Viasat, Inc. Q1 FY2026 earnings call

First quarter results showed stronger-than-expected revenue and adjusted EBITDA growth. Healthy market demand in key business lines offset lower IP licensing revenue and fixed broadband pressures. Progress on ViaSat-3 Flights 2 and 3: Flight 2 to ship by end of next month, Flight 3 in testing. Viasat Amara service selected by LATAM Group, NexusWave maritime product with over 1,000 orders, infosec and cyber defense awards up 225%. Generated $60 million free cash flow, trailing 12-month positive $88 million.

Communications Services: Revenue was $827 million, flat year-over-year. Aviation grew 14%, government SATCOM grew 4%, maritime declined 5%, fixed services and other down 13%. Adjusted EBITDA for Communications Services was $322 million, up 5% year-over-year. Defense and Advanced Technologies: Awards were $428 million, up 22% versus prior period. Revenue was $344 million, up 15% compared to Q1 fiscal '25. Infosec and cyber defense product revenues were up 84% year-over-year, space and mission systems up 20%, tactical networking down 4%, advanced technology and other down $9 million. DAT adjusted EBITDA was $87 million, down $9 million compared to Q1 fiscal '25.

Fiscal 2026 revenue expected to be up low single digits year-over-year with flattish adjusted EBITDA growth. Capital expenditures expected to be about $1.2 billion, including $250 million for ViaSat-3 and $400 million for Inmarsat. Anticipated Ligado settlement payment impact not included in guidance.

Schedule uncertainties for ViaSat-3 Flights 2 and 3. Potential slippage in Ligado settlement timeline. Market and regulatory risks affecting business performance.

Q: How does TrellisWare compare with mobile ad hoc networking peers?

A: TrellisWare uses proprietary networking waveform, main growth driver is U.S. government and allies adopting its waveforms for radio communications. Silvus is mostly Wi-Fi-based.

Q: Philosophy on separating businesses?

A: Consider synergy (space capabilities converging), capital needs (Satellite Services capital-intensive vs product/govt businesses capital-light), and value proposition for investors.

Q: Ligado settlement timeline?

A: Still in process, update when bankruptcy court approval complete.

Q: Fixed broadband revenue inflection?

A: Maritime's NexusWave growth due to higher bandwidth, crew services, and additional services; sequential growth in maritime is driven by NexusWave's ramp.