Capital intensity remains extreme, with a CapEx/Revenue ratio of 135.2% in 2026Q1, driving free cash flow to a negative $114.4M for the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | -68.57M | 66.65M | 62.46M | 170.06M | 228.85M | 296.39M | 371.68M | 375.62M | 466.3M | 486.7M | 527.36M | 422.36M | 412.02M | 481.09M | 299.99M |
| Operating CF Margin % | - | 15.96% | 10.94% | 24.15% | 30.14% | 39.09% | 45.3% | 41.24% | 51.64% | 52.48% | 56.65% | 44.23% | 44.65% | 53.64% | 35.47% |
| Operating CF Growth % | -2420.63% | 6.7% | -63.27% | -25.69% | -22.79% | -20.26% | -1.05% | -19.45% | -4.19% | -7.71% | 24.86% | 2.51% | -14.36% | 60.37% | - |
| Net Income | -185.33M | -155.23M | -302.47M | 583.27M | -80.12M | 157.76M | 244.82M | 187.2M | -90.94M | 505.05M | 292.9M | -266.94M | 13.2M | 68.09M | 24.36M |
| Depreciation & Amortization | 142.88M | 148.77M | 138.61M | 195.76M | 203.73M | 219.91M | 234.08M | 266.24M | 249.16M | 247.39M | 252.46M | 235.74M | 247.32M | 243.81M | 244.65M |
| Stock-Based Compensation | 2.35M | 0 | 17.56M | 33.02M | 67.43M | 73.72M | 12.5M | 16.04M | 29.5M | 2.86M | 5.77M | 5.37M | 9.65M | 13.52M | 1.2M |
| Deferred Taxes | -67.13M | -80.28M | -13.04M | 89.6M | 49.93M | 78.38M | -4.35M | 15.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 30.55M | 80.13M | 266.92M | -692.37M | -5.38M | -174.76M | -130.38M | -95.04M | 700.22M | -309.9M | -118.33M | 440.13M | 148.52M | 152.61M | 30.98M |
| Working Capital Changes | -46.42M | 73.25M | -45.12M | -39.21M | -6.74M | -58.63M | 15.02M | -13.94M | 88.81M | 41.3M | 94.56M | 8.07M | -6.68M | 3.06M | -21.86M |
| Change in Receivables | -105.24M | 96.24M | -13.8M | -24.43M | 2.3M | -55.43M | -4.17M | -16.11M | 22.06M | -13.27M | -8.35M | 4.94M | 3.82M | 16.13M | -21.86M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 4.58M | -3.52M | 0 | 0 | -7.07M | 14.07M | 1.86M | 1.69M | -4.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -649.35M | -760.61M | -1.09B | 212.05M | 74K | -272.86M | -92.23M | -39.61M | -103.31M | -164.61M | -286.1M | -193.87M | -95.16M | -78.88M | -170.25M |
| Capital Expenditures | -500.92M | -764.5M | -64.8M | -42.92M | -64.58M | -35.78M | -16.33M | -35.94M | -103.31M | -146.6M | -243.81M | -193.86M | -95.29M | -79.95M | -170.16M |
| CapEx % of Revenue | 128.97% | 183.06% | 11.35% | 6.1% | 8.51% | 4.72% | 1.99% | 3.95% | 11.44% | 15.81% | 26.19% | 20.3% | 10.32% | 8.91% | 20.12% |
| Acquisitions | 0 | 4.75M | 3.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -148.43M | -857.3K | -1.03B | 254.97M | 64.65M | -237.08M | -75.9M | -3.67M | -19.92M | -18.01M | -42.28M | -5K | 126K | 1.07M | -94K |
| Cash from Financing | 460.31M | 671.81M | -170.2M | -355.74M | -104.86M | 605.24M | -450.24M | -40.32M | -114.21M | -588.81M | -139.76M | -80.58M | -136.79M | -291.95M | -220.91M |
| Debt Issued (Net) | 473.95M | 684.73M | -158.32M | -346.19M | -99.73M | 617.72M | -455.38M | 41.37M | -94.98M | -31.65M | -72.81M | -73.86M | -70.69M | -271.45M | 0 |
| Equity Issued (Net) | -506.9K | 549.55K | -7.73M | 0 | 0 | 0 | 0 | 0 | 0 | -506.13M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -10K | -10K | -20K | 0 | -10K | -10K | -10K | -20K | -10K | 0 |
| Share Repurchases | -1.66M | 0 | -7.73M | 0 | 0 | -16K | 0 | 0 | 0 | -506.13M | 0 | 0 | 0 | 0 | -797.98M |
| Other Financing | -13.13M | -13.47M | -4.15M | -9.56M | -5.13M | -12.47M | 5.15M | -81.67M | -19.23M | -51.02M | -66.94M | -6.7M | -66.07M | -20.49M | -220.91M |
| Net Change in Cash | -289.99M | -19.86M | -1.12B | -8.7M | 228.2M | 631.22M | -208.84M | 258.79M | 289.39M | -303.36M | 91.68M | 193.37M | 198.64M | 117.75M | -97M |
| Free Cash Flow | -569.49M | -697.85M | -2.39M | 113.87M | 164.27M | 260.61M | 355.35M | 339.68M | 362.99M | 340.1M | 283.55M | 228.5M | 316.74M | 401.14M | 129.83M |
| FCF Margin % | -146.62% | -167.1% | -0.42% | 16.17% | 21.64% | 34.37% | 43.31% | 37.29% | 40.2% | 36.67% | 30.46% | 23.93% | 34.32% | 44.73% | 15.35% |
