Telesat (TSAT) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong execution in both GEO and LEO segments, with disciplined GEO performance and significant commercial progress in LEO, including major multi-year agreements with Viasat, Orange, and ADN Telecom, and a robust pipeline for Lightspeed.

• LEO backlog reached nearly CAD 1.1 billion as of May 5, 2025, with expectations to surpass GEO backlog by year-end, reflecting strong market momentum and new deals.

• Revenue for Q1 2025 was $117 million, down 23% year-over-year, mainly due to lower rates on contract renewals and reduced services for certain customers.

• Adjusted EBITDA was $67 million, a 39% decrease year-over-year, with a margin of 57.7%.

• Net loss for Q1 was $51 million, nearly unchanged from the prior year, with foreign exchange gains offset by lower revenue and a loss on financing warrants.

Financial highlights

• Q1 2025 consolidated revenues were $117 million, down $25 million year-over-year; adjusted EBITDA was $67 million, down $43 million; adjusted EBITDA margin was 57.7%.

• Operating expenses increased by $6 million to $53 million, mainly due to Lightspeed headcount and higher legal/professional fees.

• Cash and cash equivalents rose to $797 million from $552 million at year-end 2024; cash from operations was $139 million.

• Capital expenditures totaled $235 million in Q1 2025, focused on Lightspeed satellite programs.

• Net loss per share was $(1.08), unchanged from the prior year.

Outlook and guidance

• 2025 full-year revenue guidance reiterated at $405–$425 million, assuming CAD/USD exchange rate of 1.42.

• Adjusted EBITDA expected between CAD 170–190 million; Lightspeed operating expenses (excluding share-based comp) projected at $110–$120 million, up from $72 million in 2024.

• Capital expenditures for 2025 expected at CAD 900 million–1.1 billion, almost entirely for Lightspeed.

• Sufficient liquidity with $800 million in cash/short-term investments and $2.2 billion available under government funding agreements.

• Management remains confident in previously issued 2025 guidance.