Viasat Inc. (VSAT) Business Profile

What it does

Viasat provides satellite communications services and technology to customers on land, at sea and in the air. It was founded in 1986, is headquartered in Carlsbad, California, and is led by founder and chief executive Mark Dankberg.

The company sells internet connectivity and other communications services to commercial airlines, business jets, shipping fleets, households, businesses and governments. Its aviation services include in-flight connectivity and safety data, while its maritime services connect vessels and support applications such as safety communications. For fixed locations, Viasat provides broadband and services that connect and track devices.

Viasat uses its own satellites alongside capacity from other satellite operators. Its network also includes ground infrastructure and user terminals—the equipment customers use to connect. As of March 31, 2026, its fleet included 23 in service or operational satellites spanning several frequency bands. Viasat subsequently said ViaSat-3 flights 2 and 3 were in service and being integrated into commercial and government offerings.

The company also develops and sells equipment and services for defense and other customers. These include encryption, cybersecurity, tactical networking, satellite communications equipment and satellite system design. Viasat organizes its activities into Communication Services and Defense and Advanced Technologies.

How it makes money

Viasat earns revenue from communications services and from products. Service revenue was $3.3 billion in FY2026, while product revenue was $1.4 billion. In the second quarter of FY2027, total revenue was $1.2 billion, up 3% from the prior-year quarter.

Communication Services provides connectivity to aircraft, vessels and fixed locations, as well as services to government users. It also develops and sells satellite and wireless products, including terminals that enable broadband and narrowband services. Segment revenue was $3.3 billion in FY2026. Services continue after equipment is installed: for example, Viasat provides in-flight connectivity on aircraft and broadband to residential subscribers. As of March 31, 2026, its U.S. fixed broadband business had approximately 130,000 subscribers with an average monthly revenue per user of $113. That average is not a company-wide price.

Defense and Advanced Technologies sells products and services for secure communications, cyber defense, tactical networking and space systems. Its work ranges from encryption equipment and modems to satellite architecture, payloads and antennas. Segment revenue was $1.3 billion in FY2026. Viasat also earns intellectual property licensing revenue in its advanced technologies business.

In the second quarter of FY2027, Communication Services revenue was $815 million, down 3%, while Defense and Advanced Technologies revenue was $365 million, up 20%. Viasat said it was expanding from supplying components and modules to providing mission systems, including delivery and operation of space vehicles. Revenue can depend on the timing and mix of products and services sold, contract awards, deliveries and customer acceptance.

Customers and how it sells

Viasat serves commercial airlines, business jet operators, shipping fleets, offshore vessels, fishing companies, households and businesses. Its government and defense customers include the U.S. Department of Defense, other U.S. agencies, foreign governments, allied armed forces and defense contractors. The company acts as both a prime contractor and a subcontractor, selling government equipment and services directly or through partners and resellers.

The U.S. Government accounted for approximately 16% of total revenue in FY2026. No other customer accounted for 10% or more that year. The five largest customers together represented 19.0% of FY2026 revenue.

U.S. customers generated $3.2 billion of FY2026 revenue, or 68.1%, while non-U.S. customers generated $1.5 billion, or 31.9%. Viasat provides fixed broadband principally in the United States and in countries in Europe and Latin America, and serves aircraft and vessels traveling around the world.

As of March 31, 2026, its in-flight connectivity systems were installed and in service on approximately 4,580 commercial aircraft and approximately 2,100 business jets using Ka-band services. It also provided Ka-band communications to approximately 13,200 vessels. Viasat uses national operator relationships and third-party satellite capacity alongside its own fleet to serve customers across markets.

Suppliers and costs

Viasat relies on contract manufacturers and a global supply chain that includes single-source suppliers and limited groups of suppliers. Its internal manufacturing is expected to focus on new product development, customized products and sensitive proprietary equipment and components. The company also uses third-party satellite bandwidth and network infrastructure to provide services.

Viasat works with outside suppliers on space programs. It said Rocket Lab provided a satellite bus—the underlying spacecraft platform—for the Protected Tactical SATCOM-Global program, while Viasat supplied the payload.

Cash needs include satellite construction and launch contracts, ground infrastructure, research and development, network expansion, software and aircraft retrofit approvals. The timing of customer payments, contract duration and program performance also affect cash requirements. Cost overruns can affect fixed-price development contracts.

