VIASAT INC

Previous wording

This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. We use words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words and similar expressions to identify forward-looking statements. In addition, statements regarding projections of earnings, revenue, costs or other financial items; anticipated trends in our business or key markets; growth opportunities; the ability to successfully compete in our target markets and durability or strengthening of competitive advantages; the construction, completion, testing, launch, commencement of commercial service, expected performance and benefits of satellites and satellite payloads (including satellites planned or under construction) and the timing thereof; the expected capacity, coverage, service speeds and other features of our satellites, and the cost, economics and benefits associated therewith; anticipated subscriber growth; introduction and integration of multi-orbit capabilities; future economic conditions; the development, customer acceptance and anticipated performance of our technologies, products or services; plans, objectives and strategies for future operations; ability to drive capital efficiency and improved resource utilization; the number of additional aircraft or vessels anticipated to be put into service with our connectivity systems; expected revenue streams from the Ligado settlement; and other characterizations of future events or circumstances, are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially include: our ability to realize the anticipated benefits of any existing or future satellite; unexpected expenses related to our satellite projects; risks associated with the construction, launch and operation of satellites, including the effect of any anomaly, launch, operational or deployment failure or degradation in satellite performance; capacity constraints in our business in the lead-up to the launch of services on new satellites; increasing levels of competition in our target markets; our ability to successfully implement our business plan on our anticipated timeline or at all; our ability to successfully develop, introduce and sell new technologies, products and services; audits by the U.S. …

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. We use words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words and similar expressions to identify forward-looking statements. In addition, statements regarding projections of earnings, revenue, costs or other financial items; anticipated trends in our business or key markets; growth opportunities; the ability to successfully compete in our target markets and durability or strengthening of competitive advantages; the construction, completion, testing, launch, commencement of commercial service, expected performance and benefits of satellites and satellite payloads (including satellites planned or under construction) and the timing thereof; the expected capacity, coverage, service speeds and other features of our satellites, and the cost, economics and benefits associated therewith; anticipated subscriber growth; introduction and integration of multi-orbit capabilities; future economic conditions; the development, customer acceptance and anticipated performance of our technologies, products or services; plans, objectives and strategies for future operations; ability to drive capital efficiency and improved resource utilization; the number of additional aircraft or vessels anticipated to be put into service with our connectivity systems; expected revenue streams from the Ligado settlement; and other characterizations of future events or circumstances, are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially include: our ability to realize the anticipated benefits of any existing or future satellite; unexpected expenses related to our satellite projects; risks associated with the construction, launch and operation of satellites, including the effect of any anomaly, launch, operational or deployment failure or degradation in satellite performance; capacity constraints in our business in the lead-up to the launch of services on new satellites; increasing levels of competition in our target markets; our ability to successfully implement our business plan on our anticipated timeline or at all; our ability to successfully develop, introduce and sell new technologies, products and services; audits by the U.S. …

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Aviation, which includes industry-leading in-flight connectivity (IFC) services, narrowband safety operational data services and other complementary services and applications for commercial aircraft, business jets and unmanned aircraft. As of September 30, 2025, we had our IFC systems installed and in service on approximately 4,370 commercial aircraft (of which approximately 120 were inactive at quarter end, mostly due to standard aircraft maintenance) and approximately 2,080 business jets with Ka-band communication services. We anticipate that approximately 1,470 additional commercial aircraft will be put into service with our IFC systems under existing customer agreements with commercial airlines. However, due to the nature of commercial airline contracts and other factors, such as original equipment manufacturer (OEM) delays, there can be no assurance that anticipated IFC services will be activated on all such additional commercial aircraft.

Current wording

Aviation, which includes industry-leading in-flight connectivity (IFC) services, narrowband safety operational data services and other complementary services and applications for commercial aircraft, business jets and unmanned aircraft. As of December 31, 2025, we had our IFC systems installed and in service on approximately 4,460 commercial aircraft (of which approximately 140 were inactive at quarter end, mostly due to standard aircraft maintenance) and approximately 2,100 business jets with Ka-band communication services. We anticipate that approximately 1,100 additional commercial aircraft will be put into service with our IFC systems under existing customer agreements with commercial airlines. However, due to the nature of commercial airline contracts and other factors, such as increased competition and original equipment manufacturer (OEM) delays, there can be no assurance that anticipated IFC services will be activated on all such additional commercial aircraft.

Previous wording

Maritime, which includes high-quality, resilient satellite-based broadband and narrowband communications services around the globe to commercial shipping fleets, offshore service vessel operators and commercial fishing companies, as well as NexusWave, a fully managed multi-layer connectivity service for merchant shipping companies. As of September 30, 2025, we provided Ka-band communication services to approximately 13,650 vessels.

