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ViaSat (VSAT)
NASDAQ:VSAT

ViaSat (VSAT) AI Stock Analysis

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ViaSat

(NASDAQ:VSAT)

Rating:56Neutral
Price Target:
ViaSat's stock score reflects mixed financial performance with potential revenue growth and strong cash flow as positive factors. High leverage and profitability challenges weigh negatively on the score. The technical analysis indicates a neutral stance, while the earnings call and corporate events provide some optimism with strategic growth and debt reduction efforts.
Positive Factors
Aviation Industry Success
Recent aviation wins with American Airlines, Etihad, and Riyadh Air instill confidence that ViaSat will remain a satcom industry leader.
Operational Efficiency
A surprising 20% capacity gain from optimization efforts allows VSAT to reduce its planned launch capital expenditure.
Settlement Agreement
ViaSat announced a favorable settlement agreement with Ligado that will involve $520 million in lump-sum payments and $16 million in quarterly payments that increase 3% annually.
Negative Factors
Competition
ViaSat continues to face intense competition from Starlink across the residential, maritime, aviation, and government end-markets.
Satellite Delays
ViaSat has experienced delays with its ViaSat-3 satellite constellation, affecting its ability to provide Wi-Fi on most of American Airlines' international fleet.
Share Price Impact
News of a sizeable block sale from major shareholders effectively erased VSAT’s initial post-earnings share price gains.

ViaSat (VSAT) vs. SPDR S&P 500 ETF (SPY)

ViaSat Business Overview & Revenue Model

Company DescriptionViasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines; community internet services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics. Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; design and technology services comprising analysis, design, and development of satellites and ground systems; application specific integrated circuit and monolithic microwave integrated circuit chips; and network function virtualization, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.
How the Company Makes MoneyViaSat makes money primarily through its satellite services, which include broadband internet connectivity for residential, commercial, and government customers. A significant portion of revenue is generated from consumer broadband services, particularly in areas with limited access to traditional high-speed internet. The company also earns revenue by providing in-flight Wi-Fi and entertainment services to airlines. Additionally, ViaSat secures revenue through government contracts, supplying secure communications and networking solutions. These revenue streams are complemented by strategic partnerships with satellite operators, airlines, and government entities, which enhance its service offerings and market reach.

ViaSat Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q4-2025)
|
% Change Since: 19.66%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. The company achieved record new contract awards, successful milestones in satellite deployment, and positive free cash flow. However, it faced a significant GAAP net loss, revenue declines in key segments, and a notable write-down. Despite the challenges, the company appears to be strategically positioned for future growth.
Q4-2025 Updates
Positive Updates
Record New Contract Awards
Viasat achieved record new contract awards growth in fiscal year 2025.
Successful Launch and Integration of ViaSat-3 Flight 1
Successfully integrated ViaSat-3 Flight 1 into the global network, enhancing user experience and network efficiency.
Operational and Strategic Milestones
Completed critical milestones on satellite roadmap, received positive reception for NexusWave maritime broadband service, and introduced network optimization innovations.
Strong Performance in Government Satcom
Government satcom revenue grew by 16% in the fourth quarter.
Positive Free Cash Flow Achieved
Generated about $50 million of free cash flow in fiscal year 2025.
Reduction in Capital Expenditure
Reduced combined fiscal 2025 and 2026 CapEx by almost $300 million.
Negative Updates
GAAP Net Loss
Reported a GAAP net loss of $575 million for fiscal year 2025.
Communication Services Revenue Decline
Communication Services segment revenue declined by 4% due to decline in fixed services and other end-product revenue.
Maritime Revenue Decrease
Maritime revenue was down 8%.
Fixed Broadband Challenges
US fixed broadband revenue continued to be challenged with capacity constraints.
Significant Write-down
Took a $160 million write-down in Communication Services segment related to the exit of certain EMEA ground network assets and related contracts.
Company Guidance
During Viasat's Fourth Quarter and Fiscal Year 2025 earnings call, the company reported achieving or exceeding its guidance metrics and highlighted record new contract awards growth. The company completed critical milestones on its satellite roadmap, integrated the first ViaSat-3 Flight 1 into its global network, and introduced the multi-orbit NexusWave maritime broadband service. Viasat also made significant progress on its capital structure, reducing capital intensity. Financially, Viasat reported fiscal 2025 revenue of $4.5 billion, a GAAP net loss of $575 million, and adjusted EBITDA of $1.55 billion, representing a 34.2% adjusted EBITDA margin. For fiscal 2026, Viasat anticipates modest revenue growth, flattish adjusted EBITDA, and aims for a free-cash flow inflection. The company plans to reduce its capital expenditures, which are expected to be about $1.3 billion, and remains focused on capital efficiency and debt reduction.

