10-K – 2026-05-29 – vsat-20260331.htm

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Revenue Recognition – Communication Services Segment
As described in Notes 1 and 16 to the consolidated financial statements, the communication services segment revenues were $3,300 million for the year ended March 31, 2026. The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including in-flight connectivity (IFC) services), government satcom services, maritime services (including narrowband and safety of communication capabilities), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services. The Company’s connectivity services contracts typically require advance or recurring monthly payments by the customer. The Company’s obligation to provide connectivity services is satisfied over time as the customer simultaneously receives and consumes the benefits provided. The measure of progress over time is based upon either a period of time (e.g., over the estimated contractual term) or usage (e.g., bandwidth used/bytes of data processed).
The principal consideration for our determination that performing procedures relating to revenue recognition within the communication services segment is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the recording of the communication services revenue at the transaction price based upon either a period of time or usage. These procedures also included, among others (i) testing revenue recognized for a sample of revenue transactions by obtaining and inspecting source documents, such as contracts, purchase orders, invoices, proof of transfer of control to the customer, and cash receipts; and (ii) confirming a sample of outstanding customer invoice balances as of March 31, 2026 and, for confirmations not returned, obtaining and inspecting source documents, such as invoices, proof of transfer of control to the customer, and subsequent cash receipts.
/s/ PricewaterhouseCoopers LLP
San Diego, California
May 29, 2026
We have served as the Company’s auditor since 1992.

F- 2

 

VIASAT, INC.
CONSOLIDATED BA LANCE SHEETS
 

 

 

As of
 March 31, 2026

 

 

As of
 March 31, 2025

 

 

 

(In thousands, except share data)

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,746,835

 

 

$

1,612,105

 

Accounts receivable, net

 

 

753,430

 

 

 

699,552

 

Inventories

 

 

281,220

 

 

 

293,943

 

Prepaid expenses and other current assets

 

 

342,522

 

 

 

282,343

 

Total current assets

 

 

3,124,007

 

 

 

2,887,943

 

 

 

 

 

 

 

 

Property, equipment and satellites, net

 

 

7,272,637

 

 

 

7,405,664

 

Operating lease right-of-use assets

 

 

427,994

 

 

 

416,490

 

Acquired intangible assets, net

 

 

1,997,436

 

 

 

2,270,777

 

Goodwill

 

 

1,625,013

 

 

 

1,622,132

 

Other assets

 

 

779,509

 

 

 

845,778

 

Total assets

 

$

15,226,596

 

 

$

15,448,784

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

288,154

 

 

$

264,300

 

Accrued and other liabilities

 

 

951,192

 

 

 

908,529

 

Current portion of long-term debt

 

 

57,753

 

 

 

503,825

 

Total current liabilities

 

 

1,297,099

 

 

 

1,676,654

 

 

 

 

 

 

 

 

Senior notes

 

 

3,664,848

 

 

 

3,652,882

 

Other long-term debt

 

 

2,726,004

 

 

 

2,879,402

 

Non-current operating lease liabilities

 

 

430,082

 

 

 

414,133

 

Other liabilities

 

 

2,379,301

 

 

 

2,181,153

 

Total liabilities

 

 

10,497,334

 

 

 

10,804,224

 

 

 

 

 

 

 

 

Commitments and contingencies  (Notes 13 and 14)

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Viasat, Inc. stockholders’ equity

 

 

 

 

 

 

Preferred stock, $ 0.0001  par value; 5,000,000  shares authorized;
    no  shares issued and outstanding at both March 31, 2026 and 2025

 

 

—

 

 

 

—

 

Common stock, $ 0.0001  par value, 200,000,000  shares authorized;
    136,557,695  and 130,210,407  shares outstanding
   at March 31, 2026 and 2025, respectively

 

 

14

 

 

 

13

 

Paid-in capital

 

 

5,044,536

 

 

 

4,926,259

 

Retained earnings (accumulated deficit)

 

 

( 359,616

)

 

 

( 325,530

)

Accumulated other comprehensive income (loss)

 

 

( 24,633

)

 

 

( 46,911

)

Total Viasat, Inc. stockholders’ equity

 

 

4,660,301

 

 

 

4,553,831

 

Noncontrolling interest in subsidiary

 

 

68,961

 

 

 

90,729

 

Total equity

 

 

4,729,262

 

 

 

4,644,560

 

Total liabilities and equity

 

$

15,226,596

 

 

$

15,448,784

 

 
See accompanying notes to the consolidated financial statements.

