Viasat (VSAT) Q4 FY26 earnings call: guidance and Q&A

How does Viasat capture value from Equatys, and what roles are partners expected to play (e.g., satellite bus, customers)?

Equatys is designed as a shared infrastructure to lower capital intensity and costs for mobile satellite services. Viasat is seeking regional operators as partners and is open to partners for launch and satellite buses. Viasat will provide the lead network payload technology, and Equatys is viewed as a good investment opportunity.

“The fundamental idea of Equatys is to share a network infrastructure.”

asked by Xin Yu · answered by Mark Dankberg

Given the target of 2029 service for Equatys, when do critical decisions regarding bus providers and launch services need to be finalized?

Decisions regarding bus and launch services are currently being made. Viasat plans to provide more detailed information at a follow-on investor conference focused on Equatys, once the basic agreements are concluded, which is expected to be relatively soon.

“They're being made now. And I think what Space42 has recently disclosed, and we support that, is there should be a follow-on our investor conference that we'll have that will just focus on Equatys so that we can answer these more detailed questions.”

asked by Xin Yu · answered by Mark Dankberg

What is the current status of the DAT strategic review, and how would the benefits of vertical integration be maintained if a spin-off occurs?

The DAT business presents a strong growth opportunity, particularly in defense and advanced technologies, benefiting from dual-use applications and vertical integration. The PTSG contract win demonstrates its strength. Management views a spin-off as a 'one-way door' and prefers to maintain optionality while the segment continues to grow within the company.

“So think of it as spin-off is more of a one-way door while we have it, and it's growing, it still gives us optionality.”

asked by Brent Penter · answered by Mark Dankberg

How does Equatys provide flexibility for Viasat to maximize shareholder value from its L-band spectrum, considering high valuations for spectrum?

Viasat's primary goal is to maximize value from its spectrum, whether through development or transaction. Equatys offers a capital-efficient vehicle to bring spectrum to market by serving multiple spectrum holders. Viasat retains its spectrum licenses, allowing flexibility to transact or develop spectrum based on market segments or geographies, without a binary choice.

“From the Viasat perspective, the core issue is the value from developing the spectrum or bringing the spectrum to market greater than or equal to the value of transacting the spectrum.”

asked by Brent Penter · answered by Mark Dankberg

Can Viasat share details on Equatys' capital structure, funding mechanisms, and Viasat's potential capital contribution beyond spectrum and expertise?

Viasat will provide more detailed information on Equatys' capital structure and funding, including the budget range, once the agreements are concluded. It clarified that Viasat will not be contributing spectrum *to* Equatys, but rather playing its spectrum *through* Equatys. The value proposition of Equatys is to be the lowest-cost way for any entity to utilize space-based spectrum.

“We're not going to be contributing spectrum to Equatys. We will we can play our spectrum through Equatys.”

asked by Sebastiano Petti · answered by Mark Dankberg

Why is aviation growth slowing due to competition, and what are the dynamics in commercial versus business aviation?

In commercial aviation, the trend towards free or third-party paid in-flight connectivity increases take rates and bandwidth demand, but also competition. ViaSat-3 enhances competitiveness. Overall, growth is expected, but at a moderated rate due to more planes and market competition. In general aviation, greater penetration is expected in lower-tier jets, but this market is also becoming more competitive.

“I think that what we are anticipating is that just what we said that we'll see net good growth, but probably at a growth rate that was lower than it had been going into this year, partly through more planes.”

asked by Sebastiano Petti · answered by Mark Dankberg

How much of Viasat's existing L-band spectrum can be utilized through Equatys for D2D services without impacting current operations?

The exact amount is yet to be determined. Augmenting GEO satellites with LEO through Equatys will enable much higher power flux densities and more bandwidth. The D2D market has potential for very large bandwidth consumption, which could bring all of Viasat's L-band spectrum into play. Spectrum segregation based on 3GPP specifications (e.g., 5x5 MHz chunks) is a potential method for allocation.

“However, the total bandwidth consumption in the D2D market could be very, very large. And so we see that as a way to bring all of our bandwidth into play.”

asked by James Frazer · answered by Mark Dankberg

Can Viasat elaborate on its capabilities in solar power, thermal dissipation, and radiation hardening, which are relevant to space data centers?

Viasat's ViaSat-3 satellite, with 25 kilowatts of end-of-life power generation, is the largest commercial satellite, demonstrating expertise in large solar structures and stabilizing/maneuvering vehicles with them. The company also handled virtually all thermal dissipation for ViaSat-3, a significant challenge. Viasat sees opportunities to partner with organizations interested in operating space data centers, deploying Viasat's technology to advance these capabilities on communication satellites.

“I'm pretty sure that ViaSat-3 at 25 kilowatts of -- that's end of life power generation that I think is the largest commercial satellite ever.”

asked by Mike Crawford · answered by Mark Dankberg