Aircraft and Connectivity - As of December 31, 2025, the company had approximately 4,460 commercial aircraft equipped with in-flight connectivity (IFC) systems, with an expectation of adding 1,100 more under existing agreements[179] - The company provided Ka-band communication services to approximately 13,400 vessels as of December 31, 2025[179] - The company leverages its satellite fleet and partnerships to provide high-quality broadband and narrowband connectivity solutions across various sectors, including aviation, maritime, and government[177] Financial Performance - Total revenues for the three months ended December 31, 2025, increased by $33.3 million to $1,157.0 million, driven by a 2% increase in service revenues and a 6% increase in product revenues[214] - Total revenues for the nine months ended December 31, 2025, increased by $96.5 million to $3,469.0 million, with service revenues up by $42.3 million and product revenues up by $54.2 million[227] - Total revenues for the communication services segment increased by $15.8 million, or 1%, from $2,473.5 million in 2024 to $2,489.4 million in 2025, with service revenues up by $39.1 million[235] - The defense and advanced technologies segment revenues increased by $80.7 million, or 9%, from $899.0 million in 2024 to $979.6 million in 2025, driven by a $77.5 million increase in product revenues[237] Cost and Expenses - Cost of revenues for the three months ended December 31, 2025, rose by $16.3 million to $778.3 million, with a 2% increase in cost of service revenues and a 3% increase in cost of product revenues[215] - Total cost of revenues for the nine months ended December 31, 2025, increased by $48.0 million to $2,295.9 million, with a 7% increase in cost of product revenues[228] - Selling, general and administrative (SG&A) expenses decreased by $16.3 million, or 2%, from $761.6 million in 2024 to $745.3 million in 2025, primarily due to a $13.7 million decrease in selling costs[229] - Independent research and development (IR&D) expenses increased by $10.2 million, or 28%, to $46.9 million, supporting multi-orbit initiatives and next-generation encryption products[217] - Independent research and development (IR&D) expenses increased by $14.7 million, or 14%, from $108.7 million in 2024 to $123.4 million in 2025, driven by efforts supporting next-generation encryption products[230] Debt and Interest - Interest income surged by $147.9 million due to the recognition of $152.5 million from a lump sum payment received from Ligado[219] - Interest expense decreased by $7.0 million, reflecting a reduction in total outstanding indebtedness from $7.2 billion in 2024 to $6.4 billion in 2025[220] - Interest income rose by $128.0 million, primarily due to a $152.5 million recognition from a $420.0 million lump sum payment from Ligado, despite lower interest earned from reduced average invested balance[232] - Interest expense decreased by $34.3 million, attributed to a reduction in total outstanding indebtedness from $7.2 billion in 2024 to $6.4 billion in 2025[233] Taxation - The effective tax rate for the three months ended December 31, 2025, was 63%, compared to an effective tax rate of 7% in the prior year[221] - The company is subject to income taxes in the U.S. and various foreign jurisdictions, with potential changes in tax laws affecting the income tax provision[211] - Cash paid for income taxes during the first nine months of fiscal year 2026 was $79.2 million, down from $174.6 million in the prior year[253] Contracts and Revenue Recognition - Almost all revenues are derived from fixed-price contracts, with a small portion from cost-reimbursement contracts primarily in the defense segment[184] - The revenue recognition model applied is based on the five-step process under ASC 606, impacting how revenues are reported and recognized[189] - U.S. Government contracts typically involve performance-based payments (PBPs) or progress payments, with revenue recognized in excess of billings, leading to unbilled accounts receivable[192] - Revenue for long-term contracts is recognized over time based on the cost-to-cost measure of progress, which requires management estimates of total costs at completion[193] - A one percent variance in future cost estimates on open fixed-price contracts as of December 31, 2025, would change income (loss) before income taxes by an insignificant amount[193] - The evaluation of transaction price for performance obligations may require significant judgments, including estimating variable consideration based on performance metrics and customer discretion[194] - The purchase price for business combinations is allocated to the estimated fair values of acquired assets and liabilities, with goodwill recorded when consideration exceeds fair value[203] Cash Flow and Investments - Cash and cash equivalents stood at $1.3 billion as of December 31, 2025, with no outstanding borrowings and $594.8 million available under the revolving credit facility[245] - Cash provided by operating activities for the first nine months of fiscal year 2026 was $1.3 billion, a $657.8 million increase from $609.7 million in the prior year period[253] - Cash used in investing activities increased to approximately $663.7 million in the first nine months of fiscal year 2026, compared to $524.9 million in the prior year period, reflecting a $138.8 million increase[254] - Cash used in financing activities for the first nine months of fiscal year 2026 was approximately $867.5 million, an increase of $431.6 million from $435.9 million in the prior year period, primarily due to early repayment of debt[255] Strategic