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VIASAT INC (VSAT)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 revenue was $1.15B, up ~0% YoY, beating consensus by ~1.4%; non-GAAP diluted EPS was -$0.02, missing consensus, and Adjusted EBITDA was $374.8M, below EBITDA consensus; results were impacted by a $169M impairment tied to the ViaSat-3 EMEA ground network write-down .
  • Guidance pivoted: FY26 revenue growth guided to low single digits, but Adjusted EBITDA is now “flattish” (+/-1%), versus prior expectations for YoY growth; capex remains ~$1.3B, and the company continues to target positive free cash flow in H2 FY26 .
  • Strategic execution highlights: multi-orbit progress (Telesat LEO integration), aviation backlog strength, and NexusWave maritime traction; management emphasized derisking capital intensity and debt paydown, including early redemption of 2025 notes and planned repayment of remaining Inmarsat Term Loan B (~$300M) .
  • Stock reaction catalysts: lowered EBITDA trajectory for FY26, near-term aviation headwinds (OEM delays, traffic flow pressures, tariff exposure), and potential upside from Ligado claims (> $500M publicly referenced) if realized and applied to deleveraging .

What Went Well and What Went Wrong

What Went Well

  • Defense & Advanced Technologies (DAT) revenue rose 11% YoY to $322.1M in Q4; Adjusted EBITDA grew 19% YoY to $68.6M, driven by tactical networking and InfoSec products .
  • Aviation services continued to grow: commercial aircraft in service reached ~4,030 and business aviation ~2,000, with backlog strength underpinning future growth; service revenue up 5% YoY .
  • Multi-orbit strategy and third-party capacity integration advanced (e.g., Telesat LEO), improving user experience and capital efficiency; NexusWave demonstrated 340 Mbps bonded download speeds and secured major fleet wins (e.g., Maersk) .

What Went Wrong

  • Communication Services revenue fell 4% YoY to $825.0M; declines in fixed services & other (-19% YoY) and maritime (-8% YoY) offset government satcom and aviation service gains .
  • GAAP net loss widened to -$246.1M from -$100.3M YoY, driven by a $169M impairment related to ViaSat-3 EMEA ground network and recognition of contract liabilities .
  • FY26 Adjusted EBITDA outlook was reduced to flattish (+/-1%) due to ~$60M higher third-party bandwidth and ~$30M added operating costs to ready ViaSat-3 ground network, combined with softer aviation macros and normalizing royalties at TrellisWare .

Financial Results

Consolidated performance vs prior quarters and year

MetricQ2 FY25Q3 FY25Q4 FY25YoY Q4 FY25
Revenue ($USD Millions)$1,122.3 $1,123.8 $1,147.1 0%
GAAP Net Income (Loss) ($USD Millions)($137.6) ($158.4) ($246.1) 145% worse
Non-GAAP Diluted EPS ($USD)($0.23) $0.11 ($0.02) (92)%
Adjusted EBITDA ($USD Millions)$375.0 $393.3 $374.8 5%
Operating Income (Loss) ($USD Millions)($24.7) $21.2 ($153.8) n/a

Note: CFO disclosed Q4 Adjusted EBITDA margin ~32.7% .

Segment revenues and EBITDA trends

MetricQ2 FY25Q3 FY25Q4 FY25
Communication Services Revenues ($MM)$826.4 $820.3 $825.0
Defense & Advanced Technologies Revenues ($MM)$295.9 $303.4 $322.1
Communication Services Adjusted EBITDA ($MM)$318.2 $329.6 $306.2
Defense & Advanced Technologies Adjusted EBITDA ($MM)$56.8 $63.6 $68.6

Communication Services sub-segment revenue mix

Sub-SegmentQ2 FY25 ($MM)Q3 FY25 ($MM)Q4 FY25 ($MM)
Aviation services$261.99 $263.88 $265.20
Government satcom services$179.88 $195.05 $195.76
Maritime services$121.18 $118.90 $113.95
Fixed services & other services$184.85 $181.16 $173.95
Products$78.49 $61.36 $76.11
Total Communication Services Revenues$826.39 $820.35 $824.97

KPIs

KPIQ2 FY25Q3 FY25Q4 FY25
Commercial aviation aircraft in service~3,820 ~3,950 ~4,030
Business aviation aircraft in service~1,920 ~2,000 ~2,000
U.S. fixed broadband subscribers~228,000 ~205,000 ~189,000
U.S. fixed broadband ARPU ($)$115 $115 $117

Actuals vs Wall Street consensus (S&P Global)

MetricQ4 FY25 ConsensusQ4 FY25 Actual
Revenue ($USD)$1,131.1M*$1,147.1M
Primary EPS ($USD)$0.0425*($0.02)
EBITDA ($USD)$386.9M*$374.8M

Values retrieved from S&P Global.*

Highlights: Revenue beat (+$16M); EPS miss (-$0.0625); EBITDA below consensus.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue growth YoYFY2026YoY growth expected Low single-digit YoY growth Maintained (specified)
Adjusted EBITDAFY2026YoY growth expected Flattish YoY (+/-1%) Lowered
CapexFY2026~$1.3B ~$1.3B incl. ~$450M Inmarsat capex Maintained (clarified mix)
Free Cash FlowFY2026Positive FCF inflection in H2 FY26 Positive FCF inflection in H2 FY26 Maintained
Net debt / LTM Adjusted EBITDAFY2026Modest increase by end of FY25 Modest increase by end of FY26 Maintained (timing updated)
Bandwidth expense (third-party)FY2026n/a+$60M vs prior year New headwind
Operating costs (ViaSat-3 ground readiness)FY2026n/a+$30M vs prior year New headwind

