Executive Summary

Q1 FY2026 delivered a clean headline beat: revenue $1.171B vs S&P Global consensus $1.126B*, non-GAAP EPS $0.17 vs -$0.01*, and EBITDA modestly above consensus ($371M vs $368M*) while GAAP EPS was a loss of $0.43 . The adjusted EBITDA margin was ~35%, up from 32.7% in Q4 FY2025 .
Segment mix was favorable: Defense & Advanced Technologies (DAT) revenue rose 15% YoY on strong InfoSec/cyber and space systems, while Communication Services grew EBITDA 5% despite flat revenue, supported by aviation strength and lower R&D; maritime remained a drag but improved sequentially .
Cash execution improved: operating cash flow $258M, capex $198M, and positive FCF $60M; FY2026 capex guide trimmed to ~$1.2B (down $100M vs prior) with FCF inflection still expected in 2H FY2026; net debt stable at ~$5.6B and liquidity ~$2.3B .
Catalysts: ViaSat‑3 F2 scheduled to launch in October (service entry early 2026), ViaSat‑3 F3 tracking mid‑late 2025 shipment with in‑service shift to 2026, and potential $568M Ligado payments by Mar‑31‑2026 (excluded from guidance; subject to court approval) .

S&P Global consensus values marked with an asterisk (*) in tables below. Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- DAT momentum: revenue +15% YoY on InfoSec/cyber (+84%) and space & mission systems (+20%); DAT awards +22% YoY with backlog +49% YoY (book-to-bill 1.2) .
- Aviation strength: Communication Services service revenue growth of +14% in aviation with commercial aircraft in service ~4,130 and business aviation ~2,050, both up YoY and sequentially; Communication Services EBITDA +5% YoY .
- Cash/Capex discipline: OCF $258M (+$107M YoY), capex $198M (-34% YoY), FCF +$60M, FY2026 capex guide cut by $100M to ~$1.2B while keeping FCF inflection in 2H FY2026 .
- Management quote: “Our first quarter… yielded stronger than expected YoY revenue and Adjusted EBITDA growth… we are determined to exit FY2026 with a solid foundation for accelerated and sustained growth and cash generation” .
What Went Wrong
- GAAP loss widened: GAAP net loss of $56.4M vs $32.9M YoY, driven by higher D&A and tax; non-GAAP net income fell to $23.1M from $39.0M YoY .
- Maritime and IP licensing headwinds: maritime service revenue declined 5% YoY; lower IP licensing and royalty revenue reduced DAT EBITDA 10% YoY .
- Fixed broadband continued to contract: U.S. fixed broadband subscribers ~172k with ARPU $115; Communication Services awards fell 7% YoY; backlog down 15% YoY .
- Elevated non-operating/legal: higher legal expenses tied to Ligado settlement efforts; FX and taxes also cited in the quarter and prior commentary .

Financial Results

Overall P&L and margins (oldest → newest)

Metric	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue ($USD Billions)	$1.12	$1.15	$1.171
Adjusted EBITDA ($USD Millions)	$393	$375	$408.5
Adjusted EBITDA Margin (%)	35%	32.7%	~35%
GAAP Diluted EPS ($)	—	—	($0.43)
Non-GAAP Diluted EPS ($)	—	—	$0.17

Q1 FY2026 vs S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	1,126.2*	1,171.1	+$44.9M (beat)
Primary EPS ($)	-0.01*	0.17	+$0.18 (beat)
EBITDA ($USD Millions)	367.7*	370.8*	+$3.1M (slight beat)

Notes: S&P Global values marked with *. Values retrieved from S&P Global. Company-reported Adjusted EBITDA was $408.5M; the S&P Global “EBITDA” series reflects a different definition than company Adjusted EBITDA .

