Viasat (VSAT) Q2 2026 earnings summary

Executive summary

• Net loss improved to $61.4 million from $137.6 million year-over-year, driven by favorable service mix, lower depreciation/amortization, and reduced SG&A expenses.

• Revenue grew 2% year-over-year to $1.14 billion, with growth in both Defense and Advanced Technology (DAT) and Communication Services segments.

• Adjusted EBITDA increased 3% to $385 million, with a 34% margin, supported by strong performance in Aviation, Government Satcom, and InfoSec/Cyber.

• Free cash flow was $69 million for the quarter and $147 million for the trailing twelve months, with positive free cash flow for three consecutive quarters.

• Backlog reached $3.9 billion, up $140 million year-over-year, underpinned by strong awards growth, especially in Communication Services.

Financial highlights

• Revenue: $1.14 billion, up 2% year-over-year.

• Net loss: $61.4 million, improved by $76 million year-over-year.

• Adjusted EBITDA: $385 million, up 3% year-over-year.

• Free cash flow: $69 million in Q2, $147 million trailing twelve months.

• Operating cash flow: $282 million, up 18% year-over-year.

Outlook and guidance

• Fiscal 2026 revenue expected to be up low single digits year-over-year; Communications Services revenue flat to low single-digit growth; DAT revenue to grow mid-teens.

• Adjusted EBITDA expected to be flattish year-over-year, with continued quarter-to-quarter variability.

• Capital expenditures for the year projected at $1.2 billion, with $250 million related to ViaSat-3 completion.

• Negative free cash flow expected in the second half due to CapEx timing, with a return to positive free cash flow in fiscal 2027.

• Cash from operations expected to grow double digits for the year.