F- 3

 

VIASAT, INC.
CONSOLIDATED STATEMENTS OF OPERATION S AND COMPREHENSIVE INCOME (LOSS)
 

 

 

Fiscal Years Ended

 

 

 

March 31,
 2026

 

 

March 31,
 2025

 

 

March 31,
 2024

 

 

 

(In thousands, except per share data)

 

Revenues:

 

 

 

 

 

 

 

 

 

Service revenues

 

$

3,274,423

 

 

$

3,225,776

 

 

$

3,004,594

 

Product revenues

 

 

1,365,857

 

 

 

1,293,795

 

 

 

1,279,164

 

Total revenues

 

 

4,640,280

 

 

 

4,519,571

 

 

 

4,283,758

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of service revenues

 

 

2,126,496

 

 

 

2,091,721

 

 

 

1,928,721

 

Cost of product revenues

 

 

980,563

 

 

 

937,912

 

 

 

973,375

 

Selling, general and administrative (including ground network (FY25), satellite (FY24) impairment and related charges, net — see Note 1)

 

 

999,476

 

 

 

1,181,091

 

 

 

1,893,650

 

Independent research and development

 

 

164,908

 

 

 

142,394

 

 

 

150,653

 

Amortization of acquired intangible assets

 

 

260,712

 

 

 

263,933

 

 

 

227,165

 

Income (loss) from operations

 

 

108,125

 

 

 

( 97,480

)

 

 

( 889,806

)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income

 

 

205,849

 

 

 

83,920

 

 

 

96,258

 

Interest expense

 

 

( 360,250

)

 

 

( 421,944

)

 

 

( 400,398

)

(Loss) gain on extinguishment of debt, net

 

 

( 11,935

)

 

 

( 99,814

)

 

 

—

 

Other income (expense), net

 

 

163,012

 

 

 

( 9,976

)

 

 

—

 

Income (loss) from continuing operations before income taxes

 

 

104,801

 

 

 

( 545,294

)

 

 

( 1,193,946

)

(Provision for) benefit from income taxes from continuing operations

 

 

( 116,223

)

 

 

941

 

 

 

139,474

 

Equity in income (loss) of unconsolidated affiliate, net

 

 

15,348

 

 

 

13,228

 

 

 

6,975

 

Net income (loss) from continuing operations

 

 

3,926

 

 

 

( 531,125

)

 

 

( 1,047,497

)

Net income (loss) from discontinued operations, net of tax

 

 

—

 

 

 

—

 

 

 

( 10,422

)

Net income (loss)

 

 

3,926

 

 

 

( 531,125

)

 

 

( 1,057,919

)

Less: net income (loss) attributable to noncontrolling
   interest, net of tax

 

 

38,012

 

 

 

43,837

 

 

 

10,985

 

Net income (loss) attributable to Viasat, Inc.

 

$

( 34,086

)

 

$

( 574,962

)

 

$

( 1,068,904

)

Income (loss) per share attributable to Viasat, Inc.
   common stockholders - basic:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

( 0.25

)

 

$

( 4.48

)

 

$

( 9.03

)

Discontinued operations

 

—

 

 

—

 

 

 

( 0.09

)

Income (loss)

 

$

( 0.25

)

 

$

( 4.48

)

 

$

( 9.12

)

Income (loss) per share attributable to Viasat, Inc.
   common stockholders - diluted:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

( 0.25

)

 

$

( 4.48

)

 

$

( 9.03

)

Discontinued operations

 

—

 

 

—

 

 

 

( 0.09

)

Income (loss)

 

$

( 0.25

)

 

$

( 4.48

)

 

$

( 9.12

)

Shares used in computing basic net income (loss) per share

 

 

134,744

 

 

 

128,476

 

 

 

117,189

 

Shares used in computing diluted net income (loss) per share

 

 

134,744

 

 

 

128,476

 

 

 

117,189

 

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,926

 

 

$

( 531,125

)

 

$

( 1,057,919

)

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments, net of tax

 

 

22,278

 

 

 

( 9,275

)

 

 

2,982

 

Unrealized gain (loss) on hedging, net of tax

 

 

—

 

 

 

( 16,368

)

 

 

10,463

 

Other comprehensive income (loss), net of tax

 

 

22,278

 

 

 

( 25,643

)

 

 

13,445

 

Comprehensive income (loss)

 

 

26,204

 

 

 

( 556,768

)

 

 

( 1,044,474

)

Less: comprehensive income (loss) attributable to
   noncontrolling interest, net of tax

 

 

38,012

 

 

 

43,837

 

 

 

10,985

 

Comprehensive income (loss) attributable to Viasat, Inc.

 

$

( 11,808

)

 

$

( 600,605

)

 

$

( 1,055,459

)

 
See accompanying notes to the consolidated financial statements.