Changes and Future Outlook - The company completed the divestiture of its energy services system integration business in December 2024, which had minimal strategic synergies with core growth businesses[180] - The company anticipates future growth opportunities in markets prioritizing technology solutions, although predicting contract awards remains challenging[187] - The firm backlog as of December 31, 2025, totaled $3,967.3 million, with $2,790.8 million in communication services and $1,176.5 million in defense and advanced technologies[240] - Total new awards for the nine months ended December 31, 2025, were approximately $3.7 billion, compared to $3.5 billion for the same period in 2024[242] - The company expects to incur additional operating costs when launching new satellites, similar to the ramp-up period experienced with ViaSat-2[261] - The company anticipates continued investment in IR&D to support leadership in satellite and space technologies, with investment levels depending on various factors[258] Currency Risk Management - The company conducts its business primarily in U.S. dollars but is exposed to fluctuations in foreign currency exchange rates due to international operations[273] - A five percent variance in foreign currencies would result in an insignificant change in income (loss) before income taxes for the three and nine months ended December 31, 2025 and 2024[273] - The company's objective in managing foreign currency risk is to reduce earnings and cash flow volatility associated with exchange rate fluctuations[273] - The company may enter into foreign currency forward contracts to mitigate risks related to foreign currency denominated assets, liabilities, and transactions[273] Asset Valuation and Impairments - No material impairments were recorded for the three and nine months ended December 31, 2025 and 2024, indicating stable asset valuations[204] - The company assesses the realizability of deferred tax assets quarterly, establishing a valuation allowance if it is more likely than not that some deferred tax assets will not be realized[208] - Accruals for uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities[210] Indebtedness - As of December 31, 2025, total outstanding indebtedness was $6.4 billion, including various senior secured notes and term loan facilities[262] - The effective interest rates on outstanding borrowings as of December 31, 2025 were 8.87% for the 2022 Term Loan Facility, 9.34% for the 2023 Term Loan Facility, and 9.55% for the Inmarsat Term Loan Facility[272] - The company recorded a loss of $11.6 million and $11.9 million in (loss) gain on extinguishment of debt for the three and nine months ended December 31, 2025, respectively[251]

Core Insights - Viasat, Inc. (VSAT) reported mixed results for the third quarter of fiscal 2026, with net income exceeding estimates but revenue falling short of expectations [1][10] Financial Performance - The company achieved a net income of $25 million, or 18 cents per share, a significant recovery from a net loss of $158.4 million, or a loss of $1.23 per share, in the same quarter last year [2] - Excluding non-recurring items, Viasat's non-GAAP net income was $110.7 million, or 79 cents per share, compared to $14.7 million, or 11 cents per share, in the prior-year period, beating the Zacks Consensus Estimate by 74 cents [3] Revenue Breakdown - Total revenues increased to $1.15 billion from $1.12 billion year over year, although this figure missed the consensus estimate by $10 million [4] - Product revenues rose to $334.2 million from $314.3 million in the previous year, while net sales from services increased to $822.8 million from $809.4 million [4] - The Communication Services segment generated revenues of $825 million, up from $820 million, driven by growth in government satcom and aviation services, despite declines in maritime and U.S. fixed broadband [5] - The Defense and Advanced Technologies (DAT) segment reported revenues of $332 million, reflecting a 9% year-over-year increase, primarily due to growth in information security and cyber defense [6] Operational Metrics - Viasat's operating income for the quarter was $26.3 million, compared to $21.2 million in the prior-year quarter, while adjusted EBITDA was $387 million, down from $393 million [7] - The company generated an operating cash flow of $307 million, up from $219 million in the prior-year period, indicating improved operational performance [8] Future Outlook - For fiscal 2026, Viasat anticipates low single-digit revenue growth and flat adjusted EBITDA year over year, with the Communication Services segment expected to perform flat due to low double-digit growth in aviation services [11] - The DAT segment is projected to grow in the mid-teens, driven by strong growth in information security and cyber defense [11] - Capital expenditures are forecasted to be between $1 billion and $1.1 billion, including approximately $400 million for Inmarsat-related capital expenditures [11]

Core Insights - Viasat, Inc. (VSAT) reported second-quarter results in November 2025, which initially caused a decline in its stock price. However, the stock later peaked at nearly $50 due to a surge in stock markets, particularly in the orbital rockets and satellites sector [2]. Company Overview - Viasat, Inc. is involved in the satellite and technology industry, with a focus on providing communication services [2]. Market Context - The stock performance of Viasat is influenced by broader market trends, especially the growth in the orbital rockets and satellites market, which has seen significant investment and interest [2].

