Viasat, Inc. (VSAT): Business Model Canvas [Dec-2025 Updated]

You're looking at Viasat, Inc., right in the middle of its biggest strategic pivot, and honestly, understanding their business model now is key to seeing where the next few years go. We're talking about a company with an estimated $\mathbf{\$4.52 \text{ billion}}$ in FY2025 revenue, betting its future on the massive ViaSat-3 constellation while juggling a $\mathbf{\$5.66 \text{ billion}}$ net debt load. It's a high-stakes game balancing huge capital expenditure-think $\mathbf{\$1.4\text{B} \text{ to } \$1.5\text{B}}$ in CapEx for 2025-with securing that $\mathbf{\$984 \text{ million}}$ defense backlog and serving over $\mathbf{6,000}$ connected aircraft. Let's break down the nine blocks of the Viasat, Inc. Business Model Canvas to see exactly how they plan to turn this multi-orbit ambition into shareholder value, so check out the details below.

Viasat, Inc. (VSAT) - Canvas Business Model: Key Partnerships

Viasat, Inc. relies on a broad ecosystem of partners to deliver its multi-orbit, end-to-end communications services across commercial mobility, government, and enterprise sectors.

Multiple GSO and NGSO satellite operators for multi-orbit capacity

Viasat, Inc. actively integrates capacity from other satellite operators to bolster its multi-orbit roadmap. This strategy is designed to achieve industry-leading resource utilization and drive capital efficiency. A key example is the agreement signed with Telesat to incorporate Telesat Lightspeed LEO Ka-band capacity into the Viasat, Inc. multi-orbit network. This LEO capacity will be seamlessly integrated with Viasat, Inc.'s own ultra-high throughput satellites.

Commercial airlines for In-Flight Connectivity (IFC) service distribution

The distribution of In-Flight Connectivity (IFC) relies heavily on airline agreements. Viasat, Inc. currently provides passenger connectivity on over 60 airlines and enables connected aircraft services for more than 200 airlines globally. For business aviation under the JetXP service, more than 2,100 customers are utilizing the premium benefits. In a specific recent example, Royal Jordanian selected Viasat, Inc.'s solution for more than 40 aircraft, with installations continuing into 2025. Etihad Airways is expanding its Viasat, Inc. Amara solution across its entire fleet, including the new A321LR aircraft.

Passenger demand validates this channel; Viasat, Inc.'s research indicates 75% of passengers are more likely to select airlines offering quality in-flight Wi-Fi. Furthermore, 87% of passengers are willing to watch advertisements for free Wi-Fi access.

Mobile Network Operators (MNOs) for future Direct-to-Device (D2D) services

Viasat, Inc. is building a Direct-to-Device (D2D) ecosystem that includes Mobile Network Operators (MNOs) to augment its existing Mobile Satellite Services (MSS) capabilities. This effort leverages 3GPP standards-based Non-Terrestrial Network (NTN) service infrastructure. Recent trials in Southern Brazil showcased this capability, connecting vehicles directly to Viasat, Inc.'s L-band satellites and Skylo's network for narrowband tracking. The market interest is substantial; a survey conducted from May to June 2025 found that six in ten mobile users are willing to pay extra for D2D services, and nearly half would switch providers to get them.

Global distribution partners for maritime and enterprise services

The vast majority of Viasat, Inc.'s enterprise and land mobile services are sold through a network of independent partners operating in more than 80 countries worldwide. For maritime, Viasat, Inc. has a strategic partnership with AXESS Networks Maritime to expand global reach. The NexusWave service, which combines GEO Ka-band, LEO, LTE, and L-band networks, is set to be enhanced by the ViaSat-3 Flight 2 and Flight 3 satellites. During recent sea trials using the VS60 terminal, download speeds exceeded 250 megabits per second.

Defense contractors and government agencies for integrated solutions

Government and defense contracts form a critical part of the business, primarily through the Defense and Advanced Technologies (DAT) segment. In the third quarter of fiscal year 2025 (Q3 FY2025), DAT segment awards increased 49% YoY to $327 million. The segment's backlog stood at $925 million in Q3 FY2025, representing a 26% YoY increase. Key government partnerships include the selection by the U.S. Space Force's (USSF) Space Systems Command (SSC) for Phase 2 of the Enterprise Space Terminal (EST) program to develop optical laser communications terminals. Additionally, Viasat, Inc. secured a five-year contract extension with the Navy Exchange Service Command (NEXCOM) to continue providing managed connectivity services across Navy and joint base installations worldwide.