Current wording

Maritime, which includes high-quality, resilient satellite-based broadband and narrowband communications services around the globe to commercial shipping fleets, offshore service vessel operators and commercial fishing companies, as well as NexusWave, a fully managed multi-layer connectivity service for merchant shipping companies. As of December 31, 2025, we provided Ka-band communication services to approximately 13,400 vessels.

Previous wording

Fixed services and other, which includes high-speed, high-quality, reliable fixed broadband internet services to businesses and residential users (primarily in the United States as well as in various countries in Europe and Latin America), enterprise connectivity solutions, Internet-of-Things and other narrowband services (such as L-band managed services that enable real-time machine-to-machine position or high-value asset tracking), energy services, and prepaid internet services that provide innovative, affordable, satellite-based connectivity in communities that have little or no access to the internet. As of September 30, 2025, our U.S. fixed broadband business had approximately 157,000 subscribers with an average monthly revenue per user of $113.

Current wording

Fixed services and other, which includes high-speed, high-quality, reliable fixed broadband internet services to businesses and residential users (primarily in the United States as well as in various countries in Europe and Latin America), enterprise connectivity solutions, Internet-of-Things and other narrowband services (such as L-band managed services that enable real-time machine-to-machine position or high-value asset tracking), energy services, and prepaid internet services that provide innovative, affordable, satellite-based connectivity in communities that have little or no access to the internet. As of December 31, 2025, our U.S. fixed broadband business had approximately 143,000 subscribers with an average monthly revenue per user of $112.

Previous wording

In accordance with the authoritative guidance for impairment or disposal of long-lived assets (ASC 360), we assess potential impairments to our long-lived assets, including property, equipment and satellites and other assets, when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable. We recognize an impairment loss when the undiscounted cash flows expected to be generated by an asset (or group of assets) are less than the asset’s carrying value. Any required impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value, and would be recorded as a reduction in the carrying value of the related asset and charged to results of operations. No material impairments were recorded for the three and six months ended September 30, 2025 and 2024.

Current wording

In accordance with the authoritative guidance for impairment or disposal of long-lived assets (ASC 360), we assess potential impairments to our long-lived assets, including property, equipment and satellites and other assets, when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable. We recognize an impairment loss when the undiscounted cash flows expected to be generated by an asset (or group of assets) are less than the asset’s carrying value. Any required impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value, and would be recorded as a reduction in the carrying value of the related asset and charged to results of operations. No material impairments were recorded for the three and nine months ended December 31, 2025 and 2024.

Previous wording

Our total revenues increased by $63.2 million as a result of a $34.4 million increase in product revenues and a $28.8 million increase in service revenues. The increase in product revenues was primarily driven by a $56.0 million increase in our defense and advanced technologies segment, partially offset by a $21.7 million decrease in our communication services segment. The increase in service revenues was primarily driven by a $32.5 million increase in our communication services segment, partially offset by a $3.7 million decrease in our defense and advanced technologies segment.

Current wording

Our total revenues increased by $33.3 million as a result of a $19.8 million increase in product revenues and a $13.4 million increase in service revenues. The increase in product revenues was driven by a $21.4 million increase in our defense and advanced technologies segment, partially offset by a $1.6 million decrease in our communication services segment. The increase in service revenues was driven by increases of $6.9 million in our defense and advanced technologies segment and $6.6 million in our communication services segment.

Previous wording

The $30.7 million decrease in selling, general and administrative (SG&A) expenses was primarily driven by a decrease of $30.1 million in support costs, mainly in our communication services segment. SG&A expenses are comprised primarily of personnel costs and expenses for business development, marketing and sales, bid and proposal, acquisition and transaction related expenses, facilities, finance, contract administration and general management.

Current wording

Selling, general and administrative (SG&A) expenses remained relatively flat year-over-year. SG&A expenses are comprised primarily of personnel costs and expenses for business development, marketing and sales, bid and proposal, acquisition and transaction related expenses, facilities, finance, contract administration and general management.

Previous wording

The $8.9 million increase in independent research and development (IR&D) expenses was primarily a result of increased IR&D efforts supporting next-generation encryption and space and mission systems products, and Direct-to-Device (D2D) growth initiatives in our defense and advanced technologies segment.

Current wording

The $10.2 million increase in independent research and development (IR&D) expenses was primarily a result of increased IR&D efforts supporting multi-orbit initiatives in our communication services segment and next-generation encryption products and Direct-to-Device (D2D) growth initiatives in our defense and advanced technologies segment.

