Revenue growth has contracted by 26.87% year-over-year while gross margins have plummeted from historical highs above 90% to 26.6% in 2026Q1.
| 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 |
|---|
| Sales/Revenue | 388.42M | 417.62M | 571.04M | 704.16M | 759.17M | 758.21M | 820.47M | 910.89M | 902.93M | 927.41M | 930.85M | 954.91M | 922.87M | 896.9M | 845.81M |
| Revenue Growth % | -27.48% | -26.87% | -18.9% | -7.25% | 0.13% | -7.59% | -9.93% | 0.88% | -2.64% | -0.37% | -2.52% | 3.47% | 2.9% | 6.04% | - |
| Cost of Goods Sold | 139.59M | 264.03M | 37.97M | 38.52M | 54M | 30.21M | 33.37M | 37.22M | 389.39M | 187.69M | 174.92M | 184.28M | 187.79M | 193.86M | 239.08M |
| COGS % of Revenue | - | 63.22% | 6.65% | 5.47% | 7.11% | 3.98% | 4.07% | 4.09% | 43.12% | 20.24% | 18.79% | 19.3% | 20.35% | 21.61% | 28.27% |
| Gross Profit | 248.83M | 153.59M | 533.07M | 665.65M | 705.16M | 728M | 787.1M | 873.67M | 513.54M | 739.72M | 755.93M | 770.63M | 735.08M | 703.03M | 606.73M |
| Gross Margin % | 64.06% | 36.78% | 93.35% | 94.53% | 92.89% | 96.02% | 95.93% | 95.91% | 56.88% | 79.76% | 81.21% | 80.7% | 79.65% | 78.39% | 71.73% |
| Gross Profit Growth % | - | -71.19% | -19.92% | -5.6% | -3.14% | -7.51% | -9.91% | 70.13% | -30.58% | -2.14% | -1.91% | 4.84% | 4.56% | 15.87% | - |
| Operating Expenses | 215.23M | 96.34M | 573.34M | 96.8M | 408.71M | 318.87M | 382.56M | 395.38M | 45.6M | 36.46M | 193.67M | 776.54M | 445.24M | 365.67M | 310.32M |
| OpEx % of Revenue | - | 23.07% | 100.4% | 13.75% | 53.84% | 42.06% | 46.63% | 43.41% | 5.05% | 3.93% | 20.81% | 81.32% | 48.25% | 40.77% | 36.69% |
| Selling, General & Admin | 88.82M | 92.62M | 110.33M | 117.92M | 152.15M | 156.11M | 89.88M | 87.94M | 45.6M | 6.26M | 7.28M | 6.34M | 5.46M | 14.72M | 14.16M |
| SG&A % of Revenue | - | 22.18% | 19.32% | 16.75% | 20.04% | 20.59% | 10.96% | 9.65% | 5.05% | 0.68% | 0.78% | 0.66% | 0.59% | 1.64% | 1.67% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 3.72M | 463.01M | -21.12M | 256.56M | 162.76M | 292.68M | 307.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 33.6M | 57.24M | -40.27M | 568.85M | 296.45M | 409.12M | 404.54M | 478.29M | 467.95M | 486.07M | 496.19M | 528.55M | 482.3M | 444.5M | 347.92M |
| Operating Margin % | 8.65% | 13.71% | -7.05% | 80.78% | 39.05% | 53.96% | 49.31% | 52.51% | 51.83% | 52.41% | 53.3% | 55.35% | 52.26% | 49.56% | 41.13% |
| Operating Income Growth % | - | 242.17% | -107.08% | 91.88% | -27.54% | 1.13% | -15.42% | 2.21% | -3.73% | -2.04% | -6.12% | 9.59% | 8.5% | 27.76% | - |
| EBITDA | 176.47M | 206.02M | 98.35M | 764.61M | 500.19M | 628.88M | 638.62M | 744.53M | 717.11M | 733.46M | 748.65M | 764.29M | 729.62M | 688.31M | 592.57M |
| EBITDA Margin % | 45.43% | 49.33% | 17.22% | 108.58% | 65.89% | 82.94% | 77.84% | 81.74% | 79.42% | 79.09% | 80.43% | 80.04% | 79.06% | 76.74% | 70.06% |
| EBITDA Growth % | 189.66% | 109.48% | -87.14% | 52.86% | -20.46% | -1.53% | -14.23% | 3.82% | -2.23% | -2.03% | -2.05% | 4.75% | 6% | 16.16% | - |
| D&A (Non-Cash Add-back) | 142.88M | 148.77M | 138.61M | 195.76M | 203.73M | 219.75M | 234.08M | 266.24M | 249.16M | 247.39M | 252.46M | 235.74M | 247.32M | 243.81M | 244.65M |
