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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 2026 earnings, with revenues climbing on gains in government satcom and cyber defense. The company's narrowing losses and robust growth in Communications Services awards also contributed positively. Additionally, Viasat's expanding backlog in Defense and Advanced Technologies and guidance targeting positive free cash flow in FY27 have bolstered investor confidence. A Wall Street upgrade to 'Buy' from Raymond James, citing a price target of $52, further reinforced the stock's outlook.

1.c. Company Highlights

2. Viasat's Q2 2026 Earnings: A Mixed Bag

Viasat reported revenue of $1.1 billion, up 2% year-over-year, and adjusted EBITDA of $385 million, up 3%. The company's EPS came in at $0.09, beating estimates of -$0.11. The revenue growth was driven by a 3% increase in the Defense and Advanced Technologies segment and a 1% year-over-year increase in the Communications Services segment. Adjusted EBITDA margin was 35%, up 30 basis points year-over-year.

Publication Date: Nov -24

📋 Highlights
  • Revenue Growth: Revenue increased 2% YoY to $1.1 billion, driven by a 3% rise in Defense and Advanced Technologies and 1% in Communications Services.
  • Adjusted EBITDA Increase: Adjusted EBITDA rose 3% YoY to $385 million, fueled by strong performance in aviation, government SATCOM, and cybersecurity.
  • DAT Segment Backlog: Defense and Advanced Technologies segment recorded a $1.2 billion backlog, up 31% YoY, reflecting strong demand for space and cyber capabilities.
  • Free Cash Flow: Generated $69 million in Q2, though capital expenditures of $1.2 billion are expected to drive negative free cash flow in H2 2026.
  • Communication Services Awards: Awards grew 35% YoY to $1.03 billion, led by international dual-use satellite contracts and government SATCOM wins.

Segment Performance

The Defense and Advanced Technologies segment saw a record backlog of $1.2 billion, up 31% year-over-year and 14% sequentially. The Communications Services segment also saw a significant increase in awards, with a 35% year-over-year growth. Aviation revenue grew 15%, driven by an 11% increase in commercial aircraft in service.

Valuation Metrics

Looking at Viasat's valuation metrics, the company's P/S Ratio is 0.9, and EV/EBITDA is 7.88. The ROE is -11.36%, and ROIC is 4.35%. The Net Debt / EBITDA ratio is 3.95, indicating a significant amount of debt. These metrics suggest that the market is pricing in a challenging environment for the company, but the recent earnings beat and guidance reaffirmation may indicate a positive turn.

Guidance and Outlook

Viasat reaffirmed its fiscal '26 revenue guidance, expecting low single-digit year-over-year growth, and adjusted EBITDA to be flattish year-over-year. The company also expects cash from operations to grow double digits for the year. Mark Dankberg noted that there's a lot to be excited about, including the upcoming launch of ViaSat-3 Flight 2 and the progress on Flight 3.

Cash Flow and Capital Expenditures

Viasat generated $69 million in free cash flow during the quarter, despite heavier cash interest payments. The company expects capital expenditures for the year to be around $1.2 billion, with $200 million being capitalized interest, $500 million maintenance capital spending, and $250 million related to the completion of ViaSat-3. The company expects negative free cash flow in the second half but anticipates returning to free cash generation in fiscal '27.

Spectrum Value and Strategy

Mark Dankberg discussed the value of Viasat's spectrum, stating that the company's ITU positions are public and well-defined, with a global spectrum position that's substantially higher than other companies. The company is evaluating the use of its spectrum, considering evolving services to meet aviation and maritime demands, and supporting network standards for direct-to-device markets. As Mark noted, "We're constantly evaluating the use of our spectrum, considering evolving services to meet aviation and maritime demands, and supporting network standards for direct-to-device markets."

3. NewsRoom

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4 Top Beaten-Down Tech Stocks

Dec -04

Source: seekingalpha.com

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Inmarsat Maritime unveils next phase of NexusWave evolution with ViaSat-3 network

Dec -01

Source: globenewswire.com

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Viasat to supercharge business aviation in-flight connectivity for JetXP customers with global multi-orbit capabilities

Nov -17

Source: globenewswire.com

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SpaceX Changed the Economics of Spaceflight. Now It's Doing the Same Thing to Satellite Cost.

Nov -16

Source: fool.com

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Viasat to Participate in Deutsche Bank Global Space Summit

Nov -14

Source: globenewswire.com

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Viasat Successfully Tests HaloNet Launch Telemetry Solution for NASA Onboard Blue Origin's New Glenn

Nov -13

Source: globenewswire.com

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Seth Klarman's Strategic Moves: Union Pacific Corp Takes Center Stage with 7.43% Portfolio Share

Nov -13

Source: gurufocus.com

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Top Analysts See S&P 500 Climbing 7,500 by 2026 on AI Momentum

Nov -11

Source: gurufocus.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: 4.7/10

Value: 10.0

Growth: 4.2

Quality: 4.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Harmonic

A-Score: 4.3/10

Value: 5.1

Growth: 6.0

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Ondas

A-Score: 4.0/10

Value: 6.0

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Akoustis Technologies

A-Score: 3.5/10

Value: 10.0

Growth: 4.9

Quality: 5.1

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Viasat

A-Score: 3.5/10

Value: 6.0

Growth: 1.9

Quality: 1.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Comtech

A-Score: 2.9/10

Value: 9.8

Growth: 1.2

Quality: 3.5

Yield: 1.0

Momentum: 1.0

Volatility: 0.7

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

34.96$

Current Price

34.96$

Potential

-0.00%

Expected Cash-Flows