Viasat (VSAT) Q3 2026 earnings summary

Executive summary

• Fiscal 2026 revenue and EBITDA are in line with expectations, with cash generation exceeding plans due to efficient operations, strategic transactions, and a $420 million Ligado settlement payment.

• Substantial progress made toward a target net leverage ratio below 3.0, driven by positive cash flow, asset divestitures, and early debt repayments.

• Strategic focus on ViaSat-3 satellite launches, multi-orbit broadband, and new defense technology to drive growth in FY 2027 and FY 2028.

• Ongoing strategic review may include separating government and commercial businesses to enhance shareholder value.

• Strong revenue growth in aviation, tactical networking, and information security and cyber defense, with continued momentum in core franchises.

Financial highlights

• Q3 FY26 revenue was $1.2 billion, up 3% year-over-year, with Adjusted EBITDA of $387 million and a 33% margin.

• Net income reached $25 million, an improvement of $183 million, mainly due to higher interest income from Ligado payments.

• Free cash flow was $444 million, or $24 million excluding the Ligado lump sum; trailing 12-month free cash flow exceeded $200 million.

• CapEx for the quarter was $283 million, up 12%, mainly for ViaSat-3 completion and satellite investments.

• Backlog reached a record $4 billion, up 12% year-over-year.

Outlook and guidance

• Fiscal 2026 revenue expected to rise flat to low single digits, with flat Adjusted EBITDA and positive free cash flow projected for FY26, FY27, and beyond, excluding non-recurring Ligado payments.

• CapEx for FY26 now expected at $1.0–$1.1 billion, $100–$200 million lower than prior guidance, with further reductions anticipated.

• ViaSat-3 Flight 2 service entry expected by May, with Flight 3 launch and service by late summer.

• Defense and Advanced Technologies revenue expected to grow in the mid-teens percentage range.

• Management expects to meet operating requirements for the next 12 months with current liquidity and cash flow.