Previous wording

For the three months ended September 30, 2025, we recorded an income tax provision of $10.9 million, resulting in an effective tax rate of negative 24%. For the three months ended September 30, 2024, we recorded an income tax provision of $5.9 million, resulting in an effective tax rate of negative 5%. The effective tax rates for both periods differed from the U.S. statutory rate primarily due to a U.S. valuation allowance and foreign tax rate differences.

Current wording

For the three months ended December 31, 2025, we recorded an income tax provision of $58.7 million, resulting in an effective tax rate of 63%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance, foreign tax rate differences and foreign tax audit adjustments. For the three months ended December 31, 2024, we recorded an income tax benefit of $11.8 million, resulting in an effective tax rate of 7%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance, foreign tax rate differences, and decreases in our unrecognized tax benefits.

Previous wording

Our communication services segment revenues increased by $10.3 million due to a $21.9 million increase in segment service revenues, partially offset by a $11.7 million decrease in segment product revenues. The increase in segment service revenues was primarily due to a $38.7 million increase in aviation services and a $15.9 million increase in government satcom services, partially offset by an expected decrease in revenues of $29.2 million from fixed services and other, as we continued to allocate a greater proportion of our bandwidth to our IFC business in preference to our U.S. fixed services business due to bandwidth constraints, as well as a $3.6 million decrease in maritime. The increase in IFC service revenues was primarily driven by the increase in the number of commercial aircraft and business jets receiving our in-flight services through our IFC systems, with our IFC systems installed and in service on approximately 4,370 commercial aircraft (of which approximately 120 were inactive at quarter end, mostly due to standard aircraft maintenance), and approximately 2,080 business jets as of September 30, 2025, compared to approximately 3,900 commercial aircraft (of which approximately 80 were inactive at quarter end, mostly due to standard aircraft maintenance) and approximately 1,920 business jets as of September 30, 2024. The decrease in segment product revenues was primarily attributed to the revenues generated in the prior year period by the energy services system integration business that we sold in December 2024.

Current wording

Our communication services segment revenues increased by $5.0 million as a result of a $6.6 million increase in segment service revenues, partially offset by a $1.6 million decrease in segment product revenues. The increase in segment service revenues was due to a $39.8 million increase in aviation services and a $7.3 million increase in government satcom services, partially offset by an expected decrease in revenues of $36.6 million from fixed services and other, as we continued to allocate a greater proportion of our bandwidth to our IFC business in preference to our U.S. fixed services business due to bandwidth constraints, as well as a $3.9 million decrease in maritime. The increase in IFC service revenues was primarily driven by the increase in the number of commercial aircraft and business jets receiving our in-flight services through our IFC systems, with our IFC systems installed and in service on approximately 4,460 commercial aircraft (of which approximately 140 were inactive at quarter end, mostly due to standard aircraft maintenance), and approximately 2,100 business jets as of December 31, 2025, compared to approximately 4,030 commercial aircraft (of which approximately 80 were inactive at quarter end, mostly due to standard aircraft maintenance) and approximately 2,000 business jets as of December 31, 2024. The decrease in segment product revenues was primarily attributable to the revenues generated in the prior year period by the energy services system integration business that we sold in December 2024.

Previous wording

Our defense and advanced technologies segment revenues increased by $8.4 million due to increases of $7.1 million in segment product revenues and $1.3 million in segment service revenues. The increase in segment product revenues was primarily driven by an $11.4 million increase in information security and cyber defense, partially offset by a $5.8 million decrease in tactical networking.

Current wording

Our defense and advanced technologies segment revenues increased by $28.3 million due to increases of $21.4 million in segment product revenues and $6.9 million in segment service revenues. The increase in segment product revenues was primarily driven by a $15.4 million increase in tactical networking and a $7.5 million increase in information security and cyber defense.

Previous wording

Our total revenues increased by $18.6 million as a result of a $23.2 million increase in service revenues, partially offset by a $4.6 million decrease in product revenues. The increase in service revenues was primarily driven by increases of $21.9 million in our communication services segment and $1.3 million in our defense and advanced technologies segment. The decrease in product revenues was primarily driven by an $11.7 million decrease in our communication services segment, partially offset by a $7.1 million increase in our defense and advanced technologies segment.

Current wording

Our total revenues increased by $96.5 million as a result of a $54.2 million increase in product revenues and a $42.3 million increase in service revenues. The increase in product revenues was driven by a $77.5 million increase in our defense and advanced technologies segment, partially offset by a $23.3 million decrease in our communication services segment. The increase in service revenues was driven by increases of $39.1 million in our communication services segment and $3.2 million in our defense and advanced technologies segment.

