Telesat Q2 2026 loss widens despite revenue beat

Telesat reported a wider net loss of $124 million in the second quarter of 2026, compared with a $98 million loss in the same period a year earlier, as operating expenses climbed. Revenue rose 8% year-over-year to $185 million, surpassing market expectations of $178 million, driven by increased demand for enterprise and government satellite services.

The company attributed the higher costs to ongoing investments in its next-generation LEO (Low Earth Orbit) satellite constellation, part of its Lightspeed program. Telesat expects these expenditures to persist through 2027 as deployment accelerates. Despite the improved revenue, adjusted EBITDA fell to $23 million from $31 million in Q2 2025, reflecting the elevated spending.

Telesat maintained its full-year 2026 guidance, reaffirming revenue of $700 million to $750 million and adjusted EBITDA of $100 million to $120 million. The company also secured additional financing commitments of $500 million to support its capital expenditure plans, including the construction and launch of the Lightspeed satellites.

Analysts noted that while the revenue beat signals strong market demand, the widening loss underscores the financial strain of Telesat’s ambitious expansion. The company’s shares were down 3% in after-hours trading following the results.