Core Insights - The space ETF UFO has shown strong performance, returning 7.8% in January, outperforming the category average of 2.9% [1] - The fund targets companies involved in various aspects of the space industry, including satellites, rocketry, and ground equipment [1] - Three top-performing stocks in January were MDA Space Ltd. (46% return), AST SpaceMobile Inc. (53.1% return), and ViaSat Inc. (31.1% return) [1] Fund Overview - UFO, launched in 2019, charges a fee of 75 basis points and tracks the S-Network Space index, which includes fewer than 50 stocks as of January 30th [1] - The index categorizes investments into non-diversified space firms (at least 50% revenue from space) and diversified firms engaged in space activities [1] Company Highlights - MDA Space Ltd., Canada's largest space firm, received an upgraded outlook rating from Morgan Stanley and operates the main robotic arm on the International Space Station [1] - ViaSat Inc. also received an upgraded rating from Morgan Stanley and is preparing for a new satellite commercial service launch [1] - AST SpaceMobile Inc. focuses on satellite networking services, contributing to the overall strong performance of the ETF [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - ViaSat reported $1.16 billion in revenue for the quarter ended December 2025, marking a year-over-year increase of 3% and an EPS of $0.79 compared to -$1.23 a year ago, indicating a significant turnaround in profitability [1] - The revenue fell slightly short of the Zacks Consensus Estimate of $1.17 billion, resulting in a surprise of -0.85%, while the EPS exceeded expectations with a surprise of +1404.76% against a consensus estimate of $0.05 [1] Revenue Breakdown - Product revenues were reported at $334.23 million, which is lower than the estimated $345.69 million, reflecting a year-over-year increase of +6.3% [4] - Service revenues reached $822.82 million, slightly above the estimated $820.9 million, with a year-over-year increase of +1.7% [4] - Communication Services revenue totaled $825.34 million, slightly below the estimated $827.72 million, with a year-over-year increase of +0.6% [4] - Defense and Advanced Technologies revenue was reported at $331.7 million, below the average estimate of $350.36 million, but showing a year-over-year increase of +9.3% [4] Stock Performance - ViaSat shares have returned +5.2% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, up approximately 3% year-over-year, driven by growth in DAT and communication services [21][22] - Adjusted EBITDA was $387 million, down 2%, primarily due to increased R&D investments and the impact of the government shutdown [23] - Net income improved to $25 million, an increase of $183 million, mainly due to higher interest income from Ligado's quarterly fees [22] - Free cash flow was $444 million, or $24 million excluding the lump sum payment from Ligado [23][24] - The net debt to trailing 12-month Adjusted EBITDA ratio improved to 3.25 times, down from approximately 3.7 times a year ago [24] Business Line Data and Key Metrics Changes - Communication services awards were $671 million, down 11%, reflecting lower aviation awards and the effects of the government shutdown [24] - Maritime awards grew 25%, while revenue was $825 million, up 1%, with solid growth in aviation and government SATCOM [25] - Aviation revenue increased by 15%, driven by a 9% rise in commercial aircraft in service [25] - Government SATCOM revenue grew 4%, indicating strong growth with U.S. and international governments [26] - Fixed services revenue declined by 20% due to a decrease in U.S. fixed broadband subscribers [28] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record high, up about 12% or $430 million, driven by strong awards in government SATCOM and DAT [22] - The global space economy is projected to grow from $626 billion in 2025 to $1 trillion by 2034, indicating significant market opportunities [16] Company Strategy and Development Direction - The company focuses on three key areas for revenue growth: ViaSat-3, multi-orbit networks, and new defense technology [6][10] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while enhancing competitive positioning in fast-growing markets [11][15] - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and operational targets, particularly regarding the deployment of ViaSat-3 satellites [20][32] - The company anticipates that the entry into service of ViaSat-3 Flights 2 and 3 will catalyze future growth in both government and commercial franchises [31][32] - Management acknowledged the impact of the government shutdown on operations and expects similar effects in the fourth quarter [31] Other Important Information - The company is committed to reducing capital intensity while enhancing innovation and customer value [12] - A divestiture of the minority interest in Navarino is expected to close in March, subject to regulatory approval [24] - The company plans to invest in next-generation mobile user terminals and additional sources of LEO bandwidth for government and aero