Viasat — Financial Results
Revenue Grew Modestly to $4.6 Billion, Led by Defense
| Metric | FY2026 | FY2025 | Change |
|---|---|---|---|
| Total revenues | $4,640.3M | $4,519.6M | +$120.7M (+3%) |
| Communication services revenues | $3,299.7M | $3,298.5M | ~flat |
| Defense & advanced technologies revenues | $1,340.6M | $1,221.1M | +$119.5M (+10%) |
Total revenue grew 3%, but the story differs sharply by segment. The defense and advanced technologies segment drove nearly all of the growth, up 10%, on strong demand for cybersecurity and encryption products. The communication services segment was essentially flat — gains in aviation were almost entirely wiped out by a deliberate pullback in the U.S. fixed home broadband business, where Viasat is redirecting satellite capacity toward more profitable aviation customers.
Aviation Is the Communication Services Growth Engine, Fixed Broadband Is Shrinking
In-flight connectivity (IFC) revenue jumped $143.2 million, driven by growth from roughly 4,120 to 4,580 active commercial aircraft using Viasat's systems. Viasat is consciously sacrificing its fixed residential internet business (down $133.9 million) to free up satellite capacity for aviation, which it views as a higher-value market. An additional ~1,000 aircraft are expected to come online under existing airline agreements, though delays and competition could affect timing.
Communication Services Swung from Operating Loss to $152.6M Profit — But Context Matters
| FY2026 | FY2025 | |
|---|---|---|
| Segment operating profit (loss) | +$152.6M (+5% margin) | -$50.2M (-2% margin) |
The swing looks dramatic, but most of it is explained by a $169.4 million ground network impairment charge (a write-down of assets) taken in FY2025 when Viasat exited certain European and Middle Eastern markets. Strip that out and the underlying improvement is real but more modest — around $33 million — from lower selling costs and better earnings contributions.
A $420 Million Ligado Payment Boosted Cash Flow Significantly
Ligado Networks, a wireless spectrum company, agreed in 2025 to settle a long-running dispute with Inmarsat (which Viasat acquired). This resulted in Viasat receiving a $420 million lump-sum cash payment in October 2025, plus future quarterly payments of ~$16 million annually through 2107. The lump sum is why operating cash flow surged to $1.6 billion in FY2026 from $908 million in FY2025 — investors should note this is largely a one-time boost, not a sign of recurring operational improvement.
Debt Remains Very Large at $6.6 Billion, Though It Is Being Reduced
Viasat carries $6.6 billion in total debt as of March 31, 2026, down from $7.2 billion a year earlier. The company repaid a $300 million Inmarsat term loan early and retired some senior notes during the year. Interest expense fell $61.7 million as a result. That said, $6.6 billion is a heavy burden for a company generating $4.6 billion in revenue, and debt servicing costs remain a significant drag on profitability.
ViaSat-3 Satellite Constellation Is Still Coming Online
The second ViaSat-3 satellite launched in November 2025, and a third launched in April 2026 with commercial service expected by late summer 2026. These satellites are central to Viasat's growth strategy, designed to dramatically expand capacity. However, the company previously suffered a reflector deployment failure on the first ViaSat-3 satellite and a power failure on an Inmarsat satellite — reminders that satellite programs carry meaningful execution risk. Capital expenditure is expected to stay around $1 billion in FY2027 before declining as construction wraps up.