F- 4

 

VIASAT, INC.
CONSOLIDATED STATEME NTS OF CASH FLOWS
 

 

 

Fiscal Years Ended

 

 

 

March 31,
 2026

 

 

March 31,
 2025

 

 

March 31,
 2024

 

 

 

(In thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,926

 

 

$

( 531,125

)

 

$

( 1,057,919

)

Adjustments to reconcile net income (loss) to net cash provided
   by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation

 

 

1,038,515

 

 

 

1,036,467

 

 

 

867,641

 

Amortization of intangible assets

 

 

315,950

 

 

 

324,340

 

 

 

289,883

 

Stock-based compensation expense

 

 

81,070

 

 

 

80,385

 

 

 

83,631

 

Disposition of fixed assets losses, ground network (FY25)
   and satellite (FY24) impairment, net

 

 

22,770

 

 

 

152,898

 

 

 

975,383

 

Gain on sale of equity interest in unconsolidated affiliate

 

 

( 168,062

)

 

 

—

 

 

 

—

 

Loss (gain) on extinguishment of debt, net

 

 

11,935

 

 

 

99,814

 

 

 

—

 

Deferred income taxes and other non-cash adjustments

 

 

56,454

 

 

 

( 106,956

)

 

 

( 111,077

)

Increase (decrease) in cash resulting from changes in
   operating assets and liabilities, net of effect of acquisition:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

( 58,169

)

 

 

( 59,726

)

 

 

( 69,156

)

Inventories

 

 

13,050

 

 

 

33,223

 

 

 

( 13,387

)

Other assets

 

 

( 6,590

)

 

 

18,333

 

 

 

45,669

 

Accounts payable

 

 

36,840

 

 

 

40,462

 

 

 

( 41,499

)

Accrued liabilities

 

 

62,969

 

 

 

6,984

 

 

 

( 141,610

)

Other liabilities

 

 

179,227

 

 

 

( 186,912

)

 

 

( 139,363

)

Net cash provided by (used in) operating activities

 

 

1,589,885

 

 

 

908,187

 

 

 

688,196

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Purchase of property, equipment and satellites, and other assets

 

 

( 992,774

)

 

 

( 1,030,182

)

 

 

( 1,539,385

)

Proceeds from insurance claims on satellites

 

 

10,000

 

 

 

251,500

 

 

 

508,560

 

Proceeds from sale of equity interest in unconsolidated affiliate

 

 

202,958

 

 

 

—

 

 

 

—

 

Payment related to acquisition of business, net of cash acquired

 

 

—

 

 

 

—

 

 

 

( 342,621

)

Proceeds from sale of short-term investments

 

 

—

 

 

 

—

 

 

 

164,266

 

Payments to acquire short-term investments

 

 

—

 

 

 

—

 

 

 

( 82,000

)

Other investing activities

 

 

20,770

 

 

 

20,327

 

 

 

—

 

Net cash provided by (used in) investing activities

 

 

( 759,046

)

 

 

( 758,355

)

 

 

( 1,291,180

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Payments on debt borrowings

 

 

( 809,062

)

 

 

( 2,390,713

)

 

 

( 567,033

)

Proceeds from debt borrowings

 

 

175,873

 

 

 

1,975,000

 

 

 

1,736,539

 

Payments of debt issuance costs

 

 

( 2,710

)

 

 

( 36,284

)

 

 

( 53,179

)

Distributions to minority shareholders

 

 

( 59,695

)

 

 

—

 

 

 

—

 

Purchase of common stock in treasury (immediately retired)
   related to tax withholdings for stock-based compensation

 

 

( 18,332

)

 

 

( 5,510

)

 

 

( 11,713

)

Proceeds from issuance of common stock under equity plans

 

 

18,131

 

 

 

18,018

 

 

 

19,294

 

Other financing activities

 

 

1,374

 

 

 

( 3,102

)

 

 

448

 

Net cash provided by (used in) financing activities

 

 

( 694,421

)

 

 

( 442,591

)

 

 

1,124,356

 

Effect of exchange rate changes on cash

 

 

( 1,688

)

 

 

3,831

 

 

 

275

 

Net increase (decrease) in cash and cash equivalents and restricted cash

 

 

134,730

 

 

 

( 288,928

)

 

 

521,647

 

Cash and cash equivalents and restricted cash at beginning of fiscal year

 

 

1,612,105

 

 

 

1,901,033

 

 

 

1,379,386

 

Cash and cash equivalents at end of fiscal year

 

$

1,746,835

 

 

$

1,612,105

 

 

$

1,901,033

 

Supplemental information:

 

 

 

 

 

 

 

 

 

Cash paid for interest (net of amounts capitalized)

 

$

326,548

 

 

$

390,043

 

 

$

228,965

 

Cash paid for income taxes, net

 

 

80,701

 

 

 

196,290

 

 

 

200,561

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

Issuance of common stock in satisfaction of certain accrued
   employee compensation liabilities

 

$

27,784

 

 

$

28,063

 

 

$

31,173

 

Capital expenditures not paid for during the period

 

 

42,475

 

 

—

 

 

 

4,633

 

Issuance of common stock in connection with acquisition

 

—

 

 

—

 

 

 

2,123,455

 

 

F- 5

 

See accompanying notes to the consolidated financial statements.

