Viasat Q1 Earnings Call Highlights

Viasat maintained its fiscal 2027 outlook despite first-quarter revenue falling 1% to $1.2 billion and adjusted EBITDA declining 7% to $381 million. Free cash flow rose 19% to $72 million, while net leverage improved to approximately 3.2 times trailing EBITDA. Defense and government communications were key growth areas: company-wide awards reached about $1.3 billion and backlog rose nearly 19% to $4.2 billion, while government SATCOM revenue increased 10%. The Defense & Advanced Technologies segment also secured a major Protected Tactical SATCOM-Global award. Performance across Communication Services was mixed, with aviation revenue up 11% but declines in maritime and fixed broadband. ViaSat-3 Flight 2 completed in-orbit testing, and Flight 3 advanced toward Asia-Pacific service launch expected in late August or early September.

Viasat NASDAQ: VSAT reported first-quarter fiscal 2027 results that included positive free cash flow, rising government satellite communications revenue and record awards and backlog in its Defense & Advanced Technologies segment, while legacy fixed broadband and maritime businesses remained under pressure. Revenue totaled $1.2 billion, down about 1% from the prior-year quarter. Adjusted EBITDA was $381 million, down 7%, while net loss improved by $5 million to $52 million, principally because of lower interest expense, Chief Financial Officer Gary Chase said. The company maintained its fiscal 2027 outlook for mid-single-digit revenue growth, adjusted EBITDA ranging from flat to slightly higher, and approximately $180 million in free cash flow.

Chase said comparisons with the prior year were affected by Viasat's sale of its Navarino equity interest and lower intellectual-property licensing revenue. Together, those items reduced year-over-year EBITDA comparisons by $22 million. Excluding those effects, revenue would have been flat and adjusted EBITDA would have been roughly unchanged, he said.

Viasat generated $72 million in free cash flow during the quarter, excluding roughly $30 million in cash taxes related to the Navarino sale. The result represented a 19% increase from the previous year and was supported by operating cash flow of $291 million, up 13%. Capital expenditures rose 11% to $219 million. Small-Cap Standouts: These 3 Stocks Rose Over 300% in 2025 “The first quarter is typically our toughest cash quarter given annual bonus payments,” Chase said, adding that he was pleased with the company’s cash generation. Net debt relative to trailing EBITDA was approximately 3.2 times, improving 0.4 turns from the prior-year period. Chase also said Viasat moved an additional $100 million in cash from Inmarsat to Viasat during the quarter, bringing the cumulative amount transferred to $450 million. For the full fiscal year, the company expects consolidated capital expenditures of $950 million to $1 billion. That includes about $400 million of maintenance spending, more than $150 million of capitalized interest, approximately $50 million related to ViaSat-3, up to $150 million of success-based spending, and $225 million to $250 million in growth capital expenditures.

Company-wide awards rose 10% to about $1.3 billion, while backlog increased nearly 19% to $4.2 billion. Defense & Advanced Technologies, or DAT, awards increased 22% to $524 million, led by Space and Mission Systems and Tactical Networking. DAT backlog rose 32% from the previous year. Chairman and Chief Executive Officer Mark Dankberg highlighted the company’s win for the next phase of the Protected Tacti...