Previous wording

Cost of revenues increased by $31.7 million due to a $36.8 million increase in cost of product revenues, partially offset by a $5.1 million decrease in cost of service revenues. The increase in cost of product revenues correlated to our product revenue growth in our defense and advanced technologies segment. Product revenues in this segment included a higher percentage of intellectual property licensing and royalty-based revenues in the prior period, which had relatively low costs of product revenues. The slight decrease in cost of service revenues was primarily attributed to improved margins, mainly in our communication services segment.

Current wording

Cost of revenues increased by $48.0 million due to increases of $44.1 million in cost of product revenues and $3.9 million in cost of service revenues. The increase in cost of product revenues correlated to product revenue growth in our defense and advanced technologies segment. Additionally, product revenues in this segment included a higher percentage of intellectual property licensing and royalty-based revenues in the prior period, which had relatively low costs of product revenues. The increase in cost of service revenues was primarily driven by service revenue growth, mainly in our communication services segment.

Previous wording

The $19.0 million decrease in SG&A expenses was primarily driven by an $11.8 million decrease in support costs and a $7.8 million decrease in selling costs, both of which decreases were mainly in our communication services segment.

Current wording

The $16.3 million decrease in SG&A expenses was primarily driven by a $13.7 million decrease in selling costs, mainly in fixed services and other within our communication services segment.

Previous wording

The $4.5 million increase in IR&D expenses was primarily a result of increased IR&D efforts supporting next-generation encryption and space and mission systems products, and D2D growth initiatives in our defense and advanced technologies segment.

Current wording

The $14.7 million increase in IR&D expenses was primarily a result of increased IR&D efforts supporting next-generation encryption products and D2D growth initiatives in our defense and advanced technologies segment.

Previous wording

The $11.4 million decrease in interest income for the three months ended September 30, 2025 compared to the prior year period was primarily due to lower interest earned as a result of lower average invested balance in combination with lower interest rates.

Current wording

The $128.0 million increase in interest income for the nine months ended December 31, 2025 compared to the prior year period was primarily due to $152.5 million recognized as interest income from the receipt of the $420.0 million lump sum payment from Ligado in the current year period (see Note 8 — Commitments and Contingencies to our condensed consolidated financial statements for further information), partially offset by lower interest earned as a result of lower average invested balance in combination with lower interest rates.

Previous wording

The $21.9 million decrease in interest expense for the three months ended September 30, 2025 compared to the prior year period was primarily as a result of the increase in capitalized interest and our decreased level of indebtedness compared to the prior year period, as we redeemed Viasat's 5.625% Senior Notes due 2025 (the 2025 Notes) in full in early May 2025.

Current wording

The $34.3 million decrease in interest expense for the nine months ended December 31, 2025 compared to the prior year period was primarily due to our decreased level of indebtedness compared to the prior year period, as the aggregate principal amount of our total outstanding indebtedness was $6.4 billion as of December 31, 2025 compared to $7.2 billion as of December 31, 2024 (see Note 6 — Senior Notes and Other Long-Term Debt to our condensed consolidated financial statements for further information), in addition to the increase in capitalized interest.

Previous wording

For the six months ended September 30, 2025, we recorded an income tax provision of $17.5 million, resulting in an effective tax rate of negative 19%. For the six months ended September 30, 2024, we recorded an income tax provision of $7.1 million, resulting in an effective tax rate of negative 5%. The effective tax rates for both periods differed from the U.S. statutory rate primarily due to a U.S. valuation allowance and foreign tax rate differences.

Current wording

For the nine months ended December 31, 2025, we recorded an income tax provision of $76.1 million, resulting in a meaningless effective tax rate. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance, foreign tax rate differences and foreign tax audit adjustments. For the nine months ended December 31, 2024, we recorded an income tax benefit of $4.7 million, resulting in an effective tax rate of 2%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance, foreign tax rate differences, and decreases in our unrecognized tax benefits.

Previous wording

Segment Results for the Six Months Ended September 30, 2025 vs. Six Months Ended September 30, 2024

Current wording

Segment Results for the Nine Months Ended December 31, 2025 vs. Nine Months Ended December 31, 2024

Previous wording

Our communication services segment revenues increased by $10.9 million due to a $32.5 million increase in segment service revenues, partially offset by a $21.7 million decrease in segment product revenues. The increase in segment service revenues was primarily due to a $74.5 million increase in aviation services and a $23.8 million increase in government satcom services, partially offset by an expected decrease in revenues of $56.1 million from fixed services and other, as we continued to allocate a greater proportion of our bandwidth to our IFC business in preference to our U.S. fixed services business due to bandwidth constraints, as well as a $9.7 million decrease in maritime. The increase in IFC service revenues was primarily driven by the increase in the number of commercial aircraft and business jets receiving our in-flight services through our IFC systems year-over-year, as described above. The decrease in segment product revenues was primarily attributed to the revenues generated in prior year period by the energy services system integration business that we sold in December 2024.

