Skip to content
    VSAT
    Earnings call· Mar 2026(Q4 FY26)

    VIASAT Q4 FY26 earnings call VSAT

    May 28, 2026 Source

    Executive summary

    Viasat Q4 FY26 — Strong Cash Flow and Strategic Fleet Expansion

    Viasat concluded Q4 FY26 with robust cash generation and significant deleveraging, improving its financial risk profile. The company is strategically focused on fleet expansion with ViaSat-3, developing the Equatys shared infrastructure for next-gen mobile satellite services, and accelerating growth in its Defense & Advanced Technologies segment, particularly in AI and space data center enabling technologies. While some segments faced headwinds, the overall outlook emphasizes continued investment in high-growth markets and a commitment to capital efficiency.

    Highlights

    5

    • Record new contract awards of $1.3 billion, up 9% YoY in Q4 FY26.

    • Record backlog of $4.1 billion, up 15% YoY in Q4 FY26.

    • Generated nearly $600 million in free cash flow for FY26, or $180 million excluding the Ligado payment.

    • Net debt to trailing adjusted EBITDA improved to 3.1x in Q4 FY26.

    • Defense & Advanced Technologies (DAT) revenue grew 12% YoY in Q4 FY26.

    Concerns

    5

    • Adjusted EBITDA was down 1% YoY to $370 million in Q4 FY26, impacted by R&D investments and government shutdown.

    • Communication Services revenue declined 2% YoY to $810 million in Q4 FY26.

    • Maritime revenue declined 1% YoY in Q4 FY26, not yet reaching sustained growth.

    • Fixed services and other revenue was down 24% YoY in Q4 FY26, with subscriber declines continuing.

    • Fiscal year 2027 adjusted EBITDA is expected to be flat to up slightly, with a 2 percentage point headwind from IP settlement and Navarino sale.

    Guidance & targets

    16
    CategoryTargetConfidence
    Fiscal Year 2027 Revenue Growth
    mid-single digits
    high materiality
    High
    Fiscal Year 2027 Communication Services Growth
    low single digits
    medium materiality
    High
    Fiscal Year 2027 DAT Growth
    mid-teens
    medium materiality
    High
    Fiscal Year 2027 Adjusted EBITDA
    flat to up slightly
    high materiality
    Medium
    Fiscal Year 2027 Reported CapEx
    $950 million to $1 billion
    high materiality
    High
    Fiscal Year 2027 Cash CapEx
    about $850 million
    high materiality
    High
    Fiscal Year 2027 Capitalized Interest
    $125 million to $150 million
    medium materiality
    High
    Fiscal Year 2027 Free Cash Flow
    about $180 million
    high materiality
    High
    Target Leverage Ratio
    below 3.0x
    high materiality
    High
    Maritime Revenue Inflection Point
    later in fiscal '27
    medium materiality
    Medium
    Fixed Broadband Business Stabilization
    occur as ViaSat-3 enters service
    medium materiality
    Medium
    Aviation Revenue Growth Rate
    moderate
    medium materiality
    High
    Government SATCOM Growth
    another year of growth
    medium materiality
    High
    DAT Business Growth
    very good growth
    medium materiality
    High
    Encryption Revenue Growth
    strong revenue growth
    low materiality
    High
    Space and Mission Systems and Tactical Networking Growth
    accelerated growth
    low materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Communication Services
    Revenue decline primarily due to fixed services and other, partially offset by growth in Aviation and Government SATCOM. Adjusted EBITDA was down due to fixed services decline and higher R&D investments.
    Awards: $877M (up 13% YoY)Aviation Revenue Growth: 11% YoYCommercial Aircraft in Service: 4,450 (up 10% YoY)Commercial Aircraft Unit Backlog: 1,000Government SATCOM Revenue Growth: 5% YoYGovernment Awards and Backlog Growth: 18% YoYMaritime Revenue Growth: -1% YoYNexusWave Vessels in Service: 1,350NexusWave Vessels in Backlog: 1,500Fixed Services and Other Revenue Growth: -24% YoYFixed Broadband Subscribers: 130,000Average Revenue Per User (ARPU): $113
    		$810M-2%—$287M
    Defense & Advanced Technologies (DAT)
    Strong revenue growth driven by Infosec and cyber, and space and mission systems. Adjusted EBITDA growth was driven by revenue growth and positive operating leverage, partially offset by incremental R&D investments.
    Awards: $403M (up 2% YoY)Infosec and Cyber Product Revenues Growth: 24% YoYSpace and Mission Systems Revenues Growth: 16% YoYTactical Networking Revenues Growth: 4% YoY
    		$361M12%—$83M

    Operational metrics

    17
    Net income
    $59Mimproved $305M YoY
    Q4 FY26

    Principally due to a gain from the sale of equity investment in Navarino, lower G&A expense, and lower interest expense.

