ViaSat sees FY25 revenue roughly flat

In a letter to shareholders the company said, “We view FY25 as a springboard to our multi-year transformation enabling accelerated revenue growth, Adjusted EBITDA growth, and a continued step down in capital expenditures in FY26. We are incorporating the schedules for service entry of new satellites into our financial outlooks. We expect none of those will impact FY2025, but VS3-F3 and VS3-F2 will begin to impact FY2026, as noted in our satellite roadmap which provides a full view of development progress and anticipated service entry dates. Effective with this letter, we will focus on in-service dates as these are the most critical milestones for our customers and the most relevant to our valued shareholders and are what best inform our growth outlook. Sees FY25 low to mid-single-digit YoY Adjusted EBITDA growth excluding the one-time benefits from the litigation settlement of $86M in Q2 FY2024. Sees FY25 Satellite Services revenue to decline low to mid-single digits compared to FY24 reflecting an expected decline in U.S. fixed broadband revenue as we continue to prioritize capacity to our higher margin mobility businesses. The fixed broadband decline will be mostly offset by growth in mobility services revenue, taking into account substantially lower expected OEM deliveries of new aircraft to our customers. Sees FY25 government Systems revenue high-single digit YoY growth, driven by increasing demand for equipment including encryption products, partially offset by a decline in tactical networking. Government Systems revenue visibility for FY2025 is supported by backlog of over $1.3B, alongside growing recurring government service revenue contributions from Inmarsat. Sees FY25 capital expenditures down to $1.4B-$1.5B, including approximately $450M for Inmarsat related capital expenditures, building on approximately $175M of benefits achieved in FY24 relative to the prior outlook. The FY25 range excludes the benefit from insurance recoveries, as capitalized software and network synergies offset a portion of the FY2024 satellite expenditures that moved into FY2025.