Ottawa, Canada, August 13, 2026--Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced its financial results for the three- and six-month periods ending June 30, 2026.
For the quarter ended June 30, 2026, Telesat reported consolidated revenue of $79 million, a decrease of 25% ($27 million) compared to the prior year, and adjusted EBITDA1 of $22 million, a decrease of 62% ($37 million) from the second quarter of 2025. Excluding the impact of higher expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA decreased 45%. Telesat net loss for the 1 quarter was $559 million compared to a $76 million gain in the prior year. The net loss was primarily due to non-cash losses associated with an increase in the fair value of the Telesat Lightspeed Financing Warrants and, owing to a weakening of the Canadian dollar relative to the U.S. dollar, an increase in the Canadian dollar value of our U.S. dollar-denominated debt.
For the six-month period ending June 30, 2026, Telesat reported consolidated revenue of $167 million, a decrease of 25% ($56 million) compared to the prior year, and adjusted EBITDA1 of $57 million, a decrease of 55% ($69 million) from the first half of 2025. Foreign exchange does not materially impact these year-on year comparisons. Excluding the impact of higher expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA decreased 43%. Telesat net loss for the first six months of 2026 was $710 million, compared to a $24 million gain in the prior year. The variance was primarily due to a loss associated with an increase in the fair value of the Telesat Lightspeed Financing Warrants, a GEO goodwill impairment charge, lower adjusted EBITDA, and a foreign exchange loss associated with the impact of a weaker Canadian dollar on the Canadian dollar value of the company’s U.S. dollar-denominated debt.
GEO segment revenue in the six months ending June 30, 2026, was $164 million, a 26% decline ($57 million) from the same period in 2025. GEO segment adjusted EBITDA for the six months ending June 30, 2026, was $98 million, a 39% decline from the comparable period in 2025. Excluding expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA for the GEO segment was 30% lower than the prior period, and the adjusted EBITDA margin was 73% in the first six months of 2026, compared to 77% in the same period of 2025.
Telesat invested $337 million in the Telesat Lightspeed program in the first six months of 2026, of which $40 million was recorded as operating expense and $297 million as capital expenditure.
“It’s been an eventful past few months for Telesat and I’m very pleased with the rapid progress the company is making and the strong traction we’re seeing with customers for Telesat Lightspeed,” commented Dan Goldberg, Telesat’s President and CEO. “In our LEO business, the most significant highlight was the announcement last week that we signed a $2.7 billion contract, including option periods, with the Government of Canada under the ESCP-P program to deliver secure Military Ka-band Arctic connectivity to the Canadian Armed Forces. As a result of this initial ESCP-P contract, we announced the expansion of the Telesat Lightspeed satellite constellation to 225 satellites, a 44% increase over our prior plan, which positions us to accelerate the growth of our LEO business while serving the evolving and mission critical requirements of defence and commercial customers. Telesat Lightspeed is fully funded and we remain on track to commence global commercial service around the end of Q1 2028.”
