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1. Company Snapshot

1.a. Company Description

Viasat, Inc.provides broadband and communications products and services worldwide.The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines; community internet services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics.


Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; design and technology services comprising analysis, design, and development of satellites and ground systems; application specific integrated circuit and monolithic microwave integrated circuit chips; and network function virtualization, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.

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1.b. Last Insights on VSAT

Viasat's recent performance was driven by strong Q2 results, with revenues climbing on gains in government satcom and cyber defense, beating earnings estimates. The company's Defense and Advanced Technologies backlog hit a record $1.2B, driven by rising defense budgets and multi-orbit contracts. A notable rating upgrade to 'Buy' by Raymond James, citing a strengthened capital structure and positive free cash flow guidance for FY27. Additionally, institutional investors like Corient Private Wealth LLC and Caxton Associates LLP have taken or increased positions in the company.

1.c. Company Highlights

2. Viasat's Q3 FY2026 Earnings: A Strong Performance with Growth Catalysts

Viasat reported revenue of $1.2 billion for the third quarter of fiscal 2026, with an adjusted EBITDA of $387 million, translating to a 33% adjusted EBITDA margin. The company's earnings per share (EPS) came in at $0.79, significantly beating estimates of $0.05. Cash flow from operations was $727 million, and free cash flow was $444 million, demonstrating the company's ability to generate cash. With a net debt to trailing 12-month adjusted EBITDA of 3.25x, Viasat has made progress in reducing its leverage.

Publication Date: Mar -05

📋 Highlights
  • Q3 FY2026 Financials:: Revenue $1.2B, adjusted EBITDA $387M (33% margin), free cash flow $444M, net leverage 3.25x (down YoY/sequential).
  • ViaSat-3 Progress:: Flight 2 operational by May 2026, Flight 3 Falcon Heavy launch pending; both to boost bandwidth 2x+ existing fleet for aviation/govt SATCOM.
  • Strategic Investments:: $40M CapEx for ViaSat-3 in FY2027, multi-orbit terminals, and LEO bandwidth expansion to enhance aero/govt services with NexusWave growth (33% sequential installations).
  • Segment Performance:: Aviation +15% (9% more aircraft), Defense & Advanced Tech revenue down 8% due to shutdown but 11% YOY data awards growth to $332M; Tactical Networking +20%.
  • Free Cash Flow Outlook:: Positive FCF projected for FY2026–FY2027+, driven by efficiency gains and deleveraging (net leverage reduction to 3.25x).

Segment Performance Highlights

The company's segments showed varied performance, with Communication Services experiencing a 10% decline in awards but still achieving 4% growth over the trailing 12 months, driven by DAT, maritime, and government SATCOM. Aviation revenue grew 15%, led by a 9% increase in commercial aircraft in service. Government SATCOM revenue also grew 4%, reflecting good growth with U.S. and international governments.

Growth Initiatives and Strategic Direction

Viasat is investing in next-generation multi-orbit user terminals and additional LEO bandwidth sources, which are gaining customer traction. The company's ViaSat-3 satellite series is expected to drive future growth, with Flight 2 set to commence services by May and Flight 3 anticipated to launch soon after. The company is also focusing on capital structure and positioning itself to compete effectively in the space economy's fastest-growing sectors.

Valuation and Outlook

With a P/E Ratio of -18.38 and an EV/EBITDA of 7.62, the market is pricing in significant growth expectations. Analysts estimate revenue growth of 3.6% for the next year. The company's commitment to deleveraging and improving returns on capital is evident in its reduced net leverage and capital intensity. Viasat's focus on growth initiatives, including its ViaSat-3 series and multi-orbit broadband networks, positions it well for future growth.

Future Prospects and Emerging Opportunities

Viasat is exploring emerging opportunities such as data centers in space and AI in space, and is considering partnerships to develop these areas. The company's focus on the broadband sector, particularly Ka-band and higher frequencies, is expected to drive growth. Additionally, the trend towards sovereign ownership and the need for secure communication services in areas affected by geopolitical conflicts present potential opportunities for the company.

