Telesat Reports Results for the Quarter and Nine Months Ended September 30, 2025

Executive Summary

• Telesat reported a net loss of C$121 million for Q3 2025 versus a net profit of C$68 million in the same quarter 2024, driven by lower revenue and fair‑value losses on Lightspeed financing warrants.
• Consolidated revenue fell 27% year‑over‑year to C$101 million (Q3) and C$324 million (nine months). Adjusted EBITDA declined 51% YoY to C$47 million (Q3) and 44% YoY to C$173 million (nine months).
• The company provided a 2025 outlook: revenue $405‑$425 million, adjusted EBITDA $170‑$190 million, LEO operating expense $75‑$85 million, and capital expenditures $900‑$1,100 million (primarily for the Lightspeed constellation).

Key Details

• Revenue:
• Q3 2025: C$101 M (‑27% YoY)

• Nine months ended Sep 30 2025: C$324 M (‑27% YoY)

• Operating Expenses:

• Q3 2025: C$58 M (+26% YoY) – higher legal/professional fees and LEO headcount growth.

• Nine months: C$161 M (+8% YoY).

• Adjusted EBITDA:

• Q3 2025: C$47 M (‑51% YoY), margin 46.3% (down from 69.5%).

• Nine months: C$173 M (‑44% YoY), margin 53.4% (down from 70.0%).

• Net Loss:

• Q3 2025: C$121 M vs. net income C$68 M in Q3 2024.

• Nine months: C$97 M loss vs. C$145 M profit in same period 2024.

• Drivers of Decline:

• Expiration and non‑renewal of long‑term agreements with North American DTH customers, reduced Indonesian rural broadband program revenue, lower LEO consulting revenues.

• Fair‑value loss on Telesat Lightspeed financing warrants; foreign exchange impact on USD‑denominated debt.

• Business Highlights:

• Lightspeed Equity Distribution: September 2025 – 62% of Lightspeed equity transferred to an indirect subsidiary of Telesat Corp.; no operational change.

• Leadership Change: Donald Tremblay appointed CFO (effective Aug 2025), succeeding retiring Andrew Browne.

• Backlog & Utilization (as of Sep 30 2025):

• GEO backlog ≈ C$0.9 B
• LEO (Lightspeed) backlog ≈ C$1.1 B

• Fleet utilization: 69%

• 2025 Financial Outlook (assumes US$1 = C$1.42):

• Revenue: $405‑$425 M
• Adjusted EBITDA: $170‑$190 M
• LEO operating expense: $75‑$85 M

• Capex (mostly Lightspeed): $900‑$1,100 M

• Conference Call: Scheduled for Nov 4 2025, 10:30 a.m. EST; dial‑in details provided.

Notable Quotes

“I am pleased with our performance thus far in 2025,” said Dan Goldberg, President and CEO. “Our Telesat Lightspeed team continues to make good progress… we also took important steps to optimize the company’s corporate and capital structure…” (emphasis on ongoing Lightspeed development and debt‑optimization efforts).

Materiality Assessment: Material – Negative (significant earnings decline, net loss, and revised outlook indicating material impact on investors).