Viasat (VSAT) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue was $1.12 billion, flat year-over-year, with strong growth in defense and advanced technologies offset by declines in communication services, particularly fixed broadband and maritime.

• Adjusted EBITDA rose to $393 million, up 3% year-over-year, reflecting improved gross margins and lower R&D and sales expenses.

• Net loss increased to $158.4 million from $124.4 million a year ago, mainly due to a $97 million non-cash loss on debt extinguishment.

• Operating cash flow increased to $219 million, up over 60% year-over-year, while capital expenditures decreased 40% to $253 million.

• The company remains on track for full-year guidance, focusing on growth, cash conversion, de-leveraging, and strategic priorities such as building franchise value and generating free cash flow.

Financial highlights

• Q3 FY2025 revenue was $1.12 billion, essentially flat year-over-year; adjusted EBITDA was $393 million, up $10 million year-over-year, with a 35% margin.

• Net loss for Q3 FY2025 was $158.4 million, compared to $124.4 million in the prior year, mainly due to a $97 million non-cash loss on debt extinguishment.

• Operating cash flow was $219 million, up from $134 million; CapEx was $253 million, down from $421 million year-over-year.

• Collected $42.5 million in satellite insurance proceeds in Q3, with $240 million received during the nine months ended December 31, 2024.

• Cash and cash equivalents at quarter end were $1.56 billion; working capital was $1.3 billion.

Outlook and guidance

• Fiscal 2025 revenue expected to be flat to slightly up year-over-year, with mid-single-digit adjusted EBITDA growth and CapEx guidance reduced to ~$1.1 billion, $200 million lower than prior guidance.

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

• 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.

• Company anticipates impairment charges of $130–$180 million in Q4 FY2025 related to exiting certain EMEA ground network infrastructure.