Viasat, Inc. (VSAT Quick QuoteVSAT - Free Report) reported mixed fourth-quarter fiscal 2025 results, wherein the adjusted earnings missed the Zacks Consensus Estimate while the top line beat the same.

The company’s top line remained relatively flat year over year, reflecting declines in fixed broadband and product revenues within Communication Services. This was offset by strong growth in Aviation and Information Security, Space and Mission systems and tactical networking in the Defense and Advanced Technologies segment.

VSAT’s Bottom Line

Viasat incurred a net loss of $246.1 million, or a loss of $1.89 per share, compared with a net loss of $100.3 million, or a loss of 80 cents per share, in the prior-year quarter.

Excluding non-recurring items, Viasat reported a non-GAAP net loss of $3.01 million, or a loss of 2 cents per share, compared with a net loss of $30.5 million, or a loss of 24 cents per share, in the prior-year period. The bottom line missed the Zacks Consensus Estimate by 5 cents.

For fiscal 2025, the company reported a net loss of $575 million, or a loss of $4.48 per share, compared with a net loss of $1.06 billion, or a loss of $9.12 per share, in fiscal 2024. Non-GAAP net income was $21.1 million, or 16 cents per share, compared with a net income of $148.5 million, or $1.25 per share, in 2024.

VSAT’s Q4 Revenues

Revenues remained almost flat at $1.15 billion. The figure surpassed the consensus estimate by $13 million. Product revenues were $349.7 million, up from $337.9 million in the year-ago quarter. Net sales from Service decreased to $797.4 million from $812 million a year ago. 

For fiscal 2025, the company reported record revenues of $4.5 billion, up from $4.3 billion reported in 2024.

Revenues from the Communication Services segment were $825 million, down 4% from $859.9 million in the year-ago quarter, owing to declines in fixed services and other, and maritime service revenues, partially offset by continued growth in government satcom and aviation services. However, the segment’s adjusted EBITDA improved to $306.2 million from $300.2 million.

Revenues from the Defense and Advanced Technologies (DAT) segment were $322 million, up 11% year over year. The uptick was primarily driven by solid traction across information security and cyber defense, space and mission systems and tactical networking products. Adjusted EBITDA improved to $68.6 million from $57.5 million in the year-ago quarter, backed by the strong revenue growth across the segment.

Other Details

In the March quarter, Viasat reported an operating loss of $153.8 million against an operating income of $0.3 million in the prior-year quarter. Adjusted EBITDA was $374.8 million, up from $357.7 million in the year-ago quarter.

VSAT’s Cash Flow & Liquidity

During the fourth quarter of fiscal 2025, Viasat generated an operating cash flow of $298 million compared with $232 million in the prior-year period, reflecting improved operating performance and a decline in working capital largely from increases in accounts payable and other accrued liabilities. As of March 31, 2025, the company has $1.61 billion in cash and cash equivalents, with a net debt of $5.6 billion compared to respective figures of $1.9 billion and $5.6 billion in the prior-year quarter.

Viasat’s Fiscal 2026 Outlook

For fiscal 2026, management expects low single-digit year-over-year revenue growth and flattish year-over-year adjusted EBITDA. Viasat anticipates Communication Services segment’s flat revenue performance to be driven by low double-digit growth in aviation services, partially offset by a lower rate of declines in fixed services and other. DAT revenue growth is anticipated to be in the mid-teens, primarily driven by strong double-digit growth in both information security and cyber defense and space and mission systems. Capital expenditure is forecasted to be approximately $1.3 billion (includes approximately $450 million for Inmarsat-related capital expenditures).

VSAT’s Zacks Rank & Key Picks

Viasat currently carries a Zacks Rank #3 (Hold).

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