Viasat Reports 2% Revenue Growth and Improved Net Loss in Q2 Fiscal 2026

Viasat Inc. reported its financial results for the second quarter of fiscal year 2026, ending September 30, 2025, revealing total revenues of $1.14 billion, a 2% increase from $1.12 billion in the same period last year. The growth was primarily driven by a 3% rise in service revenues, which reached $821.5 million, compared to $798.3 million in the prior year. However, product revenues saw a slight decline of 1%, totaling $319.4 million, down from $323.9 million. The company recorded a net loss attributable to Viasat, Inc. of $61.4 million, or $(0.45) per share, an improvement from a net loss of $137.6 million, or $(1.07) per share, in the previous year.

In terms of operational performance, Viasat's communication services segment generated $836.7 million in revenues, up from $826.4 million, while the defense and advanced technologies segment contributed $304.2 million, an increase from $295.9 million. The company noted a significant improvement in operating profit for the communication services segment, which turned from a loss of $0.5 million to a profit of $71.4 million, attributed to improved margins and reduced selling, general, and administrative expenses. Conversely, the defense segment's operating profit decreased to $29.5 million from $41.8 million, primarily due to increased independent research and development expenses.

Viasat's total assets decreased to $14.76 billion as of September 30, 2025, down from $15.45 billion at the end of the previous fiscal year. The decline was largely due to a reduction in cash and cash equivalents, which fell to $1.23 billion from $1.61 billion. The company’s total liabilities also decreased to $10.18 billion from $10.80 billion, with a notable reduction in the current portion of long-term debt, which dropped significantly from $503.8 million to $49.5 million. This reduction reflects the company's strategic focus on managing its debt levels effectively.

Looking ahead, Viasat anticipates continued growth in its service revenues, particularly in the aviation sector, where it has installed in-flight connectivity systems on approximately 4,370 commercial aircraft. The company expects to activate an additional 1,470 commercial aircraft under existing agreements. Furthermore, Viasat is poised to receive $568 million from Ligado Networks as part of a settlement agreement, which includes a $420 million lump sum payment expected in October 2025. This financial inflow is expected to bolster Viasat's liquidity and support its ongoing investments in satellite technology and infrastructure.

Overall, Viasat's financial performance reflects a positive trajectory in service revenues and operational efficiency, despite challenges in product sales and net losses. The company remains focused on leveraging its satellite capabilities and expanding its market presence, particularly in the aviation and defense sectors, while managing its financial obligations prudently.