Telesat reports results for the quarter ended March 31, 2026
Rhea-AI Summary
Telesat (Nasdaq/TSX: TSAT) reported Q1 2026 consolidated revenue of C$87M (down 25% year-over-year) and adjusted EBITDA of C$35M (down 48%). Net loss was C$151M, driven by lower revenue and a non-cash goodwill impairment. Telesat has invested ~C$2.7B in Telesat Lightspeed to date and spent C$171M on the program in Q1. The company reiterated 2026 guidance: GEO revenue C$300–320M, GEO adjusted EBITDA C$210–230M (ex refinancing costs), and Lightspeed spending C$1.0–1.2B for 2026. Backlog: GEO ~C$800M, LEO ~C$1.1B; GEO utilization 55%.
AI-generated analysis. Not financial advice.
Positive
- Executed multi-year Northwestel contract for Telesat Lightspeed broadband in Nunavut
- Total investment of approximately C$2.7B in Telesat Lightspeed to date
- Maintained full-year 2026 guidance for GEO revenue and GEO adjusted EBITDA
- LEO backlog of approximately C$1.1B and GEO backlog of approximately C$800M
Negative
- Consolidated revenue declined 25% to C$87M in Q1 2026
- Adjusted EBITDA fell 48% to C$35M in Q1 2026
- Net loss widened to C$151M, including a non-cash goodwill impairment
- Q1 included C$7M of debt refinancing expenses and ongoing refinancing risk
News Market Reaction – TSAT
On the day this news was published, TSAT declined 1.71%, reflecting a mild negative market reaction. Argus tracked a trough of -15.2% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $13M from the company's valuation, bringing the market cap to $729.12M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TSAT was nearly flat over 24h (+0.08%) while peers showed mixed moves. The momentum scanner flagged names like ADTN and AVNW moving down sharply and GILT moving up, and Argus notes 2 peers with median move around -21.9%, pointing to broader sector volatility rather than a clear, unified direction relative to TSAT.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 21 | Earnings call scheduling | Neutral | -4.1% | Set date and access details for upcoming Q1 2026 earnings call. |
| Apr 02 | Commercial contract | Positive | +15.6% | Multi-year Northwestel contract to use Lightspeed for Northern Canada broadband. |
| Mar 17 | Full-year earnings | Negative | +19.3% | Reported 2025 revenue and EBITDA declines with a larger net loss. |
| Mar 17 | LEO spectrum update | Positive | +19.3% | Added 500 MHz of Mil‑Ka to initial Lightspeed satellites targeting defence demand. |
| Mar 11 | Earnings call scheduling | Neutral | +0.5% | Announced timing and access details for Q4 and full-year 2025 call. |
Lightspeed- and defense-related announcements have previously coincided with strong positive moves, while weaker GEO/earnings results have not always led to declines.
Over the last few months, Telesat has balanced pressure in its GEO business with major strategic steps in its Lightspeed LEO program. On Mar 17, 2026, it reported weaker 2025 results and higher net losses, yet the stock rose strongly, helped by a simultaneous Mil‑Ka enhancement announcement. The Northwestel Lightspeed contract on Apr 2, 2026 also saw a double‑digit gain. In contrast, routine conference‑call scheduling items have produced limited share reactions. Today’s Q1 2026 release continues the themes of GEO revenue pressure, heavy Lightspeed investment, and reaffirmed 2026 guidance.
Market Pulse Summary
This announcement details a weaker Q1 2026, with revenue of $87 million (down 25%) and Adjusted EBITDA of $35 million, while net loss widened to about $151 million amid GEO goodwill impairment. Management emphasized continued progress on the Lightspeed LEO build, with roughly $2.7 billion invested and GEO and LEO backlogs of about $800 million and $1.1 billion, respectively. Recent SEC filings underscore significant GEO refinancing requirements, making debt management, Lightspeed execution and adherence to 2026 guidance key metrics to monitor.
Key Terms
ifrs accounting standards financial
goodwill impairment financial
capital expenditure financial
backlog financial
low earth orbit technical
AI-generated analysis. Not financial advice.
OTTAWA, Ontario, May 05, 2026 (GLOBE NEWSWIRE) -- Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced its financial results for the three month period ended March 31, 2026. All amounts are in Canadian dollars and reported under IFRS® Accounting Standards unless otherwise noted.