    Adjusted EBITDA
    $370Mdown 1% YoY
    Q4 FY26

    Primarily reflects incremental R&D related to growth initiatives and higher-than-expected impact from government shutdown.

    Capital expenditures
    $298Mup 20% YoY
    Q4 FY26

    Highest CapEx quarter of the year, invested in completion of ViaSat-3 system.

    Gross proceeds from Navarino sale
    $203M
    Q4 FY26

    Received in the quarter from the divestiture of interest in Navarino.

    Net debt to trailing adjusted EBITDA
    3.1ximproved sequentially and substantially versus prior year
    Q4 FY26

    Progress towards target leverage ratio below 3.0x.

    Revenue
    $4.6B
    FY26

    Full year fiscal 2026 revenue.

    GAAP net loss
    $34M
    FY26

    Full year fiscal 2026 GAAP net loss.

    Adjusted EBITDA
    $1.55B
    FY26

    Full year fiscal 2026 adjusted EBITDA.

    CapEx
    just under $1B
    FY26

    Full year fiscal 2026 CapEx.

    Debt paid down
    $743M
    FY26

    Amount of debt paid down in fiscal 2026.

    Net debt
    $4.8B
    FY26

    Net debt at the end of fiscal 2026.

    Headwinds to FY27 Adjusted EBITDA
    about 2 percentage pointsversus FY26
    FY27

    Due to declining impact from IP settlement and removal of Navarino EBITDA.

    FY27 CapEx - Maintenance
    about $400Mflat
    FY27

    Component of fiscal year 2027 CapEx.

    FY27 CapEx - ViaSat-3
    about $50Mdown $150M
    FY27

    Component of fiscal year 2027 CapEx, reflecting reduced spend.

    FY27 CapEx - Success-based
    about $150Mup from $50M
    FY27

    Component of fiscal year 2027 CapEx, primarily from Maritime and NexusWave.

    FY27 CapEx - Growth
    $225M to $250M
    FY27

    Component of fiscal year 2027 CapEx, with emphasis on future satellites other than ViaSat-3, DAT segment, and government SATCOM.

    FY27 CapEx - Inmarsat
    $325M
    FY27

    Embedded within consolidated fiscal year 2027 CapEx numbers.

    Industry KPIs

    7
    MetricValueDetails
    Capital return$743MUSD
    Backlog order book$4.1BUSD
    Orders backlog qualityRecord backlognarrative
    Product orders order growth$1.3BUSD
    Recurring software service revenue4,450 commercial aircraft in serviceunits
    Revenue mix by product customer typeCommunication Services revenue $810M; DAT revenue $361MUSD
    Design wins product cycle transitionsPTSG contract awardcontract

    Orderbook & backlog

    6
    New contract awards$1.3BQ4 FY26

    up 9% YoY

    Led by Communication Services with Maritime, Governments, SATCOM and Aviation.

    Total backlog$4.1BQ4 FY26

    up 15% YoY

    Record backlog, with double-digit growth in both Communication Services and DAT.

    Commercial aircraft unit backlog1,000Q4 FY26

    Expected to be put into service with IFC systems under existing customer agreements.

    Government awards and backlogup 18%Q4 FY26

    YoY

    NexusWave vessels in backlog1,500Q4 FY26

    Demand remains strong, with work needed to accelerate installations.

    DAT backlogup 23%FY26

    YoY

    Driven by big wins in fiscal '26.

    Product announcements

    4
    ProductTypeDetails
    ViaSat-3 Flight 2milestone
    ViaSat-3 Flight 3milestone
    ERA Ka-band multi-orbit terminalmilestone
    Protected Tactical Satellite Global (PTSG) contractlaunch

    Deals & partnerships

    4
    Carronade Capital ManagementCooperation agreement

    Agreement reached after constructive dialogue, believed to be in the best interest of Viasat and its shareholders.

    NavarinoDivestiture$203M gross proceeds

    Completed the divestiture of Viasat's interest in Navarino in March. Navarino's results previously flowed through the equity and income line item.

    Space42Joint Venture (Equatys)

    Forming Equatys, a space infrastructure entity for next-generation L- and S-band mobile satellite services. Viasat is expected to participate as the initial technology prime contractor.

