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SEC filingViasat's Q3 FY2026 revenue grew 3% YoY, with defense product sales driving growth, while Ligado settlement interest boosted net income.
For the three months ended December 31, 2025, Viasat reported total revenues of $1.157B, a 3% increase year-over-year. The growth was driven by a 6% rise in product revenues ($334.2M vs $314.4M), primarily from the defense and advanced technologies segment, and a 2% increase in service revenues ($822.8M vs $809.4M). Gross margin improved slightly to 32.7% from 32.2% due to revenue mix and cost management. Operating income was $23.1M (2% margin), flat compared to the prior year, as higher IR&D spending ($10.2M increase) offset revenue gains. Net income attributable to Viasat swung to $23.1M from a loss of $157.3M in the prior year, largely due to $152.5M in interest income from the Ligado settlement. The effective tax rate was 63% vs 7% in the prior year, driven by a U.S. valuation allowance and foreign tax adjustments.
Communication services segment revenues grew 1% to $825.3M, as aviation services increased $39.8M (driven by a net addition of 430 commercial aircraft year-over-year) and government satcom rose $7.3M, offset by declines in fixed services ($36.6M) and maritime ($3.9M). Segment operating profit decreased 14% to $38.0M (5% margin), impacted by a $5.2M increase in IR&D for multi-orbit initiatives. Defense and advanced technologies segment revenues grew 9% to $331.7M, with product revenues up 8% on strength in tactical networking (+$15.4M) and information security (+$7.5M). Operating profit increased 24% to $53.1M (16% margin vs 14%), reflecting higher earnings contributions partially offset by IR&D investments.
Management did not provide explicit numerical guidance, but highlighted several strategic initiatives: the ViaSat-3 F2 satellite launched in November 2025 with expected service launch in H1 FY2027; a binding term sheet with Ligado for $568M in FY2026, including a $420M lump sum received; and the planned divestiture of the Navarino UK investment. The company expects to continue investing in IR&D for next-generation satellite and defense technologies, and anticipates a cyclical cost ramp as new satellites enter service. Liquidity remains strong with $1.3B cash and $1.145B available under revolving credit facilities.
As of December 31, 2025, Viasat held $1.35 billion in cash and cash equivalents, a decrease from $1.61 billion at March 31, 2025, primarily due to debt repayments and capital expenditures. Total debt stood at $6.41 billion (gross), including $3.66 billion in senior notes, $2.58 billion in other long-term debt, and $142.9 million in finance lease obligations. Net debt is approximately $5.06 billion. The company had $594.8 million available under its revolving credit facilities. Stockholders' equity was $4.63 billion, slightly down from $4.64 billion at year-end.
Viasat disclosed $4.0 billion in remaining performance obligations as of December 31, 2025, with about half expected to be recognized over the next 12 months. This excludes month-to-month and variable contracts. Additionally, the company has satellite construction and launch commitments, though specific dollar amounts were not detailed in this filing. The company also has $15.1 million in contract-related reserves for potential refunds to U.S. government customers.
Buybacks were limited to shares withheld for employee taxes ($15.1 million for 9 months). No dividends were paid or declared. Debt repayments totaled $798.4 million for the nine months, including the full redemption of the 2025 Notes and the Ex-Im Credit Facility, and early repayment of the Original Inmarsat Term Loan Facility. No new debt was issued. Capital expenditures were $694.4 million for the nine months, representing 20.0% of total revenues, driven by satellite and network infrastructure investments.
Segment revenue for the three months ended December 31, 2025: Communication Services $825.3 million (71.3% of total), Defense and Advanced Technologies $331.7 million (28.7%). The Communication Services segment is service-heavy (93% service revenue), while Defense is product-heavy (83% product revenue). U.S. government revenue represented approximately 16% of total revenues. No geographic breakdown beyond this was provided.
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