“I’m pleased with Telesat’s performance in the first quarter of 2026, as the company made significant strides on a number of fronts,” commented Dan Goldberg, Telesat’s President and CEO. “Our GEO results are tracking to our expectations, and we continue to make strong progress on the development of the Telesat Lightspeed constellation. During the quarter, we held further design reviews with our satellite and launch vehicle dispenser manufacturers and progressed our work on user terminals, network and satellite operations software development, and ground station deployments. As of the end of the quarter, we’ve invested a total of approximately
“On the commercial front, we executed a contract with Northwestel for Telesat Lightspeed service to support broadband connectivity in communities across Nunavut. That contract demonstrates the commercial appeal of Telesat Lightspeed for rural broadband, and interest remains robust at this time from government and defence users globally as well. Since announcing our plans to incorporate Military Ka-band (Mil‑Ka) spectrum into the Telesat Lightspeed constellation, we’ve seen increased engagement from allied government customers, reinforcing our view that Telesat Lightspeed is well positioned to address fast-growing government demand for secure, resilient, and advanced satellite capabilities to meet mission‑critical communications requirements around the world.”
“In our GEO business, we continued to manage ongoing revenue pressures with a disciplined approach to cost control, allowing us to partially mitigate the impact of topline pressure on margins and generate resilient cash flow from our existing satellite fleet. Today, we are reiterating our revenue and adjusted EBITDA guidance for the year for our GEO segment.”
“Finally, we remain focused and are working closely with our advisors on refinancing the Telesat GEO debt before it starts to mature later this year.”
For the quarter ended March 31, 2026, Telesat reported consolidated revenue of
In our GEO segment, revenue for the quarter was
In our LEO segment, we invested
As of March 31, 2026, backlog2 for our GEO segment totaled approximately
Business Highlights
- In March, Telesat announced the addition of Mil-Ka spectrum to its advanced Telesat Lightspeed network, responding to strong global demand for mission-critical Mil-Ka capacity in LEO. Telesat Lightspeed was designed from inception to meet the security and resiliency requirements of defence organizations and the addition of Mil-Ka connectivity that will be interoperable with existing government systems further enhances its ability to support rapidly expanding defence and sovereignty requirements.
- In April, Northwestel, the largest communications provider in Canada’s North, signed a multi-year contract for Telesat Lightspeed services. Northwestel plans to leverage Telesat Lightspeed to deliver low latency, sovereign broadband connectivity to communities throughout Nunavut.
- In April, we changed the name of our GEO operating subsidiary from Telesat Canada to Telesat GEO Inc. The renaming does not impact our legal structure, ownership, operations, financial results, or subsidiaries.
2026 Financial Outlook
(assumes an average foreign exchange rate of US
Telesat is maintaining its guidance provided in March and continues to expect full year 2026:
- GEO revenue to be between
$300 million and$320 million ; - GEO Adjusted EBITDA1 to be between
$210 million and$230 million , excluding non-recurring debt refinancing costs; and - Total spending on the Telesat Lightspeed program, including both expensed and capitalized costs, to be between
$1.0 billion and$1.2 billion .
Telesat’s quarterly report on Form 6-K for the quarter ended March 31, 2026 has been filed with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, and may be accessed on the SEC’s website at www.sec.gov and on the System for Electronic Document Analysis and Retrieval+ (SEDAR+) website at www.sedarplus.ca.
Conference Call
Telesat has scheduled a conference call on Tuesday, May 5th, 2026, at 10:30 AM EDT to discuss its financial results for the quarter ended March 31, 2026. The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Donald Tremblay, Chief Financial Officer, of Telesat.
Dial-in Instructions:
The toll-free dial-in number for the teleconference is +1-800-715-9871. Callers outside of North America should dial +1-646-307-1963. The access code is 6669954 followed by the number sign (#). Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference. In the event of technical issues, please dial *0 and advise the conference call operator of the company name (Telesat) and the name of the moderator (James Ratcliffe).
Webcast:
The conference call can also be accessed, as a listen in only, at https://edge.media-server.com/mmc/p/7e5e286e. A replay of the webcast will be archived on Telesat’s website under the tab “Investors”.
Dial-in Audio Replay:
A replay of the teleconference will be available one hour after the end of the call on May 5, 2026 until 11:59 p.m. ET on May 19, 2026. To access the replay, please call +1-800-770-2030. Callers from outside North America should dial +1-609-800-9909. The access code is 6669954 followed by the number sign (#).
