Viasat (VSAT) investor relations material

Executive summary

• Q1 FY2026 revenue grew 4% year-over-year to $1.17 billion, driven by strong demand in Defense & Advanced Technologies and aviation, with solid cash generation despite headwinds in IP licensing and fixed broadband.

• Adjusted EBITDA increased 1% year-over-year to $408 million, reflecting solid performance in aviation and information security, partially offset by declines in maritime and product revenues.

• Net loss widened to $56.4 million from $32.9 million year-over-year, mainly due to higher depreciation, amortization, and tax provision, offsetting improved operating performance.

• Free cash flow for the quarter was $60 million, a $210 million improvement from the prior year, driven by higher operating cash flow and lower capital expenditures.

• Progress continued on ViaSat-3 satellite launches, with Flight 2 shipping expected by September 2025 and Flight 3 advancing through testing.

Financial highlights

• Revenue reached $1.17 billion in Q1 FY2026, up from $1.13 billion in Q1 FY2025.

• Adjusted EBITDA was $408 million, up from $404 million year-over-year, with a 35% margin.

• Operating cash flow increased 71% year-over-year to $258 million.

• Capital expenditures declined 34% year-over-year to $198 million.

• Free cash flow for the trailing twelve months was $88 million.

Outlook and guidance

• FY2026 revenue expected to increase low single digits year-over-year, with flattish adjusted EBITDA growth and some quarter-to-quarter variability.

• Capital expenditures for FY2026 guided at $1.2 billion, down $100 million from prior guidance, including $250 million for ViaSat-3 and $400 million for Inmarsat.

• Sustainable positive free cash flow inflection anticipated in the second half of FY2026 as CapEx moderates.

• Guidance excludes potential impact from Ligado settlement payment, pending bankruptcy court approval.

• Management believes current funding sources are adequate for anticipated operating requirements over the next 12 months.