Q2 2026 Viasat Inc Earnings Call Transcript
Key Points
- Viasat Inc (VSAT) reported a significant reduction in net loss, improving from $138 million in Q2 FY25 to $61 million in Q2 FY26, driven by favorable service revenue mix and lower expenses.
- Revenue grew by 2% year-over-year, with a notable 3% increase in the Defense and Advanced Technologies segment.
- Adjusted EBITDA increased by 3% year-over-year, supported by strong performance in Communication Services.
- The backlog in the Defense and Advanced Technologies segment reached a record $1.2 billion, up 31% year-over-year, indicating strong future growth potential.
- Viasat Inc (VSAT) generated $69 million in free cash flow during the quarter, marking three consecutive quarters of positive free cash flow.
- The launch of ViaSat-3 Flight 2 was delayed due to an issue with the Atlas booster liquid oxygen tank vent valve, impacting the timeline for service expansion.
- Fixed services and other revenue declined by 16% as US fixed broadband subscribers continued to decrease.
- Defense and Advanced Technologies adjusted EBITDA decreased by $9 million, reflecting declines in Space and Mission Systems and higher R&D investments.
- The company anticipates negative free cash flow in the second half of the fiscal year due to increased capital expenditures related to ViaSat-3.
- Potential impacts from a US government shutdown could delay Defense and Advanced Technologies awards by up to $100 million and affect adjusted EBITDA by up to $20 million.
Hello, and thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 2026 Viasat earnings conference call. (Operator Instructions)
Now I would like to turn the call over to Lisa Curran. Please go ahead.
Thank you, Mark. We will present certain non-GAAP financial measures on today's call. Information required by the SEC relating to these non-GAAP financial measures is available in our Q2 fiscal year '26 shareholder letter on the Investor Relations section of our website.
During the presentation, we will describe certain of the more significant factors that impacted year-over-year performance. We will also make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks
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