3. NewsRoom

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Viasat Enters Technical Evaluation Process with Boeing to Qualify Viasat AERA for 737 MAX, 777X, and 787 Aircraft

Apr -14

Source: globenewswire.com

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Boeing Delivers ViaSat-3 Satellite Ahead Of SpaceX Launch

Apr -07

Source: benzinga.com

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3 Satellite Stocks To Check Out Before SpaceX's IPO

Apr -05

Source: marketbeat.com

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Why Viasat Stock Soared Almost 19% Higher Today

Apr -02

Source: fool.com

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Viasat (NASDAQ:VSAT) Stock Price Down 7.4% – Should You Sell?

Mar -22

Source: defenseworld.net

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ASTS vs. VSAT: Which Satellite Stock is the Better Buy Today?

Mar -18

Source: zacks.com

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Viasat's Chief Accounting Officer Sold Over 1,000 Shares. Is the Stock a Buy or Sell?

Mar -14

Source: fool.com

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Viasat Expands NexusWave Deployment Across EXMAR's Gas Carrier Fleet

Mar -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.81%)

6. Segments

Satellite Services

Expected Growth: 10.38%

Viasat's Satellite Services segment growth is driven by increasing demand for high-speed, secure broadband connectivity in underserved regions, government contracts for military communications, and expansion into new markets such as in-flight connectivity and IoT applications.

Government Systems

Expected Growth: 8.3%

Viasat's Government Systems segment growth of 8.3% is driven by increasing demand for secure satellite communication networks, expansion of existing contracts with the US Department of Defense, and growing adoption of Viasat's tactical satellite terminals and networking products.

Commercial Networks

Expected Growth: 10.47%

Viasat's Commercial Networks segment growth is driven by increasing demand for high-speed, secure, and reliable connectivity solutions in various industries such as aviation, maritime, and energy. The company's advanced satellite technology and expanding global network infrastructure are key factors contributing to this growth.

7. Detailed Products

Satellite Broadband

High-speed internet connectivity via satellite, providing reliable and secure access to remote and underserved areas

Government Systems

Secure and reliable satellite-based communication systems for military and government agencies

In-Flight Connectivity

High-speed internet connectivity for commercial and business aircraft, enabling passengers to stay connected in-flight

Network Platforms

Modular and scalable network infrastructure for satellite-based communication systems

Antenna Systems

High-performance antenna systems for satellite communication, designed for various frequency bands and applications

8. Viasat, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Viasat's satellite-based broadband services face substitutes from terrestrial-based broadband services, such as fiber, cable, and DSL. However, the company's focus on rural and underserved areas reduces the threat of substitutes.

Bargaining Power Of Customers

Viasat's customers are largely individual consumers and small businesses, which have limited bargaining power. The company's subscription-based model also reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Viasat relies on a limited number of suppliers for its satellite components and launch services. While the company has some bargaining power due to its scale, suppliers still have some negotiating power.

Threat Of New Entrants

The satellite broadband industry has high barriers to entry, including significant capital expenditures and regulatory hurdles. This limits the threat of new entrants.

Intensity Of Rivalry

The satellite broadband industry is highly competitive, with Viasat competing against other satellite operators and terrestrial-based broadband providers. The company's focus on rural areas and its technology advantages help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.09%
Debt Cost 4.51%
Equity Weight 40.91%
Equity Cost 10.48%
WACC 6.95%
Leverage 144.44%

11. Quality Control: Viasat, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sonim Technologies

A-Score: 5.0/10

Value: 10.0

Growth: 4.7

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Akoustis Technologies

A-Score: 4.6/10

Value: 9.8

Growth: 4.8

Quality: 5.1

Yield: 0.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

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Harmonic

A-Score: 4.3/10

Value: 5.7

Growth: 5.9

Quality: 7.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Ondas

A-Score: 4.1/10

Value: 6.4

Growth: 4.8

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Viasat

A-Score: 3.6/10

Value: 6.5

Growth: 2.0

Quality: 2.4

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Comtech

A-Score: 3.1/10

Value: 9.5

Growth: 0.8

Quality: 2.5

Yield: 1.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

56.98$

Current Price

56.98$

Potential

-0.00%

Expected Cash-Flows