Viasat (VSAT) 7 Aug 242025 Q1 Earnings call transcript

My name is Meg and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Viasat's First Quarter Fiscal Year 2025 Earnings Results Conference Call. [Operator Instructions] I would now like to turn the call over to Ms. Lisa Curran, Vice President of Investor Relations. Ms. your begin may you conference. Curran,

Thanks, Meg.

'XX present today's combined on combined Inmarsat's will comparison financial of is QX results our financial Relations reported that the period. to more XXXX measures are Information FY first quarter required of our measures meaningful FY of our in the provide non-GAAP website. Please year call. available on Letter results based results by section results prior of non-GAAP against on are operations results Investor We supplemental combination these certain Shareholder to year-over-year, the This a note relating historical the supplemental results historical for the Viasat's for compared of SEC reported our to of conforming its The better reflect purchase prior invest information periods performance presentation supplemental reflect combined combined for presented price financial for or QX Inmarsat's the GAAP our Investor prepared our to and from the was adjustments conversion Relations on of year-over-year relative Letter data IFRS changes decreases section to to The acquisition business in Shareholder measures supplemental of of Viasat's to to reflect FY website. the financial our results. financial noted, the with or increases the otherwise results accounting. illustrate acquisition Inmarsat. Unless 'XX of following with

more that impacted factors of year-over-year significant presentation, the the During will describe certain we performance.

results of materially laws, subject future. of make forward-looking the that the differ or We statements a securities statements occur will within expect events meaning and and forward-looking we uncertainties, are federal that any may will also These we or anticipate today. actual risks number or might forward-looking the statements from statements regarding make including to developments in

we Form they statements factors these forward-looking actual only These to date these that are annual as obligation of and our statements from not any filings and materially to forward-looking assume available regarding do any in the SEC may report made, update XX-K. results is forward-looking on Information differ speak cause statements.

to and Mark that, turn With Dankberg, over CEO. it Chairman I'll

our us with and me, CFO. posted and along afternoon I'll the Good and our the and outlook, reading we letter shareholder overview cover slides shareholder for Shawn thanks Guru for this then joining our afternoon, website highlights we on have a the the and earlier today. quick President; the Duffy, referencing our details. We Gowrappan, Guru results give questions. more With we'll letter. and encourage of take financial will Lisa, growth

better a fiscal year-over-year than quarter EBITDA revenue as of letter growth, first the described adjusted shareholder Our year and expected results a little slides. in were and terms on XXXX combined basis, in

strengthen promising actions a also to We future. and thoughtfully investing our take continue positioning structure while to for capital

and the as enable focused our financial anomaly. growth improvements outlook. results steady supporting FX both including and Our the year the in technology pleased XXXX. and of making existing We're ViaSat-X pipeline ongoing services to coupled this goals, expected defense quarter, orders, long-term good remain backlog, near on progress overcoming activations increase order our We're agenda but advanced with outlook our us and aviation, revenue, in with new for fiscal

are points our all fronts these ways in which sequences the the on making headway and optionality we creates While multiple in very challenges important, and opportunities. we're address

with inflection and to want enduring from highest yields structure our want network business attractive ground partnership recurring economically space the ultimately objectives. to leverage the networks, and win our We to as cash and potential get and these and an achieve first, operations harmonize can to customers integration We drive commercial partners. key attract revenue. We and technologies capital unique is, list competitive our want and our that revenues trim address to and levels. optical terminals, to and technology under to partners accretive mission-specific new advantages phased execute of to coverage satellite promote such programs for continue flow and durable Inmarsat space-based and continue and our services in array higher returns that others. and satellite can and government on defense applications, our use and cultivate cybersecurity and free the growth So our we network groom ecosystem current recurring to service, into ratios create satellites holistically multi-orbit technologies advanced want increase technologies operator help construction leverage leverage portfolio continue We these to attractive capacity ecosystem augment into and technologies capabilities. We and customers, a competitive

value satellite-enabled devices safety capture base services emerging the L-Band we an to base our by create finally, and of standards, mobile installed XGPP and existing market of platforms, services foster spectrum on connectivity resources. and for emerging sea want the our users maritime models, mobile depend that of millions on services air, extremely in to the evolving And and aero, large people architectures, want to direct-to-device optimizing a leveraging We in mobile licenses leadership business and for land. open and our serving substantial in innovative our satellite position at

operational testing Some implied in-flight and the to works. And We thermal dynamic per week able at aircraft payload is existing to achieved the routes over entered of cover FX XXX been ViaSat-X areas. and speeds into on second connectivity. the coverage beamforming both enhanced near-term that completed in Flight terabit second integrated new services prove service it satellite we've now well megabits It and included for vacuum per announced will technology use testing an milestones satellite ViaSat-X as milestone. over We've important Americas. X commercial this

partner They're -- polar very Ka-band expected early payloads, to [ enter ] to our X coverage our GX-XXA/B Viasat in shortly. expect launch We service to mid-XXXX.

