Ottawa, Canada, March 17, 2026--Satellite operator Telesat (Nasdaq and TSX: TSAT) today announced its financial results for the three and twelve-month periods ended December 31, 2025. For the year ended December 31, 2025, Telesat reported consolidated revenue of CDN$ 418 million, a decrease of 27% (CDN$153 million) compared to the prior year. The decrease was primarily due to rate and capacity reductions by its North American DTH customers and lower revenue from enterprise customers serving rural broadband markets.
All amounts are in Canadian dollars unless otherwise noted.
Operating expenses for the full year 2025 were $212 million, an increase of 2% ($4 million) from 2024 due to higher legal and professional fees related to the Telesat Canada equity distribution in Q3 as well as the debt refinancing process, partially offset by lower share-based compensation and lower costs in our GEO business segment. Operating costs for our LEO business segment 1 remained relatively flat versus last year as higher compensation costs associated with increased headcount were offset by the capitalization of a larger portion of compensation spending.
Adjusted EBITDA for the full-year 2025 was $213 million, a decrease of 45% ($171 million) from 2024, primarily reflecting the decline in revenue. For the year ended December 31, 2025, Telesat had a net loss of $530 million compared to a loss of $302 million for the prior year. The negative variation of $228 million was principally due to a combination of reduced revenue, higher non-cash impairment losses related to our GEO segment, lower gains on repurchase of debt, and an increased charge associated with the increased value of the Telesat LEO warrants, partially offset by a foreign exchange gain associated with the impact of foreign exchange rate shifts on the Canadian dollar value of our US Dollar denominated debt.
In its GEO segment, adjusted EBITDA declined by 36% to $284 million in 2025, reflecting a $141 million decline in revenue and $33 million in costs associated with the Telesat Canada equity distribution as well as the debt refinancing process. Excluding these costs, GEO operating costs excluding extraordinary items were down approximately 12% compared to the prior year, leading to a 77% adjusted EBITDA margin, down from 80% in 2024.
Capital expenditure for the full year 2025 was $708 million on an accrual basis, below our expectations due to lower than anticipated spending on Telesat Lightspeed development and construction, which represented almost all of our consolidated capital expenditure.
LEO segment combined capital and operating expenditures of $777 million were primarily funded with drawdowns of $690 million on our $2.5 billion Telesat Lightspeed Financing facility. As of December 31, 2025, $1.85 billion was still available on the facility.
At the end of 2025, backlog2 for our GEO segment totaled approximately $800 million. LEO backlog2 totaled approximately $1.0 billion at the end of 2025. GEO satellite utilization was 59% at the end of 2025.
For the quarter ended December 31, 2025, Telesat reported consolidated revenue of $94 million, a decrease of 26% ($34 million) compared to the prior year. The decrease was primarily due to rate and capacity reductions by certain of our North American DTH customers and lower revenue from enterprise customers serving rural broadband customers.
Operating expenses for the quarter were $50 million, a decrease of 14% ($8 million) from the same period in 2024 as higher legal and professional fees associated with the Telesat Canada equity distribution as well as the debt refinancing process were more than offset by a reduction in share-based compensation and an increase in capitalized labour in our LEO segment. Adjusted EBITDA for the quarter was $40 million, a decrease of 46% ($34 million) from the fourth quarter of 2024.
Telesat net loss for the quarter was $433 million compared to a $447 million loss in the prior year. The improvement was primarily due to a foreign exchange gain in the fourth quarter of 2025, as compared to a loss in 2024, both due to the impact of changes in the US Dollar/Canadian Dollar exchange rate on the Canadian dollar value of our US Dollar-denominated debt, largely offset by the impact of lower revenue and a charge associated with the increased value of the Telesat LEO warrants.
GEO segment Adjusted EBITDA for the quarter was $60 million, a 39% decline from the comparable period in 2024, reflecting lower revenue and costs incurred during the quarter relating to the Telesat Canada equity distribution in Q3 and the debt refinancing process. Excluding these costs, GEO segment adjusted EBITDA margin1 was 75% during the quarter, compared to 78% in the same period of 2024.
“Telesat made strong progress on multiple fronts in 2025,” commented Dan Goldberg, Telesat’s President and CEO. “The development of the Telesat Lightspeed constellation – the satellites, associated software, user terminals, and landing stations – continues to move forward at a rapid pace. We’re seeing strong interest in Telesat Lightspeed from customers across our target market segments, with demand from government users for defense and sovereignty requirements being particularly robust at this time."
“In our GEO business, 2025 unfolded largely as we had anticipated, with ongoing revenue pressure in both our enterprise and broadcast segments. We continue to be highly disciplined in our spending in the segment, working to maximize the cash flow from our existing satellite fleet. I’m pleased with the cost reduction progress we made in the GEO segment, allowing us to exceed the Adjusted EBITDA guidance we gave at the outset of last year. Finally, we remain focused on refinancing the Telesat Canada debt, which relates to our GEO business, that begins to mature late this year. To that end, our advisors are engaging closely with the advisors of certain of the large Telesat Canada lenders on this matter,” Goldberg added.