Here's a quick look at the scale of these partnership-driven segments:

The DAT segment backlog was $925 million as of Q3 FY2025.

Viasat, Inc. is building out its ecosystem, which includes chipset manufacturers, OEMs, and solution providers for the D2D space.

Finance: review the Q4 FY2025 backlog projections against the Q3 FY2025 figure of $2.6 billion total backlog.

Viasat, Inc. (VSAT) - Canvas Business Model: Key Activities

You're looking at the core engine of Viasat, Inc. right now-the things they absolutely must execute on to make the whole model work, especially given the massive capital investment in space assets. These activities are where the rubber meets the road for their combined GEO/Inmarsat strategy.

The most visible, and arguably most critical, activity is the Satellite constellation design, launch, and operation. You saw the ViaSat-3 Flight 2 (F2) successfully launch on November 14, 2025, aboard a United Launch Alliance Atlas V551. This second of three Ka-band satellites is expected to more than double the bandwidth capacity of Viasat, Inc.'s entire existing fleet. The plan is for ViaSat-3 F2 to enter service in early 2026. This is all about getting that high-capacity Ka-band coverage over the Americas online.

Hand-in-hand with the new constellation is the Integration of Inmarsat's global L-band and S-band networks. The acquisition closed in May 2023, and the key activity now is the operational merging of those L-band and S-band assets with the new Ka-band capacity. This is what powers their NexusWave bonded connectivity service, which combines GEO Ka-band, LEO, LTE, and L-band capacity. The new VS60 maritime terminal, purpose-built for ViaSat-3, recorded download speeds exceeding 250 Mbps in sea trials, showing the integration is yielding tangible performance improvements.

Next up is Developing advanced cybersecurity and encryption products. This is a major focus within the Defense and Advanced Technologies (DAT) segment. For instance, InfoSec/Cyber product revenues were up 14% in Q2 FY'26, largely fueled by high assurance encryption products. Demand for these high-speed Type 1 encryptors remains strong, often supporting cloud data center expansion and AI applications.

The execution on the defense side is measured by the backlog. Viasat, Inc. is managing a record Defense and Advanced Technologies (DAT) segment order backlog of $984 million as of the end of fiscal year 2025 (March 31, 2025). While later reports show this grew to $1.2 billion by Q2 FY'26, the $984 million figure represents the baseline for the end of the last reported fiscal year.

Finally, the company is focused on efficiency, specifically Streamlining operations for $100 million in annual expense savings. This target was set to be realized beginning primarily in fiscal year 2025, stemming from the operational and role rationalization following the Inmarsat acquisition.

Here's a quick look at some of the related financial performance metrics that underpin these activities, based on the Q2 FY'26 results:

The operational focus is clearly on maximizing the return from these new assets and contracts. You can see the priorities reflected in the segment performance:

• Achieving service entry for ViaSat-3 F2 in early 2026.
• Ramping up installations for the NexusWave service, with installations up 40% sequentially in Q2 FY'26.
• Driving growth in key areas like Aviation revenue, which was up 15%.
• Maintaining a healthy book-to-bill ratio in DAT, which was greater than 1.1 times for each DAT business line.
• Managing fixed broadband subscribers, which declined as anticipated to 150,000.

Finance: draft the Q3 FY'26 cash flow projection incorporating the expected Ligado payment of $420 million due October 31, 2025.

Viasat, Inc. (VSAT) - Canvas Business Model: Key Resources

You're looking at the core assets Viasat, Inc. is relying on to execute its strategy as of late 2025. These aren't just abstract concepts; they are tangible, expensive, and mission-critical components.

Global multi-orbit satellite fleet (GEO, LEO, MEO) including Inmarsat assets

Viasat, Inc. operates a combined fleet that spans multiple orbits, a direct result of the May 2023 Inmarsat acquisition. As of March 31, 2025, Viasat operated a fleet of 23 satellites across Ka-, L-, and S-bands. The Inmarsat operational fleet consists of 15 in-service or operational satellites spanning Ka-, L-, and S-bands as of August 2024.

The L-band network is a key differentiator; Viasat, Inc. is one of only two satellite operators with global L-band coverage. This network utilizes eight L-band satellites in orbit, with three more under construction, representing over $2 billion total capital expenditure in the active global L-band GEO network.