investors updates. more the have composition other as on believe currently that financial the and with the quarterly device of attention. will our we potential more reminder, place provide attractive segments reframed give new a areas for information breakout that insight our revenue areas added such emerging for growth, challenged a Guru As the attractive segment yielding direct performance that advanced to technologies into business and to results detailed already have our been those are investor we merit and

balancing competitive playing challenges and advantages to we're on in long shifting While Viasat the hand technology sustain us always the That's for business and near- environment. generational decades, to long-term opportunities. With those evolutions it near build our consistently that, sustain models enabled segments has executing the even and for presence of franchise growth and in to very term. technology, fields and We're term, Guru. competitive planned market evolve focused key businesses I'll and over

tactical cover growth performance, financial new outlook. Viasat our XX% and performance adjusted from structure, financial of strong driven and IP reflects licensing operating X% an defense technologies revenue continued and combined leverage Mark. We and growth I EBITDA FY acquisition-related update to and and will by advanced X synergies. QX year-over-year, segment earned operating Thanks, our our the year-over-year revenue of during benefit flow-through topics: and advanced 'XX. combined positive Great. technologies The networking generated good aviation. from

Now FY operating growth in up million interest Technologies loss up QX partially driven Advanced compared million due QX year-over-year, some was tax net XX% higher Aviation. Net financial QX Combined in to 'XX 'XX QX 'XX. by 'XX, billion, improved was which the expenses. of revenue $X.X FY largely X% color offset revenue compared in to performance, Defense primarily $XXX results. our improved for on $XX and FY FY loss by to $XX was and million and segment of the

more fully R&D to XX% increased expenditures $XXX of by Defense FY XX% and we lower to LTM path fixed Inmarsat FY costs. Sequentially, XXX% quarter the free adjusted QX our broadband year-over-year EBITDA declined revenue was $XXX from equipment have offset than satellite Adjusted cash in capital year-over-year. an time primarily inflection due ended FY service a of 'XX 'XX, at liquidity, million, of which XX% announced. We acquisition the 'XX. $X.X approximately net and equivalents Technologies, as cash including cash expenditures. QX X.Xx EBITDA declines QX to FY expenditures favorable expenditures, adjusted $X.X to which flow-through in Advanced is general to and quarter of and with customer at 'XX the end year-over-year Combined billion revenue year-over-year, X.Xx expected EBITDA billion million. increase substantially higher the incremental the plan infrastructure was funded QX by capital end, flow decreased premise positive and declined leverage

at market. price subsequent We million principal finally, an Inmarsat opportunistically quarter XXXX to an approximately open XXXX $XX $XXX to million $XX.X. notes amount secured principal and $XX.X, of cash And end, at $XXX million repurchased Viasat of repurchase unsecured amount price of the notes ViaSat in average of million and Inmarsat average of amount principal Viasat notes deployed of $XXX

Technologies. Defense additional into for reporting provide a to Communication want provided go business new We historical initiated on we segment the new value. lines. new insight and portfolio more further, the of Advanced segments: give Services, to our segments we financials Before I Last drivers month, bit and color and and our structure

includes IP X Space antenna our & businesses Fixed and Communication is is Networking, segment Aviation, revenue services. included and which IP includes lumpy revenue services. The Cyber for TrellisWare connectivity Defense X the all the our and Technologies Security revenue. space ground this warranty own and broadband, All Maritime The the Other FS&O. of: is segment lines: and using which satellite The Services related quarter-to-quarter. Advanced Advanced and support Satcom, to enabling the and sells XX%; The for Our and mostly Government licensing Other, the in which which product or is products. are that Communication products; licensing energy of product & type & network, business businesses segment. service Most approximately Mission satellite encryption subsidiary, includes majority we of is segment in network Information includes international primarily revenue, which our segment and residential segment this for primarily systems; of includes Services is enterprise. which Technologies Defense, Tactical supporting revenue The Systems, sales revenue. Inmarsat our our can service has CapEx services. recurring fixed in Services includes FS&O of which the be U.S. these comprised terminal majority

valuable The And franchisees. feedback provided visibility is of in investors Defense the low intensity. the we a and raising our in process. capital this business an step important appreciate Advanced Technologies have It line

value to and the We to unlock creating will its continue for Viasat is shareholders. work that highlight

OEM contracted the to of a mid-teens growth compete X,XXX service, year-over-year XX% aircraft from and business Communication growth market. aviation, with the And to as let's up while delays adding software commercial of Services in and continues outlook also We're look broadband about our Now fewer cybersecurity noting aircraft with due trajectory confident the the X backlog, the X,XXX quarter incremental to We ended IFC Aviation revenue of in by driven number and are aviation global reflect the effects take the aircraft recent in Commercial the in well aircraft performance year-over-year at customers. U.S. closer XXX in results expect about worth during very and impact quarter. that the we achieved continued backlog. both service. subscribers. declined we including over outage to residential fixed contractual airlines. year-over-year for process some quarter-over-quarter new impacting in it's expected,

and We in to to broadband fixed U.S. aviation. support higher-margin continue commercial rapid our IFC deemphasize

to Aircraft the we a GAT-XXXX provide are which utilizing expanding SpainSat capability broadband multi-band, CXXX missions Satcom Patrol multi-orbit defense support Airbus Satcom Viasat's into fleet terminal, flexible work and satellites. to Our dual-band announced NG Spanish Maritime the highly broadband next-generation space MoD's line called Government to with is business integrate