F- 6

 

VIASAT, INC.
CONSOLIDATED STATE MENTS OF EQUITY
 

 

 

Viasat, Inc. Stockholders

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of
Shares
Issued

 

 

Amount

 

 

Paid-in
Capital

 

 

Retained
Earnings
(Accumulated
Deficit)

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Noncontrolling
Interest in
Subsidiary

 

 

Total

 

 

 

(In thousands, except share data)

 

Balance at March 31, 2023

 

 

76,912,016

 

 

$

8

 

 

$

2,540,679

 

 

$

1,318,336

 

 

$

( 34,713

)

 

$

36,259

 

 

$

3,860,569

 

Exercise of stock options

 

 

2,633

 

 

 

—

 

 

 

82

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

82

 

Issuance of stock under Employee Stock Purchase Plan

 

 

867,016

 

 

 

—

 

 

 

19,212

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,212

 

Stock-based compensation

 

 

—

 

 

 

—

 

 

 

94,370

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

94,370

 

Shares issued in settlement of certain accrued employee compensation liabilities

 

 

687,851

 

 

 

—

 

 

 

31,173

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,173

 

RSU awards vesting, net of shares withheld for taxes which have been retired

 

 

1,015,936

 

 

 

—

 

 

 

( 11,713

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 11,713

)

Shares issued in connection with acquisition of business, net of issuance costs

 

 

46,363,636

 

 

 

5

 

 

 

2,123,450

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,123,455

 

Other noncontrolling interest activity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 170

)

 

 

( 170

)

Net income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 1,068,904

)

 

 

—

 

 

 

10,985

 

 

 

( 1,057,919

)

Other comprehensive income (loss), net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13,445

 

 

 

—

 

 

 

13,445

 

Balance at March 31, 2024

 

 

125,849,088

 

 

 

13

 

 

 

4,797,253

 

 

 

249,432

 

 

 

( 21,268

)

 

 

47,074

 

 

 

5,072,504

 

Issuance of stock under Employee Stock Purchase Plan

 

 

1,584,384

 

 

—

 

 

 

18,018

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,018

 

Stock-based compensation

 

 

—

 

 

 

—

 

 

 

88,435

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

88,435

 

Shares issued in settlement of certain accrued employee compensation liabilities

 

 

1,755,074

 

 

 

—

 

 

 

28,063

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,063

 

RSU awards vesting, net of shares withheld for taxes which have been retired

 

 

1,021,861

 

 

 

—

 

 

 

( 5,510

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 5,510

)

Other noncontrolling interest activity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 182

)

 

 

( 182

)

Net income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 574,962

)

 

 

—

 

 

 

43,837

 

 

 

( 531,125

)

Other comprehensive income (loss), net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 25,643

)

 

 

—

 

 

 

( 25,643

)

Balance at March 31, 2025

 

 

130,210,407

 

 

 

13

 

 

 

4,926,259

 

 

 

( 325,530

)

 

 

( 46,911

)

 

 

90,729

 

 

 

4,644,560

 

Exercise of stock options

 

 

143,256

 

 

 

—

 

 

 

2,380

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,380

 

Issuance of stock under Employee Stock Purchase Plan

 

 

1,512,115

 

 

 

1

 

 

 

15,750

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,751

 

Stock-based compensation

 

 

—

 

 

 

—

 

 

 

90,695

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

90,695

 

Shares issued in settlement of certain accrued employee compensation liabilities

 

 

3,125,378

 

 

 

—

 

 

 

27,784

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

27,784

 

RSU and PSU awards vesting, net of shares withheld for taxes which have been retired

 

 

1,566,539

 

 

 

—

 

 

 

( 18,332

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 18,332

)

Distributions declared to minority shareholders

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 59,695

)

 

 

( 59,695

)

Other noncontrolling interest activity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 85

)

 

 

( 85

)

Net income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

( 34,086

)

 

 

—

 

 

 

38,012

 

 

 

3,926

 

Other comprehensive income (loss), net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,278

 

 

 

—

 

 

 

22,278

 

Balance at March 31, 2026

 

 

136,557,695

 

 

$

14

 

 

$

5,044,536

 

 

$

( 359,616

)

 

$

( 24,633

)

 

$

68,961

 

 

$

4,729,262

 

 
See accompanying notes to the consolidated financial statements.

