Viasat (NASDAQ: VSAT), Space42 and Canada's Terrestar Solutions announced on Oct. 28, 2026 that they signed a memorandum of understanding (a non-binding agreement to work together) to link Terrestar's planned CaStar satellite network with Equatys, the shared satellite platform Viasat and Space42 are co-founding. It matters because it is the first test of Equatys's pitch that countries can keep control of their own satellites while sharing global infrastructure, and Viasat is funding that pitch while still reporting a net loss. Figures below are current as of the Oct. 28, 2026 quote and cover the fiscal first quarter ended June 30, 2026, unless noted.
Key facts
- Oct. 28, 2026: Viasat, Space42 and Terrestar Solutions signed an MoU to develop an open, standards-based way to connect CaStar with Equatys, according to the companies' release.
- Oct. 28, 2026: VSAT traded at $78.26 on the latest quote (as of Oct. 28, 2026), a change of 11.32%. The 52-week range is $29.13 to $93.03. Market cap is $10.78B.
- Quarter ended June 30, 2026 (fiscal Q1 2026): revenue was $1.16B, against an analyst estimate of $1.20B. Diluted EPS was -0.38, against an estimate of -0.31713.
- Same quarter: operating income was $47.3M and net income was -$51.7M (a loss), compared with a net loss of $56.4M a year earlier.
- Next earnings: Nov. 6, 2026. Analysts expect revenue of $1.20B and EPS of -0.42062.
What happened
The theme: phone-to-satellite service. Direct-to-device (D2D) means a regular smartphone connects to a satellite without special hardware. The hard parts are spectrum (the radio frequencies satellites may use) and the cost of building constellations. Many governments also want communications infrastructure they control. That creates a tension: global scale is cheaper, but national control is politically preferred.
Equatys's answer. Per the release, Equatys will be a neutral, shared "tower company" for satellite and ground infrastructure, a bit like cell towers that several carriers rent. Space42, a UAE-based space company, and Viasat co-founded it under a binding agreement signed in September 2026. The release says it is backed by combined equity commitments from the two founders, and that closing still depends on definitive agreements and regulatory approvals.
The Terrestar step. The MoU would let CaStar, a planned Canadian low-Earth-orbit constellation, work alongside Equatys while each side keeps ownership of its own satellites, ground stations and customers. The release calls this the first example of Equatys's "sovereign shell" approach: a global commercial system combined with regional or national constellations run by a trusted local operator. In Canada, gateways and ground networks would keep domestic data within Canadian jurisdiction.
Mark Dankberg, Viasat's chairman and CEO, said the collaboration "underscores Equatys' innovative approach to offer a foundation for choice and interoperability." Jacques Leduc, Terrestar's CEO, said "This MoU is just the beginning." An MoU is not a contract. It sets out intent, and no revenue or cost figures were given.
Why it matters for investors
The core business is steady, not growing. Revenue for the quarter ended June 30, 2026 was lower than a year earlier, a change of -1.2%. Service revenue was $832.4M, slightly higher than $826.4M a year earlier. Product revenue was $324.1M, lower than $344.7M. Services are the larger and steadier part, and they could eventually relate to what Equatys-style infrastructure adds.
The margin trend improved this quarter. The table below is included because Equatys is a long-term bet funded from today's cash generation, so the quality of recent margins and cash flow matters.
| Quarter ended | Gross margin | Operating margin | Free cash flow | |---|---|---|---| | June 30, 2025 | 35.0% | 4.0% | $60.4M | | Sept. 30, 2025 | 33.7% | 3.1% | $68.5M | | Dec. 31, 2025 | 27.1% | 2.3% | $444.2M | | March 31, 2026 | 25.2% | -0.1% | $24.0M | | June 30, 2026 | 35.7% | 4.1% | $41.6M |
It shows gross and operating margins dipping through the winter, then recovering in the June 2026 quarter to the highest levels in the series. The $444.2M free cash flow in the quarter ended Dec. 31, 2025 stands out against the other four quarters, so it should not be read as a normal run rate. Free cash flow is cash from operations minus capital spending. In the latest quarter, operating cash flow was $260.6M and capital spending was $218.9M, leaving $41.6M.
