Q1 FY2027
Filed Aug 4, 2026Q1 FY2027 revenue declined 1% YoY and Adjusted EBITDA decreased 7% YoY, while net loss improved to $52 million, Free Cash Flow excluding non-recurring items was $72 million, and DAT backlog and awards grew 32% and 22% YoY, respectively.
The company reported lower revenue and Adjusted EBITDA, led by a DAT decline and expected pressure in fixed broadband and IP licensing, but reduced its net loss, generated Free Cash Flow excluding non-recurring items, and delivered strong backlog and awards growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | declined 1% year-over-year (YoY) | – | declined 1% year-over-year (YoY) |
| Net lossGAAP | $52 million | – | improvement from a net loss of $56 million in Q1 FY2026 |
| Adjusted EBITDAnon-GAAP | decreased by 7% YoY | – | decreased by 7% YoY |
| Free Cash Flow excluding non-recurring itemsnon-GAAP | $72 million | – | – |
| Defense and Advanced Technology backlogother | 32% YoY growth | – | 32% YoY growth |
| Defense and Advanced Technology awardsother | 22% YoY growth | – | 22% YoY growth |
| Company-wide new contract awardsother | increased 10% YoY | – | increased 10% YoY |
| Company-wide backlogother | increase in backlog of 19% compared to prior year | – | increase in backlog of 19% compared to prior year |
fiscal year 2027 outlook
- NoteOverall, we believe our Q1 FY2027 results are consistent with our fiscal year 2027 outlook including a stronger second-half supported by substantial backlog, very attractive new awards in key portions of our DAT and government satcom portfolios, our largest ever government new business pipeline, and our ongoing deployment of new broadband satellite resources and technologies.
- NoteWe successfully completed all deployments and the satellite bus In-Orbit Test (IOT) phase on VS-3 F2 and anticipate its service entry by September 2026.
- NoteSubsequent to quarter end, we successfully completed reflector assembly deployments on VS-3 F3 and entered the IOT phase ahead of expected service entry over the Asia-Pacific (APAC) region in late August or early September 2026.
What drove it
- Revenue declined 1% year-over-year reflecting a 4% decrease in the Defense and Advanced Technology segment, while the Communications Services segment remained flat YoY.
- Adjusted EBITDA decreased by 7% YoY net of attractive growth in aviation, government satcom, and tactical networking.
- The company secured the next phase of the Protected Tactical SATCOM-Global program.
- VS-3 F2 completed all deployments and satellite bus In-Orbit Test phase.
- VS-3 F3 completed reflector assembly deployments and entered the In-Orbit Test phase subsequent to quarter end.
- NexusWave continues to demonstrate customer interest and acceptance of effective multi-orbit solutions.
Concerns
- The expected decline in the fixed broadband business offset growth in aviation, government satcom, and tactical networking.
- The expected decline in certain IP licensing and royalty-based revenue offset Adjusted EBITDA growth areas.
- Increased research and development expenses reduced Adjusted EBITDA.
- The effect of the sale of the equity investment in Navarino in a prior period reduced the year-over-year Adjusted EBITDA comparison.
- The company stated that some segments of the market are clearly going to be more competitive than in the past.
- An increased provision for income taxes partially offset the benefit of reduced interest expense.
What to watch
- Service entry for VS-3 F2 by September 2026.
- Expected service entry for VS-3 F3 over the APAC region in late August or early September 2026.
- Whether substantial backlog, DAT and government satcom awards, and the government new business pipeline support the anticipated stronger second-half.
- Conversion of DAT contracts and pipeline, including operational demonstration phases, into recurring services revenue.
- Competitive conditions in legacy commercial services and the company's effort to refine and reinforce its broadband satellite services position.
Balance sheet and cash flow
- We generated $72 million in Free Cash Flow excluding non-recurring items.
- Improvement was primarily due to reduced interest expense reflecting continued progress in reducing debt and deleveraging, partially offset by an increased provision for income taxes.
Analysis
Viasat's Q1 FY2027 results were mixed. Revenue declined 1% year-over-year, reflecting a 4% decrease in Defense and Advanced Technology while Communications Services was flat year-over-year. Adjusted EBITDA decreased by 7% YoY despite attractive growth in aviation, government satcom, and tactical networking. The company attributed the EBITDA decline to expected fixed broadband and IP licensing and royalty revenue declines, higher research and development expense, and the prior-period effect of the Navarino equity investment sale.
Profitability and cash generation showed improvement in selected areas. Net loss was $52 million, improving from a net loss of $56 million in Q1 FY2026. The stated driver was reduced interest expense from debt reduction and deleveraging, partly offset by a higher income-tax provision. The company also generated $72 million in Free Cash Flow excluding non-recurring items, while emphasizing cost discipline, operational productivity, and cash flow generation.
Order activity was the clearest growth indicator. DAT backlog and awards rose 32% and 22% YoY, respectively, and company-wide new contract awards increased 10% YoY, contributing to a 19% increase in backlog compared with the prior year. Management highlighted the next phase of the Protected Tactical SATCOM-Global program and characterized DAT and government communications services as leading indicators for potential growth in both technology and recurring service revenue.
The satellite deployment timeline is central to the communications-services outlook. VS-3 F2 completed all deployments and satellite bus In-Orbit Test and is anticipated to enter service by September 2026. VS-3 F3 completed reflector assembly deployments subsequent to quarter end and entered In-Orbit Test ahead of expected APAC service entry in late August or early September 2026. The company expects the new satellite resources and technologies to improve capacity placement, utilization, customer experience, resilience, and airtime bandwidth costs.
Management said Q1 FY2027 results are consistent with its fiscal year 2027 outlook, including a stronger second half, but the provided filing text contains no quantitative financial guidance. The key tension is between momentum in DAT awards, government satcom, tactical networking, and multi-orbit offerings, versus declining fixed broadband and IP licensing revenue and greater competition in legacy commercial services. Execution on VS-3 service entry, backlog conversion, and the stated second-half strengthening are the principal reported milestones to monitor.
Not in the filing
stated, not guessed- Period-end date
- Total revenue amount
- Prior-year total revenue amount
- Prior-quarter total revenue amount
- Revenue by segment amounts
- Prior-year and prior-quarter revenue amounts for each segment
- Gross profit and gross margin
- Operating income or loss
- Net loss per share
- Adjusted EBITDA amount
- Adjusted EBITDA margin
- Operating cash flow
- Cash balance
- Debt balance
- Capital expenditures
- Share repurchases
- Dividends
- Quantitative fiscal year 2027 revenue guidance
- Quantitative fiscal year 2027 gross-margin guidance
- Quantitative fiscal year 2027 operating-expense guidance
- Quantitative fiscal year 2027 tax-rate guidance
- Named executive quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.