VIASAT INC. - 10-Q Filing Summary
Business Context and Reporting Period
Company: VIASAT, INC.
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Three months ended June 30, 2026
Business Overview: Viasat is a global provider of communications technologies and services operating through two segments: Communication Services (broadband/narrowband for aviation, maritime, government, and fixed broadband) and Defense and Advanced Technologies (cybersecurity, tactical networking, and space systems).
Key Financial Metrics
| Metric (in thousands) | Q2 2026 | Q2 2025 |
|---|---|---|
| Total Revenues | $1,156,543 | $1,171,054 |
| Operating Income | $47,308 | $46,672 |
| Net Loss (Consolidated) | $(42,794) | $(47,724) |
| Net Loss (Attributable to Viasat) | $(51,741) | $(56,434) |
| Diluted EPS | $(0.38) | $(0.43) |
| Operating Cash Flow | $260,550 | $258,460 |
| Cash and Equivalents (End of Period) | $1,735,819 | $1,177,492 |
| Total Debt (Principal) | $6,570,503 | $6,585,115 |
| Working Capital | $1,251,671 | N/A |
Note: Working Capital calculated as Current Assets ($3,104,769) minus Current Liabilities ($1,853,098).
Material Changes vs. Prior Period
- Revenue: Total revenue decreased 1% ($14.5 million) year-over-year. Service revenues increased 1% ($6.1 million), while product revenues declined 6% ($20.6 million).
- Profitability: Operating income improved slightly by 1% ($0.6 million). Net loss attributable to Viasat improved by 8% ($4.7 million) due to lower interest expense and improved operating margins.
- Segment Performance:
- Communication Services: Operating profit increased 53% to $62.4 million, driven by higher service revenue margins and reduced SG&A costs, despite a slight revenue decline.
- Defense and Advanced Technologies: Operating profit decreased 30% to $49.9 million, primarily due to a decline in product revenues and a shift in margin mix (lower royalty-based revenue compared to the prior year).
- Debt: Total indebtedness remained relatively flat at approximately $6.6 billion. Interest expense decreased 18% ($18.1 million) due to lower debt levels and increased capitalized interest.
- Cash Flow: Operating cash flow increased slightly to $260.6 million. Investing cash outflows increased to $218.9 million due to higher capital expenditures. Financing cash outflows decreased significantly to $50.2 million compared to $513.8 million in the prior year, largely due to the absence of the 2025 Notes redemption in the current period.
Guidance, Outlook, and Risks
- Satellite Fleet & Launches: The company operates 23 satellites. ViaSat-3 F2 (launched Nov 2025) and ViaSat-3 F3 (launched April 2026) are expected to commence commercial service in late 2026. Seven additional GEO satellites are under construction.
- Backlog: Firm backlog stands at $4.2 billion, with approximately half expected to be delivered in the next 12 months. Funded backlog is $3.9 billion.
- Ligado Settlement: Viasat expects to receive $568 million from Ligado Networks. A $420 million lump sum was received in Oct 2025. A $100 million payment due in March 2026 remains outstanding pending resolution of certain matters. Quarterly payments of ~$16 million resumed in Sept 2025.
- Risks & Contingencies:
- Government Audits: The DCAA is auditing fiscal year 2025 recurring incurred costs. The company maintains a $15.1 million reserve for potential refunds on cost-reimbursable contracts.
- Capacity Constraints: The company anticipates capacity constraints on existing satellites leading up to the full commercial service of the ViaSat-3 constellation.
- Interest Rate Risk: A 10% increase in interest rates would increase annual interest incurred by approximately $21.1 million.
Investor Verification Checklist
- Ligado Payment Status: Verify the resolution of the outstanding $100 million Ligado payment due in March 2026.
- ViaSat-3 Commercialization: Monitor the timeline for the commencement of commercial service for ViaSat-3 F2 and F3 (expected late 2026) and associated ramp-up costs.
- Government Contract Audits: Track the outcome of the DCAA audit for fiscal year 2025 costs and potential adjustments to the $15.1 million reserve.
- Debt Covenants: Confirm continued compliance with debt covenants, particularly regarding leverage ratios and interest coverage, given the $6.6 billion debt load.
- Fixed Broadband Subscribers: Review subscriber growth and churn rates for the U.S. fixed broadband business (approx. 115,000 subscribers as of June 2026).