For FY2027, Viasat expects consolidated capital expenditure of between $850 and $900 million. It also said depreciation and interest expense were moving from capital expenditure to the income statement as ViaSat-3 entered service. Component availability and pricing can be affected by shortages, tariffs, conflicts and other supply-chain disruptions.

Competitive position

Viasat competes with satellite and terrestrial communications providers across its markets. In aviation, named rivals include Amazon Leo, Gogo, Iridium, Panasonic Avionics, SES and SpaceX. In maritime connectivity, it competes with KVH, SES, SpaceX and Speedcast. Its fixed broadband business also faces cable, fiber, DSL, satellite and fixed-wireless providers.

In defense and advanced technologies, competitors include Comtech, EchoStar, General Dynamics, L3Harris, SpaceX and Thales Group. Government communications markets also include large defense contractors such as Boeing, Lockheed Martin and Northrop Grumman. Some competitors are also Viasat customers or partners. Viasat expects competition to remain intense and says some rivals have greater financial resources, engineering capacity or access to technologies.

Viasat’s potential defenses include its satellite fleet, spectrum and market access, ground infrastructure, encryption capabilities and relationships with customers. It can bundle connectivity with terminals, software, safety and other services. It also applies technologies across commercial and government markets.

Our reading: The fleet and ground network provide a meaningful platform for serving mobile customers across geographies, although competing satellite networks and terrestrial services constrain that advantage. Our reading: Bundled services and installed equipment can support customer relationships, but recent airline customer announcements show that those relationships do not prevent transitions to other providers. Our reading: Encryption and government communications expertise provide another source of differentiation, though Viasat faces established defense suppliers with substantial resources.

Growth opportunities

Viasat expects demand for aviation and maritime connectivity, connected devices and government satellite communications to support growth in Communication Services. It anticipates approximately 1,000 additional commercial aircraft entering service with its in-flight systems under existing airline agreements, although competition and aircraft manufacturer delays mean that not all installations are assured.

Viasat said ViaSat-3 flights 2 and 3 are in service and that it is adding ground-network capacity and migrating terminals onto them. Its AIRA aviation offering is designed to use satellites in multiple orbits. The company also said its NexusWave maritime service had an outstanding order book exceeding 1,500 vessels at the end of the second quarter of FY2027.

In defense and advanced technologies, Viasat expects demand for secure communications, space systems and military infrastructure modernization. It is pursuing more work that encompasses complete satellite missions and operations, rather than only components. The company said it received a $460 million NASA award for an initial two satellites to replace or replenish a relay fleet.

Viasat also signed a binding agreement with Space42 to establish a shared mobile satellite network infrastructure company, pursuing opportunities that include direct-to-device services. It said the entity still needed regulatory approvals. For FY2027, Viasat expects total revenue to grow mid-single digits, with Communication Services approximately flat and Defense and Advanced Technologies growing in the mid-to-high teens. It expects aviation revenue to decline from FY2027 levels.

Structural risks

• Satellite performance and launches: Satellites operate in a harsh environment and can fail or degrade. Construction delays, cost overruns, launch failures or improper orbital placement can impair capacity and coverage. Viasat may be unable to obtain satellite insurance on reasonable terms or at all.
• Competition and customer transitions: Viasat faces increasing competition and rapid technological change. It said recent customer announcements will ultimately affect 15% to 20% of aviation revenue, with the impact occurring over time. It expects aviation revenue to decline from FY2027 levels.
• Government contracting: Government orders can be delayed, reduced or canceled, and funding can change with budgets and policy. Fixed-price development work also exposes Viasat to higher-than-expected costs.
• Suppliers and execution: Viasat relies on contract manufacturers, limited suppliers and third-party bandwidth. Shortages or disruptions can affect component availability and pricing; development-to-production transitions and supplier delays can also affect program revenue.
• Capital and regulation: Satellite projects and ground infrastructure require investment, while Viasat must generate sufficient cash flows to repay indebtedness. Its services depend on spectrum rights, licenses and other approvals that are subject to different national rules.

Bottom line

Our reading

Viasat combines satellite service revenue with equipment sales and customer-funded defense and space development. Our reading is that its fleet, installed connectivity systems and secure communications capabilities support several routes to growth, but those advantages require continued investment and face competition. Aviation customer transitions, satellite execution and the need to generate cash for debt repayment are material counterweights to the opportunities in government and space systems.