0001193125-25-272830
SEC filingRevenue grew 2% YoY to $1.14B, driven by communication services service revenue, with improved margins and reduced SG&A lifting operating results.
In the three months ended September 30, 2025, Viasat reported total revenues of $1,140.9 million, a 2% increase from $1,122.3 million in the prior year period. The growth was driven entirely by service revenues, which rose $23.2 million (3%) to $821.5 million, while product revenues declined $4.6 million (1%) to $319.4 million. Cost of revenues decreased $19.1 million (2%) to $756.0 million, with cost of service revenues down $16.7 million (3%) on improved margins, primarily in the Communication Services segment. Selling, general and administrative expenses fell $30.7 million (11%) to $241.8 million, largely due to lower support costs. Independent research and development expenses increased $8.9 million (27%) to $42.3 million, reflecting investments in next-generation encryption, space and mission systems, and direct-to-device initiatives. Interest expense decreased $21.9 million, aided by higher capitalized interest and lower debt levels after redeeming the 2025 Notes. Income tax provision was $10.9 million, resulting in an effective tax rate of negative 24%. The net loss attributable to Viasat narrowed to $57 million (5% of revenue) from $134.7 million (12% of revenue) in the prior year.
Communication Services segment revenues increased $10.3 million (1%) to $836.7 million. Service revenues grew $21.9 million (3%), driven by a $38.7 million rise in aviation services (more aircraft in service) and a $15.9 million increase in government satcom, partially offset by a $29.2 million decline in fixed services (bandwidth reallocated to IFC) and a $3.6 million drop in maritime. Product revenues fell $11.7 million (15%) due to the prior year including energy services system integration (sold Dec 2024). The segment swung from an operating loss of $0.5 million to a profit of $71.4 million (9% of segment revenues), supported by $43.5 million in improved margins and a $30.4 million reduction in SG&A.
Defense and Advanced Technologies segment revenues rose $8.4 million (3%) to $304.2 million. Product revenues increased $7.1 million (3%) on higher information security and cyber defense sales ($11.4 million), partly offset by a $5.8 million decrease in tactical networking. Service revenues edged up $1.3 million (3%). Segment operating profit fell 30% to $29.5 million (10% of revenues), as a $6.9 million increase in IR&D and $5.8 million of lower earnings contributions (due to a higher mix of lower-margin products vs. prior year IP licensing) weighed on results.
Management’s outlook highlights ongoing bandwidth constraints pending the ViaSat-3 constellation entering commercial service, which has led to allocating capacity to higher-margin IFC services at the expense of fixed broadband. The company expects increased operating costs during the ramp-up of new satellites, followed by revenue expansion and scale efficiencies. Key liquidity events include the anticipated receipt of $568 million from Ligado Networks (lump sums of $420M in Oct 2025 and $100M in Mar 2026, plus resumed quarterly payments). Backlog stands at $3.9 billion in firm backlog, with about half expected to be delivered in the next 12 months. The company believes it has adequate funding for the next 12 months via cash, borrowing capacity, and operating cash flows.
As of September 30, 2025, Viasat held $1.23B in cash and equivalents, down from $1.61B at March 31, 2025, primarily due to debt repayments and capex. Total debt (carrying value) stood at $6.58B, a net reduction of $473M in the first half of fiscal 2026. The company redeemed all $442.6M of its 2025 Notes in May 2025. Shareholders' equity was $4.52B, with a retained deficit of $443M. The company's liquidity is supported by $597M available under the Viasat Revolving Credit Facility and $550M under the Inmarsat Revolving Credit Facility.
Notes disclosed $3.9B in remaining performance obligations (RPO), with approximately half expected to be recognized over the next 12 months. A significant commitment is the $568 million Ligado settlement, of which $420M was received in October 2025 (subsequent to quarter end). Satellite construction and launch commitments are referenced but not detailed in this interim filing; full details remain in the 10-K.
Share repurchases were limited to $6.6M for tax withholdings on equity awards (0.6M shares). No dividends were declared on common stock. Debt reduction was the primary capital allocation, with $473.2M repaid. Capital expenditures totaled $411.7M (17.8% of sales), reflecting continued investment in satellite construction and ground infrastructure. The TrellisWare subsidiary declared a $155.7M dividend, with $59.7M distributed to minority shareholders.
The segment note provides revenue breakdown only; operating income is not disclosed. For the three months ended September 30, 2025, Communication Services generated $836.7M (73.3% of total) and Defense and Advanced Technologies $304.2M (26.7%). Year-over-year, Communication Services grew 1.2% and Defense grew 2.8%. The majority of revenue is from fixed-price contracts; U.S. Government customers accounted for 17% of total revenue. Funded development contracts represented 10% of revenue, mainly in the Defense segment.
No cash flow data is extractable from the provided document excerpt. The excerpt contains only narrative notes and policy descriptions, with no tabular cash flow amounts. Therefore, analysis of CFO, capex, or free cash flow is not possible.