Telesat (TSAT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $101 million, down 27% year-over-year, mainly due to contract renewals and expirations with major North American customers and reduced services for other clients.

• Net loss for Q3 2025 was $121 million, compared to net income of $68 million in Q3 2024, driven by lower revenue, foreign exchange losses, and non-recurrence of prior debt repurchase gain.

• Strong progress in LEO satellite, ground infrastructure, and software development; first launch planned for late 2026, with global service by end of 2027.

• Significant interest in Lightspeed from AERO and government, especially defense sectors.

• Transition in CFO role from Andrew Browne to Donald Tremblay in August 2025.

Financial highlights

• Q3 2025 consolidated revenues were $101 million, down $37 million year-over-year.

• Adjusted EBITDA was $47 million (margin 46.3%), down 51% year-over-year; for the nine months, Adjusted EBITDA was $173 million (margin 53.4%), down 44%.

• Operating expenses increased by 26% to $58 million, mainly due to Lightspeed headcount and higher legal/professional fees.

• Net loss of $121 million in Q3 2025, compared to net income of $68 million in Q3 2024, driven by lower revenues, FX loss, and non-recurrence of prior debt repurchase gain.

• Cash and cash equivalents at September 30, 2025, were $483 million; year-to-date cash from operations was $97 million.

Outlook and guidance

• 2025 full-year revenue guidance reiterated at $405–$425 million.

• Adjusted EBITDA guidance maintained at $170–$190 million.

• Capital expenditures for 2025 expected between $900 million and $1.1 billion, nearly all for Lightspeed.

• Operating expenses for Lightspeed (excluding share-based comp) expected at $75–$85 million.

• Sufficient liquidity with $480 million cash and $2 billion available under government funding agreements.