We is hundreds by with because world more and the around of excited operated XX order. aircraft CXXX are hundreds the aircraft Airbus in on operation countries

international more Inmarsat. seeing government service with are We opportunities and products

primarily began system. the service radio avionics muLTElink L-band a Viasat's Velaris Beyond aviation Velaris revenue secure, service the QX 'XX, in commercial by compact FY pioneer $XXX module and up year-over-year. to collaborating FY U.S. Visual Combined quarter, uncrude million, broadband an business During QX launch from into QX enables monitoring crude from we managed resilient services customers fixed X% Services is provides segment building Combined Maritime X% growth expected lower with broadband resilience unmanned real-time year-over-year, Sight our certified in XX% all line exciting U.S. communications uAvionix, Services opportunity, million and and was was was Services. Communication beta meet NexusWave Communication FY Maritime's the for its adjusted and of to and $XXX integrate for for to in compared revenue. adjusted and decline declined capacity, UAVs we airborne Line as anticipation product XX% commercial are revenue hybrid brings the capability. NexusWave, 'XX. In enterprise market 'XX revenue crew vehicles year-over-year, of type down FY QX 'XX. UAV operations. and we an leads security believe We modernize targeting new fixed of EBITDA in $XXX increase expect EBITDA especially speed, L-band during global class in driven welfare. coverage, FS&O operational million, flow-through to shipping multi-orbit L-band

to from recognized benefited in the strong from licensing and Defense sales, FY array & but benefit approximately fewer revenue. Mission per awards with million licensing quarter. sold Space Technologies Technologies received antennas, the multifunction during related to we of annual did the and phased pre-space There a revenue and quarter Now $XX with optics components and IP antenna infrastructure 'XX. Advanced systems supported year. received quarter Advanced units in which QX performance substantially to activated, of been ongoing revenue current activation few we throughout prior licensing services. which allowed sold on IP product it is are over to a per products the unit also than Once fee, QX these Tactical expected X as that occurs years. is networking tool business that The recognized this the upgrades. certain distributed Systems have typically fee,

both component. networks tactical EBITDA driven was licensing QX million, 'XX. year-over-year, ago IP period, flow up quarter revenue $XX good portfolio. advanced to we the year Cyber strong performance. Product the Security remainder the FY and ratio component the the awards unit During demand, FY expect for won for reflecting X X.Xx Advanced per 'XX FY was Technologies applications. QX unit generate Defense revenue a 'XX. it the million, a and encryption into QX growing of from Type QX center of XX% and from than reflecting and continued expansion with over start strong more FY geographic 'XX products XX% momentum revenue from $XXX tactical technologies technologies. QX 'XX, book-to-bill $XXX 'XX, 'XX, $XX we was to technology advanced by network license the Defense FY benefited annual revenue QX both only. Information and totaling FY And and 'XX. In million operating in value AI was million, the Defense compared was leverage adjusted and FY to up largely exceptional data FY in triple and driven per Strong revenue drove Overall, by in Technologies through

reflect we raising OEM our strong and QX market delivery. our confidence are Next, and results, competitive in to slightly outlook pipeline, positions aircraft despite continued

strong and quarter competitive financial Defense and first our Technologies Within businesses. flow-through in in Our performance Advanced X high our we revenue generated Aviation IP Defense solutions businesses. segment, reflects our execution and

in a upgrades Our business networking years retroactive from the of benefited quarter. product couple tactical of

we in a product We to year, more expect benefited business licensing upgraded sales the revenue. expect per the continue going at Technologies benefit forward annual modest to normalized from licenses from quarter. level. Advanced unit Throughout the

we FY end maintaining of FY raising 'XX, quarter FY view this and 'XX. of the are is EBITDA revenue our and our adjusted 'XX first outlook of the Finally, because only low

For million reference of in adjusted We expected billion. We FY digits. million revenue benefit adjusted comparison the associated $XX an FY broadband 'XX EBITDA U.S. revenue to 'XX FY of would been on results. EBITDA is based revenue in $X.X year-over-year believe growth, 'XX excluding purposes, our be settlement anomaly from with mid-single catch-up and guidance have removed FX mid-single up growth the with the and slightly the year-over-year flat fixed EBITDA $XX to up FY from ViaSat-X expect Therefore, litigation digits. decline now revenue $X.X approximately 'XX approximately billion adjusted we

our years decline $X.X delayed billion guidance, in We $XXX in satellites uncertainties We will expenditures with 'XX, our to shareholder FY $X.X prudent but place CapEx also letter. details future provided service. we as have include capitalized given decline aircraft the deliveries line to is guide additional airline interest a of million commercial range capital we outlook expect top year, in with billion. per remain OEM into which to our section of We segment-level and overcapacity. In approximately

exceed satellite network our CapEx activities. and of than with We success-based continue our CapEx with expect less X/X to maintenance our and projects capital total associated spend in investments our to X/X general

a investments accelerated multiyear growth EBITDA generate continued improving free expected cash to as an in 'XX. Looking decline expect relative adjusted expenditures to $X.X $X.X forward, Capital to the decline of we to under FY in are service. step 'XX trend. In billion our FY in and continue expect to revenue CapEx grow adjusted for foundation commercial 'XX of EBITDA CapEx revenue construction into $X.X assets we to continue 'XX FY 'XX, and flow the and majority and growth to believe billion go to for billion. We growth FY in range down provides FY our

support outlook. progress in As steady making improvements on Mark multiple we of fronts are mentioned, in growth the our

continue free positive first 'XX. quarter end in point FY We to expect an by cash of inflection flow

to path and cash driven going expenditures line flow we commercial growth satellites service. in in continued operating is by expenditure cash as positive expected Our declines capital into be double-digit to flow free with capital normalized

