Telesat Q1 Revenue Falls 25% to C$87m, Net Loss Widens to C$151m
TSAT•Telesat reported Q1 revenue of C$87 million, down 25% year-over-year, and adjusted EBITDA of C$35 million, a 48% decline, while net loss widened to C$151 million. The company has invested C$2.7 billion in its Lightspeed LEO constellation and maintained full-year GEO revenue guidance of C$300m–C$320m.
1. Q1 Financial Results
For the quarter ended March 31, 2026, Telesat recorded consolidated revenue of C$87 million, down 25% from the prior year, and adjusted EBITDA of C$35 million, a 48% decline. Net loss widened to C$151 million from C$51 million, driven by lower revenue and a non-cash goodwill impairment in the GEO segment.
2. Lightspeed Program Investment and Progress
Telesat invested approximately C$2.7 billion in its Lightspeed LEO constellation program, including both expensed and capitalized costs. The company advanced design reviews with satellite and launch partners, progressed user terminal and network software development, deployed ground stations, and reported a LEO backlog of C$1.1 billion with added Mil-Ka spectrum for defence users.
3. GEO Business Performance and Backlog
GEO segment revenue declined 26% to C$86 million due to non-renewals of broadcast contracts and reduced fixed broadband services, partially offset by new aviation contracts. Adjusted EBITDA margin was 72% excluding C$7 million in debt refinancing expenses, with GEO backlog at C$800 million and satellite utilization at 55%.
4. Guidance and Outlook
Telesat reaffirmed full-year 2026 guidance for GEO revenue of C$300 million to C$320 million and adjusted EBITDA of C$210 million to C$230 million (excluding non-recurring refinancing costs), and expects total Lightspeed spending of C$1.0 billion to C$1.2 billion. Management is working with advisors to refinance GEO debt maturing later this year.