Current wording

Our communication services segment revenues increased by $15.8 million due to a $39.1 million increase in segment service revenues, partially offset by a $23.3 million decrease in segment product revenues. The increase in segment service revenues was due to a $114.3 million increase in aviation services and a $31.1 million increase in government satcom services, partially offset by an expected decrease in revenues of $92.7 million from fixed services and other, as we continued to allocate a greater proportion of our bandwidth to our IFC business in preference to our U.S. fixed services business due to bandwidth constraints, as well as a $13.7 million decrease in maritime. The increase in IFC service revenues was primarily driven by the increase in the number of commercial aircraft and business jets receiving our in-flight services through our IFC systems year-over-year, as described above. The decrease in segment product revenues was primarily attributable to the revenues generated in prior year period by the energy services system integration business that we sold in December 2024.

Previous wording

The increase in our communication services segment operating profit was primarily due to higher earnings contributions of $41.4 million as a result of improved margins, coupled with a $24.8 million decrease in SG&A expenses (mostly related to support costs).

Current wording

The increase in our communication services segment operating profit was primarily due to higher earnings contributions of $39.8 million, reflecting our segment revenue growth and margin improvement, coupled with a $25.2 million decrease in SG&A expenses (mostly related to selling costs in fixed services and other).

Previous wording

Our defense and advanced technologies segment revenues increased by $52.4 million due to a $56.0 million increase in segment product revenues, partially offset by a $3.7 million decrease in segment service revenues. The increase in segment product revenues was primarily driven by a $58.0 million increase in information security and cyber defense and a $14.1 million increase in space and mission systems. These increases were partially offset by a $9.0 million decrease in tactical networking and a $7.1 million decrease in advanced technologies and other.

Current wording

Our defense and advanced technologies segment revenues increased by $80.7 million due to increases of $77.5 million in segment product revenues and $3.2 million in segment service revenues. The increase in segment product revenues was driven by a $65.5 million increase in information security and cyber defense, a $13.9 million increase in space and mission systems and a $6.4 million increase in tactical networking, partially offset by an $8.3 million decrease in advanced technologies and other.

Previous wording

The firm backlog does not include contract options. As of September 30, 2025, approximately half of the firm backlog is expected to be delivered during the next 12 months, with the balance delivered thereafter. We include in our backlog only those orders for which we have accepted purchase orders, and not anticipated purchase orders and requests. In our communication services segment, our backlog includes fixed broadband service revenues under our subscriber agreements, but does not include future recurring IFC service revenues under our agreements with commercial airlines. As of September 30, 2025, our IFC systems were installed and in service on approximately 4,370 commercial aircraft (of which approximately 120 were inactive at quarter end, mostly due to standard aircraft maintenance). We anticipate that approximately 1,470 additional commercial aircraft will be put into service with our IFC systems under existing customer agreements with commercial airlines. Due to the nature of commercial airline contracts and other factors such as OEM delays, there can be no assurance that all anticipated purchase orders and requests will be placed or that anticipated IFC services will be activated on all such additional commercial aircraft.

Current wording

The firm backlog does not include contract options. As of December 31, 2025, a little less than half of the firm backlog is expected to be delivered during the next 12 months, with the balance delivered thereafter. We include in our backlog only those orders for which we have accepted purchase orders, and not anticipated purchase orders and requests. In our communication services segment, our backlog includes fixed broadband service revenues under our subscriber agreements, but does not include future recurring IFC service revenues under our agreements with commercial airlines. As of December 31, 2025, our IFC systems were installed and in service on approximately 4,460 commercial aircraft (of which approximately 140 were inactive at quarter end, mostly due to standard aircraft maintenance). We anticipate that approximately 1,100 additional commercial aircraft will be put into service with our IFC systems under existing customer agreements with commercial airlines. Due to the nature of commercial airline contracts and other factors such as increased competition and OEM delays, there can be no assurance that all anticipated purchase orders and requests will be placed or that anticipated IFC services will be activated on all such additional commercial aircraft.

