ViaSat (NASDAQ: VSAT) reported Q3 EPS of $0.11, $0.72 better than the analyst estimate of ($0.61). Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.13 billion.

Outlook
We are maintaining our FY25 revenue and Adjusted EBITDA outlook, which reflects strong results in the first three quarters including in our aviation and defense orderbooks, confidence in our competitive position in our markets represented by strong awards, and despite continued headwinds from OEM related delays of aircraft deliveries.
› For FY2025 our guidance is unchanged.
› Communication Services FY2025 revenue guidance remains unchanged reflecting strong growth in aviation services and government satcom services that we expect will be more than offset by declines in U.S. fixed broadband and, to a lesser extent, maritime revenues.
› DAT YoY revenue growth guidance for FY2025 remains unchanged and is expected to increase in the mid-teens, driven primarily by tactical networking products, recurring contributions from certain licensing agreements, and strong demand for high-speed Type 1 encryptors fueled by cloud data center geographic expansion and support for AI applications. Revenue visibility for FY2025 is supported by backlog of over $900 million as of December 31, 2024.
› For FY2025 our Adjusted EBITDA guidance is unchanged with the growth expected to be driven by strong revenue flow through from DAT licensing agreements and Communication Services.
› We continue to expect Net Debt relative to LTM Adjusted EBITDA to increase modestly by the end of FY2025 given the prior fiscal year benefit from accelerated insurance payments.
› In FY2025 we now expect capital expenditures to decline to approximately $1.1 billion (which includes approximately $300 million for Inmarsat-related capital expenditures). The FY2025 range excludes the benefit from insurance recoveries and includes capitalized interest in our capex guidance, which is approximately $200 million per year.
› Looking ahead to FY2026, we continue to expect YoY revenue and Adjusted EBITDA growth with capital expenditures of approximately $1.3 billion which indicates an inflection to positive free cash flow in the second half FY2026.

For earnings history and earnings-related data on ViaSat (VSAT) click here.