Before me provide additional closing, let update. an

drivers. we serves, diverse as of structure as better As that company remarks, our segment attractive the new performance was discussed well visibility to introduce into in the reporting earlier end reflect our our nature greater the markets and prepared and designed value

dynamics technology, to Advanced plan model, cover competitive advanced part business information unique part defense, to was holding be on business, expected learn in teach-in our security its business Technologies the which this the transparency cyber our that and our and about segment, of breadth on mission webcast more As networking growth drivers. XX, and focusing additional and want October feedback initiative services into future and systems, tactical a overwhelmed to you lines. technologies houses market and our provide the will our we Defense of portfolio. We products segment, of The valuable and this space

we proven, advantages competitive enduring have As Mark with and our differentiated we this portfolio. attractive mentioned, believe a assets within growth

objective to contributing profile. to performance overall are FY via follow you closing, very to you details better profit is able 'XX later. In businesses We how Our be help webcast. various was to hope all value Viasat's become to growth and QX us More operational our equipped join good. of will that

yielding We large and and which growing is are operational on capital and markets leverage. of capturing share are productivity, focused operating our positive improving

networking tactical QX in revenue we reflect IP QX coming the to guidance stronger recurring While strength advanced it to in end the the quarters, be raised we of in expect Aviation was than and underlying technologies outperformance low Satcom our and businesses. Government and of

rest good of FY significant operating we to increases like towards would flow with the free it make CapEx. With cash that, moderated continue road progress I to cash 'XX, satellite expect and our flow map on to back and to Towards positive Mark. over hand in

a to Thanks, issue, good overcome Inmarsat We year. proving work far. we're made the on X off and but good technology. integration and that There's the service bringing we've Guru. ViaSat-X pretty a Viasat for the with team for really been of global into lot start fiscal feel the to Flight Thanks all this especially so in to work out satellite progress,

of fronts in for that the We on the building progress also front believe bridges is multiple us. opportunities

for Thanks. Okay, questions Meg, it let's open now. up

Your Instructions] line JPMorgan. comes Petti first from of [Operator Sebastiano question the with

your and but noncore then touched you debt I shift and just working it on if segment a into of the Or well, KPIs was -- giving a comment just on some prepared think think to and and pretty that maybe to related elaborate perhaps it flow, the visibility non-satellite and in perhaps -- through Mark, the a you monetization, extensions remarks, tone? in wondering this Just housekeeping -- letter a structure reflection think this the of -- I reporting, businesses some change underappreciated. And I Is that? was in strengthen shareholder maturity question. capital looks portfolio I perhaps could surface cash is I to on good just touch on think there's in wanted as

have X,XXX well? developments any In target bearing I online, still that hitting I -- track backlog think, are to exiting goal, having XXXX? reach the fiscal the aircraft Obviously, healthy those on terms just you that recent of considering, we as on when are guess, you the

that And we take a So thanks question. we're the capital really, our to address investors know wanted just we holistic first make sure to on how for structure. going view the point, of

we And the value. gives across of let to looking that, just that options fact that people so doing holistic as that wanted a the terms building competitive view creating just also, certainly, we we're in it's in that to the focused approaching we're going more the And understand shareholder taking durable And way But we're we're it. to we're to problem. view. board. address that broad investors way taking in a view on And remind a in I us advantage we're think take really change the opposed

still our aircraft On of the X,XXX have target insight, end of we yes, the in 'XX. FY at service

next the Boss of line B. Your with comes Riley Griffin from question Securities.

have XX any small So geo for if on that is curious in what perhaps XX gigabits omega could is And to talking levels along with you Astranis slot first with per X -- your to could market up the viability satellite? of the service then you talking per putting about. like hear Viasat second what versus on also, about I'm satellites to reportedly thoughts Astranis bring thoughts orbital compare me, that,

I So the really Astranis strategy is. what understand don't exactly

preserve that So -- -- -- collisions. are from organization avoid to hard consists a safety definitions I it's but to to -- is little what of say can there do the a thing organization. one and -- are guidelines, there regulations, are intended and bit of that. would on safety regulations The are There guidelines that to so ITU comment slot vary

would example on deal with what anybody consideration to that of by depending a be slot. mean a they an that have So would

current access different what can in space. like large think there's preferences. We people the multiple I technologies to will capital, have is, have to to satellites. try -- really big compete those a tell the I our of are of fleet and space different in based more environment any And each far the think measures incremental we in open-minded you are we our whole And mind, of be to kind of really on strategies between that you strategies context that we're our put we're depending assets what assessment the a strategies competitive of so and value markets tend using. I time the on and in very serving.