Previous wording

Our total new awards (which exclude future revenue under recurring consumer commitment arrangements) were approximately $1.5 billion and $2.7 billion for the three and six months ended September 30, 2025, respectively, compared to approximately $1.3 billion and $2.4 billion for the three and six months ended September 30, 2024, respectively.

Current wording

Our total new awards (which exclude future revenue under recurring consumer commitment arrangements) were approximately $1.0 billion and $3.7 billion for the three and nine months ended December 31, 2025, respectively, compared to approximately $1.1 billion and $3.5 billion for the three and nine months ended December 31, 2024, respectively.

Previous wording

We have financed our operations to date primarily with cash flows from operations, bank line of credit financing, debt financing, export credit agency financing and equity financing. At September 30, 2025, we had $1.2 billion in cash and cash equivalents, $1.3 billion in working capital, no outstanding borrowings and borrowing availability of $596.9 million under our $647.5 million revolving credit facility (the Viasat Revolving Credit Facility), and no outstanding borrowings and borrowing availability of $550.0 million under Inmarsat's $550.0 million revolving line of credit (the Inmarsat Revolving Credit Facility, and together with the Viasat Revolving Credit Facility, the Revolving Credit Facilities). At March 31, 2025, we had $1.6 billion in cash and cash equivalents, $1.2 billion in working capital, no outstanding borrowings and borrowing availability of $593.3 million under the Viasat Revolving Credit Facility, and no outstanding borrowings and borrowing availability of $550.0 million under the Inmarsat Revolving Credit Facility. We invest our cash in excess of current operating requirements in short-term, highly liquid bank money market funds primarily investing in U.S. government-backed securities and treasuries.

Current wording

We have financed our operations to date primarily with cash flows from operations, bank line of credit financing, debt financing, export credit agency financing and equity financing. At December 31, 2025, we had $1.3 billion in cash and cash equivalents, $1.4 billion in working capital, no outstanding borrowings and borrowing availability of $594.8 million under our $647.5 million revolving credit facility (the Viasat Revolving Credit Facility), and no outstanding borrowings and borrowing availability of $550.0 million under Inmarsat's $550.0 million revolving line of credit (the Inmarsat Revolving Credit Facility, and together with the Viasat Revolving Credit Facility, the Revolving Credit Facilities). At March 31, 2025, we had $1.6 billion in cash and cash equivalents, $1.2 billion in working capital, no outstanding borrowings and borrowing availability of $593.3 million under the Viasat Revolving Credit Facility, and no outstanding borrowings and borrowing availability of $550.0 million under the Inmarsat Revolving Credit Facility. We invest our cash in excess of current operating requirements in short-term, highly liquid bank money market funds primarily investing in U.S. government-backed securities and treasuries.

Previous wording

In June 2025, Inmarsat agreed to a binding term sheet with Ligado Networks (Ligado) and AST & Science, LLC to settle Inmarsat's opposition to Ligado’s planned restructuring. Under the conditions set forth in the term sheet, we anticipate receiving $568 million from Ligado in fiscal year 2026, consisting of (i) a $420 million lump sum payment on October 31, 2025, (ii) a $100 million lump sum payment on March 31, 2026 and (iii) a resumption of quarterly payments of approximately $16 million, which started on September 30, 2025, with an annual escalator of 3% for the life of the contract (through 2107). On September 30, 2025, we received a $16.0 million quarterly payment and, subsequent to the second quarter of fiscal year 2026, based on the expiration of certain conditions, we received the lump sum payment of $420.0 million from Ligado.

Current wording

In June 2025, Inmarsat agreed to a binding term sheet with Ligado Networks (Ligado) and AST & Science, LLC to settle Inmarsat's opposition to Ligado’s planned restructuring. Under the conditions set forth in the term sheet, we anticipate receiving $568 million from Ligado in fiscal year 2026, consisting of (i) a $420 million lump sum payment which we received on October 31, 2025, (ii) a $100 million lump sum payment that is due on March 31, 2026 and (iii) a resumption of quarterly payments of approximately $16 million, which started on September 30, 2025, with an annual escalator of 3% for the life of the contract (through 2107). The $420.0 million lump sum payment was allocated and recorded as deferred revenues and interest income in our condensed consolidated financial statements (see Note 8 for further information).

Previous wording

We may, from time to time, seek to retire, prepay or repurchase our outstanding debt through cash purchases and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. On May 2, 2025, we redeemed all of Viasat’s remaining 2025 Notes in full. As a result, we recorded a loss of an insignificant amount in (loss) gain on extinguishment of debt, net in the condensed consolidated statement of operations and comprehensive income (loss) for the six months ended September 30, 2025.