| EBIT | -495.48M | -378.55M | -71.6M | 943.82M | 191.57M | 421.4M | 444.23M | 473.77M | 462.33M | 486.07M | 496.19M | 528.55M | 482.3M | 444.5M | 347.92M |
| Net Interest Income | -187.49M | -192.4M | -177.76M | -206.51M | -198.19M | -184.58M | -198.56M | -238.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 24.4M | 26.16M | 66.15M | 64.44M | 23.56M | 3.42M | 5.2M | 33.23M | 226.84M | 190.88M | 185.46M | 172.3M | 198.42M | 204.91M | 236.7M |
| Interest Expense | 211.89M | 218.56M | 243.91M | 270.96M | 221.76M | 187.99M | 203.76M | 271.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -740.97M | -654.35M | -275.24M | 104.02M | -326.64M | -175.72M | -164.07M | -275.97M | -497.83M | 87.06M | -124.1M | -706.76M | -396.03M | -344.9M | -288.22M |
| Pretax Income | -707.37M | -597.11M | -315.5M | 672.87M | -30.19M | 233.4M | 240.47M | 202.32M | -29.88M | 585.3M | 376.81M | -178.21M | 91.42M | 132.46M | 59.7M |
| Pretax Margin % | -182.12% | -142.98% | -55.25% | 95.56% | -3.98% | 30.78% | 29.31% | 22.21% | -3.31% | 63.11% | 40.48% | -18.66% | 9.91% | 14.77% | 7.06% |
| Income Tax | -77.63M | -67.32M | -13.04M | 89.6M | 51.41M | 71.03M | -4.35M | 15.12M | 61.06M | 80.25M | 83.91M | 88.73M | 78.22M | 64.37M | 35.34M |
| Effective Tax Rate % | 10.97% | 11.27% | 4.13% | 13.32% | -170.3% | 30.43% | -1.81% | 7.47% | -204.34% | 13.71% | 22.27% | -49.79% | 85.56% | 48.59% | 59.2% |
| Net Income | -185.33M | -155.23M | -87.72M | 157.12M | -23.76M | 92.53M | 244.82M | 187.2M | -90.94M | 505.04M | 292.89M | -266.95M | 13.18M | 68.08M | 24.36M |
| Net Margin % | -47.71% | -37.17% | -15.36% | 22.31% | -3.13% | 12.2% | 29.84% | 20.55% | -10.07% | 54.46% | 31.46% | -27.96% | 1.43% | 7.59% | 2.88% |
| Net Income Growth % | -109.42% | -76.96% | -155.83% | 761.16% | -125.68% | -62.2% | 30.78% | 305.86% | -118.01% | 72.43% | 209.72% | -2124.8% | -80.64% | 179.5% | - |
| Net Income (Continuing) | -629.75M | -529.78M | -302.47M | 583.27M | -81.6M | 162.37M | 244.82M | 187.2M | -90.94M | 505.05M | 292.9M | -266.94M | 13.2M | 68.09M | 24.36M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 823.14M | 1.24B | 1.79B | 1.74B | 1.36B | 1.28B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -12.37 | -10.61 | -6.29 | 10.28 | -1.90 | 13.12 | 3.71 | 1.56 | -0.76 | 4.22 | 2.45 | -2.23 | 0.11 | 0.57 | 0.20 |
| EPS Growth % | -96.08% | -68.68% | -161.19% | 641.05% | -114.48% | 253.64% | 137.82% | 305.26% | -118.01% | 72.24% | 209.87% | -2127.27% | -80.7% | 185% | - |
| EPS (Basic) | - | -10.61 | -6.29 | 11.29 | -1.90 | 13.12 | 3.71 | 1.56 | -0.76 | 4.22 | 2.45 | -2.23 | 0.11 | 0.57 | 0.20 |
| Diluted Shares Outstanding | 14.98M | 14.64M | 13.94M | 15.29M | 12.31M | 12.02M | 13.18M | 23.95M | 23.94M | 23.94M | 23.93M | 23.91M | 23.91M | 23.9M | 23.9M |
| Basic Shares Outstanding | 14.98M | 14.64M | 13.94M | 13.92M | 12.31M | 12.02M | 13.18M | 23.95M | 23.94M | 23.94M | 23.93M | 23.91M | 23.91M | 23.9M | 23.9M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 0% | 0% | - | 0.15% | 0.01% | - |
Lightspeed constellation funding gap