One fleet, tell satellite. more efficiency entire we're the own. is that of individual it that of the I Inmarsat opposed And an to that and as think by more fleets, they would integrate effective answers assets. you on sort things using as seeing including make the a looking part. evolved from third-party their is grown, And the than of that reflect our others effect efficiency in be we've lease satellites individual can we've those letter as we you theory that of of capital Hopefully, we at capital our metrics to from parts just of the performance

launch spectrum satellites that appreciate that was and great. the for has slated L-band And that next so currently GEO with for humming to Viasat's contrast color, what L-band No, Mark. other Could small you and Yes. planned the and are Viasat's I SWISStoXX, just are ordered me. competitors then stats XXXX? with related holdings in company the compare --

strong and assets. kind a artifact we Inmarsat listed few of in our of on the acquisition -- past, all in We've spectrum maritime of assets pretty Inmarsat are put position, L-band which including safety. the a first when our And aeronautical serves announced that of mission that website is an really things we the

assets. to of acquired So their many of use that we acquisition assets a we think on have significant architecture space based of sites make pretty space. market I standards, a emerging SWISStoXX have on now, customers our Inmarsat probably one get to be and Viasat direct for we've what's talked IX raising in our for the called market, prior the -- recent for portion XGPP the X up most estimated is and these think L-band was Since constellation. -- sort direct-to-device pretty is on able variety I and of be solutions that we that the device from spectrum of about acquisition, things going which Right inventory substantial. one into modernization in the L-band to to satellites open existing

of disclosed to L-band fleet So yet the we one how are be our -- that. thing just strategy. we'll haven't do we will is, We so adding

I be think sure, we're in to to in just IX those on expecting XXXX. be the service

Your next Needham of & Koontz question the comes Ryan from line from Company.

expected Great. what effect seen there the And think Or growth your Really that deliveries. growth slows nice for slowing to you've impact that wondering turning progress business IFC market receiving of the about and lots do commentary you that OEM I'm already of problems in on further current because in rates? rate and new aircraft?

while. already the I effects. for good been around we're seeing so mean OEM a quite -- The catalyst for have real question. So deliveries those

least And delivery have been months. seen couple of quarters. rates We have over diminished couple really last we the a of the haven't at for that

so me engine there's environment. on upper a XXXs. issues few more then projection delivery [ OEM are the issues really in Airbus with it's planes. there's issues some also ] and to the seeing So far we're of change Really a what There associated wide-bodies absent

So are worse, those the they're really dominant but not getting have that affected persisting. and they're issues it,

add Ryan. And to Mark, quick, that, real maybe on to

had from put quarter, really things licensing agreements. we just a little just context weighted. quarter-over-quarter kind about was we've just saying, to for some X QX to be everybody keep is think couple a the keep from of back more to deliveries mind. From out unique wanted in QX, of little I there performance, QX, this think I as a But to bit royalty bit to Mark talked and in kind I of our

that uptick portfolio our an but there is in we get in extending of more a Our this little portfolio, bit quarter. of did

down, that additional So expenses. bit tick then that. we'll start some see will offsetting to some QX but next see benefits of product to we'll as see the R&D And we quarter, of QX a growth of from revenues

our on But we'll see our continue and but tick our $XX going more tick we'll million kind to picture as revenues see that down the $XX component and year. up to royalty back weighted So to and is IFC in million product of revenues see IFC just we're quarter-over-quarter, related growth in EBITDA. well, net from up big to start

sense, but Great. that's interpret a I great That Shawn. clarification. that, makes

Another business with technical talked having offering. think -- of demand historically out across kind and with kind Obviously, with now Inmarsat announced challenge do integrated there's your on unified truly question ViaSat third hybrid I I LEO base? this sort you've for that out unified of of offering offering. well roll parties? offering service your customer Inmarsat there. you challenges? partners, technical a there then Mark, both know service of have as a when sort And Across to just what you What about as

to are. there's thing to and aiming network, the biggest networks X extend is legacy be able one had them to what its the have Global one to Inmarsat if they network. they -- a different Probably what then Viasat Ka-band and upgrade single harmonize the is, that So we Inmarsat were originally Express were Viasat the we for are and fleet own offerings then -- also services

short space in that we're because bit things we of working years. FAA go -- to probably It's over intermediate is every X that through aviation But occur a next harder any what going the have So do on. the to worthiness especially that's services, little GX flight type changes improve of the X are legacy can or to that. There certifications. harmonization

extends line. of that So that time kind

On have front, the in more flexibility implementing Maritime multiterminal solutions. little a we

the stuff, as harmonizing will we improvement sooner reasons early of So think can maritime some how start that's some the quarter. drive as next of one which we

start will with that. We

like helpful. super on ESA that. just look you and That's that and WAN Do things follow And at solution and to multi-orbit multi... sorts things these a of of antennas part kind optimization as for of

harmonize whether Yes. X we the Government. -- the One there is make or fleet, And to part it. that parts I to all there's it's Aviation want really Maritime are how distinction or existing

have we existing service map, installed the bringing we're focused on customers. do there new road large is then the we to So because there, another base, what there's for -- work installs. doing level of very going up And a we're with which across that, fleet. And

have in lot the aviation lot -- We new of more instance, airlines. market, a for a installs,

