Telesat reported a CAD 559 million second-quarter net loss, driven largely by a CAD 475 million increase in the fair value of Lightspeed financing warrants and foreign-exchange effects on U.S.-dollar debt. Revenue was CAD 79 million and adjusted EBITDA was CAD 22 million. Telesat expanded its fully funded Lightspeed constellation to 225 satellites from 156, increasing contractual backlog to approximately CAD 5.6 billion.
The company raised 2026 Lightspeed investment guidance to CAD 1.3–1.5 billion and still targets global commercial service by the end of the first quarter of 2028. The legacy GEO business remained under pressure, with second-quarter revenue down 26% to CAD 78 million because of lower broadcast and enterprise revenue. Telesat maintained its full-year GEO guidance, while reporting a CAD 900 million backlog and expecting CAD 189 million in FCC C-band clearing payments.
Telesat (NASDAQ:TSAT) reported a second-quarter net loss of CAD 559 million as the satellite operator continued to invest in its Lightspeed low Earth orbit network, while its legacy geostationary-orbit business faced ongoing revenue pressure. Chief Financial Officer Donald Tremblay said the quarterly loss reflected a CAD 475 million increase in the fair value of Telesat Lightspeed Financing Warrants and the effect of a weaker Canadian dollar on the company's U.S. dollar-denominated debt. The warrants were valued at more than CAD 1.3 billion at quarter-end, following the expansion of the Lightspeed constellation and an accelerated deployment plan. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Consolidated revenue for the second quarter was CAD 79 million and adjusted EBITDA was CAD 22 million.
Interest expense totaled CAD 50 million, down CAD 54 million from a year earlier, which Tremblay attributed to a lower interest rate on the company's term loan. President and Chief Executive Officer Dan Goldberg highlighted Telesat's recently announced initial contract under Canada's Enhanced Satellite Communications Project – Polar, or ESCP-P. The program is intended to provide Arctic satellite communications capability for the Canadian Armed Forces. → Nebius' Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand The agreement helped bring Telesat Lightspeed's contractual backlog to approximately CAD 5.6 billion.
Telesat also signed a five-year contract with Northwestel early in the second quarter to provide rural broadband connectivity in Canada. Telesat has expanded its fully funded Lightspeed constellation to 225 satellites from 156 satellites. Goldberg said the company signed a firm contract with MDA for 69 additional satellites, which will be identical to the first 156 and will proceed directly through the production line without delaying the initial deployment. → On Holding's Price Stumble May Be an Opening for a Company Built to Run The company has 14 Falcon 9 launches under contract with SpaceX and expects to sign an agreement for one additional Falcon 9 launch needed to deploy the full 225-satellite constellation.
Goldberg said Telesat expects all launches to be completed by the end of 2028 and continues to target global commercial availability around the end of the first quarter of 2028. Annual Lightspeed investment guidance was raised to CAD 1.3 billion to CAD 1.5 billion for 2026, from a prior range of CAD 1 billion to CAD 1.2 billion. Tremblay said the higher investment reflects the accelerated constellation expansion and will be funded by pre-service milestone payments from the Government of Canada.
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