Telesat remains on track with its build of Lightspeed, the next-generation LEO communications constellation, as the company posted year-over-year reductions in the second quarter.
CEO Dan Goldberg told analysts Wednesday (Aug. 6) that Lightspeed is seeing “steady progress on the development of the satellites, ground infrastructure, and the software for the network.” Noting he is pleased with the progress, he added interest for the constellation continues to come from aerospace and government users. (Backlog stands at more than $1 billion, he said.)
Pending the arrival of Lightspeed next year, however, the quarter also fell in line with his expectations; Goldberg highlighted the fact that customers are continuing to renew contracts, if at lower than existing commitments, and also said a search is ongoing to replace the retiring chief financial officer, Andrew Browne.
In comments to analysts, Goldberg added that the reductions regarding contract renewals should “flush their way through” by 2026 when Lightspeed and the next-generation broadband it offers will be coming online for customers. Furthermore, the increase in global military interest and contracts in recent months should be beneficial to the Lightspeed program, he said.
“Canada, like the rest of the U.S allies, is looking to spend more money on defense in part to meet [NATO] contribution commitments,” Goldberg said. “I think Telesat Lightspeed is very well-positioned to meet the government’s requirements in terms of northern sovereignty, NORAD modernization, making capabilities available to their allies, and so on.”
Telesat’s quarter showed consolidated revenue of $106 million, down 30% from the year before. Officials said this was primarily because of several factors: a North American direct-to-home television customer renewed at a lower rate, consulting revenues for LEO decreased, and a few customers reduced their services.
Adjusted EBITDA also fell to $59 million, down 43% from the last year, and Telesat’s net income was $76 million – a decrease of nearly 70% from Q2 2024. The decrease in income was mostly due to lower revenue and a smaller gain on debt repurchase, with foreign exchange also playing a factor. Operating expenses were $51 million, down slightly from $57 million in 2024.
Telesat’s net income for the quarter was $76 million, compared to $129 million for the same period in the prior year. The drop was primarily due to a smaller gain on debt repurchase and lower revenue, partially offset by a gain on foreign exchange in the second quarter of 2025 as compared to a loss in the second quarter of 2024.
For the first six months of 2025, Telesat’s consolidated revenue was $223 million – down 27% from the first six months of 2024, before foreign exchange rates were taken into account. Adjusted EBITDA was $126 million, down 41%, while operating expenses remained flat at $104 million.
The net income in Q1 and Q2 together of $24 million represented a substantial drop from $77 million in the same period of 2024. Factors included the lower revenues, the small gain on debt repurchase, and a loss “related to an increase in the fair value of the Telesat Lightspeed financing warrants,” officials stated. Foreign exchange gains partially offset the loss, however.
Lightspeed is expected to start operations in 2026 with prime satellite contractor, MDA Space, providing 198 satellites for the initial phase. Telesat delayed the deployment of the constellation, switched prime satellite contractors and obtained more government financing for Lightspeed after supply chain disruptions induced by the 2020 pandemic. Telesat also reduced the number of satellites for the initial phase to contain costs, but emphasized that the constellation remains above anticipated demand from customers.
In recent months, Lightspeed generated agreements from Orange, ADN Telecom, Viasat and (on a tentative basis) Space Norway. Pointing to these deals, Goldberg said during the last quarterly results release in May that Lightspeed is producing a “strong market response.”
