ViaSat Expects Low Single-Digit Revenue Growth and Flattish EBITDA for FY26

ViaSat expects low single-digit year-over-year revenue growth for FY26, with flattish adjusted EBITDA growth. The company now expects capital expenditures of approximately $1.2B and double-digit operating cash flow growth. Given the timing of capital expenditures, ViaSat anticipates an inflection to positive free cash flow in the second half of FY26.

ViaSat (VSAT) has outlined its financial expectations for the fiscal year 2026 (FY26), revealing a low single-digit year-over-year revenue growth rate. The company anticipates a flattish adjusted EBITDA growth for the same period. Additionally, ViaSat expects capital expenditures of approximately $1.2 billion and double-digit operating cash flow growth [1].

The company's revenue growth is expected to be driven by strong market demand in the Defense and Advanced Technologies segment. This segment reported a 15% year-over-year increase in revenue during the first quarter of 2026, driven by a 22% growth in award revenues to $428 million [2]. The increase was primarily attributed to high demand for encryption products amid national security concerns and robust market positions in key areas.

ViaSat's capital expenditures for FY26 are expected to total approximately $1.2 billion, which includes costs related to the deployment of the ViaSat-3 satellite series. The company aims to bring Flights 2 and 3 into service, enhancing bandwidth capacity for franchise business growth and service sector expansion. The deployment of these satellites is a key milestone for ViaSat, as it seeks to improve its position in the market and meet growing demand for satellite-based services.

Despite the expected flattish adjusted EBITDA growth, ViaSat anticipates an inflection to positive free cash flow in the second half of FY26. The company generated positive free cash flow of $60 million for the first quarter of 2026, with a trailing 12-month tally of $88 million. ViaSat aims to sustain and grow free cash flow by focusing on reducing capital intensity and improving capital productivity, which is crucial for reducing leverage and improving debt and equity prices [2].

In summary, ViaSat's FY26 financial expectations highlight the company's focus on capital efficiency and growth in key market segments. The expected low single-digit revenue growth and flattish adjusted EBITDA growth are offset by strong market demand in the Defense and Advanced Technologies segment and the company's progress in deploying the ViaSat-3 satellite series. The anticipated positive free cash flow in the second half of FY26 underscores ViaSat's commitment to financial sustainability and growth.

References:
[1] https://www.tipranks.com/news/the-fly/viasat-sees-low-single-digit-year-over-year-revenue-growth-for-fy26-thefly
[2] https://www.ainvest.com/news/viasat-q1-2026-unpacking-key-contradictions-government-satcom-capex-strategies-market-demand-2508/