F- 7

 
 

VIASAT, INC.
NOTES TO THE CONSOLIDATE D FINANCIAL STATEMENTS
Note 1 — The Company and a Summary of Its Significant Accounting Policies
The Company
Viasat, Inc. (also referred to hereafter as the “Company” or “Viasat”) is an innovative, global provider of communications technologies and services focused on making connectivity accessible, available and secure for current and future customers worldwide.
Principles of consolidation
The Company’s consolidated financial statements include the assets, liabilities and results of operations of Viasat, its wholly owned subsidiaries and its majority-owned subsidiary, TrellisWare Technologies, Inc. (TrellisWare). In fiscal year 2024, the Company completed the acquisition of Connect Topco Limited, a private company limited by shares and incorporated in Guernsey (Inmarsat Holdings and, together with its subsidiaries, are referred to herein as Inmarsat, and such acquisition, the Inmarsat Acquisition). The Inmarsat Acquisition was accounted for as a purchase and accordingly, the consolidated financial statements include the operating results of Inmarsat from the date of acquisition.
In December 202 5, the Company entered into an agreement to sell all of its interests in its equity method investment, Navarino UK, to Sogra Bidco Limited, a subsidiary of ICG. In March 2026, the sale was completed and the Company received sale proceeds of $ 203.0 million and recognized a gain on disposal of equity method investment of $ 168.1 million in the fourth quarter of fiscal year 2026 in other income (expense), net in the consolidated statements of operations and comprehensive income (loss).
All significant intercompany amounts have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) in the consolidated balance sheets.
Certain prior period amounts have been reclassified to conform to the current period presentation.

Discontinued Operations
On October 1, 2022, the Company entered into an Asset Purchase Agreement to sell certain assets and assign certain liabilities comprising the Company’s Link-16 Tactical Data Links business (the Link-16 TDL Business), part of the Company’s defense and advanced technologies segment, to L3Harris Technologies, Inc. (L3Harris) in exchange for approximately $ 1.96 billion in cash (the Link-16 TDL Sale) . On January 3, 2023, the Company completed the Link-16 TDL Sale. See Note 15 — Discontinued Operations for additional information.

Management estimates and assumptions
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. Significant estimates made by management include revenue recognition, stock-based compensation, allowance for doubtful accounts, valuation of goodwill and other intangible assets, patents, orbital slots and other licenses, software development, property, equipment and satellites, long-lived assets, derivatives, contingencies and income taxes including the valuation allowance on deferred tax assets.

Cash equivalents
Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase, with a significant portion held in U.S. government-backed securities and treasuries.

F- 8

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Accounts receivable and allowance for doubtful accounts
The Company records any unconditional rights to consideration as receivables at net realizable value including an allowance for estimated uncollectible accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. Amounts determined to be uncollectible are charged or written off against the reserve. Historically, the Company’s allowance for doubtful accounts has been minimal primarily because a significant portion of its sales has been to the U.S. Government or with respect to its satellite services commercial business, the Company bills and collects in advance.

Concentration of risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable which are generally not collateralized. The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments. The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past due amounts and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers.
Revenues from the U.S. Government as an individual customer comprised approximately 16 % , 18 % and 17 % of total revenues for fiscal years 2026, 2025 and 2024, respectively. Billed accounts receivable to the U.S. Government as of March 31, 2026 and 2025 were approximately 14 % and 11 %, respectively, of total billed receiv ables. In addition, none of the Company’s commercial customers comprised 10% or more of total revenues for fiscal years 2026, 2025 and 2024. The Company's five largest contracts generated approximately 19 % , 18 % and 16 % of the Company’s total revenues for fiscal years 2026, 2025 and 2024, respectively.
The Company relies on a limited number of contract manufacturers to produce its products.

Inventory
Inventory is valued at the lower of cost and net realizable value, cost being determined by the weighted average cost method.

