"I am pleased with our performance thus far in 2025," commented Dan Goldberg, Telesat's President and CEO. "Our Telesat Lightspeed team continues to make good progress on both the engineering and commercial fronts, as we work toward an initial satellite launch late next year and toward further expanding our $1.1 billion Telesat Lightspeed backlog. On the GEO side of the business, the year has developed largely as we had expected, and we maintain our disciplined focus on maximizing the utilization of, and cash flow from, our existing GEO satellite fleet, while remaining open to value-creating opportunities. We also took important steps to optimize the company's corporate and capital structure and enhance our financing options. We distributed 62% of the equity in Telesat Lightspeed to an indirect subsidiary of Telesat Corporation, and our advisors have started to engage with the advisors of the major holders of our GEO segment debt, with the goal of finding the best approach to address that debt."
For the quarter ended September 30, 2025, Telesat reported consolidated revenue of $101 million, a decrease of 27% ($37 million) compared to the same period in 2024. The impact from foreign exchange was minimal. The decrease was primarily due to a lower rate on the renewal of a long-term agreement with a North American direct-to-home television customer and the expiration of a separate agreement with that customer, as well as to reductions in services for certain other customers, including an Indonesian rural broadband program and another North American direct-to-home customer.
Operating expenses for the quarter were $58 million, an increase of 26% ($12 million) from 2024. The impact from foreign exchange was minimal. The increase was primarily due to higher legal and professional fees and to LEO headcount growth, partially offset by higher capitalized engineering.
Adjusted EBITDA1 for the quarter was $47 million, a decrease of 51% ($49 million). The impact from foreign exchange was minimal. The consolidated Adjusted EBITDA margin1 was 46.3%, compared to 69.5% in the same period in 2024.
Telesat's net loss for the quarter was $121 million compared to $68 million in net income for the same period in the prior year. The change was due to lower revenue combined with a foreign exchange loss this year compared to a foreign exchange gain in 2024 (due to the impact of changes in foreign exchange rates on the Canadian dollar value of our US dollar denominated debt), and a loss in 2025 associated with the changes in the fair value of the Telesat Lightspeed Financing Warrants, as well as a gain on repurchase of debt recorded in 2024.
For the nine-month period ended September 30, 2025, Telesat reported consolidated revenue of $324 million, a decrease of 27% ($119 million) compared to the same period in 2024. When adjusted for changes in foreign exchange rates, revenue declined 28% ($125 million) compared to 2024. The decrease for the nine-month period is attributable to the same factors that accounted for the decrease in the three-month period ending September 30, 2025, along with lower LEO consulting revenues.
Operating expenses for the nine-month period were $161 million, up 8% ($12 million) from the same period in 2024. When adjusted for changes in foreign exchange rates, operating expenses were up 7% ($10 million) from 2024. The increase for the nine-month period is attributable to the same factors that accounted for the increase in the three-month period ending September 30, 2025, partially offset by lower expenses associated with the lower LEO consulting revenue.
Adjusted EBITDA1 for the nine-month period was $173 million, a decrease of 44% ($137 million) or 45% ($141 million) when adjusted for foreign exchange rates. The Adjusted EBITDA margin1 was 53.4%, compared to 70.0% in the same period in 2024.
For the nine months ended September 30, 2025, Telesat's net loss was $97 million compared to net income of $145 million for the same period in the prior year. The change for the nine-month period is attributable to the same factors that accounted for the change in the three-month period ending September 30, 2025.
Business Highlights
Telesat Lightspeed Equity Distribution
In September 2025, Telesat Canada distributed 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary of Telesat Corporation. The indirect subsidiary is wholly-owned by Telesat Canada's parent entities and is a non-guarantor under Telesat Canada's debt documents. There were no changes to the Company's operations as a result of this transaction.
Donald Tremblay Joins Telesat as Chief Financial Officer
In August 2025, Telesat announced that Donald Tremblay would be joining the company as CFO, succeeding Andrew Browne, whose plan to retire was announced in March 2025. Donald, most recently CFO at Champion Iron, brings over 35 years of finance leadership to Telesat, including at publicly-listed companies in high-growth, capital-intensive industries.
Backlog and Utilization as of September 30, 2025
Telesat had contracted GEO backlog2 of approximately $900 million.
Telesat had contracted LEO backlog2 of approximately $1.1 billion.
Fleet utilization was 69%.
2025 Financial Outlook (assumes an average foreign exchange rate of US$1=C$1.42)
Telesat expects full year 2025:
Revenues to be between $405 million and $425 million;
Adjusted EBITDA1 to be between $170 million and $190 million on a consolidated basis;
LEO operating expense of between $75 million and $85 million;
Capital expenditures (including both cash paid and accrued) to be in the range of $900 million to $1,100 million, virtually all of which is related to Telesat Lightspeed.
Telesat's quarterly report on Form 6-K for the quarter ended September 30, 2025 has been filed with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, and may be accessed on the SEC's website at www.sec.gov and on the System for Electronic Document Analysis and Retrieval+ (SEDAR+) website at www.sedarplus.ca.
Conference Call
Telesat has scheduled a conference call on Tuesday, November 4, 2025, at 10:30 a.m. EST to discuss its financial results for the quarter ended September 30, 2025.