About Telesat
Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (Nasdaq and TSX: TSAT) is one of the largest and most innovative global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth.
Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company’s state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high-capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com.
Investor Relations Contact:
James Ratcliffe
+1 613 748 8424
ir@telesat.com
Forward-Looking Statements Safe Harbor
This news release contains statements that are not based on historical fact, including financial outlook for 2026, estimated timing of the commencement of global commercial service on Telesat Lightspeed and the growth opportunities of Telesat Lightspeed, and are “forward-looking statements” and “future-orientated financial performance” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words “will,” “expect,” “continue,” or similar expressions, are forward-looking statements. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements and future-orientated financial information as a result of known and unknown risks and uncertainties. Future-orientated financial information contained in this news release about prospective financial performance, financial position, or cash flows are expected to give the reader a better understanding of the potential future performance of Telesat. Readers are cautioned that any such future-orientated financial information and financial outlook contained herein should not be used for purposes other than those disclosed herein. All statements made in this news release are made only as of the date set forth at the beginning of this release. Telesat undertakes no obligation to update the information made in this news release in the event facts or circumstances subsequently change after the date of this release.
These forward-looking statements and future-orientated financial information are not guarantees of future performance, are based on Telesat’s current expectations, and are subject to a number of risks, uncertainties, assumptions, and other factors, some of which are beyond Telesat control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Known risks and uncertainties include but are not limited to: risks associated with financial factors, including swings in the global financial markets, access to capital to construct our LEO satellite constellation, the ability to refinance Telesat GEO Inc.’s debt, the outcome of litigation related to Telesat GEO Inc.’s debt and the
| Telesat Corporation Unaudited Interim Condensed Consolidated Statements of Income (Loss) | |||||||||||||||||||||
| For the three months ended March 31 | |||||||||||||||||||||
| (in thousands of Canadian dollars, except per share amounts) | 2026 | 2025 | |||||||||||||||||||
| Revenue | $ | 87,060 | $ | 116,749 | |||||||||||||||||
| Operating expenses | (55,336 | ) | (53,042 | ) | |||||||||||||||||
| Depreciation | (22,130 | ) | (25,909 | ) | |||||||||||||||||
| Amortization | (8,611 | ) | (10,899 | ) | |||||||||||||||||
| Other operating gains (losses), net | (82,347 | ) | 3,950 | ||||||||||||||||||
| Operating (loss) income | (81,364 | ) | 30,849 | ||||||||||||||||||
| Interest expense | (49,958 | ) | (56,664 | ) | |||||||||||||||||
| Interest and other income | 4,149 | 6,208 | |||||||||||||||||||
| Gain (loss) on changes in fair value of financial instruments | (15,821 | ) | (33,412 | ) | |||||||||||||||||
| Gain (loss) on foreign exchange | (17,306 | ) | 2,480 | ||||||||||||||||||
| Income (loss) before income taxes | (160,300 | ) | (50,539 | ) | |||||||||||||||||
| Tax (expense) recovery | 9,351 | (918 | ) | ||||||||||||||||||
| Net income (loss) | $ | (150,949 | ) | $ | (51,457 | ) | |||||||||||||||
| Net income (loss) attributable to: | |||||||||||||||||||||
| Telesat Corporation shareholders | $ | (45,495 | ) | $ | (15,538 | ) | |||||||||||||||
| Non-controlling interest | (105,454 | ) | (35,919 | ) | |||||||||||||||||
| $ | (150,949 | ) | $ | (51,457 | ) | ||||||||||||||||
| Net income (loss) per common share attributable to Telesat Corporation shareholders | |||||||||||||||||||||
| Basic | $ | (3.04 | ) | $ | (1.08 | ) | |||||||||||||||
| Diluted | $ | (3.04 | ) | $ | (1.08 | ) | |||||||||||||||
| Total Weighted Average Common Shares Outstanding | |||||||||||||||||||||
| Basic | 14,979,228 | 14,381,205 | |||||||||||||||||||
| Diluted | 14,979,228 | 14,381,205 | |||||||||||||||||||
| Telesat Corporation | ||||||
| Unaudited Interim Condensed Consolidated Balance Sheets | ||||||
| (in thousands of Canadian dollars) | March 31, 2026 | December 31, 2025 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 522,725 | $ | 509,798 | ||
| Trade and other receivables | 58,823 | 58,422 | ||||
| Other current financial assets | 426 | 430 | ||||
| Current income tax recoverable | 10,054 | 5,952 | ||||
| Prepaid expenses and other current assets | 265,780 | 257,456 | ||||
| Total current assets | 857,808 | 832,058 | ||||
| Satellites, property and other equipment | 2,885,263 | 2,716,708 | ||||
| Deferred tax assets | 4,773 | 4,231 | ||||
| Other long-term financial assets | 17,160 | 18,283 | ||||
| Long-term income tax recoverable | 6,993 | 6,993 | ||||
| Other long-term assets | 326,440 | 368,657 | ||||
| Intangible assets | 435,544 | 442,278 | ||||
| Goodwill | 2,158,085 | 2,214,575 | ||||
| Total assets | $ | 6,692,066 | $ | 6,603,783 | ||
| Liabilities | ||||||
| Trade and other payables | $ | 88,845 | $ | 57,447 | ||
| Other current financial liabilities | 889,850 | 857,637 | ||||
| Income taxes payable | 44 | 2,772 | ||||
| Other current liabilities | 59,704 | 58,431 | ||||
| Current indebtedness | 2,374,537 | 2,341,145 | ||||
| Total current liabilities | 3,412,980 | 3,317,432 | ||||
| Long-term indebtedness | 1,270,275 | 1,152,462 | ||||
| Deferred tax liabilities | 80,252 | 91,991 | ||||
| Other long-term financial liabilities | 9,788 | 10,091 | ||||
| Other long-term liabilities | 254,787 | 262,211 | ||||
| Total liabilities | 5,028,082 | 4,834,187 | ||||
| Shareholders’ Equity | ||||||
| Share capital | 87,117 | 69,997 | ||||
| Accumulated earnings | 284,705 | 330,814 | ||||
| Reserves | 147,193 | 130,009 | ||||
| Total Telesat Corporation shareholders’ equity | 519,015 | 530,820 | ||||
| Non-controlling interest | 1,144,969 | 1,238,776 | ||||
| Total shareholders’ equity | 1,663,984 | 1,769,596 | ||||
| Total liabilities and shareholders’ equity | $ | 6,692,066 | $ | 6,603,783 | ||
| Telesat Corporation | ||||||||
| Unaudited Interim CondensedConsolidated Statements of Cash Flows | ||||||||
| For the three months ended March 31 | ||||||||
| (in thousands of Canadian dollars) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | (150,949 | ) | $ | (51,457 | ) | ||
| Adjustments to reconcile net income (loss) to cash flows from operating activities | ||||||||
| Depreciation | 22,130 | 25,909 | ||||||
| Amortization | 8,611 | 10,899 | ||||||
| Tax expense (recovery) | (9,351 | ) | 918 | |||||
| Interest expense | 49,958 | 56,664 | ||||||
| Interest income | (4,400 | ) | (6,342 | ) | ||||
| (Gain) loss on foreign exchange | 17,306 | (2,480 | ) | |||||
| (Gain) loss on changes in fair value of financial instruments | 15,821 | 33,412 | ||||||
| Share-based compensation | 3,129 | 3,241 | ||||||
| (Gain) loss on disposal of assets | (20 | ) | (3,950 | ) | ||||
| Impairment | 84,469 | — | ||||||
| Deferred revenue amortization | (11,304 | ) | (14,407 | ) | ||||
| Pension expense | 1,125 | 1,366 | ||||||
| Other | 749 | (691 | ) | |||||
| Income taxes paid, net of income taxes received | (9,328 | ) | (1,580 | ) | ||||
| Interest paid, net of interest received | (27,078 | ) | (31,350 | ) | ||||
| Operating assets and liabilities | 12,752 | 118,772 | ||||||
| Net cash from operating activities | 3,620 | 138,924 | ||||||
| Cash flows (used in) generated from investing activities | ||||||||
| Cash payments related to satellite programs | (74,540 | ) | (200,313 | ) | ||||
| Cash payments related to property and other equipment | (43,145 | ) | (34,744 | ) | ||||
| Net proceeds from disposal of assets | — | 4,500 | ||||||
| Investments and other | (870 | ) | — | |||||
| Net cash (used in) generated from investing activities | (118,555 | ) | (230,557 | ) | ||||
| Cash flows (used in) generated from financing activities | ||||||||
| Proceeds from indebtedness | 130,218 | 340,000 | ||||||
| Payments of principal on lease liabilities | (674 | ) | (515 | ) | ||||
| Satellite performance incentive payments | (212 | ) | (190 | ) | ||||
| Proceeds from exercise of stock options | 599 | — | ||||||