As reported in recent financial filings, TSAT experienced a consistent revenue decline, culminating in a 26.87% year-over-year contraction, which suggests that legacy contract expirations are significantly outpacing new business wins within the company's core satellite services portfolio as market competition intensifies across all segments.
The steady erosion of top-line performance indicates that the company's legacy GEO business is struggling to maintain market share against more agile LEO competitors. Investors should monitor whether this downward trajectory reflects a structural loss of pricing power or merely a transition phase as the company pivots toward its Lightspeed constellation.
Based on the provided income statement data, gross margins have exhibited extreme volatility, dropping from historical highs above 90% to 26.6% in 2026Q1, which suggests that the company is facing significant cost pressures or shifts in service mix that threaten its core profitability profile.
The sharp decline in gross margins appears to be driven by rising COGS relative to revenue, potentially indicating higher terrestrial transit costs or hardware-heavy service delivery. This compression warrants further investigation into whether the company's legacy infrastructure is becoming increasingly expensive to maintain as utilization rates fluctuate.
According to the latest quarterly figures, TSAT's operating income has swung into negative territory, with operating margins falling to 3.5% in 2026Q1, demonstrating that the company's fixed cost structure is currently failing to scale effectively against the backdrop of declining top-line revenue.
The inability to maintain positive operating leverage suggests that SG&A expenses remain sticky despite the significant revenue contraction. This lack of operational flexibility may indicate that the company is carrying excess overhead in anticipation of future LEO deployment, which currently serves as a drag on earnings.
As evidenced by the deeply negative net margins, which reached -133.5% in 2025Q4, the company's bottom-line performance is currently characterized by significant non-operating volatility, suggesting that reported earnings may be heavily influenced by impairment charges or financing costs rather than core operational success.
Short-sellers would likely focus on the disconnect between the company's reported revenue and its inability to generate consistent net income, which may imply that the business model is currently unsustainable without external capital. The reliance on non-operating items to bridge the gap between gross profit and net income warrants caution regarding the quality of future earnings.
Quick answers to the most common questions about buying TSAT stock.
For fiscal year 2025, Telesat Corporation (TSAT) reported total revenue of $417.6M. This represents a 50.6% decline compared to $845.8M in 2012.
Telesat Corporation (TSAT) reported a net loss of $155.2M for the fiscal year ending 2025.
Telesat Corporation (TSAT) reported an operating income of $57.2M, resulting in an operating profit margin of 13.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Telesat Corporation (TSAT) generated $153.6M in gross profit for the year, representing a gross profit margin of 36.8%. This demonstrates the company's core pricing power and production efficiency.