is owed over $500 million, and while specifics are difficult to disclose, the public record provides insights into the ongoing litigation [52] Question: Competitive landscape for in-flight connectivity solutions - The company emphasizes performance metrics for both narrow and wide-body aircraft, asserting that their service meets customer expectations [60] Question: Long-term vision for the company - The focus is on growth, with an emphasis on delivering high-quality service and maintaining competitive pricing in mobility markets [66]