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Multi-orbit strategy (LEO integration)Progress with third-party satellite partners and multi-orbit offerings; NexusWave launch and trials Telesat LEO contract; NexusWave 340 Mbps demo; integration to reduce latency and capital intensity Strengthening
ViaSat-3 F2/F3 scheduleF2 shipment to Cape Canaveral expected summer; F3 in-service shifted to CY26 F2 shipment still targeted for summer; service entry adjusted to early CY26; F3 on different antenna design Clearer timelines; execution focus
Aviation IFC/free Wi-FiGrowing aircraft in service and backlog; “full, fast, free” adoption expanding ~4,030 commercial aircraft in service; backlog supports growth; OEM delays and traffic pressures noted Growth with near-term macro headwinds
Maritime (NexusWave)Beta trials, pipeline growth, expected FY26 return to growth Orders ~500, >100 ships active; agreements incl. Maersk; expected sequential growth in Q1 FY26 Improving toward inflection
L-band MSS / D2D NTNMSSA/open standards, ESA engagement; spectrum value highlighted Emphasis on safety services, standards-based openness, lower capital intensity; D2D roadmap Strategic build-out
Capital structure & deleveragingRefinancing Inmarsat notes; repurchases; maintaining leverage outlook Early redemption of 2025 notes; plan to repay ~$300M Inmarsat Term Loan B; target leverage toward ~3x over time Active deleveraging
Tariffs/macroMentioned OEM delivery delays impact Tariff exposure ~$25M annualized; OEM delays and aircraft out-of-service affecting aviation Near-term headwinds

Management Commentary

  • “Our fiscal 2025 was a pivotal year… We met or beat our guidance metrics; achieved record new contract awards… integrated the first ViaSat-3 F1… and made organizational changes to further improve speed [and] agility…” .
  • “We are still planning to ship the [ViaSat-3 F2] spacecraft to the launch site this summer… We felt it was prudent just to update investors… there is some probability that it could fall into early calendar ’26.” .
  • “Adjusted EBITDA included a $6 million FX loss and $18 million of noncash write-offs… Excluding these items, margins would have been about 2 points higher.” .
  • “Any potential proceeds from our strategic review or Ligado will be prioritized for debt repayment… the amount of cash that we’re owed is in excess of $500 million.” .
  • “We expect modest revenue growth with flattish adjusted EBITDA… [+$60M] third-party bandwidth expense… [+$30M] operating cost to ready our ViaSat-3 ground network.” .

Q&A Highlights

  • Ligado upside and use of proceeds: management reiterated >$500M is publicly recorded; proceeds would go to deleveraging; timing uncertain due to ongoing proceedings .
  • Leverage target: long-run leverage around ~3x cited as attractive for cost of capital and equity value; near-term deleveraging is priority through FCF generation .
  • Aviation dynamics: OEM delivery delays and traffic pressures causing near-term headwinds; however, backlog supports growth and multi-orbit Amara roadmap continues .
  • Free cash flow trajectory: H2 FY26 inflection targeted; focus on capex discipline, working capital, and reduced capital intensity with ViaSat-3 milestones .
  • Maritime inflection confidence: growing installs and backlog on NexusWave; expectation of sequential revenue growth starting Q1 FY26 and YoY growth later in FY26 .

Estimates Context

  • Revenue beat: Actual $1,147.1M vs consensus $1,131.1M; magnitude modest but positive, supported by DAT strength and government satcom .
  • EPS miss: Non-GAAP diluted EPS -$0.02 vs consensus $0.0425; impairment and ground network actions weighed on earnings .
  • EBITDA below: Actual Adjusted EBITDA $374.8M vs EBITDA consensus $386.9M, reflecting FX and write-offs; management noted margin would be ~200 bps higher ex items .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Revenue resilient with DAT momentum; however, FY26 EBITDA reset to flattish indicates near-term earnings headwinds from added bandwidth and ground readiness costs .
  • Aviation remains a core growth driver despite OEM and macro pressures; backlog and multi-orbit Amara solution should support medium-term growth .
  • Maritime NexusWave traction is accelerating (orders/backlog), pointing to an FY26 revenue inflection; watch Q1 sequential trend as validation .
  • Capital structure improving: early redemption of 2025 notes and planned ~$300M term loan repayment; potential Ligado proceeds would accelerate deleveraging .
  • ViaSat-3 execution is the critical catalyst: F2 shipment this summer with service likely early CY26; F3 follows on a different antenna design; capacity ramp underpins multi-year growth .
  • Estimate revisions likely: consensus should reflect lower FY26 EBITDA trajectory and aviation macro headwinds, while maintaining modest top-line growth outlook .
  • Trading lens: near-term sentiment may hinge on EBITDA reset and aviation macros; medium-term rerating depends on successful ViaSat-3 service entry, NexusWave scaling, and visible FCF inflection in H2 FY26 .

Appendix: Balance Sheet and Liquidity (Q4 FY25)

  • Cash & equivalents $1.61B; available liquidity $2.8B including undrawn RCFs; net debt $5.59B; early redemption of remaining $442.6M 2025 notes post-quarter .
  • Total debt $7.20B; total assets $15.45B; Viasat stockholders’ equity $4.55B .