Segment performance (YoY)

Segment	Q1 FY2025	Q1 FY2026	YoY
Communication Services – Awards ($M)	810.9	754.4	-7%
Communication Services – Revenue ($M)	826.8	827.4	0%
Communication Services – Operating Profit ($M)	41.9	40.9	-3%
Communication Services – Adjusted EBITDA ($M)	307.7	321.5	+5%
Defense & Advanced Tech – Awards ($M)	350.7	428.3	+22%
Defense & Advanced Tech – Revenue ($M)	299.7	343.7	+15%
Defense & Advanced Tech – Operating Profit ($M)	84.0	71.5	-15%
Defense & Advanced Tech – Adjusted EBITDA ($M)	96.3	86.9	-10%

Key KPIs and cash metrics

KPI	Q3 FY2025	Q4 FY2025	Q1 FY2026
Commercial aircraft in service (approx.)	3,950	4,030	4,130
Business aviation aircraft in service (approx.)	>2,000	>2,000	~2,050
Maritime vessels in service (approx.)	—	—	~13,900
U.S. Fixed broadband subs (ARPU)	—	—	~172k ($115)
Total awards ($M)	1,080	1,200	1,182.7
Backlog ($M)	3,541	3,553	3,548.7
Operating cash flow ($M)	219	~298	258.5
Capital expenditures ($M)	253	247.7	198.0
Free cash flow ($M)	10.4	50.7	60.4
Net debt ($B)	5.66	5.59	5.56
Liquidity ($B)	—	—	~$2.3 (cash $1.2B + undrawn RCFs $1.1B)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue growth	FY2026	“Modest YoY growth”	“Low single-digit YoY growth”	Clarified/slightly narrowed
Adjusted EBITDA	FY2026	“Flattish YoY (±1% of $1.547B)”	“Flattish YoY” (unchanged)	Maintained
Capex	FY2026	~$1.3B	~$1.2B (improved by $100M)	Lowered
Net debt/LTM EBITDA	FY2026	“Slight uptick in FY26”	“Increase modestly by end of FY26”	Maintained
FCF inflection	FY2026	2H FY2026	2H FY2026 (unchanged)	Maintained
Communication Services revenue	FY2026	Flat (low double‑digit aviation growth offset by fixed declines)	Flat with similar drivers	Maintained
DAT revenue growth	FY2026	Double‑digit; InfoSec & Space & Mission Systems leading	Mid‑teens; same drivers	Maintained
Ligado settlement	FY2026	Excluded as upside	Excluded; pending court approval	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2, Q‑1)	Current Period (Q1 FY2026)	Trend
ViaSat‑3 F2/F3 schedule	Q4: Ship F2 in summer; F3 in‑service likely into 2026; lower‑cost launch config	F2 corrective actions completed; ship by end of Sept; service entry early 2026; F3 in 2026	Improving schedule clarity
Multi‑orbit strategy (LEO+GEO)	Q3/Q4: Multi‑orbit aviation and maritime ramp; Telesat LEO capacity; Aera terminal	Continued integration; Amara for airlines; NexusWave installations accelerating	Scaling
InfoSec/cyber (quantum‑resistant)	Q3/Q4: Strong awards; quantum‑resistant refresh cycle	Awards +225% YoY ($224M); high‑assurance encryption demand (AI/data fusion)	Strengthening
Fixed broadband	Q3/Q4: Capacity-constrained; stabilize with F2	Subscribers ~172k; continued pressure until F2 service entry	Weak, pending F2
Maritime (NexusWave)	Q3: Pipeline building; target FY26 growth	>1,000 orders milestone announced; QoQ revenue up 3%; return to YoY growth by FY26-end	Improving
Tariffs/OEM deliveries	Q4: Tariff exposure ~$25M annualized; OEM aircraft delays	Macro uncertainties and aircraft out of service noted; continued OEM recovery slow	Headwind persists
Capital intensity/deleveraging	Q4: Capex focus; 2-step debt plan; repay 2026 Term Loan B	FY26 capex cut to $1.2B; plan to use FCF for deleveraging	Improving
Ligado settlement	Q4: >$500M owed (public record), excluded from guide	$568M expected FY26 subject to court approval; quarterly ~$16M resuming Sept ’25	Potential upside