The fleet composition, including Inmarsat assets, looks something like this:

ViaSat-3 Ka-band constellation, with Flight 2 doubling Americas capacity

The ViaSat-3 constellation is central to future capacity. The ViaSat-3 Flight 2 (F2) satellite successfully launched in November 2025. This single satellite is anticipated to double the overall bandwidth capacity of Viasat's entire existing fleet once operational. ViaSat-3 F2 is slated to provide services over the Americas region, with commercial service entry expected in early 2026. Each ViaSat-3 satellite is designed to provide coverage over nearly one-third of the Earth and is capable of delivering more than 1 Terabit per second of network capacity.

Proprietary ground infrastructure and terminal technology

The network relies on extensive ground assets and user-side hardware. As of March 31, 2025, Viasat's In-Flight Connectivity (IFC) systems were installed on approximately 4,120 commercial aircraft and 2,000 business jets. For maritime, Viasat provided Ka-band communication services to approximately 14,000 vessels globally. New terminals, like the VS60 maritime terminal developed with Viasat's software-defined radio technology, achieved download speeds exceeding 250 megabits per second during sea trials. The Defense and Advanced Technologies segment order backlog stood at $984 million as of the end of Fiscal Year 2025.

Extensive spectrum licenses (Ka-band, L-band, S-band)

Spectrum access is a non-negotiable asset. Viasat, through its ownership of Inmarsat, holds licenses in the 2GHz MSS band (sometimes called S-band) throughout Europe. Specifically, they are licensed to use the 1980-1995 MHz and 2170-2185 MHz segments of the 2GHz MSS band. Viasat is seeking a full renewal of 2x15 MHz of this 2GHz MSS spectrum for an 18-year term post-2027. The company also maintains its L-band assets, which are crucial for resilient narrowband services.

Intellectual property in secure networking and tactical communications

Viasat's IP strength is evidenced by defense contracts. Viasat was selected as one of five awardees for the U.S. Space Force's Protected Tactical SATCOM-Global (PTS-G) program. The Indefinite Delivery Indefinite Quantity (IDIQ) contract has a ceiling value of $4 billion for all potential awardees. The initial award focuses on a 7-month design phase for a dual-band X/Ka-band satellite system architecture. The first launch for this PTS-G constellation is projected for 2028.

For context on the business scale:

• Record FY2025 Revenue: $4.5 billion.
• Record FY2025 New Contract Awards: $4.7 billion.
• Record FY2025 Adjusted EBITDA: $1.5 billion.
• Total Debt (as of June 2025): Approximately $6.43 billion.

Finance: review the CapEx schedule for the remaining ViaSat-3 satellites against the $984 million DAT backlog by Monday.

Viasat, Inc. (VSAT) - Canvas Business Model: Value Propositions

You're looking at Viasat, Inc. (VSAT) right now, and the value they promise is tied directly to their massive, multi-orbit network buildout. The whole story for late 2025 is about integrating the Inmarsat assets while bringing the ViaSat-3 constellation online to deliver capacity that simply wasn't available before. Honestly, the numbers from fiscal year 2025 show the scale of the operation, with record total annual revenue hitting approximately $4.52 billion and Adjusted EBITDA reaching a record $1.5 billion.

High-speed, high-capacity In-Flight Connectivity (IFC) for commercial aviation

For commercial aviation, the value proposition centers on delivering a superior passenger experience, which is now being enhanced by capacity optimization even before the full ViaSat-3 constellation is active. In the third quarter of fiscal year 2025, the number of commercial IFC aircraft in service grew by approximately 13% Year-over-Year (YoY). Business jets saw even stronger growth at approximately 18% YoY. The contracted backlog for aviation also reflected this confidence, growing 22% YoY in that same quarter. You see this in the JetXP service for business aviation, which, as of September 2025, is delivering five times more capacity across the Eastern United States.

• Commercial IFC aircraft in service grew ~13% YoY (Q3 FY2025).
• Business jet customers using JetXP now exceed 600 worldwide.
• JetXP capacity boost over Eastern US is 5X.

Resilient, secure, and integrated multi-orbit communications for governments

The government and defense side is showing strong momentum, which you can see in the contract awards. The Defense and Advanced Technologies (DAT) segment is a key value driver here, with awards growing 58% YoY in the fourth quarter of fiscal year 2025. This segment's backlog stood at $984 million at the end of FY2025, marking a 50% increase year-over-year. This reflects the value of secure, integrated solutions that combine different orbital assets for mission assurance.

Global, high-quality maritime broadband via NexusWave service

The NexusWave service, leveraging the bonded multi-orbit approach, is gaining traction fast. As of July 2025, orders for NexusWave had already exceeded 1,000 vessels, showing strong appetite for this integrated service. Real-world tests of the service demonstrated download speeds up to 340 megabits per second (Mbps) and upload speeds up to 80 Mbps, with network availability consistently exceeding 99.9%. Furthermore, the new VS60 maritime terminal achieved download speeds above 250 Mbps in sea trials, signaling a step-change in performance for shipboard connectivity.

Vertically integrated, end-to-end satellite network solutions

Viasat, Inc. offers the value of controlling the entire chain, from the satellite in orbit down to the terminal on the ground or on an aircraft. The planned entry into service for the ViaSat-3 F2 satellite in 2026 is the linchpin, as it's expected to double the overall bandwidth capacity of the company's entire existing fleet. This integration allows them to offer services like the new Amara IFC solution and the NexusWave bonding, which pulls together GEO Ka-band, LEO, LTE, and L-band services seamlessly. The Communication Services segment revenue in Q1 FY2025 was $826.8 million, up 48% YoY, showing the immediate financial impact of the combined network assets.

Reliable broadband access in underserved fixed markets

While the mobility segments are the focus, the fixed broadband market remains a component of the Communication Services segment. The company's overall gross profit margin for FY2025 was approximately 33.0% on $4.52 billion in revenue. The DAT segment, which includes some advanced technologies supporting fixed solutions, saw revenue rise 37% to $299.7 million in Q1 FY2025. This segment's strong performance helps offset expected declines in the fixed broadband line within the Communication Services segment.

Here's a quick look at the performance metrics supporting these value propositions as of late 2025:

If onboarding takes 14+ days, churn risk rises, especially in competitive mobility markets. Finance: draft 13-week cash view by Friday.

Viasat, Inc. (VSAT) - Canvas Business Model: Customer Relationships

You're looking at how Viasat, Inc. keeps its diverse customer base-from sailors at sea to military personnel on base-engaged and satisfied. It's not one-size-fits-all; the relationship model shifts dramatically based on the segment.

Dedicated Account Management for Large Government and Airline Contracts

For the largest, most complex contracts, Viasat deploys dedicated teams. This is where the value of long-term partnership really shows, especially in the Defense and Advanced Technologies (DAT) segment. The DAT segment contributed to the total Fiscal Year 2025 revenue of approximately $4.52 billion. Viasat, Inc. has been a trusted partner to the Navy Exchange Service Command (NEXCOM) for nearly 15 years, recently securing a five-year contract extension for managed connectivity services across more than 100 bases worldwide.

This government focus is reinforced by recent wins, such as the multi-million dollar Indefinite Delivery/Indefinite Quantity (IDIQ) contract awarded on July 30, 2025, for a next-generation Ethernet Data Encryptor. In Q3 of Fiscal Year 2025, DAT segment awards jumped 49%, driven by encryption product wins and multi-orbit SATCOM contracts. For aviation, the relationship is cemented through fleetwide deals, like the one with Etihad Airways for Viasat Amara connectivity. Viasat, Inc. currently provides passenger connectivity on over 60 airlines and connected aircraft services for more than 200 airlines globally.

Managed Services Model for Mobility Customers (Aviation, Maritime)

Mobility customers, whether flying high or sailing the open ocean, rely on a managed, multi-layered service approach. The NexusWave service, a key offering from Inmarsat Maritime (a Viasat company), is seeing early traction. As of early Fiscal Year 2026, more than 1,000 vessels were already committed with orders for this bonded connectivity platform. This service blends capacity from GEO Ka-band, LEO, LTE, and L-band networks for resilience. To give you a sense of scale in aviation, Viasat reported a 37% year-over-year increase in aviation connectivity revenue for fiscal year 2023, fueled by higher install rates among major carriers. Commercial aviation connectivity grew approximately 13% year-over-year in Q3 FY2025.

Self-Service Portals and Customer Support for Fixed Residential Broadband

For fixed residential broadband, the relationship leans heavily on digital self-service tools. Customers use the My Viasat dashboard online or the My Viasat mobile app to manage their service. This allows them to handle day-to-day needs without needing to call support.

