Viasat 2025 Q4 Earnings Misses Targets as Net Loss Widens 151%

Viasat (VSAT) reported its fiscal 2025 Q4 earnings on May 20th, 2025. Viasat's financial performance fell short of expectations, with a notable increase in net loss. The company faced challenges and reported a deeper net loss compared to the previous year. Despite these setbacks, Viasat remains committed to its strategic initiatives, focusing on enhancing capital efficiency and positioning itself for growth. The company's guidance for fiscal 2026 indicates modest revenue growth with flat adjusted EBITDA, reflecting a cautious outlook in the face of potential macroeconomic headwinds.

Revenue
Viasat's total revenue for 2025 Q4 slightly declined by 0.3% to $1.15 billion compared to the previous year. The communication services segment generated $824.97 million, while the service sector contributed $748.86 million. The product segment added $76.11 million. In defense and advanced technologies, revenue reached $322.12 million, with $48.52 million from services and $273.60 million from products. Overall, the company maintained consistent revenue figures across its business segments.

Earnings/Net Income
Viasat's losses deepened to $1.91 per share in 2025 Q4 from a loss of $0.80 per share in 2024 Q4, marking a significant 139.2% wider loss. The net loss expanded to $-240.74 million, a substantial 151.0% increase from the previous year's $-95.91 million loss, reflecting unfavorable earnings performance.

Price Action
The stock price of Viasat remained unchanged during the latest trading day, increased by 1.15% over the most recent full trading week, and surged 24.03% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing VSAT shares when revenue beats expectations and holding for 30 days proved ineffective, yielding a return of -29.48%. This performance significantly lagged behind the benchmark return of 25.75%, indicating notable underperformance. With a Sharpe ratio of -0.16, the strategy demonstrated high risk and substantial losses, further highlighted by a maximum drawdown of -70.52%. Despite these results, the strategy underscores the importance of aligning investment decisions with broader market trends and expectations, as the disparity between anticipated and actual outcomes can significantly impact investment performance. Investors should consider alternative strategies or reassess risk tolerance to better align with market dynamics.

CEO Commentary
Mark Dankberg, Chairman and Chief Executive Officer, emphasized that fiscal 2025 was pivotal for Viasat, creating a foundation for accelerated growth and sustained cash flow. He noted, "We met or beat our guidance metrics," highlighting record new contract awards and significant progress on the satellite roadmap. Dankberg expressed confidence in the operational performance, stating, "We exit fiscal 2025 stronger than when we entered," while acknowledging the challenges ahead. He underscored the focus on enhancing capital efficiency and positioning for growth, stating, "We know there will be challenges, but we're playing to win," reflecting an optimistic leadership outlook.

Guidance
For fiscal 2026, Viasat expects modest revenue growth with adjusted EBITDA anticipated to be flat, plus or minus 1% from the previous year's $1.547 billion. The company projects about $60 million in additional third-party bandwidth expenses and $30 million in increased operating costs. However, it anticipates continued growth in aviation, government satcom, and DAT franchises, alongside a $1.3 billion capital expenditure plan, which includes $250 million for completing the ViaSat-3 constellation. The focus remains on generating sustainable free cash flow and reducing capital intensity in the business model.

Additional News
In recent developments, Viasat has announced the appointment of Bill LaPlante and Michael Paull to its Board of Directors, enhancing its leadership team. The company has also been selected by the U.S. Space Force for Phase 2 of the Enterprise Space Terminal Program, focusing on the development of a new space optical terminal for crosslink communications between orbits. Furthermore, Viasat has confirmed the advancement of its Arctic Broadband Dedicated Coverage as payloads enter service on Space Norway’s Arctic Satellite Broadband Mission Spacecraft, enabling high-speed coverage for government customers in the Arctic, with commercial services planned throughout fiscal year 2026.