Property, equipment and satellites
Satellites and other property and equipment, including internally developed software, are recorded at cost or, in the case of certain satellites and other property acquired, the fair value at the date of acquisition, net of accumulated depreciation. Capitalized satellite costs consist primarily of the costs of satellite construction and launch, including launch insurance and insurance during the period of in-orbit testing, the net present value of performance incentives expected to be payable to satellite manufacturers (dependent on the continued satisfactory performance of the satellites), costs directly associated with the monitoring and support of satellite construction, and interest costs incurred during the period of satellite construction. The Company also constructs earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in commercial service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. The Company periodically reviews the remaining estimated useful life of its satellites to determine if revisions to estimated useful lives are necessary. Costs incurred for additions to property, equipment and satellites, together with major renewals and betterments, are capitalized and depreciated over the remaining life of the underlying asset. Costs incurred for maintenance, repairs and minor renewals and betterments are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in operations, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE). The Company computes depreciation using the straight-line method over the estimated useful lives of the assets ranging fr om two to 38 years. Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of the lease term or the life of the improvement.

F- 9

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Costs related to internally developed software for internal uses are capitalized after the preliminary project stage is complete and are amortized over the estimated useful lives of the assets, which are approxim ately three to seven years . Capitalized costs for internal-use software are included in property, equipment and satellites, net in the Company’s consolidated balance sheets.
Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). With respect to the construction of satellites, gateway and networking equipment and other assets under construction, the Company capitalized $ 240.7 million, $ 215.4 million and $ 227.5 million of interest expense during fiscal years 2026, 2025 and 2024, respectively.
As of March 31, 2026, the Company's complementary fleet of 23 in service or operational satellites spanned the Ka-, L- and S- bands, with 13 Ka-band satellites, eight high-availability L-band satellites (three of which are contingency L-band satellites that are operational but not currently in commercial service), an S-band satellite that supported the European Aviation Network to provide IFC services to commercial airlines in Europe, and a hybrid Ka-/L-band satellite. The second ViaSat-3 class satellite, ViaSat-3 F2, was launched into orbit in November 2025. Furthermore, as of March 31, 2026, the Company had eight additional geostationary earth orbit (GEO) satellites under construction or in preparation for launch: a high-capacity Ka-band GEO satellite (ViaSat-3 F3), three adaptive Ka-band GEO satellites (GX7, GX8 and GX9) and four Inmarsat-8 L-band GEO safety service satellites. Subsequent to fiscal year 2026, in April 2026, the Company launched the third ViaSat-3 class satellite, ViaSat-3 F3, into orbit with commercial service expected to commence by late summer 2026. In addition to the Company's satellite fleet, the Company has purchased capacity on and has access to additional regional partner satellites. In addition, the Company owns related earth stations and networking equipment for all of its satellites. The Company procures CPE units leased to customers in order to connect to the Company's satellite network as part of the Company’s communication services segment, which are reflected in investing activities and property, equipment and satellites, net in the accompanying consolidated financial statements. The Company depreciates the satellites, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives. The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2026 were $ 522.9 million and $ 349.4 million, r espectively. The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2025 were $ 526.0 million and $ 328.0 million, respectively.
As part of the Company's continued integration of its networks and related satellite portfolio, in the fourth quarter of fiscal year 2025, the Company determined that it would exit from certain locations in EMEA markets, dispose of certain related assets and terminate certain related long-term contracts. As a result, the Company recorded $ 169.4 million of impairment charges and other liabilities related to such exit activities in the fourth quarter of fiscal year 2025 in selling, general and administrative expenses in its communication services segment in the consolidated statements of operations and comprehensive income (loss).
During fiscal year 2024, the Company reported a reflector deployment issue with the ViaSat-3 F1 satellite that resulted in the Company recovering less than 10 % of the throughput on the ViaSat-3 F1 satellite, and reported a power subsystem anomaly suffered by the Inmarsat-6 F2 satellite during its orbit raising phase that caused the full carrying value of the Inmarsat-6 F2 satellite to not be recoverable. As a result of the anomalies experienced in the two satellites and integration impact related to the Inmarsat Acquisition (whereby the Company undertook extensive analysis of its existing integrated satellite fleet and ongoing satellites under construction projects, taking into account its anticipated future capacity needs, projected capital investment profile and access to third party satellites under existing bandwidth arrangements) , the Company recorded a reduction to the carrying value of satellites under construction (including capitalized interest), of approximately $ 1.67 billion in fiscal year 2024 (based on the Company's originally estimated ViaSat-3 F1 satellite output capabilities compared to the anticipated potential and configured capacity of the ViaSat-3 F1 satellite, the full value of the Inmarsat-6 F2 satellite and the ViaSat-4 satellite program, each a separate asset group), which was partially offset by total insurance claim receivables of approximately $ 770.0 million. As a result, the Company recorded a net loss of approximately $ 905.5 million during fiscal year 2024, including liabilities associated with the termination of certain subcontractor agreements, in selling, general and administrative expenses in its communication services segment in the consolidated statements of operations and comprehensive income (loss). During fiscal years 2026, 2025 and 2024, the Company received approximately $ 10.0 million, $ 251.5 million and $ 508.6 million, respectively, in insurance recovery proceeds related to such claims, resulting in the full collection of all related insurance claims.