• View current plan detail and change plans.
• Review data usage and buy more High-Speed Data (where available).
• Make a payment, change the payment method, or set up auto-pay.
• Troubleshoot the network connection.

The Viasat Essentials plan requires a 12-month minimum commitment and includes 150 GB of High-Speed Data. While U.S. fixed broadband subscribers continued to decline, as noted in Q2 FY26 reporting, the company continues to support this base with digital tools. If online management fails, support is available via a dedicated phone line, though user experiences with technical assistance definitely span a spectrum.

Strategic, Long-Term Relationships with Defense Clients

The defense sector is characterized by deep, multi-year commitments that provide revenue predictability. A general indicator of this strategy is a historical average contract duration of 5.3 years and a contract renewal rate of 87%. The recent five-year NEXCOM extension is a prime example of this long-term approach. The multi-year nature of the IDIQ contract awarded in July 2025 is expected to provide a stable and predictable income source for Viasat, Inc. The DAT segment backlog as of the end of FY2025 was $984 million, an increase of 50% year-over-year, showing strong forward visibility from these client relationships.

Direct Sales and Technical Support for Enterprise Solutions

Viasat, Inc. deploys a dedicated direct sales force specifically targeting enterprise and government sectors. These teams work to integrate solutions like enterprise connectivity and cybersecurity products. The company offers technical expertise to support these complex deployments. For instance, the development of a next-generation Ethernet Data Encryptor (EDE) under the new IDIQ contract will utilize PSIAM™ technology, allowing for software upgrades and reducing the need for costly hardware replacements-a key support feature for long-term enterprise clients.

Here's a quick look at the segmentation of Viasat's customer-facing revenue streams based on available data:

Finance: review the Q4 FY2025 contract pipeline value against the $4.7 billion in record new contract awards from FY2025.

Viasat, Inc. (VSAT) - Canvas Business Model: Channels

You're looking at Viasat, Inc. (VSAT) channels, and honestly, the sheer scale of the operation, especially post-Inmarsat, dictates a multi-pronged approach to reach customers. The company's total revenue for the fiscal year ending March 31, 2025, hit approximately $4.52 billion, with the Communication Services segment driving the bulk at about $3.30 billion of that total. This revenue is overwhelmingly secured through fixed-price contracts, which accounted for roughly 96% of total revenues in FY2025. The channels must support this massive, contract-heavy business.

For the high-value government and large commercial mobility customers, Viasat, Inc. relies on a dedicated, in-house structure. This direct sales force is essential for navigating the complex procurement cycles associated with defense and large fleet operators. For instance, in the aviation sector, the company had IFC systems installed and in service on approximately 4,120 commercial aircraft as of March 31, 2025, with another 1,600 anticipated to be put into service. This direct engagement ensures deep integration and management of those large service agreements.

The global distribution network is key for reaching the maritime and enterprise segments, often leveraging the infrastructure inherited from the Inmarsat acquisition. This network moves solutions like the NexusWave fully managed connectivity service to commercial maritime customers globally. The Defense and Advanced Technologies segment, while reporting separately, also channels its complex offerings through specialized routes, evidenced by its order backlog reaching $984 million by the end of FY2025.

Direct-to-consumer and enterprise sales for fixed broadband services represent another core channel, though the company is deep in a capital-intensive network buildout phase. The channels here focus on subscriber acquisition for residential and enterprise fixed broadband, which falls under the Communication Services segment. The nature of the business means that the sale of the service is often tied to the sale of the necessary hardware, which can involve third-party integrators.

Terminal and equipment sales are often facilitated through third-party integrators, especially for specialized or smaller-scale deployments outside the major direct-sales focus areas. These partners help distribute Viasat, Inc.'s advanced satellite and wireless products, modems, and terminal solutions. The company is also preparing for the next evolution of connectivity, which will heavily rely on partnerships to scale efficiently.

The future of Viasat, Inc.'s mobile reach is clearly mapped through partner MNO networks for Direct-to-Device (D2D) satellite services. This strategy is designed to share infrastructure and save cash while achieving meaningful service reach. A major step here is the joint venture with Abu Dhabi-based Space42 for the Equatys constellation, which is targeting commercial rollout within 3 years from late 2025. This D2D approach leverages 3GPP standards-based non-terrestrial-network (NTN) service infrastructure, as demonstrated in recent trials in Brazil.

