Viasat Inc
NASDAQ:VSAT
Viasat Inc
Viasat Inc., originally founded in 1986, has carved a distinctive niche for itself in the realm of global satellite communications. Emerging from Carlsbad, California, Viasat has historically anchored its growth in the development of satellite and wireless networking technology. The company effectively bridges the gap between the Earth's core and the vast expanse above, providing high-speed satellite broadband services to a wide array of consumers — from residential users in remote areas to expansive corporate platforms requiring robust connectivity solutions. The core of Viasat’s operations hinges on their ownership and strategic deployment of advanced satellite systems such as the innovative ViaSat-3 constellation, which aims to provide widespread coverage, offering internet and telecommunications services to underserved regions worldwide.
Viasat's financial model is intricately linked to the breadth and reliability of its services. Through its commercial networks, Viasat generates revenue by offering subscriptions for its satellite internet services, especially targeting regions and industries where traditional broadband networks fall short. A significant part of their income is also derived from government contracts, where their secure communications and tactical data link solutions are in demand across U.S. military and defense agencies. Alongside these, Viasat ventures into in-flight connectivity solutions, partnering with major airlines to offer passengers seamless internet access thousands of feet in the air. By continually innovating their satellite technology and expanding their service offerings, Viasat crafts pathways to not just widespread connectivity but also sustainable profitability.
Viasat Inc., originally founded in 1986, has carved a distinctive niche for itself in the realm of global satellite communications. Emerging from Carlsbad, California, Viasat has historically anchored its growth in the development of satellite and wireless networking technology. The company effectively bridges the gap between the Earth's core and the vast expanse above, providing high-speed satellite broadband services to a wide array of consumers — from residential users in remote areas to expansive corporate platforms requiring robust connectivity solutions. The core of Viasat’s operations hinges on their ownership and strategic deployment of advanced satellite systems such as the innovative ViaSat-3 constellation, which aims to provide widespread coverage, offering internet and telecommunications services to underserved regions worldwide.
Viasat's financial model is intricately linked to the breadth and reliability of its services. Through its commercial networks, Viasat generates revenue by offering subscriptions for its satellite internet services, especially targeting regions and industries where traditional broadband networks fall short. A significant part of their income is also derived from government contracts, where their secure communications and tactical data link solutions are in demand across U.S. military and defense agencies. Alongside these, Viasat ventures into in-flight connectivity solutions, partnering with major airlines to offer passengers seamless internet access thousands of feet in the air. By continually innovating their satellite technology and expanding their service offerings, Viasat crafts pathways to not just widespread connectivity but also sustainable profitability.
Revenue: Viasat reported Q3 revenue of $1.2 billion, up about 3% year-over-year, in line with expectations.
Free Cash Flow: Free cash flow was $444 million in Q3, with $24 million excluding a nonrecurring Ligado payment. Management expects positive free cash flow for FY '26, FY '27, and beyond.
Leverage Ratio: Net debt to trailing 12-month adjusted EBITDA improved to 3.25x, down from 3.7x a year ago, reflecting strong cash generation and focus on deleveraging.
ViaSat-3 Update: Flight 2 is set to enter service by May, with Flight 3 expected to launch shortly after and be in service by late summer. Both are expected to materially expand capacity.
CapEx Guidance: Fiscal '26 CapEx is now expected to be $1 billion to $1.1 billion, $100-200 million lower than previous guidance, mainly due to efficiency gains.
Growth Segments: Aviation revenue rose 15% and government SATCOM revenue grew 4%, while residential fixed broadband and maritime declined.
Strategic Review: The company continues to evaluate options, including possibly separating government and commercial businesses, with decisions tied to satellite launches, deleveraging, and cash flow progress.
