Telesat (TSAT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $87 million, down 25% year-over-year, with adjusted EBITDA of $35 million, down 48% year-over-year.

• Net loss widened to $151 million from $51 million in Q1 2025, mainly due to non-cash goodwill impairments and lower GEO segment performance.

• Significant progress was made on the Telesat LightSpeed LEO constellation, with $2.7 billion invested to date and commercial service expected by end of Q1 2028.

• Major contract signed with Northwestel for LightSpeed broadband in Nunavut, highlighting strong commercial and government interest, especially from defense sectors.

• Ongoing engagement with the Canadian government to finalize the ESCAPE program contract, a material opportunity for the business.

Financial highlights

• Consolidated revenue declined 25% year-over-year to $87 million; adjusted EBITDA fell 48% to $35 million.

• GEO segment revenue dropped 26% to $86 million, mainly due to broadcast contract expirations and lower renewals; adjusted EBITDA was $53 million, down 37% year-over-year.

• LEO segment investment in Q1 2026 totaled $171 million ($19 million opex, $152 million capex).

• Cash and cash equivalents increased to $523 million as of March 31, 2026.

• Net loss for the quarter was $151 million, compared to a loss of $51 million in Q1 2025, mainly due to non-cash goodwill impairments and lower GEO adjusted EBITDA.

Outlook and guidance

• Full-year 2026 guidance reiterated: GEO revenue of $300–320 million and adjusted EBITDA of $210–230 million, excluding refinancing costs.

• Total LightSpeed investment for 2026 expected to be $1.0–1.2 billion.

• LightSpeed global commercial service expected to start around the end of Q1 2028.

• Financial projections to be updated upon finalization of the ESCAPE contract.