Viasat (VSAT) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue grew 4% year-over-year to $1.17 billion, driven by strong performance in Defense & Advanced Technologies and continued growth in aviation and maritime, despite a net loss of $56.4 million due to higher costs and lower operating income.

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

• Free cash flow for the quarter was $60 million, a $210 million improvement from the prior year, with operating cash flow up 71% to $258 million.

• Fiscal 2026 is positioned as a launch year, focusing on optimizing integration, strengthening franchises, and reducing capital intensity to drive future growth and cash generation.

• A $568 million cash inflow from a Ligado Networks settlement is anticipated in fiscal 2026, pending bankruptcy court approval.

Financial highlights

• Revenue reached $1.17 billion in Q1 FY2026, up from $1.13 billion in Q1 FY2025, with service revenues at $826.4 million and product revenues at $344.7 million.

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

• Net loss attributable to stockholders was $56.4 million, or $(0.43) per share, compared to a loss of $32.9 million, or $(0.26) per share, in the prior year.

• Total outstanding indebtedness was $6.7 billion as of June 30, 2025.

Outlook and guidance

• Fiscal 2026 revenue expected to rise low single digits year-over-year, with flattish adjusted EBITDA growth and some quarter-to-quarter variability.

• Capital expenditures for the year guided to $1.2 billion, down $100 million from prior guidance, with $250 million for Viasat-3 completion and $400 million for NVRSAT.

• Sustainable positive free cash flow inflection anticipated in the second half of fiscal 2026 as CapEx moderates.

• Approximately half of the $3.5 billion firm backlog is expected to be delivered in the next 12 months.

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