Current wording

We may, from time to time, seek to retire, prepay or repurchase our outstanding debt, including through cash purchases and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. On May 2, 2025, we redeemed in full the remainder of Viasat’s 5.625% Senior Notes due 2025 and on November 21, 2025, we repaid early all of the $300.0 million in principal amount of outstanding borrowings under Inmarsat’s original senior secured term loan facility (the Original Inmarsat Term Loan Facility). As a result, we recorded a loss of $11.6 million and $11.9 million in (loss) gain on extinguishment of debt, net in the condensed consolidated statement of operations and comprehensive income (loss), mostly related to an unamortized fair value adjustment made in purchase accounting for the three and nine months ended December 31, 2025, respectively.

Previous wording

Cash provided by operating activities for the first six months of fiscal year 2026 was $540.7 million compared to $390.3 million in the prior year period. This $150.4 million increase was driven by a $247.4 million year-over-year decrease in cash used to fund net operating assets and liabilities, partially offset by our operating results (net income (loss) adjusted for depreciation, amortization and other non-cash charges) which resulted in $97.0 million of lower cash provided by operating activities year-over-year. The decrease in cash used to fund net operating assets and liabilities year-over-year was primarily due to a decrease in our prepaid expenses and a decrease in our accounts receivable, net. Cash paid for income taxes, net, during the first six months of fiscal year 2026 and 2025 were $70.1 million and $125.9 million, respectively. Cash paid for interest (net of amounts capitalized) during the first six months of fiscal year 2026 and 2025 were $177.1 million and $170.4 million, respectively.

Current wording

Cash provided by operating activities for the first nine months of fiscal year 2026 was $1.3 billion compared to $609.7 million in the prior year period. This $657.8 million increase was driven by a $498.4 million year-over-year decrease in cash used to fund net operating assets and liabilities and operating results (net income (loss) adjusted for depreciation, amortization and other non-cash charges), which resulted in $159.5 million of higher cash provided by operating activities year-over-year. The decrease in cash used to fund net operating assets and liabilities year-over-year was primarily due to an increase in our deferred revenues that was largely attributable to the receipt of the $420.0 million lump sum payment from Ligado during the current year period (see Note 8 — Commitments and Contingencies to our condensed consolidated financial statements for further information) and timing of payments related to accrued liabilities driven by interest and income taxes payables. Cash paid for income taxes, net, during the first nine months of fiscal year 2026 and 2025 were $79.2 million and $174.6 million, respectively. Cash paid for interest (net of amounts capitalized) during the first nine months of fiscal year 2026 and 2025 were $220.9 million and $271.0 million, respectively.

Previous wording

Cash used in investing activities for the first six months of fiscal year 2026 was approximately $389.6 million compared to $332.3 million in the prior year period. This $57.3 million increase reflected a $187.5 million decrease in cash receipts related to satellite insurance claim proceeds year-over-year, partially offset by a decrease of $118.1 million in cash used for capital expenditures.

Current wording

Cash used in investing activities for the first nine months of fiscal year 2026 was approximately $663.7 million compared to $524.9 million in the prior year period. This $138.8 million increase reflected a $230.0 million decrease in cash receipts related to satellite insurance claim proceeds as the final payment was received in the first quarter of fiscal year 2026, partially offset by a decrease of $88.0 million in cash used for capital expenditures.

Previous wording

Our complementary fleet of 23 in service or operational satellites spans the Ka-, L- and S- bands, with 13 Ka-band satellites, eight L-band satellites (three of which are contingency L-band satellites that are operational but not currently in commercial service), an S-band satellite that supports the European Aviation Network to provide IFC services to commercial airlines in Europe, and an Inmarsat-6 class hybrid Ka-/L-band satellite (the Inmarsat-6 F1 satellite). In late July 2024, the ViaSat-3 F1 satellite completed in-orbit testing and was integrated into our existing satellite fleet covering the Americas. In May 2025, two Ka-band highly-elliptical earth orbit satellite payloads (GX10A and GX10B) were put in service to provide polar coverage for government customers, with commercial maritime and aviation services anticipated to follow later in the current fiscal year. Furthermore, we have eight additional GEO satellites under development or in preparation for launch: two additional high-capacity Ka-band GEO satellites (ViaSat-3 F2 and ViaSat-3 F3), three additional adaptive Ka-band GEO satellites (GX7, GX8 and GX9) and three Inmarsat-8 L-band GEO safety service satellites. Our extensive satellite fleet enables us to provide a wide array of high-quality broadband and narrowband services with near global coverage (including strong oceanic coverage) with greater redundancy and resiliency.