| Tax withholdings on settlement of restricted share units | (9,551 | ) | (6,788 | ) | ||||
| Net cash (used in) generated from financing activities | 120,380 | 332,507 | ||||||
| Effect of changes in exchange rates on cash and cash equivalents | 7,482 | 4,433 | ||||||
| Changes in cash and cash equivalents | 12,927 | 245,307 | ||||||
| Cash and cash equivalents, beginning of period | 509,798 | 552,064 | ||||||
| Cash and cash equivalents, end of period | $ | 522,725 | $ | 797,371 | ||||
| Telesat’s Adjusted EBITDA Margin(1): | ||||||||
| The following table provides a quantitative reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA margin, each of which are non-IFRS Accounting Standards measures. | ||||||||
| Three months ended March 31, | ||||||||
| (in thousands of Canadian dollars) (unaudited) | 2026 | 2025 | ||||||
| Net income (loss) | $ | (150,949 | ) | $ | (51,457 | ) | ||
| Tax expense (recovery) | (9,351 | ) | 918 | |||||
| (Gain) loss on changes in fair value of financial instruments | 15,821 | 33,412 | ||||||
| (Gain) loss on foreign exchange | 17,306 | (2,480 | ) | |||||
| Interest and other income | (4,149 | ) | (6,208 | ) | ||||
| Interest expense | 49,958 | 56,664 | ||||||
| Depreciation | 22,130 | 25,909 | ||||||
| Amortization | 8,611 | 10,899 | ||||||
| Other operating (gains) losses, net | 82,347 | (3,950 | ) | |||||
| Non-recurring compensation expenses(3) | 288 | 459 | ||||||
| Non-cash expense related to share-based compensation | 3,129 | 3,241 | ||||||
| Adjusted EBITDA | $ | 35,141 | $ | 67,407 | ||||
| Revenue | $ | 87,060 | $ | 116,749 | ||||
| Adjusted EBITDA Margin | 40.4 | % | 57.7 | % | ||||
End Notes
1 Non-IFRS Accounting Standards Measures – Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS Accounting Standards measures. EBITDA is defined as “Earnings Before Interest, Taxes, Depreciation and Amortization.” Adjusted EBITDA is used to measure Telesat’s financial performance. Adjusted EBITDA is defined as operating income (less certain operating expenses such as share-based compensation expenses and unusual and non-recurring items, including restructuring related expenses) before interest expense, taxes, depreciation and amortization. Adjusted EBITDA margin is used to measure Telesat’s operating performance. Adjusted EBITDA margin is defined as the ratio of Adjusted EBITDA to revenue.
Adjusted EBITDA and Adjusted EBITDA margin are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers. Adjusted EBITDA allows investors and Telesat to compare Telesat’s operating results with that of competitors exclusive of depreciation and amortization, interest and investment income, interest expense, taxes and certain other expenses. Financial results of competitors in the satellite services industry have significant variations that can result from timing of capital expenditures, the amount of intangible assets recorded, the differences in assets’ lives, the timing and amount of investments, the effects of other income (expense), and unusual and non-recurring items. The use of Adjusted EBITDA assists investors and Telesat to compare operating results exclusive of these items. Competitors in the satellite services industry have significantly different capital structures. Telesat believes that the use of Adjusted EBITDA improves comparability of performance by excluding interest expense.
Telesat believes that the use of Adjusted EBITDA and the Adjusted EBITDA margin along with IFRS Accounting Standards measures enhances the understanding of our operating results and is useful to investors and us in comparing performance with competitors, estimating enterprise value and making investment decisions. Adjusted EBITDA and Adjusted EBITDA margin as used here may not be the same as similarly titled measures reported by competitors. Adjusted EBITDA and Adjusted EBITDA margin should be used in conjunction with IFRS Accounting Standards measures and are not presented as a substitute for cash flows from operations as a measure of our liquidity or as a substitute for net income (loss) as an indicator of our operating performance.
2 Telesat’s backlog represents future cash inflows from capacity allocation or service delivery contracts. As of March 31, 2026, GEO backlog was
3 Includes severance payments and special compensation and benefits for executives and employees.
