Viasat Reports Q3 Fiscal 2025 Results with $1.124 Billion Revenue and Net Loss of $158.4 Million

Viasat Inc. reported its financial results for the third quarter of fiscal year 2025, revealing total revenues of $1.124 billion, a slight decrease of 0.4% from $1.129 billion in the same period last year. The company's service revenues fell to $809.4 million from $825.5 million, while product revenues increased to $314.4 million from $303.1 million. For the nine months ending December 31, 2024, total revenues reached $3.372 billion, up 7.6% from $3.134 billion in the prior year, driven by an 11% increase in service revenues, primarily attributed to the acquisition of Inmarsat Holdings.

The company's operating income for the quarter was $21.2 million, a significant recovery from a loss of $43.9 million in the same quarter of the previous year. This improvement was largely due to a reduction in selling, general, and administrative expenses, which decreased by 12% to $238 million, reflecting cost-cutting measures following the Inmarsat acquisition. However, Viasat recorded a net loss of $158.4 million for the quarter, compared to a loss of $124.4 million a year earlier, primarily due to increased interest expenses and losses on extinguishment of debt.

Strategically, Viasat completed the acquisition of Inmarsat in May 2023, which has since been integrated into its communication services segment. The company also divested its energy services system integration business in December 2024, a move aimed at streamlining operations and focusing on core growth areas. As of December 31, 2024, Viasat's total assets stood at $15.6 billion, with cash and cash equivalents of $1.6 billion, down from $1.9 billion at the end of the previous fiscal year.

Operationally, Viasat reported a total of approximately 4,030 commercial aircraft equipped with its in-flight connectivity systems, with expectations to add around 1,570 more under existing agreements. The company’s defense and advanced technologies segment also saw growth, with revenues increasing by 20% year-over-year, driven by higher product sales, particularly in tactical networking and information security. The firm backlog as of December 31, 2024, was $3.541 billion, indicating a solid pipeline for future revenue.

Looking ahead, Viasat anticipates continued growth in service revenues, particularly from its communication services segment, bolstered by the integration of Inmarsat. However, the company also cautioned about potential challenges, including the impact of satellite performance issues and the need for ongoing investments in research and development. The management remains focused on enhancing operational efficiencies and leveraging its expanded capabilities to drive future growth.