F- 10

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Occasionally, the Company may enter into finance lease arrangements for various machinery, equipment, computer-related equipment, software, furniture, fixtures, or satellites. The Company records amortization of assets leased under finance lease arrangements (upon lease commencement) within depreciation expense (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Leases and Note 6 — Leases for more information).

Cloud computing arrangements
The Company enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and postimplementation activities. The Company amortizes the capitalized implementation costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. The capitalized costs are included in other current assets within the prepaid expenses and other current assets caption, and other assets (long-term) on the Company's consolidated balance sheets.
The Company has entered into several cloud computing arrangements that are hosted services contracts mainly as part of projects related to the continuous transformation of technology, integration and implementation of an ERP system. As of March 31, 2026 and 2025 , gross capitalized implementation costs incurred in cloud computing arrangements was $ 112.2 million and $ 88.7 million, respectively. As of March 31, 2026 and 2025 , the related accumulated amortization was $ 29.0 million and $ 18.4 million, respectively. The Company recognized amortization of capitalized implementation costs of $ 10.5 million, $ 8.8 million and $ 4.2 million during fiscal years 2026, 2025 and 2024 , respectively.

Leases
Lessee accounting
In accordance with the authoritative guidance for leases (ASC 842), the Company assesses at contract inception whether the contract is, or contains, a lease. Generally, the Company determines that a lease exists when (1) the contract involves the use of a distinct identified asset, (2) the Company obtains the right to substantially all economic benefits from use of the asset, and (3) the Company has the right to direct the use of the asset. A lease is classified as a finance lease when one or more of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset, (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset or (5) the asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease is classified as an operating lease if it does not meet any of these criteria.
At the lease commencement date, the Company recognizes a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of 12 months or less. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, less any lease incentives received. All right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets. The lease liability is initially measured at the present value of the lease payments, discounted using an estimate of the Company’s incremental borrowing rate for a collateralized loan with the same term as the underlying leases.
Lease payments included in the measurement of lease liabilities consist of (1) fixed lease payments for the noncancelable lease term, (2) fixed lease payments for optional renewal periods where it is reasonably certain the renewal option will be exercised, and (3) variable lease payments that depend on an underlying index or rate, based on the index or rate in effect at lease commencement. Certain of the Company’s real estate lease agreements require variable lease payments that do not depend on an underlying index or rate established at lease commencement. Such payments and changes in payments based on a rate or index are recognized in operating expenses when incurred.
Lease expense for operating leases consists of the fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred. Lease expense for finance leases consists of the depreciation of assets obtained under finance leases on a straight-line basis over the lease term and interest expense on the lease liability based on the discount rate at lease commencement. For both operating and finance leases, lease payments are allocated between a reduction of the lease liability and interest expense.

F- 11

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Lessor accounting
For broadband equipment leased to customers in conjunction with the delivery of connectivity services, the Company has made an accounting policy election not to separate the broadband equipment from the related connectivity services. The connectivity services are the predominant component of these arrangements. The connectivity services are accounted for in accordance with ASC 606. The Company is also a lessor for certain insignificant communications equipment. These leases meet the criteria for operating l ease classification. Lease income associated with these leases is not material.

Business combinations
The authoritative guidance for business combinations (ASC 805) requires that all business combinations be accounted for using the purchase method. The purchase price for business combinations is allocated to the estimated fair values of acquired tangible and intangible assets, and assumed liabilities, where applicable. The Company recognizes technology, contracts and customer relationships, orbital slots and spectrum assets, trade names and other as identifiable intangible assets, which are recorded at fair value as of the transaction date. Goodwill is recorded when consideration transferred exceeds the fair value of identifiable assets and liabilities. Measurement-period adjustments to assets acquired and liabilities assumed with a corresponding offset to goodwill are recorded in the period they occur, which may include up to one year from the acquisition date. Contingent consideration is recorded at fair value at the acquisition date.

Goodwill and intangible assets
The authoritative guidance for business combinations (ASC 805) specifies criteria for recognizing and reporting intangible assets apart from goodwill; however, acquired workforce must be recognized and reported in goodwill. The authoritative guidance for goodwill and other intangible assets (ASC 350) requires that intangible assets with an indefinite life should not be amortized until their life is determined to be finite. All other intangible assets must be amortized over their useful life. The authoritative guidance for goodwill and other intangible assets prohibits the amortization of goodwill and indefinite-lived intangible assets, but instead requires these assets to be tested for impairment at least annually and more frequently upon the occurrence of specified events. In addition, all goodwill must be assigned to reporting units for purposes of impairment testing.