customers [9] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launches - Management confirmed that Flight 3 will have a shorter orbit raise period of about two months compared to Flight 2's 100 days [43] Question: Strategic review process and timing - Management indicated that the successful deployment of Flights 2 and 3, along with macro market conditions, will influence the timing of strategic decisions [46] Question: Thoughts on data centers in space and AI - Management noted that the feasibility of data centers in space hinges on power generation efficiency and expressed no plans to enter the data center business [50][51] Question: Addressable markets for competitive advantages - Management identified broadband and L-band markets as key growth areas, emphasizing government applications and sovereign ownership trends [56][57] Question: Evaluation of government assets and potential separation - Management acknowledged the complexity of managing key dependencies and emphasized a thorough evaluation process for maximizing shareholder value [88]

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, up approximately 3% year-over-year, reflecting growth in both DAT and communication services [21][22] - Adjusted EBITDA was $387 million, down 2%, primarily due to $10 million of incremental R&D investments related to growth initiatives [23] - Net income improved to $25 million, an increase of $183 million, mainly due to higher interest income recognized during the quarter [22] - Cash flow from operations was $727 million, or $307 million excluding the lump sum payment from Legato, resulting in free cash flow of $444 million [21][23] - The net debt to trailing twelve-month adjusted EBITDA ratio improved to 3.25 times, down from approximately 3.7 times a year ago [24] Business Line Data and Key Metrics Changes - Communication services awards were $671 million, down 11%, reflecting lower aviation awards and the effects of the government shutdown [24] - Maritime awards grew 25%, while revenue was $825 million, up 1%, with solid growth in aviation and government SATCOM [25] - Aviation revenue grew 15%, driven by a 9% increase in commercial aircraft in service [25] - Government SATCOM revenue increased by 4%, indicating strong growth with U.S. and international governments [26] - Fixed services and other revenue declined by 20%, with U.S. fixed broadband subscribers continuing to decrease [28] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record for the company, up about 12% or $430 million, largely due to strong awards in the second quarter [22] - The global space economy is projected to grow from $626 billion in 2025 to $1 trillion by 2034, indicating significant market opportunities [16] Company Strategy and Development Direction - The company focuses on three key areas for revenue growth: ViaSat-3, multi-orbit systems, and new frontier defense technology [6] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while positioning the company to deliver differentiated value in fast-growing space and defense markets [11] - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and operational targets, emphasizing the importance of bringing ViaSat-3 flights 2 and 3 into service [20][32] - The company anticipates that the capabilities of the new satellites will catalyze future growth in both government and commercial franchises [31] - Management acknowledged the impact of the government shutdown on operations and expects similar effects in the fourth quarter [31] Other Important Information - The company is committed to reducing capital intensity while enhancing its reputation for reliable innovation and customer value [12] - The Equatys Mobile Satellite Services partnership is expected to leverage technical innovation and reduce capital costs for targeted business segments [13] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launches - Management confirmed that Flight 3 will likely have a shorter orbit raise period of about 2 months compared to Flight 2's 100 days [43] Question: Strategic review process and timing - Management indicated that the successful deployment of Flights 2 and 3, along with macro market conditions, will influence the timing of strategic decisions [45][46] Question: Thoughts on data centers in space and AI - Management noted that the feasibility of data centers in space hinges on power generation efficiency and expressed no plans to enter the data center business [51][52] Question: Addressable markets for competitive advantages - Management identified broadband and L-band markets as key areas for growth, particularly in mobile platforms and government applications [56][57] Question: Evaluation of government assets and potential separation - Management stated that a thorough evaluation is ongoing regarding the management of key dependencies if a separation occurs [85][86]