Dial-in Instructions:
The toll-free dial-in number for the teleconference is +1-800-715-9871. Callers outside of North America should dial +1-646-307-1963. The access code is 9159435. Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference. In the event of technical issues, please dial *0 and advise the conference call operator of the company name (Telesat) and the name of the moderator (James Ratcliffe).
Webcast:
The conference call can also be accessed, as a listen in only, at https://edge.media-server.com/mmc/p/dao6hwjc. A replay of the webcast will be archived on Telesat's website under the tab "Investors".
Dial-in Audio Replay:
A replay of the teleconference will be available from one hour after the end of the call on November 4, 2025 until 11:59 p.m. EST on November 18, 2025. To access the replay, please call +1-800-770-2030. Callers from outside North America should dial +1-609-800-9909. The access code is 9159435.
About TelesatBacked by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (Nasdaq and TSX:TSAT) is one of the largest and most innovative global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world's most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth.
Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company's state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high-capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com.
Investor Relations Contact:
James
Forward-Looking Statements Safe Harbor
This news release contains statements that are not based on historical fact, including the financial outlook for 2025, including with respect to revenue, Adjusted EBITDA1, operating expenses and capital expenditures and the growth opportunities of Telesat Lightspeed, and are "forward-looking statements'' and "future-orientated financial information" within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words "will," "expect," "believe," "continue," or similar expressions, are forward-looking statements. In addition, Telesat or its representatives have made or may make forward-looking statements, or statements about future orientated financial performance, orally or in writing, which may be included in, but are not limited to, various filings made from time to time with the U.S. Securities and Exchange Commission ("SEC") and Canadian securities regulatory authorities, and press releases or oral statements made with the approval of an authorized executive officer of Telesat. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements and future-orientated financial information as a result of known and unknown risks and uncertainties. Future-orientated financial information contained in this news release about prospective financial performance, financial position, or cash flows are expected to give the reader a better understanding of the potential future performance of Telesat. Readers are cautioned that any such future-orientated financial information and financial outlook contained herein should not be used for purposes other than those disclosed herein. All statements made in this news release are made only as of the date set forth at the beginning of this release. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data. Telesat undertakes no obligation to update the statements made in this news release in the event facts or circumstances subsequently change after the date of this news release.
These forward-looking statements and future-orientated financial information are not guarantees of future performance, are based on Telesat's current expectations, and are subject to a number of risks, uncertainties, assumptions, and other factors, some of which are beyond Telesat's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements and future orientated financial information.
Known risks and uncertainties include but are not limited to: risks associated with financial factors, including swings in the global financial markets, access to capital to construct our LEO satellite constellation and refinance our GEO debt, volatility of securities values in an industry sector where values may be influenced by economic and other factors beyond Telesat's control, inflation, rising or prolonged elevated interest rates, fluctuations in foreign exchange rates, and tariffs; risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures, impaired satellite performance, or dependence on large customers; the ability to deploy successfully an advanced global LEO satellite constellation and the timing of any such deployment; Telesat's ability to meet the conditions for advance of the loans under the funding agreements for the constellation; technological hurdles, including Telesat's and Telesat's contractors' development and deployment of the new technologies required to complete the constellation in time to meet Telesat's schedule, or at all, the availability of services and components from Telesat's and Telesat's contractors' supply chains; competition, including with other LEO systems, deployed and yet to be deployed; risks associated with domestic and foreign government regulation, including government restrictions and regulations, access to sufficient orbital spectrum to be able to deliver services effectively and access to sufficient geographic markets in which to sell those services; Telesat's ability to develop significant commercial and operational capabilities; and the ability to expand Telesat's existing satellite utilization. The foregoing list of important factors is not exhaustive. Investors should review the other risk factors discussed in Telesat's annual report on Form 20-F for the year ended December 31, 2024, that was filed on March 27, 2025 with the SEC and the Canadian securities regulatory authorities at the System for Electronic Document Analysis and Retrieval+ (SEDAR+), and may be accessed on the SEC's website at www.sec.gov and SEDAR's website at www.sedarplus.ca.
Telesat CorporationUnaudited Interim Condensed Consolidated Statements of Income (Loss)For the periods ended September 30
Three months
Nine months
(in thousands of Canadian dollars, exceptper share amounts)
2025
2024
2025
2024
Revenue
$
101,060
$
138,441
$
323,915
$
443,049
Operating expenses
(57,852
)
(45,935
)
(161,450
)
(149,330
)
Depreciation
(26,168
)
(32,233
)
(77,991
)
(100,272
)
Amortization
(11,314
)
(2,807
)
(33,852
)
(8,438
)
Other operating gains (losses), net
251
2,272
4,070
2,254
Operating income
5,977
59,738
54,692
187,263
Interest expense
(54,197
)
(59,443
)
(164,492
)
(185,815
)
Gain on repurchase of debt
—
21,368
6,896
193,690
Interest and other income
5,718
15,668
18,760
57,033
Gain (loss) on changes in fair value of financial instruments
(63,120
)
—
(109,780
)
—
Gain (loss) on foreign exchange
(32,282
)
35,675
84,808
(67,215
)
Income (loss) before income taxes
(137,904
)
73,006
(109,116
)
184,956
Tax (expense) recovery
16,821
(5,164
)
12,105
(40,192
)
Net income (loss)
$
(121,083
)
$
67,842
$
(97,011
)
$
144,764
Net income (loss) attributable to:
