Viasat (VSAT) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue was $1.12 billion, essentially flat year-over-year, with strong growth in defense and aviation offset by declines in fixed broadband and maritime.

• Adjusted EBITDA rose to $393 million, up 3% year-over-year, reflecting improved margins and cost efficiencies.

• Net loss increased to $158.4 million, mainly due to a $97 million non-cash loss on debt extinguishment.

• Integration of Viasat and Inmarsat networks is expanding coverage, optimizing resources, and supporting future growth.

• Progress on satellite roadmap with VS-3 F1 scaling utilization, GX 10A/B completed IOT, and VS-3 F2 targeting late-summer launch.

Financial highlights

• Q3 FY2025 revenue: $1.12 billion, flat year-over-year; Adjusted EBITDA: $393 million, 35% margin.

• Net loss for Q3 FY2025: $158.4 million, up from $124.4 million prior year, mainly due to debt extinguishment.

• Operating cash flow was $219 million, up over 60% year-over-year; CapEx was $253 million, down 40%.

• Cash and cash equivalents at quarter end: $1.56 billion; total outstanding indebtedness: $7.2 billion.

• Net leverage stood at 3.7x trailing 12 months adjusted EBITDA.

Outlook and guidance

• Fiscal 2025 revenue expected to be flat to slightly up year-over-year, with mid-single digit Adjusted EBITDA growth.

• CapEx guidance for FY2025 reduced by $200 million to approximately $1.1 billion.

• Fiscal 2026 expected to see year-over-year revenue growth and modest Adjusted EBITDA growth; CapEx expected at $1.3 billion.

• Free cash flow inflection anticipated in the second half of fiscal 2026.

• Q4 FY2025 impairment charges of $130–$180 million expected from EMEA ground network exit.