Viasat, Inc.

Revenue was $1.2 billion, down approximately 1% year over year, with DAT revenue down 4% and Communication Services flat. Net loss was $52 million, an improvement of $5 million, and adjusted EBITDA was $381 million, down 7%; management said EBITDA would have been about flat excluding the $22 million combined impact from Navarino and lower IP licensing revenue. Free cash flow was $72 million, up 19%, on operating cash flow of $291 million, up 13%, and capital expenditures of $219 million, up 11%. Segment-wise, Communication Services revenue was $825 million, approximately flat, and DAT revenue was $331 million, down 4%; awards were $774 million in Communication Services, up 3%, and $524 million in DAT, up 22%. For fiscal 2027, Viasat left guidance unchanged: revenue growth mid-single digits, Communication Services growth low-single digits, DAT growth in the mid-teens, adjusted EBITDA flat to up slightly, CapEx of $950 million to $1 billion, and free cash flow of about $180 million.

Mark Dankberg emphasized that the quarter showed disciplined execution, operational progress, and improving long-term momentum, especially in defense and advanced technology. He framed Viasat as benefiting from convergence across communications, cybersecurity, networking, and resilient dual-use space infrastructure, with record DAT awards and ViaSat-3 validating the strategy. His tone was confident but measured, acknowledging tougher competition in legacy commercial services while stressing that new technologies and multi-orbit capabilities create growth opportunities.

Gary Chase focused on the company’s three financial pillars: building franchises, generating cash, and reducing leverage. He highlighted awards of about $1.3 billion, backlog of $4.2 billion, revenue of $1.2 billion, adjusted EBITDA of $381 million, and free cash flow of $72 million, while noting net debt/EBITDA improved to about 3.2x, down 0.4x year over year. He also reiterated fiscal 2027 CapEx of $950 million to $1 billion, including about $400 million maintenance, greater than $150 million capitalized interest, about $50 million ViaSat-3 spend, up to $150 million success-based CapEx, and about $225 million to $250 million growth CapEx, plus Inmarsat CapEx of $250 million to $300 million within the total.

Analysts focused on spectrum rights, the strategic review, Equatys, ViaSat-3 capacity, PTS-G booking, maritime underperformance, and AI/autonomy opportunities. Management said the strategic review remains about maximizing shareholder value, but they are not ready to make a premature decision on separation or spectrum monetization while the environment remains dynamic; they also said Equatys would be discussed again when there is an announcement on funding the initial constellation. On PTS-G, Gary Chase said backlog includes only firm orders, not options, and revenue will be recognized using percent-complete accounting as spending occurs.