Telesat reported third-quarter 2025 results that reflected the expected decline in its GEO satellite business alongside steady momentum on its Lightspeed low Earth orbit (LEO) constellation. Despite year-over-year drops in revenue and EBITDA, the company reiterated its full-year guidance and confirmed that the Lightspeed satellites still on track for launch late next year.
Telesat also announced a $5 million investment in Farcast, a company they already had a relationship with. Farcast is a San Francisco-based startup that is building advanced satellite user terminals.
In the earning calls Dan Goldberg, Telesat’s President and CEO said, “Farcast is a very innovative company with a very innovative technology, where they interleave the transmit and receive elements of one of these flat panel antennas. And there are real advantages that you get from that.”
Q3 earning results
For the quarter ended September 30, Telesat posted revenue of $101 million, a 27% ($37 million) decrease from the same period in 2024. The decline was driven primarily by the renewal of the Nimiq-5 DTH contract with Dish Network at lower rates, the expiry of a separate DTH agreement following the retirement of Anik F3, and reduced demand from enterprise and government clients, including Indonesia’s rural broadband program.
Operating expenses rose 26% to $58 million, reflecting higher Lightspeed headcount and professional fees related to the company’s ongoing capital restructuring. Adjusted EBITDA fell to $47 million, down 51% year-over-year, while Telesat reported a net loss of $121 million versus net income of $68 million in Q3 2024.
For the nine months ended September 30, revenue was $324 million (down 27%) and adjusted EBITDA was $173 million (down 44%). The company ended the quarter with $483 million in cash and short-term investments, supported by ongoing access to government financing facilities totaling about $2 billion.
Highlights from Q3
In September, Telesat completed the distribution of 62% of its Lightspeed equity to an indirect subsidiary of Telesat Corporation — a move designed to “optimize the company’s capital structure and enhance financing flexibility,” said Goldberg.
Goldberg noted that Telesat’s advisors are now in discussions with holders of its GEO debt “with the objective of finding the best path forward to addressing that debt.”
The quarter also marked a leadership change as Donald Tremblay joined Telesat as Chief Financial Officer, succeeding Andrew Browne, who is retiring after six years with the company and nearly three decades in the satellite sector. Goldberg called Browne “a brilliant colleague and leader” as the long-time CFO made his final appearance on the company’s earnings call.
Lightspeed schedule reaffirmed
Goldberg reaffirmed that Lightspeed’s first satellites are scheduled for launch in late 2026, with initial Pathfinder spacecraft expected around December, followed by a full ramp-up through 2027. “We’re very pleased with the progress on satellite development, ground infrastructure, and software for the network,” he said.
Telesat plans to begin global service once 96 of 156 satellites are in orbit for a few months and plans to have all 156 satellites launched by late 2027. The company’s LEO backlog remains at $1.1 billion, complemented by $900 million in GEO backlog and 69% fleet utilization as of September 30.
Defence applications
Goldberg also highlighted rising demand for Lightspeed across aeronautical and government markets, especially in defense applications, where Canada’s renewed commitment to NATO spending offers new opportunities. “Given the importance of Arctic sovereignty and the government’s increased defense investments, we see strong potential for Lightspeed to support national and allied defense requirements,” he said.
And seemingly all conversations about space and defence end up mentioning the U.S. Golden Dome initiative. Goldberg reiterated Telesat’s focus on interoperability and defense readiness, noting that Lightspeed’s optical inter-satellite links adhere to the U.S. Space Development Agency’s standard.
“We’ve been in discussions with the U.S. Space Development Agency and other elements of the U.S. defense establishment around interoperability, and that’s something we’ve designed into Lightspeed from the start. Our optical inter-satellite links are compliant with the SDA standard, which means we could integrate with their proliferated networks, including what’s being referred to as the Golden Dome’initiative. That’s an important advantage for us because it positions Lightspeed as a dual-use system that can serve both commercial and defense requirements.”
Telesat guidance
Telesat maintained its full-year 2025 outlook, expecting:
- Revenue: $405 million – $425 million
- Adjusted EBITDA: $170 million – $190 million
- LEO operating expenses: $75 million – $85 million
- Capital expenditures: $900 million – $1.1 billion, nearly all for Lightspeed
Editor’s note: We’ve updated the story to correct that Telesat can begin global service once 96 of 156 satellites are in orbit a few months.