ViaSat(VSAT) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $1.12 billion, adjusted EBITDA was$393 million, with a 35% adjusted EBITDA margin, reflecting solid results and progress on capital efficiency initiatives [23][43][44] - Net loss increased to $158 million from$124 million year-over-year, primarily due to a non-cash loss on extinguishment of debt [43] - Operating cash flow improved by over 60% to $219 million, driven by decreased working capital and lower cash taxes [44] Business Line Data and Key Metrics Changes - Communication Services revenue was$820 million, down 6%, impacted by declines in U.S. fixed broadband services, partially offset by strong growth in aviation and government SATCOM [48] - Aviation service revenue increased approximately 12% year-over-year, with 3,950 aircraft in service, up about 130 sequentially [37] - Defense and Advanced Technologies segment saw revenue growth of 20% to $303 million, with awards increasing by 49$3.5 billion, down $181 million due to the sale of the Energy Services System Integration business and declining subscribers in the U.S. fixed broadband business [42] - Maritime revenue declined 8$50 million in annual revenue but with minimal strategic synergies [46] - The European Space Agency's agreement with the Mobile Satellite Services Association is expected to support the development of a standards-based LEO constellation [19][20] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launch dates and coverage areas - Management confirmed that Flight 2 is planned for the Americas and Flight 3 for Asia Pacific, with flexibility in satellite locations based on customer demand [68][69] Question: Impact of Flight 3 delay on in-flight connectivity contracts - Management indicated no impact on customer contracts or outlook due to the delay [74] Question: Clarification on fiscal 2026 revenue and EBITDA growth expectations - Management stated that while revenue is expected to grow faster than EBITDA, further details will be provided in the coming months [75][76] Question: Update on DAT asset sales and discussions - Management is focused on reducing debt and unlocking equity value but did not comment on specific transactions [90][91] Question: Framework for monetizing L-band spectrum - Management is evaluating various monetization options for L-band spectrum, balancing legacy business profitability with new market opportunities [94][96] Question: Insights on the Space Force Award for PLEO and potential contracts - Management is packaging LEO services for applications and exploring partnerships with multiple NGSO and LEO providers [129][130]