Core Insights - ViaSat (VSAT) reported quarterly earnings of $0.79 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, and a notable improvement from a loss of $1.23 per share a year ago [1] - The earnings surprise of +1,404.76% highlights the company's strong performance, following a previous quarter where it also exceeded expectations [2] - Revenue for the quarter was $1.16 billion, slightly missing the Zacks Consensus Estimate by 0.85%, but showing growth from $1.12 billion year-over-year [3] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] - The current consensus EPS estimate for the upcoming quarter is $0.13, with expected revenues of $1.19 billion, and for the current fiscal year, the estimate is $0.44 on revenues of $4.66 billion [8] Stock Movement and Outlook - ViaSat shares have increased by approximately 15.2% since the beginning of the year, outperforming the S&P 500, which gained 0.5% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [7] Industry Context - The Wireless Equipment industry, to which ViaSat belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook for companies within this sector [9] - Another company in the same industry, Ubiquiti Inc. (UI), is expected to report quarterly earnings of $2.81 per share, reflecting a year-over-year increase of +23.3% [10]

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2026 was $1.2 billion, an increase of approximately 3% year-over-year, driven by growth in DAT and communication services [18][20] - Adjusted EBITDA was $387 million, down 2%, primarily due to increased R&D investments and the impact of the government shutdown [21][26] - Net income improved to $25 million, a significant increase of $183 million compared to the previous year, mainly due to higher interest income [20] - Free cash flow was $444 million, or $24 million excluding a lump sum payment from Legato, with trailing twelve-month free cash flow exceeding $200 million [21][22] Business Line Data and Key Metrics Changes - Communication services awards were $671 million, down 11%, affected by lower aviation awards and the government shutdown [22] - Maritime revenue grew 25%, while overall maritime revenue declined 3% due to a decrease in vessels in service [24][25] - Defense and Advanced Technologies (DAT) revenue was $332 million, up 9%, driven by strong growth in InfoSec and cyber defense [26][29] Market Data and Key Metrics Changes - Backlog reached approximately $4 billion, a record high, up about 12% or $430 million, largely due to strong awards in government SATCOM and DAT [19] - The global space economy is projected to grow from $626 billion in 2025 to $1 trillion by 2034, indicating significant market opportunities [13][14] Company Strategy and Development Direction - The company is focused on three key areas for revenue growth: ViaSat-3, multi-orbit networks, and new defense technology [5][6] - Ongoing capital allocation and strategic initiatives aim to unlock shareholder value while positioning the company to deliver differentiated value in fast-growing space and defense markets [9][12] - The company is evaluating strategic options, including the potential separation of government and commercial businesses to enhance competitive positioning [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and operational targets, emphasizing the importance of the upcoming launches of ViaSat-3 Flight 2 and Flight 3 [17][30] - The company anticipates that the capabilities of the new satellites will catalyze future growth in both government and commercial franchises [29][30] - Management acknowledged the impact of the government shutdown on operations and expects similar effects in the fourth quarter [29] Other Important Information - The company is committed to reducing capital intensity while enhancing innovation and customer value [10][33] - A strategic partnership with Space42 aims to develop a shared space infrastructure to reduce capital costs and improve service delivery [11][34] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launches - Management confirmed that Flight 3 will have a shorter orbit raise period of about two months compared to Flight 2's 100 days [42] Question: Strategic review process and timing - Management indicated that the successful deployment of Flight 2 and Flight 3, along with macro market conditions, will influence the timing of strategic decisions [44][45] Question: Thoughts on data centers in space and AI - Management stated that the feasibility of data centers in space hinges on power generation efficiency and expressed interest in partnerships for communication capabilities [49][51] Question: Competitive landscape for D2D players - Management highlighted the importance of spectrum allocation and national security considerations in the competitive landscape for mobile satellite services [66][68] Question: Evaluation of government assets and potential separation - Management acknowledged the complexity of managing key dependencies and emphasized a thorough evaluation process to enhance shareholder value [84][85] Question: Position in information security and competitive threats - Management expressed optimism about growth in the information security sector, citing increased urgency and market size as favorable factors [86]