Current wording

Our complementary fleet of 23 in service or operational satellites spans the Ka-, L- and S- bands, with 13 Ka-band satellites, eight L-band satellites (three of which are contingency L-band satellites that are operational but not currently in commercial service), an S-band satellite that supports the European Aviation Network to provide IFC services to commercial airlines in Europe, and a hybrid Ka-/L-band satellite. In late July 2024, the ViaSat-3 F1 satellite completed in-orbit testing and was integrated into our existing satellite fleet covering the Americas. In May 2025, two Ka-band highly-elliptical earth orbit satellite payloads (GX10A and GX10B) were put in service to provide polar coverage. On November 13, 2025, we launched the second of our third-generation ViaSat-3 class satellites, ViaSat-3 F2, into orbit with expected service launch in the first half of fiscal year 2027. Furthermore, we have eight additional GEO satellites under development: a high-capacity Ka-band GEO satellite (ViaSat-3 F3), three adaptive Ka-band GEO satellites (GX7, GX8 and GX9) and four Inmarsat-8 L-band GEO safety service satellites. Our extensive satellite fleet enables us to provide a wide array of high-quality broadband and narrowband services with near global coverage (including strong oceanic coverage) with greater redundancy and resiliency.

Previous wording

As of September 30, 2025, the aggregate principal amount of our total outstanding indebtedness was $6.7 billion, which was comprised of (1) $600.0 million in aggregate principal amount of Viasat's 5.625% Senior Secured Notes due 2027, $400.0 million in aggregate principal amount of Viasat's 6.500% Senior Notes due 2028, $1.975 billion in aggregate principal amount of the Inmarsat 2029 Notes and $733.4 million in aggregate principal amount of Viasat's 7.500% Senior Notes due 2031, (2) $677.3 million in principal amount of outstanding borrowings under Viasat's $700.0 million senior secured term loan facility (the 2022 Term Loan Facility), $604.4 million in principal amount of outstanding borrowings under Viasat's $616.7 million senior secured term loan facility (the 2023 Term Loan Facility), $1.6 billion in aggregate principal amount of outstanding borrowings under Inmarsat's senior secured term loan facilities (the Inmarsat Term Loan Facilities), no outstanding borrowings under the Revolving Credit Facilities, and $9.8 million in principal amount of outstanding borrowings under Viasat's direct loan facility with the Export-Import Bank of the United States (the Ex-Im Credit Facility), and (3) $150.7 million of finance lease obligations. Subsequent to the second quarter of fiscal year 2026, the Ex-Im Credit Facility was fully repaid at maturity on October 15, 2025. For information regarding our outstanding indebtedness, refer to Note 6 — Senior Notes and Other Long-Term Debt to our condensed consolidated financial statements.

Current wording

As of December 31, 2025, the aggregate principal amount of our total outstanding indebtedness was $6.4 billion, which was comprised of (1) $600.0 million in aggregate principal amount of Viasat's 5.625% Senior Secured Notes due 2027, $400.0 million in aggregate principal amount of Viasat's 6.500% Senior Notes due 2028, $1.975 billion in aggregate principal amount of Inmarsat's 9.000% Senior Secured Notes due 2029, and $733.4 million in aggregate principal amount of Viasat's 7.500% Senior Notes due 2031, (2) $675.5 million in principal amount of outstanding borrowings under Viasat's $700.0 million senior secured term loan facility (the 2022 Term Loan Facility), $602.8 million in principal amount of outstanding borrowings under Viasat's $616.7 million senior secured term loan facility (the 2023 Term Loan Facility), $1.3 billion in aggregate principal amount of outstanding borrowings under Inmarsat's senior secured term loan facility (the Inmarsat Term Loan Facility) and no outstanding borrowings under the Revolving Credit Facilities, and (3) $142.9 million of finance lease obligations. For information regarding our outstanding indebtedness, refer to Note 6 — Senior Notes and Other Long-Term Debt to our condensed consolidated financial statements.

Previous wording

Our condensed consolidated balance sheets included $2.0 billion and $2.2 billion of “other liabilities” as of September 30, 2025 and March 31, 2025, respectively, which primarily consisted of deferred income taxes and the long-term portion of deferred revenues. These remaining liabilities have been excluded from the above table as the timing and/or the amount of any cash payment is uncertain.

Current wording

Our condensed consolidated balance sheets included $2.4 billion and $2.2 billion of “other liabilities” as of December 31, 2025 and March 31, 2025, respectively, which primarily consisted of deferred income taxes and the long-term portion of deferred revenues. These remaining liabilities have been excluded from the above table as the timing and/or the amount of any cash payment is uncertain.