The balance sheet is heavy. As of June 30, 2026, Viasat held $1.74B in cash and short-term investments against total debt of $6.93B, for net debt of $5.19B. Shareholders' equity was $4.64B and debt/equity was 1.49. Viasat's Piotroski score (a 0-9 financial health checklist) is 5, and its Altman Z score (a bankruptcy-risk gauge where lower is weaker) is 1.03. Viasat pays no dividend, and it repurchased $28.7M of stock in the latest quarter.
Valuation versus peers. On a trailing 12-month basis, Viasat's price/sales is 2.33, EV/EBITDA (enterprise value, which includes debt, over operating earnings) is 8.90 and price/free cash flow is 18.64. Its net margin is -0.6% and the P/E is not meaningful because earnings are negative. Peers vary widely:
| Company | Market cap | P/E | Net margin | |---|---|---|---| | Viasat (VSAT) | $10.78B | -301.00 | -0.6% | | Globalstar (GSAT) | $10.89B | -164.04 | -21.3% | | AST SpaceMobile (ASTS) | $17.27B | -19.58 | -536.7% | | Gilat Satellite Networks (GILT) | $587.8M | 17.19 | 6.2% | | Gogo (GOGO) | $327.9M | -366.67 | -0.1% |
Viasat's -0.6% net margin is a much smaller loss than those of the D2D-focused names Globalstar (-21.3%) and AST SpaceMobile (-536.7%). Viasat also reported $832.4M of service revenue in the quarter.
Analysts and our score. Of 20 analyst ratings, 8 are buy, 8 are hold and 4 are sell, for a consensus of "Buy." The consensus price target averages $97.67, with a median of $98.50, a high of $140.00 and a low of $49.00. Stock Expert AI's MoonshotScore V2 is 31.2, labeled Weak. Its sector-relative pillars show a split picture: momentum 81, valuation 71, growth 63, quality 48 and safety 17. In plain terms, the share price has moved well and the stock does not look expensive against peers, but debt and thin profitability drag the score. FMP's discounted cash flow model returns a value of -$173.27 per share, which reflects the difficulty of modeling a company with heavy spending and thin earnings and is not a reliable fair-value signal.
What could go wrong
- Not binding. The MoU, and Equatys itself, still depend on definitive agreements, regulatory approvals and the founders' ability to fund their commitments, per the release's own risk language.
- Build risk. The release lists satellite construction, launch and operating failures, plus competition, as risks.
- Leverage. With net debt of $5.19B, funding a new venture leaves less room for error.
- Earnings miss. The June 2026 quarter came in below estimates on both revenue and EPS (revenue difference -$43.2M, -3.6%; EPS difference -$0.06, -19.8%).
- Insider activity. In the last 90 days, among the filings we reviewed, there were 0 open-market purchases and 8 sales. Some sales may be routine, and older filings in the window may be missing.
- Price sensitivity. The stock moved 11.32% on the latest quote. The evidence does not tie that move to the MoU, so the cause is unclear.
What to watch next
- Nov. 6, 2026 earnings: whether results meet estimates of EPS -0.42062 and revenue $1.20B, and whether operating margin holds near the June 2026 level of 4.1%.
- Equatys funding and closing: any update on definitive agreements and regulatory approvals.
- Further partners: the release says the framework can take in more satellite systems, mobile carriers and service providers. More signed partners would give the shared-platform idea more weight.
- Cash and debt: whether free cash flow stays positive as capital spending continues.
- Longer-dated analyst numbers: only two analysts cover the periods ending June 30, 2028 and Sept. 30, 2028 (EPS of 0.12 and 0.11), so those estimates are thin.
Frequently asked questions
Q: What is Equatys and how is Viasat involved?
Equatys is a planned shared satellite and ground infrastructure platform for phone-to-satellite and advanced mobile satellite services. According to the release, Viasat and Space42 co-founded it under a binding agreement signed in September 2026, backed by combined equity commitments from the two founders, and it is not yet operating.Q: What did Viasat agree with Terrestar on Oct. 28, 2026?
Viasat, Space42 and Terrestar signed a non-binding MoU to develop an open interoperability framework between Canada's planned CaStar constellation and Equatys. Each operator would keep ownership of its own satellites, ground assets and customers, and the release gave no financial terms.Q: Is Viasat profitable right now?
Not on a net basis. In the quarter ended June 30, 2026, Viasat reported operating income of $47.3M but net income of -$51.7M, a loss, and diluted EPS of -0.38. Its trailing 12-month net margin is -0.6%, and free cash flow for the quarter was $41.6M.This is educational content, not investment advice. Past performance does not guarantee future results.