[indiscernible] a upgrade equipment I for we us that things So there mentioned. of we're that's the use already fleet it, that using on like of just multi-orbit on the with like I of both when decide the platforms gives or taking advantage those. like map have But can many terminals things ability also existing to we road can just install the

of question the next with Rick Your James. comes Raymond from Prentiss line

more to want I you the I royalty Shawn, sure was $XX ones. million both we that think of Guru up, that that revenue, dropping had stuff think almost royalty but that I million the that of said the follow couple items the out-of-period $XX the wasn't for royalty, if kind about adjusted mentioned, the should were EBITDA A then licensing? Was off. about licensing and and

Rick. Yes,

So let you. for me clarify that

to in technologies. our up showed that offsetting in. growth them both advanced basis, is some of of then from [ that sequential had as understand So a of and total, showed product what that in see wanted QX, QX, some And a was QX tactical from I XX% other about ]. kind networking revenue coming we that In into people go up in we combination, kind we'll

Hopefully, net it $XX shape a up revenue to that helps little million is QX So bit QX. the impact better. from

the is And right? EBITDA to $XX was the that does. million when $XX million It compared revenue, effect

R&D, that Yes, could a EBITDA you impact flow-through the net incremental kind shape of $XX of of plus bit million. about the little

And the think But strokes, trying of slice the noncore? be would something Is not that's capacity? of just really versus how helps. in it considered now earlier on that's using would in? satellite what's have then up something not integrated noncore? from letter, as question you you Is it core kind to That far broad and noncore as what right what

focused -- Well, the especially are on markets the markets and things mobility. and that the mobility we're so really government government

is this main for we're cultivated. and our technologies, we've what the things So looking are

not our deliver services. in have these government as we we've like we pay cases, a customers develop technologies it's us in might what of our cultivated enhance So divergence might that ability are to an customers lot want example, now, commercial some to to but that, where or

pretty doing of of as might of link, optical services lot things So -- it our do cybersecurity on that bear have space, phased technology, and defenses cyber what technology, more becomes all are especially, valuable. synergies antenna we're business. in Even arrays, for instance, issue some more are an those there for can do you may with become strategic have feeder can be those with some a ground things the things to of

other other importance. in But have over or that time, capabilities some may technologies we recede

That's because just and that those constantly main the point just And going is way evaluating do to in to trying so did past. technologies not that the things make we're all. was that I we're we it

a really question way As last and a signal when reminder came we're that the the the I of first the just changing. way think it's is we up, more mentioned, thinking

government? always at but mobility now and core watching, open-minded is right and least Just

things just enhance excited in earth Yes. is we're and the things a Defense that, technologies, or in including there. In earth our mean, the one amount from compete area, will that about be And in really ability to one and on low commercial the -- we Advanced in our we're that perspective, the winning orbit. And I of the are the markets, own both growth our medium or important orbits Technology of technologies. going orbits to fair geosynchronous defense view, of

getting the areas. one that that funded they're technology best is We have all always indicators valuable. and has in those initiatives been technology the the fact of of And new competitive

asked to Apologies that able actually that what if you're was kind get cover capacity Flight as this Flight update in out want on earlier. sense. earmark And you But eventually -- the one? joining is again, Makes will Flight Just of to X, as an what cover? X of that But would there get would an on I'm far update one. where X progress.

estimated we XX% much of be a get as able anomaly a that first ago, year might up changed. as -- over to haven't encountered would When little the the things to that we we Okay. the And capacity.

I think those working some of That's we're been on. assumptions. able we've validate that to what

that, reminded get to to levels. of may to in that need make investments we've those Some equipment we investors needs ground also additional

much outlook. That's the what pretty that's it. as expect So we

rest where that is the we -- other an we important is, intended is even though -- thing are of appointment now had technology. the validates The payable the anomaly that end

important. us we of That great -- launched, will also that's them. we're service So good value faster. new do that going bring help out indication get It's a believe those really when the new get to satellites assets into

they East, -- over probably where the the deliver of Americas Pacific. the existing region: where value, most one the impaired And likely satellite Europe, will will Asia the terms to going satellites Middle the go, will up in they're it's places X the In end are over remaining EMEA and that Africa. most

noticeable And on as seeing third-party the the in capacity impacting move since margins we'll we kind Americas is of usage, supply those amount a point. affect was comm margins at Flight Services are about the the over helps. the Communication think services? capacity margins That we business, that some to some to X third-party constrained, But

us. just things -- return on have focused want emphasized thing the one main that the of on to of mean, things I investors we've That's the capital. one with very emphasize, been I

mobility really especially What's and is This leasing demand judiciously, we demands where emphasized is And so actually we a where in understanding doing very the And pretty by is is ways capital right? we that and one bandwidth of patterns in those there's analyst views attention different on can bases it's are we've of lot, interesting worth doing return different not phenomenon. that is things is are. one enhance What demand. customer the Different interesting of we're which think a operators those different. with have investor market buying. the will is, and

where, with operators other got surplus demand -- if each but by got ways a "Hey, there. in here So trade you've I've the better

You things, win-win tools we're don't we're mean, can at expected of the lease have bandwidth, say, is have be -- it's it situation." -- that for FX, not looking with us. the So bandwidth complementary is that strategically, would we the all big issue we fact things a ViaSat-X a that one I us I that really led

that But that. bandwidth more do to value strategic firing are also, there's I think it a as We well. to

was I real on if Rick, that And quickly. add to Yes. to

think our is I been outlook. I just size make is that factored that's sure and offset to up big impact more it's our want into all than picture growth that clear.

of you what I if out quick ready do S-band material And and about there. That the more Earlier one a item? think maybe becomes makes but one sense. squeeze L-band, primetime question direct-to-device about for can one, in the type when noticeable frame

have primarily European Network. S-band in spectrum do our in for we right holdings the that now So We L-band. Aviation Europe are use

that bandwidth look things amount is the creation is led that Satellite available of of underlying that's is important which Services into, most premise going the of market -- the be in but the the aggregate. we people direct scaling One there device Mobile we the really have Association, really to is encourage what's to in

to way. is that leverage and And to that S-band space all to in and spectrum spectrum common That a what an are we in try L- -- have a industry with holdings. spectrum customer multiple can opportunities shared association so going way common use creates demand also, other is that holdings created benefits standards, including ground creating prices. And points, meeting from holders, back operators to support architecture it your in affordable open for at infrastructure different

So start very that in is already little get that together but will starting can arrive? SOS also but a devices. our scaling support how things others bit been deployed XGPP, it's evolve narrowband the into to meet grow. When deployed, we ties -- our market being happen. you on strategy for like really already, does into exciting messaging, it's still objectives And will this IoT is do have One our that with way, services, capital of this have the standard. is which capital-efficient notifications things them standard will devices chips market And that a in fall, some that that called

more infrastructure in like and things they're the handsets. starting same supporting are and ago, the we -- So support was location or that the emergency we already those of signaling about, are now, talked devices. into U.S., Right a to forming one that devices, the that's but We same X in happening. devices months support chips partnership coming X starting

next just We within expect the few months.

start is think But will radio it still see that's 'XX, what you'll version being called deployed The big new standards. spectrum of speed the defined, fairly what's of soon. step to chip of new can of next will online function. the start allocated standards quality and I that these scaling come to that probably 'XX. and devices number the is of the number scaling and the functions in support is The is start of space those XG the way more Those are So end that -- supportive the basic services start. as going being that think the we number chips of devices be

like and the on capital sounds Great. positive It cash are mantra. free return flow

info. all I So extra that appreciate

Your next Space. from Chris of Quilty with comes question Quilty line the

quarter for or that helpful. Thanks the the putting the prior all prior financials was additional disclosure and financials the out to restated

on the you continues in GX? about are can seeing you're compression market? talk Or the like go the with revenues competition Quick L-band question business. are going but on up, to legacy looks seeing you the Starlink And the Is Maritime what side? on It count ARPU primarily happening that down. terminal some

So it's services. L-band the the of certain revenue is not Basically, decline in majority the Ka-band. we said, of

called in seeing and L-band L-band different is gone different is services, multiple to really have one largest this is And The Inmarsat that we services several has broadband -- the on known pretty be that, years, what's for seeing a effects. have is service. has going are fixed that which that's different the decline. We decline, broadband, --

bulk L-band And grow. the services that may may of some revenue. Actually, the so Different grow. for L-band the of accounts services

growing, have it. Ka-band to we still fast -- turn On that And do work some to but we not like we'd the some need as as is around. that

then thing ViaSat-X the by do I the obvious to and the NexusWave think followed really that that after -- that. is bandwidth near-term thing most

beneficial are those us L-band So for do going to do make are other on the it's doing to the that impact but and architecture. I that expect from and lot position have agreements the same the we looking there. And a really the at to things investments going going things I of -- are the the to open emphasize is benefit our a direct-to-device to think all services thing trying But are we to impact pretty we're things transformative to take space L-band of want just building we're standards A these of aligned. types in that. refresh we're same on do segment open all and

there. And quick to before then, note want -- Chris, real we just up move also I

into a from benefit comparative take-or-pay about a of was million looking Just that revenue. perspective, when last came you're to it year, $X

So to that as just item. onetime I a wanted sure make you guys had

intended be to is is And you. multi-orbit, Got but what are -- it about I you NexusWave multi-frequency? it's And on know non-GEO? thinking partnerships Ka

a done Yes, places can where multi-orbit at of other maritime, and be couple are it multiband. there is

going partnership are performing to simpler only. -- around take want we're are We with definitely that. going be Ka better Others perform of way and a advantage So to to that.

well. So as that on working we're

So I expect to in multi-orbit expand have really we broadly. looking already, actually, as we're to what we're Ka-band -- we well. some more looking partnerships is do And cases, to it would do say what

brings flat designing the for you Aviation or antenna guess, us I that, ESA. Are panel And you. the Services? Got and to one Maritime both

So have of saying we is to things we everything don't one do keep -- we the ourselves.

that of Maritime mean necessarily I not -- it's So we is a are technology, the phased panel as have discovering use people we a which array some technology, platforms flat really that I think different to things good can segments. one basically, different market and the be products versus -- then segments. ground It's for in And different aero versus those of each of types in different market like adapted product. need to

and named will some partners. ourselves. winning do also also we we're our working one on but have technology. been think we commercial supplier government we're We've core on good areas It phased where the of is arrays. product, We working So with really contracts contracts

segmented technology by and we and expect probably mix our is have so application, band a And own platform. technology what third-party of to

space if doing what optics? can, And free you question, in are final I

-- we're standard in compete to what for optical FDA's I would going and go not cross-links. to with say doing inter-satellite going is But than got, the not We're talk instance, much. are about I interoperable we for different the it too

interesting have support for We actually, other and We pretty while applications. on And and well. a Agency from as had talk we're about prefer getting right interesting European it we've to have now. area U.S. now not application. Space think really support some But it's an the a from more worked it's

not terrestrial space-based and applications Okay. But applications. these are

base have both space-based the We terrestrial working we're and actually, that both, has applications. from technology

the of with Louie from DiPalma Your comes William Blair. question next line

systems satellite U.S. the What conflicts. revenue to administration that for Geopolitical is under of -- systems the growth for tactical is for many conflicts some new others to communication or systems were have for the broadband ongoing risk -- Viasat? a and weapon subside in exposure growth hardware you industry. that like Would a and contributed funding if

Yes, there's a lots of risks.

there's risks, think I in administration or risks. that There can -- competitive due there's would I -- program -- changes changes policy. be risks to

we I areas. And into likely We our -- to try would that have those each think So the risks. say outlook of view I our those factor outlook. always them in of business our go-forward reflects

of Mark, second year. the a sense. direct-to-device at you potential half makes in just perhaps And implementation the the in That U.S. hinted

will has Viasat wireless get implementation paid to or your In Apple carriers? terms OEM X big manufacturer? similar Globalstar a and handset looks the you of with partnership Viasat's one will go-to-market, either U.S. Or need roaming of the will what by chip with

going to going I'm ask going the is ones that's to So what first last question. do. thing first to good of Apple really to a all, is we're say I'm

perspective plan look now, can't there's AT&T roaming, that whole be take ultimately, like Verizon, will and terrestrially these of has. each for those likely list is Europe, that. comment you expect is, like So what roaming or you one at the your you roaming to go a way on of works T-Mobile partners is carriers. between that And But I just what we agreements if our instance, roaming

a can expect for good us. and And we pretty environment think that will be that's is relatively the agreements what much everybody carriers So with standardized, who big we probably roaming them. will services fulfill the have

kind will be -- So is business we're of arrangements. that, the working what that's towards that anticipating

year? a have of do already implement you to X -- partnership And is is going setup the big the your how the implemented second be wireless of carriers? how one roaming in with Or half your

are that to that and market it What they carriers delivered have at what devices be quality services right are when what is will prices, the we what expect put so determine now there can curious, those I'd what what roaming supported that those -- agreements kind be are. with paces, that they by in and of as will will

up the yet is of whether in device none announced air, makers this it's because and And a so enabled. bit have devices their major with still that the capability the -- little partly

So -- item. front that gating will the over that's weeks of months. kind be probably be to There a next announcements could on

will that, potential open the think or that maybe I for carriers. up to agreements of closure drive sort roaming with

full I the for the licensing fee, revenue? IP And there forecast was I missed we earlier, model general year per-device X from a fee this is one And you but said final the have one. year there should different full and for may components. know what had annual revenue? the what One then was but that

add different thing I'd is, licensing have is agreements. on Well, the we of we then and forms Shawn say can our what have one different --

into of a on would capability get sold, device example. that's licensing revenue things a be an the that integrating we Some like agreements in

shipment-based drive annual to in Some the going And that fees. the really right year the what parts rest are of it then licenses. would happens of be are now,

So fee. recurring activated, they're as are shipped, units we get a

some uncertainty that. there's so And on

can for just I Shawn, said? that exactly do what have are. anything it. tell to we're to what forecast We going you don't But add forecasts you want you to know what those -- I --

can get of bit a Yes, I additional little color.

do Mark as of going And the more like that next our recurring X ones streams have forward like that the lumpy may like that said, few of down as well have as over I come topical longer-term our to think multiyear technologies quarters. little have a I'd would timing. million I rate we quarterly it's -- be an agreements. both different and a $XX But in say lot taking of And in lumpier kind of for others networking. advanced in quarters, rate annual to expect kind a even

and remarks. Since will no closing Dankberg, over turn go Please questions, I the for CEO, are Mark more conference there Mr. Chairman now back to ahead.

Okay.

to joining our everybody, forward thanks, again, call. We next speaking again So for quarter. look

that gentlemen, for and you all joining. Ladies Thank concludes today's call.

now may You disconnect.