ViaSat Financial Statement Overview

Summary
ViaSat's revenue growth and positive operating cash flows are promising. However, challenges remain due to ongoing profitability issues and high leverage, as evidenced by negative net income and a high debt-to-equity ratio.
Income Statement
45
Neutral
ViaSat's revenue has seen some growth over the years, with a TTM revenue of approximately $4.52 billion. However, the company has been struggling with profitability, as indicated by negative net income in the most recent periods, leading to a negative net profit margin. The gross profit margin is reasonable at around 35.2% TTM, but EBIT and EBITDA margins remain low, with EBIT margin at 1.25% TTM. The negative net profit margin and volatile EBIT figures suggest ongoing challenges in achieving stable profitability.
Balance Sheet
50
Neutral
ViaSat's balance sheet shows a relatively high level of debt with a debt-to-equity ratio of approximately 0.96 TTM. The equity ratio stands at 30.5% TTM, indicating moderate leverage. Return on equity is negative due to losses, which is a concern for investors. The company has a substantial asset base, but the high debt levels could pose risks if not managed properly.
Cash Flow
60
Neutral
The cash flow statement reveals some positive trends, with an operating cash flow to net income ratio indicating a strong conversion of earnings into cash. Free cash flow improved significantly in the TTM period, turning positive at $463.8 million from a negative position previously. However, the volatility in free cash flow growth rates over the years highlights potential uncertainties in cash generation.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
4.52B4.28B2.56B2.79B2.26B2.31B
Gross Profit
1.36B1.38B721.40M847.51M691.82M699.55M
EBIT
56.60M-889.81M-155.96M12.45M58.23M38.42M
EBITDA
1.32B363.98M365.03M386.93M351.59M382.25M
Net Income Common Stockholders
-394.00M-1.07B-211.57M-2.20M16.55M9.34M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.56B1.90B1.35B310.46M295.95M304.31M
Total Assets
15.60B16.33B7.73B6.39B5.35B4.88B
Total Debt
7.52B7.64B2.73B2.81B2.15B2.14B
Net Debt
5.96B5.74B1.38B2.50B1.85B1.83B
Total Liabilities
10.75B11.26B3.87B3.71B2.96B2.83B
Stockholders Equity
4.76B5.03B3.82B2.63B2.35B2.03B
Cash FlowFree Cash Flow
-318.62M-851.19M-796.46M-484.67M-158.06M-324.14M
Operating Cash Flow
841.73M688.20M367.86M505.64M727.22M436.94M
Investing Cash Flow
-364.22M-1.29B768.04M-1.13B-885.27M-758.80M
Financing Cash Flow
-547.62M1.12B-66.13M643.63M149.69M365.19M

ViaSat Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.60
Price Trends
50DMA
9.42
Positive
100DMA
9.61
Positive
200DMA
10.13
Positive
Market Momentum
MACD
0.45
Negative
RSI
75.23
Negative
STOCH
92.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSAT, the sentiment is Positive. The current price of 12.6 is above the 20-day moving average (MA) of 9.97, above the 50-day MA of 9.42, and above the 200-day MA of 10.13, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 75.23 is Negative, neither overbought nor oversold. The STOCH value of 92.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSAT.

ViaSat Risk Analysis

ViaSat disclosed 33 risk factors in its most recent earnings report. ViaSat reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ViaSat Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$10.20B100.523.71%2.86%-29.92%
62
Neutral
$11.80B10.10-7.47%2.99%7.37%-8.16%
62
Neutral
$5.72B-42.79%3.58%-22.74%
60
Neutral
$2.05B437.140.71%3.34%
56
Neutral
$1.64B-12.00%19.02%76.67%
44
Neutral
$4.01M-97.40%-29.78%45.35%
40
Underperform
$4.84B-1.08%-23.85%88.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VSAT
ViaSat
12.60
-1.42
-10.13%
CIEN
Ciena
72.16
25.10
53.34%
SATS
Echostar
16.84
-0.73
-4.15%
LITE
Lumentum Holdings
82.46
32.46
64.92%
VIAV
Viavi Solutions
9.18
1.70
22.73%
BOXL
Boxlight
1.80
-1.76
-49.44%

ViaSat Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Viasat Redeems $442.55M Senior Notes Early
Positive
May 2, 2025

On May 2, 2025, Viasat, Inc. redeemed all $442,550,000 of its outstanding 5.625% Senior Notes due 2025, ahead of their September 15, 2025 maturity date, using cash on hand. This strategic move involved satisfying and discharging the indenture governing the Notes, potentially strengthening Viasat’s financial position and operational flexibility.

Spark’s Take on VSAT Stock

According to Spark, TipRanks’ AI Analyst, VSAT is a Neutral.

ViaSat’s overall stock score reflects its revenue growth and strong cash flow potential. However, high debt levels and negative profitability weigh on the score. The positive outlook from the earnings call, driven by growth in key business areas, provides some optimism, but valuation challenges persist due to the negative P/E ratio.

To see Spark’s full report on VSAT stock, click here.

Executive/Board Changes
Viasat Announces EVP Kevin Harkenrider’s Retirement
Neutral
Apr 28, 2025

On April 28, 2025, Viasat, Inc. announced the upcoming retirement of Kevin Harkenrider, the Executive Vice President and Chief Corporate Officer, effective June 30, 2025, or potentially later, but no later than December 31, 2025. Post-retirement, Mr. Harkenrider will remain as a non-executive employee until the end of 2025, which may impact the company’s leadership structure and operational continuity.

Spark’s Take on VSAT Stock

According to Spark, TipRanks’ AI Analyst, VSAT is a Neutral.

ViaSat’s stock score reflects a mixed outlook. While revenue growth and operating cash flow are positives, profitability struggles and high leverage raise concerns. The technical analysis indicates bearish momentum, and the valuation suggests unattractiveness due to ongoing losses. The earnings call provided a balanced view with growth in specific segments, but highlighted challenges in others, impacting the overall score.

To see Spark’s full report on VSAT stock, click here.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.