Management Commentary

“Our first quarter… reflected healthy market demand in our most profitable business lines… We are determined to exit FY2026 with a solid foundation for accelerated and sustained growth and cash generation” – Mark Dankberg, CEO .
“Adjusted EBITDA reached $408M… a 35% adjusted EBITDA margin… We generated $60M of positive free cash flow this quarter” – Gary Chase, CFO .
“InfoSec and Cyber Defense awards of $224M, an increase of 225% year over year… driven by high-assurance encryption demand… especially as more benefits are realized through data fusion and AI” .
“We now expect capital expenditures for the year to be about $1.2B… an improvement of $100M from our guidance last quarter… We continue to believe sustainable positive free cash flow inflection will occur in the second half” .
“ViaSat‑3 F2… we expect to ship to the launch site by the end of next month (September 2025)… F3… preparing for mechanical environmental testing… we’ve slightly adjusted the in‑service date roadmap” .

Q&A Highlights

Portfolio/optionalities and spins: Management evaluates “synergy,” capital intensity, and investor value proposition in portfolio review; past divestitures (e.g., tactical data links) reflect this lens .
D2D/NTN approach: Emphasis on shared infrastructure and aggregation of licensed MSS spectrum to lower capex and enhance throughput; governance critical for fair multi‑operator model .
Ligado accounting: Booking line item TBD; to update upon finalization post court approval .
Maritime and NexusWave: Install rates ramping with >1,000 orders; sequential revenue growth in Q1; confidence in YoY maritime growth by FY26-end .
Aviation dynamics: Backlog slightly down sequentially but aircraft in service grew; OEM delivery delays and grounded aircraft weigh near-term .

Estimates Context

Q1 FY2026 beat revenue and EPS vs S&P Global consensus; EBITDA slightly above S&P consensus, though company-reported Adjusted EBITDA is higher due to definition differences .
Street may lift near-term revenue and non-GAAP EPS models modestly given the top-line/EBITDA outperformance and improved capex guide; however, management maintained flattish FY2026 EBITDA and reiterated macro/OEM risks, tempering full-year upward revisions .

S&P Global consensus values marked with an asterisk (*) in tables. Values retrieved from S&P Global.

Key Takeaways for Investors

Quality beat with healthier mix: Top-line and EPS beats alongside a 35% adjusted EBITDA margin signal resilience in DAT and aviation while maritime troughs likely behind as NexusWave scales .
Execution on cash/Capex: Positive FCF and $100M cut to FY26 capex enhance confidence in 2H FCF inflection and deleveraging plans; near-term focus remains on free cash generation .
ViaSat‑3 catalysts: F2 launch in October and early‑2026 service entry, plus F3 in 2026, are pivotal for fixed broadband stabilization and multi-orbit growth in aviation/maritime .
Optional upside from Ligado: $568M expected by Mar‑31‑2026 (court approval pending) is excluded from guidance and, if realized, could accelerate debt paydown .
Watch headwinds: Lower IP licensing and maritime softness (improving QoQ) plus OEM delivery delays and macro/tariffs remain constraints on FY26 EBITDA growth .
Stock drivers next 3–6 months: F2 launch execution, NexusWave install velocity/ARPU, aviation backlog conversion, and visibility on Ligado payments are likely to drive sentiment and multiples .

Appendix: Non‑GAAP reconciliation highlights

Q1 FY2026 GAAP net loss attributable to VSAT: ($56.4M); non‑GAAP net income: $23.1M. Key add‑backs: amortization of acquired intangibles $65.7M, stock‑based comp $14.7M, acquisition/transaction costs $9.7M, other expense $5.2M, and tax effects (‑$16.1M) .

VIASAT INC (VSAT)·Q1 2026 Earnings Summary