Ottawa, Canada, November 2, 2026--For the quarter ended September 30, 2026, satellite operator Telesat reported consolidated revenue of CDN$ 81 million, a decrease of 20% ($20 million) compared to the same period of the 1 prior year, and adjusted EBITDA of CDN$ 12 million, a decrease of 74% ($35 million) from the third quarter of 2025.
Foreign exchange did not materially impact these year-on-year comparisons. Excluding the impact of higher expenses related to our debt refinancing process, adjusted EBITDA decreased 41%. Telesat net loss for the quarter was CDN$ 157 million compared to a CDN$ 121 million loss in the prior year. The increased net loss was primarily due to lower adjusted EBITDA and a larger loss associated with increases in the fair value of the Telesat Lightspeed Financing Warrants, partially offset by a foreign exchange gain in the third quarter of 2026 compared to a foreign exchange loss in the third quarter of 2025.
All amounts reported are in Canadian dollars.
In its GEO segment, revenue for the quarter was $79 million, a decrease of 21% ($22 million) from the same period in 2025. The revenue decline was driven primarily by non-renewal of a broadcast contract in 2025 and a reduction in contracted capacity for a broadcast customer in 2026, combined with a reduction in service to a North American broadband customer and the removal from service of certain geostationary satellites. GEO segment adjusted EBITDA for the quarter was $36 million, a 43% ($27 million) decline from the comparable period in 2025, reflecting lower revenue and higher expenses related to our debt refinancing process. Adjusted EBITDA for the third quarter of 2026 included $25 million in expenses relating to our debt refinancing process. Excluding these costs, adjusted EBITDA for the GEO segment was 23% lower than the prior period and the adjusted EBITDA margin1 was 78%, compared to 79% in the same period of 2025.
In its LEO segment, Telesat invested $368 million in the Telesat Lightspeed program in the third quarter of 2026, comprising $24 million in operating expense and $344 million in capital expenditure.
For the nine-month period ending September 30, 2026, Telesat reported consolidated revenue of $247 million, a decrease of 24% ($77 million) compared to the prior year, and adjusted EBITDA1 of $69 million, a decrease of 60% ($104 million) from the first nine months of 2025. Foreign exchange does not materially impact these year-on-year comparisons. Excluding the impact of higher expenses related to its debt refinancing process, adjusted EBITDA decreased 42%. Telesat net loss for the first nine months of 2026 was $867 million, compared to a $97 million net loss 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.
GEO segment revenue in the nine months ending September 30, 2026 was $243 million, a 24% decline ($79 million) from the same period in 2025. GEO segment adjusted EBITDA for the nine months ending September 30, 2026 was $135 million, a 40% decline from the comparable period in 2025. Excluding expenses related to our debt refinancing process, adjusted EBITDA for the GEO segment was 28% lower than the prior period, and the adjusted EBITDA margin was 74% in the first nine months of 2026, compared to 78% in the same period of 2025.
Telesat invested $705 million in the Telesat Lightspeed program in the first nine months of 2026, of which $64 million was recorded as operating expense and $641 million as capital expenditure. As of September 30, 2026, backlog for its GEO segment totaled approximately $779 million and LEO backlog2 totaled approximately $5.6 billion. GEO satellite utilization was approximately 59% at September 30, 2026.
"I'm pleased with the strong progress we made last quarter and throughout the year on our key strategic objectives," commented Dan Goldberg, Telesat's President and CEO. "The third quarter marked the signing of our landmark $2.7 billion initial agreement with the Government of Canada for the ESCP-P program, a major milestone in validating the large and growing opportunity for Telesat Lightspeed in the sovereign satellite communications space. We see this initial ESCP-P contract as just the first step in a very attractive pipeline of government and defence opportunities with Canada and allied countries, and we're moving in a focused way to secure those opportunities and turn them into contracted backlog. In parallel, we're making steady progress on the initial Telesat Lightspeed constellation, now expanded to a planned 225 satellites, and the ground infrastructure that will support it. Telesat Lightspeed is fully funded and we expect to commence high latitude commercial service around the end of Q1 2028,” he added.