Here's a look at the scale of the business being channeled through these routes as of the end of fiscal year 2025:

The D2D strategy is built on collaboration to rapidly deploy services beyond the current scope. Viasat, Inc. is actively developing an ecosystem for this technology.

• Leveraging 3GPP standards-based non-terrestrial-network (NTN) service infrastructure.
• Exploring ecosystem partnership options for a 5G NTN initiative with Space42.
• Demonstrated narrowband tracking and messaging for the automotive sector in Brazil.
• The ViaSat-3 F2 satellite launch, expected in November 2025, is set to more than double Viasat, Inc.'s bandwidth capacity.

Finance: draft 13-week cash view by Friday.

Viasat, Inc. (VSAT) - Canvas Business Model: Customer Segments

You're mapping out Viasat, Inc. (VSAT)'s customer base as of late 2025, and honestly, the story is one of two distinct, yet integrated, halves: the massive Communication Services segment and the focused Defense and Advanced Technologies (DAT) segment. The overall picture for fiscal year 2025 shows a company leaning heavily on mobility and government contracts following the Inmarsat integration.

Here's a quick look at how the revenue broke down for the full fiscal year 2025, which really shows where the bulk of the business lies:

The Communication Services segment, which houses most of the mobility and fixed broadband customers, generated approximately $3.30 billion in revenue for fiscal year 2025. The DAT segment, focused on secure networking and defense systems, contributed about $1.22 billion.

Let's break down the specific customer groups Viasat, Inc. serves within these segments.

Commercial Aviation

This is a core mobility market for Viasat, Inc., providing inflight connectivity (IFC) services. You see the growth here in the sheer number of planes coming online, even with airframer delays persisting into 2025. The company provides passenger connectivity on over 60+ airlines worldwide.

• Commercial Aviation aircraft in service (as of Q3 FY2025): approximately 3,950 tails.
• Business Aviation aircraft in service (as of Q3 FY2025): approximately 2,000 aircraft.
• The backlog for aviation connectivity grew even faster, up 22% year-over-year as of Q3 FY2025.

The push for next-generation experiences, like those on planes served by the ViaSat-3 F1 testing, is clearly driving adoption.

US and International Government/Military (DAT segment)

The DAT segment is where Viasat, Inc. delivers secure networking systems, tactical data links, and information assurance products to government and military customers. This area shows strong organic momentum, often outpacing the broader Communication Services segment in growth metrics.

• DAT segment revenue for Q3 FY2025 was $303 million, a 20% increase year-over-year.
• DAT segment new contract awards in Q3 FY2025 reached $327 million, marking a 49% year-over-year increase.
• The DAT segment order backlog stood at $984 million at the end of FY2025.

The growth in this segment is heavily supported by demand for encryption products, with Information Security and Cyber Defense awards totaling just over $200 million in one quarter alone, driven by data center expansion.

Commercial Maritime

Maritime customers, spanning shipping, energy, and cruise lines, are served through the Communication Services segment, often utilizing the former Inmarsat network capabilities integrated into Viasat, Inc.'s portfolio. The focus here is on delivering high-speed, uninterrupted broadband.

• Viasat, Inc. installed over 200 terminals with global shipping giant Maersk for its FleetBroadband services.
• The company launched the NexusWave maritime broadband service, with future satellite capacity enhancements planned for the Americas and Asia-Pacific regions by 2026.

While the segment saw some anticipated revenue flow-through declines in Q2 FY2025, the strategic focus on enhanced value propositions like NexusWave is key for future performance.

Residential and Enterprise Fixed Broadband users

This group relies on Viasat, Inc.'s ground-based infrastructure for high-speed satellite internet access across the US, Canada, Europe, Mexico, and Australia. You'll note the competitive pressure in the US market, but the total installed base remains significant globally.

• US fixed broadband subscribers at the end of Q3 FY2025 were approximately 205,000.
• The average revenue per user (ARPU) for US fixed broadband in Q3 FY2025 was $115.
• Viasat, Inc. has shipped over two million fixed broadband terminals in total for residential and enterprise applications.

Enterprise users specifically benefit from dedicated bandwidth options enabled by the ViaSat-3 constellation, which is designed to deliver over 1 Terabit per second of network capacity across its satellites.

Energy and resource sector companies

Companies in the energy and resource sector are served through the Communication Services segment, often overlapping with maritime and remote enterprise connectivity needs. These customers require reliable, mission-critical connectivity at remote edge locations.

