Ottawa-based satellite operator Telesat posted steep revenue losses in its third-quarter earnings on Thursday.
The news: Telesat, which trades on the TSX and Nasdaq under the symbol $TSAT, reported $81 million CAD in consolidated revenue for the three months ending Sept. 30, a 20-percent decrease from the same time last year. Its net loss for the quarter was $157 million, compared to a $121 million loss in Q3 2025.
Telesat attributed some of the revenue loss to a non-renewed broadcast contract from 2025, and reduced contracted capacity for a broadcast customer this year. The loss comes as Telesat attempts to maneuver a new recapitalization plan as it stares down an upcoming debt-repayment deadline, The Globe and Mail recently reported.
From the source: According to Telesat filings, the company has more than $2 billion in debt coming due at different points across this coming December, June 2027, and October 2027.
The filing states that management expects to address the debt obligations before they become due, but that addressing the debt will be dependent on “a number of factors outside of the company’s control” and “there can be no assurance that these initiatives will be completed successfully.”
The context: According to The Globe and Mail, Telesat’s lenders recently put forward a proposal to the company, in which they would receive 100 percent of their principal balance, plus accrued interest, through a $1.7-billion equity rights offering and a $1.5-billion loan.
The offering follows Telesat getting into a legal battle with its lenders earlier this year, after a pair of lawsuits alleged that the firm breached a credit agreement by moving part of its “crown-jewel” low-earth-orbit satellite communications business into an indirect subsidiary, and beyond lenders’ reach. Telesat has claimed the allegations are without merit.
Final thought: Despite the uncertainty, Telesat reported that its backlog represents just over $6 billion in revenue, and that it’s now set to receive $2 billion in milestone-based payments from the Canadian government between Q3 2026 and Q4 2028 as part of a military satellite contract it signed in August. Telesat investors still reacted unfavourably to the earnings report, dropping its stock price nearly four percent on Thursday, to just under $62 per share on the TSX at the time of this article’s publication.
Feature image courtesy Telesat.