    TelesatPartnership

    Telesat is progressing with the launch of its first Pathfinder Lightspeed LEO satellites this year, with initial global service planned for late next year.

    Capital programs

    3
    ViaSat-3 system completionunderway
    Period spend: about $50M

    Fiscal year 2027 CapEx allocation, representing a $100M reduction from FY26 spend.

    Growth CapEx (future satellites, DAT, Gov SATCOM)underway
    Period spend: $225M to $250M

    Fiscal year 2027 CapEx allocation, with emphasis on future satellites other than ViaSat-3, DAT segment, and government SATCOM.

    Inmarsat CapExunderway
    Period spend: $325M

    Fiscal year 2027 CapEx allocation, embedded within consolidated numbers.

    Risks & headwinds

    5
    Impact from U.S. government shutdownback half of fiscal year '26

    Higher-than-expected impact

    Increased competition in broadband satellite servicesFY27

    Will reduce growth rate in aviation services

    Mitigation: ViaSat-3 satellites are expected to make Viasat more competitive with higher speeds and adaptive beam forming flexibility.

    Declining impact from intellectual property settlementFY27

    Headwind of about 2 percentage points to fiscal '27 EBITDA

    Removal of Navarino EBITDAFY27

    Headwind of about 2 percentage points to fiscal '27 EBITDA

    Migration of cash interest out of CapEx and into operating cash flowFY27

    Headwind to cash from operations versus the prior year

    Q&A highlights

    8

    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

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Review and Board Appointments

    Viasat announced a cooperation agreement with Carronade Capital Management, following constructive dialogue. The company also welcomed Shekar Ayyar and Jinhy Yoon to its Board of Directors, both appointed to the Board's Strategic Review Committee. These appointments bring deep experience in technology, M&A, financial governance, and capital allocation, supporting Viasat's strategic initiatives.

    02

    ViaSat-3 Fleet Expansion Progress

    Subsequent to quarter end, ViaSat-3 Flight 2 successfully completed all deployments, with surface entry pending FCC authorization. ViaSat-3 Flight 3 also landed successfully on April 29, with radiator and solar array deployments completed and orbit raising underway. Flight 3 is expected to cover the Asia Pacific region, arrive on station in about a month, and achieve surface entry in August or September of calendar year 2026. These fleet expansions are anticipated to roughly triple bandwidth inventory and enhance adaptive beam forming flexibility.

    03

    Equatys Initiative for Next-Gen Mobile Satellite Services

    Viasat is developing Equatys, a shared multi-tenant, multi-orbit, L- and S-band infrastructure entity with Space42, targeting next-generation mobile satellite services including global air/maritime safety, vehicle autonomy, and direct-to-device opportunities. The initiative aims to lower capital intensity and enable 3GPP standards for interoperable nonterrestrial network services. Viasat expects to be the initial technology prime contractor for Equatys, targeting services in 2029 and significant revenue from its role.

    04

    Defense & Advanced Technologies (DAT) Segment Growth

    The DAT segment is poised for rapid growth in both defense and commercial markets, leveraging Viasat's dual-use advanced technology. A key recent win includes a follow-on award for the Protected Tactical Satellite Global (PTSG) contract, involving the delivery of a small, low-cost maneuverable dual-band geosynchronous orbit U.S. government tactical satellite. This multi-billion dollar opportunity highlights Viasat's ability to innovate and vertically integrate technology and services for government customers.

    05

    Direct-to-Device (D2D) and Space Data Center Opportunities

    Viasat sees significant growth opportunities in direct-to-device (D2D) nonterrestrial network services, supporting mobile network operators in augmenting terrestrial networks. The Equatys model offers unbundled space/ground infrastructure and network operations. Additionally, Viasat is exploring opportunities in space data centers, leveraging its expertise in solar power generation, thermal dissipation, radiation hardening, and space communications, positioning these as DAT growth areas.

    06

    Fiscal Year 2026 Financial Achievements

    For fiscal year 2026, Viasat delivered $4.6 billion in revenue and $1.55 billion in adjusted EBITDA. The company generated strong free cash flow of $597 million, or $177 million excluding the Ligado payment, and achieved positive free cash flow in each of the last five quarters. This cash generation, combined with the Navarino sale, enabled a $743 million debt reduction, bringing net debt to $4.8 billion and the net leverage ratio down to 3.1x, significantly improving its credit profile.

    AI-generated summary of the company’s earnings call. Not investment advice.