• Viasat, Inc. connects hundreds of critical offshore sites using its satellite and IoT solutions.
• The company provides L-band managed and energy services as part of its broader fixed and mobile broadband offerings.

The ability to connect a million land-based IoT assets globally underpins the value proposition for these industrial customers.

Viasat, Inc. (VSAT) - Canvas Business Model: Cost Structure

You're analyzing the cost side of Viasat, Inc. (VSAT) as they push their global satellite network into full commercial service. The structure is heavily weighted toward upfront investment and debt servicing, which is typical for this kind of infrastructure play.

The most significant cost driver remains the capital-intensive expenditure for satellite construction and launch. While initial FY2025 CapEx guidance was cited in the $1.4B to $1.5B range, the company successfully implemented prioritization and rigor, leading to a lower actual spend. For the full Fiscal Year 2025, Viasat, Inc.'s capital expenditures were approximately $1.03 billion, a decrease of 33.1% from the prior year. This trend of reducing capital intensity is a near-term focus area for management.

This massive investment is financed, in part, by debt. The cost of servicing this debt is substantial, given the net debt position. As of the third quarter of Fiscal Year 2025, Viasat, Inc.'s net debt stood at approximately $5.66 billion. This leverage amplifies financial risk, especially while the full revenue potential of the new capacity is still ramping up. To be fair, the company is actively working to strengthen the capital structure by reducing net leverage.

Ongoing operational costs are also significant, covering the necessary upkeep of the entire infrastructure:

• Network operations and maintenance costs for ground stations and the existing satellite fleet.
• Research and Development (R&D) for next-gen technology, including multi-orbit roadmaps and direct-to-device capabilities.
• Personnel and integration costs associated with the ongoing business and post-acquisition alignment.

Here's a quick look at some of the key financial metrics that define this cost structure as of late 2025:

The R&D spend is a necessary cost to maintain a competitive edge, though it was noted that higher R&D expenditures in Q3 FY2025 were offset by strong operating performance in some areas. For instance, Viasat, Inc.'s annual Research and Development Expenses for 2025 were reported as $0.142B, marking a 5.48% decline from 2024. You'll see that even with cost management, the sheer scale of the network means CapEx remains high, as seen in the Q2 FY2026 CapEx of $214 million, even as operating cash flow was $282 million that same quarter.

Regarding personnel, the company has been focused on synergy realization, which included a workforce reduction. While the exact dollar amount tied to the 10% reduction for synergy isn't itemized here, these integration costs are captured within the operating expenses and restructuring charges, which you'd see reflected in the quarterly SG&A (Selling, General, and Administrative) expenses. Finance: draft 13-week cash view by Friday.

Viasat, Inc. (VSAT) - Canvas Business Model: Revenue Streams

You're looking at the top-line numbers for Viasat, Inc. (VSAT) for the fiscal year ending March 31, 2025, and the story is one of scale following the Inmarsat integration. The total annual revenue for FY2025 was approximately $4.52 billion.

The business model is clearly anchored by two major pillars, with the commercial side being the dominant engine, which is typical for a company that has just completed a major acquisition to boost its global footprint. Here's how the main segments contributed to that total:

The Communication Services revenue stream is the backbone, covering the connectivity you see in the air and on the sea, plus fixed broadband. This segment is where the recurring revenue lives, and it accounted for about 73% of the total revenue in FY2025.

The Defense and Advanced Technologies revenue comes primarily from government contracts for things like information security, cyber defense, and tactical networking solutions. This part of the business is less about monthly fees and more about large, project-based awards and product sales to government entities.

To break down the nature of the revenue within the Communication Services segment, which is where the subscription and usage fees are concentrated, we can look at the split between services and products for the trailing twelve months (TTM) ending in FY2025, which gives us a good proxy for the recurring versus one-time revenue mix:

• Subscription and usage fees for In-Flight Connectivity (IFC) and maritime services are captured within the Service Revenue, which was approximately $3.25 billion (TTM ending FY2025).
• Equipment sales and terminal revenue are reflected in the Product Revenue, which was approximately $1.33 billion (TTM ending FY2025).

Honestly, the goal here is to see that Service Revenue-the subscription and usage fees-outweighing Product Revenue, which it does significantly, showing the long-term value of securing those connectivity contracts. The growth in the Defense segment is also a key driver, with its FY2025 revenue coming in at $1.22 billion.

Finance: draft 13-week cash view by Friday.