| FCF Growth % | -1352.17% | -29074.32% | -102.1% | -30.68% | -36.97% | -26.66% | 4.61% | -6.42% | 6.73% | 19.94% | 24.09% | -27.86% | -21.04% | 208.97% | - |
| FCF per Share | -38.02 | -47.67 | -0.17 | 7.45 | 13.34 | 21.68 | 26.96 | 14.18 | 15.16 | 14.21 | 11.85 | 9.56 | 13.25 | 16.78 | 5.43 |
| FCF Conversion (FCF/Net Income) | 3.07x | -0.43x | -0.71x | 1.08x | -9.63x | 3.20x | 1.52x | 2.01x | -5.13x | 0.96x | 1.80x | -1.58x | 31.25x | 7.07x | 12.32x |
| Interest Paid | 0 | 0 | 231.32M | 271.93M | 184.78M | 158.81M | 188.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 68.61M | 67.34M | 98.79M | 94.29M | 53.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Lightspeed constellation funding gap
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios frequently swinging into negative territory, such as the -8.94x observed in 2025Q1, indicating that reported earnings provide little insight into actual cash generation capabilities.
The persistent divergence between net income and operating cash flow suggests that non-cash items and working capital volatility are obscuring the underlying cash burn. Investors should monitor this disconnect, as it implies that the company's accounting earnings are not currently supported by the core operational business.
Based on the company's reported figures, free cash flow has remained consistently negative, reaching a trough of -$250.5M in 2025Q4, which highlights the severe cash-burning nature of the current business model as it attempts to fund the transition to the Lightspeed LEO constellation.
The FCF margins, which hit -137.3% in 2025Q3, demonstrate that the company is consuming capital at an unsustainable rate relative to its revenue base. This trajectory suggests that without a significant change in operational efficiency or external funding, the current cash position may be rapidly depleted.
According to quarterly data, capital intensity has surged, with CapEx/Revenue ratios reaching as high as 135.2% in 2026Q1, reflecting the massive investment required for the Lightspeed project which far exceeds the maintenance requirements of the legacy GEO satellite fleet.
The shift toward extreme capital intensity suggests that the company is prioritizing long-term infrastructure development over short-term liquidity. Analysts should investigate whether these expenditures are yielding the expected progress in constellation deployment or if they represent a sunk cost in a highly competitive market.
As evidenced by the quarterly cash flow statements, working capital changes have been highly unpredictable, ranging from a $118.8M inflow in 2025Q1 to a $47.4M outflow in 2025Q3, suggesting significant instability in the timing of customer collections and vendor payments.
This volatility in working capital appears to be a primary driver of the erratic operating cash flow, potentially masking underlying trends in the core business. Investors should monitor whether these fluctuations are indicative of structural issues in contract management or merely timing differences in large-scale satellite service agreements.
Based on the provided financial data, the cash flow statement obscures the true extent of the company's financial strain by failing to fully account for the impact of capitalized interest and non-cash impairments on the reported net income versus actual cash availability.
The reliance on non-cash adjustments to reconcile net income suggests that the company's cash flow statement may be masking the true cost of its debt-heavy capital structure. Further investigation into the capitalization of interest costs is warranted to determine if current earnings are being artificially inflated.
Quick answers to the most common questions about buying TSAT stock.
Telesat Corporation (TSAT) generated $66.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Telesat Corporation (TSAT) reported negative free cash flow of $697.8M in 2025, indicating capital requirements exceeded cash from operations.
Telesat Corporation (TSAT) spent $764.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.