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VIASAT INC (VSAT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 delivered revenue of $1.1238B (flat YoY), adjusted EBITDA of $393.3M (+3% YoY; 35% margin), GAAP diluted EPS of ($1.23), and non-GAAP diluted EPS of $0.11 .
  • Strength in Defense & Advanced Technologies (+20% YoY revenue) and aviation service growth offset declines in fixed broadband and maritime; operating cash flow rose to $219M (+$86M YoY) while CapEx fell 40% YoY to $253M .
  • Management lowered FY2025 CapEx to ~$1.1B from prior $1.3–$1.4B and reiterated FY2026 CapEx at ~$1.3B, pointing to free cash flow inflection in 2H FY2026; aggregate FY2025–FY2026 cash generation outlook improved by ~$200M .
  • Strategic catalysts: aviation backlog and wins (e.g., STARLUX fleet expansion), maritime NexusWave ramp, and D2D/L-band initiatives; net leverage ~3.7x LTM adjusted EBITDA, slightly higher sequentially due to GX-10 finance leases .

What Went Well and What Went Wrong

What Went Well

  • Defense & Advanced Technologies revenue grew 20% YoY to $303M; adjusted EBITDA up 27% to $64M, with strength in information security, space & mission systems, and tactical networking .
  • Aviation services continued to expand: commercial IFC aircraft in service rose ~13% YoY to ~3,950; business aviation ~2,000 aircraft; aviation service revenue +12% YoY; backlog grew ~22% YoY .
  • Capital discipline: operating cash flow rose to $219M (+>60% YoY), CapEx fell to $253M (–40% YoY); FY2025 CapEx cut to ~$1.1B and 2-year cash generation outlook improved by ~$200M .

Management quote:

  • “Our third quarter fiscal year 2025 results are good and moderately better than expectations, and we remain on track for our full year guidance.”
  • “We’re beginning to make progress on our capital efficiency and cash generation initiatives…paying down debt is our top priority for capital allocation.”

What Went Wrong

  • Communication Services revenue declined 6% YoY to $820M as fixed broadband and maritime headwinds outweighed aviation/government satcom growth (products down 40% YoY on prior-year IFC terminal deliveries) .
  • Maritime revenue fell 9% YoY on incremental ARPU pressure and legacy L-band declines; NexusWave roll-out expected to reverse trends starting FY2026, but near-term remains pressured .
  • GAAP net loss increased to ($158.4M), driven by a $97M non-cash loss on extinguishment of Inmarsat 2026 notes; net leverage ticked up sequentially (3.7x) due to GX-10 finance leases (+$150M) .

Financial Results

Summary Financials (Quarterly)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$1,100 $1,120 $1,123.8
Net Income (Loss) ($USD Millions)($32.9) ($137.6) ($158.4)
Adjusted EBITDA ($USD Millions)$403.943 $374.974 $393.260

EPS and Margin (YoY and QoQ reference)

MetricQ3 2024Q3 2025
GAAP Diluted EPS ($USD)($0.99) ($1.23)
Non-GAAP Diluted EPS ($USD)$0.24 $0.11
Adjusted EBITDA Margin (%)—35%

Segment Breakdown (Q3 FY2025 vs Q3 FY2024)

Segment/Line ($USD Millions)Q3 2024Q3 2025
Aviation Services$236.0 $263.9
Government Satcom Services$176.3 $195.0
Maritime Services$130.1 $118.9
Fixed Services & Other (FS&O)$229.9 $181.2
Communication Services Products$102.5 $61.4
Total Communication Services$874.9 $820.3
DAT Services$53.1 $50.4
Info Sec & Cyber Defense Products$72.1 $89.5
Space & Mission Systems Products$65.2 $77.8
Tactical Networking Products$57.7 $78.5
Advanced Technologies & Other Products$5.6 $7.3
Total DAT$253.7 $303.4
Total Revenues$1,128.5 $1,123.8

KPIs (Q3 FY2025)

KPIQ3 2025
Commercial aircraft in service (units)~3,950
Business aviation aircraft in service (units)~2,000
Aggregate vessels + aircraft in service (Ka-band)~20,200
U.S. fixed broadband subscribers (units)~205,000
U.S. fixed broadband ARPU ($USD)~$115
Backlog ($USD Millions)$3,541.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2025Flat to slightly up Flat to slightly up Maintained
Adjusted EBITDAFY2025Mid-single digit YoY growth Mid-single digit YoY growth Maintained
CapExFY2025$1.3–$1.4B (incl. ~$200M capitalized interest) ~$1.1B (incl. ~$200M capitalized interest) Lowered
CapExFY2026~$1.1–$1.2B (Q1 view) ~$1.3B Revised higher vs Q1 view; maintained vs Q3 commentary
Free Cash Flow inflectionFY2026By end of Q1 FY2026 Second half of FY2026 Later
DAT Revenue GrowthFY2025Mid-teens Mid-teens; backlog >$900M Maintained
Net LeverageFY2025Slightly lower YoY; ~3.6x in Q2 Modest increase by year-end FY2025 Higher vs prior expectation

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3)Trend
CapEx optimization and deleveragingQ1: CapEx FY2025 cut to $1.4–$1.5B; FCF inflection by end of Q1 FY26 . Q2: CapEx $1.3–$1.4B; focus on capital efficiency and refinancing .FY2025 CapEx ~$1.1B; 2-year cash generation +$200M; FCF inflection 2H FY26 .Strengthening discipline; timing shifted later
Aviation growth & OEM delaysQ1: 3,750 aircraft in service; OEM/engine delays affect installs . Q2: 3,820 aircraft; Boeing strike added delays .~3,950 commercial aircraft; aviation service rev +12% YoY; backlog +22% .Growth continuing; delays persist
Maritime NexusWaveQ1: Beta service; ~3,500-vessel pipeline . Q2: NexusWave above expectations; indirect channel ARPU pressure .Targeting FY2026 return to maritime growth; backlog converting to ships in service .Early traction; ramp in FY2026
D2D/L-band strategyQ1: MSSA formation; standard-based multi-tenant vision . Q2: Emphasized licensed MSS spectrum value .ESA agreement supporting open-architecture LEO constellation; underscores MSS spectrum value .Advancing partnerships/standards
Satellite roadmap (ViaSat-3, GX-10A/B)Q2: F2/F3 in-service mid/late 2025; locations targeted .F2: ship this summer; in-service late CY2025 (Americas). F3: in-service CY2026 (Asia-Pacific) after cost-saving launch config .Schedule refined; risk reduced

Management Commentary

  • Mark Dankberg, CEO: “We remain a leading player in the satellite communications industry…intent on achieving [growth] while steadily demonstrating financial and strategic discipline and a deep commitment to growing shareholder value.”
  • Garrett (Gary) Chase, CFO: “Revenue of $1.12 billion, adjusted EBITDA of $393 million and a 35% adjusted EBITDA margin…we’re beginning to make progress on our capital efficiency and cash generation initiatives.”
  • Strategic positioning: “We’ve been aggressive…forming key partnerships with multiple GEO and NGSO operators…integrating multiple new satellites into a more highly integrated version of the Inmarsat and ViaSat satellite fleets.”
  • Maritime outlook: “We’re targeting a return to growth in our maritime business this coming fiscal year ’26.”

Q&A Highlights

  • ViaSat-3 flight deployment and savings: F2 planned for Americas, F3 Asia-Pacific; F3 launch configuration change extends orbit raising, saving “low tens of millions” while maintaining in-service timing into CY2026 .
  • CapEx reduction drivers: broader capital efficiency push, Viasat/Inmarsat synergies, timing deferrals; FY2025 CapEx ~$1.1B; emphasis on earnings power, deleveraging, sustained cash flow .
  • Licensed MSS spectrum/Ligado–ASTS: management underscored the value of licensed MSS spectrum and cautioned not to comment on active litigation; highlighted D2D standardization and open-architecture benefits .
  • Telesat Lightspeed: advanced negotiations to buy Ka-band LEO capacity; initial focus on aviation; ensuring terminals are compatible for multi-orbit operations .
  • NexusWave ramp: pipeline grew beyond prior-quarter >4,000 vessels; targeting low hundreds of installs in the current quarter; sequence expected to show net vessel growth, then revenue, then EBITDA .

Estimates Context

  • S&P Global consensus estimates for Q3 FY2025 EPS and revenue were unavailable at time of request due to SPGI rate limits. As a result, we cannot assess beats/misses versus Wall Street consensus for this quarter.
  • Management’s qualitative assessment: results “moderately better than expectations,” and full-year guidance tracking .

Key Takeaways for Investors

  • Mix improving: DAT (+20% YoY) and aviation (+12% YoY service revenue) offset consumer fixed declines; supports margin durability despite product revenue headwinds .
  • CapEx reset is material: FY2025 CapEx cut to ~$1.1B (from $1.3–$1.4B) and launch config changes should enhance capital efficiency; combined FY2025–FY2026 cash generation outlook improved by ~$200M, a key FCF narrative pivot .
  • Aviation backlog and monetization: ~1,570 aircraft backlog with each ~10 installs worth $4–$5M discounted lifetime EBITDA; near-term OEM delay friction remains but backlog supports medium-term growth .
  • Maritime inflection setup: NexusWave pipeline/backlog and ViaSat-3 capacity additions aim to halt declines and drive growth starting FY2026; watch installs and ARPU trends .
  • Leverage watch: net leverage ~3.7x LTM adjusted EBITDA; management prioritizes deleveraging; expect modest increase by FY2025 year-end before improving with FCF inflection in 2H FY2026 .
  • Strategic partnerships: ESA-backed D2D initiatives and anticipated LEO capacity (e.g., Telesat Lightspeed) bolster multi-orbit flexibility and potential capital-light coverage expansion .
  • Trading implications: Near-term stock drivers likely include CapEx/cash flow execution, aviation backlog conversion vs OEM delays, and tangible milestones on ViaSat-3 F2/F3 roadmap and NexusWave installs .

Additional Primary Documents and Press Releases (Q3 FY2025)

  • Q3 FY2025 press release and shareholder letter (8-K Item 2.02 with Exhibits 99.1 and 99.2) –.
  • Q3 FY2025 earnings call transcript –.
  • Relevant Q3 FY2025 press releases: STARLUX fleet IFC expansion (Feb 4, 2025) ; Space Force PLEO Task Order (Feb 3, 2025) ; earnings date announcement (Jan 30, 2025) .

Prior Two Quarters (for Trend)

  • Q2 FY2025: Revenue ~$1.12B; adjusted EBITDA $375M; net loss ($138M); CapEx $229M; continued aviation growth and DAT awards; reiterated revenue flat to slightly up and mid-single digit EBITDA growth for FY2025 .
  • Q1 FY2025: Revenue ~$1.1B; adjusted EBITDA $404M; net loss ($33M); CapEx $301M; initial CapEx guide $1.4–$1.5B for FY2025 and FCF inflection by end of Q1 FY2026; aviation 3,750 aircraft in service .