Patents, orbital slots and other licenses
The Company capitalizes the costs of obtaining or acquiring patents, orbital slots and other licenses. Amortization of intangible assets that have finite liv es is provided for by the straight-line method over the shorter of the legal or estimated economic life. Total capitalized costs related to patents, orbital slots and other licenses of $ 144.5 million and $ 129.4 million were included in other assets as of March 31, 2026 and 2025 , respectively. Accumulated amortization related to these assets was $ 24.3 million and $ 10.2 million as of March 31, 2026 and 2025 , respectively. Amortization expense related to these assets was $ 14.1 million for fiscal year 2026, and an insignificant amount for each of fiscal years 2025 and 2024. If a patent, orbital slot or other license is rejected, abandoned or otherwise invalidated, the unamortized cost is expensed in that period. During fiscal years 2026, 2025 and 2024 , the Company did not write off any significant costs due to abandonment or impairment.

Debt issuance costs
Debt issuance costs are amortized and recognized as interest expense using the effective interest rate method, or, when the results are not materially different, on a straight-line basis over the expected term of the related debt. The Company capitaliz ed $ 5.1 million, $ 35.6 million and $ 53.9 million of debt issuance costs during fiscal years 2026, 2025 and 2024 , respectively. Unamortized debt issuance costs related to extinguished debt are expensed at the time the debt is extinguished and recorded in loss on extinguishment of debt in the consolidated statements of operations and comprehensive income (loss). If the terms of a financing obligation are amended and accounted for as a debt modification by the Company, fees incurred directly with the lending institution are capitalized and amortized over the remaining contractual term using the effective interest method. Fees incurred with other parties are expensed as incurred. Debt issuance costs related to the Company's revolving credit facilities (collectively, the Revolving Credit Facilities) are recorded in other long-term assets in the consolidated balance sheets in accordance with the authoritative guidance for imputation of interest (ASC 835-30). Debt issuance costs related to the Company’s senior secured and senior unsecured notes (collectively, the Notes) and senior secured term loan credit facilities (together with the Revolving Credit Facilities, the Credit Facilities) are recorded as a direct deduction from the carrying amount of the related debt, consistent with debt discounts, in accordance with ASC 835-30.

F- 12

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Software development
Costs of developing software for sale are charged to independent research and development (IR&D) expense when incurred, until technological feasibility has been established. Software development costs incurred from the time technological feasibility is reached until the product is available for general release to customers are capitalized and reported at the lower of unamortized cost or net realizable value. Once the product is available for general release, the software development costs are amortized based on the ratio of current to future revenue for each product with an annual minimum equal to straight-line amortization over the remaining estimated economic life of the product, generally within five years . As of March 31, 2026 and 2025, the Company ha d $ 871.1 million and $ 780.3 million, respectively, of capitalized costs related to software developed for resale. Accumulated amortization related to these assets was $ 554.2 million and $ 515.8 million as of March 31, 2026 and 2025 , respectively. The Company capitalized $ 95.7 million and $ 78.4 million of costs related to software developed for resale during the fiscal years ended March 31, 2026 and 2025 , respectively. Amortization expense for capitalized software development costs was $ 41.1 million, $ 54.5 million and $ 59.1 million during fiscal years 2026, 2025 and 2024 , respectively. The estimated aggregate amortization expense related to these assets for each of the next five fiscal years is $ 58.8 million for fiscal year 2027 , $ 74.0 million for fiscal year 2028 , $ 63.1 million for fiscal year 2029 , $ 45.1 million for fiscal year 2030 and $ 27.4 million for fiscal year 2031 .

Impairment of long-lived and other long-term assets (property, equipment and satellites, and other assets, including goodwill)
In accordance with the authoritative guidance for impairment or disposal of long-lived assets (ASC 360), the Company assesses potential impairments to long-lived assets, including property, equipment and satellites, and other assets, when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognized when the undiscounted cash flows expected to be generated by an asset (or group of assets) are less than the asset’s carrying value. Any required impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value, and would be recorded as a reduction in the carrying value of the related asset and charged to results of operations. Except for the impairment related to the Company's exit from certain locations in EMEA markets, disposal of certain related assets and termination of certain related long-term contracts in the fourth quarter of fiscal year 2025 and the impairment related to certain of the Company's satellites under construction and satellite programs in the second and third quarters of fiscal year 2024 (as discussed in Note 1 — The Company and a Summary of Its Significant Accounting Policies — Property, equipment and satellites above), no other material impairments were recorded by the Company for fiscal years 2026, 2025 and 2024.
The Company accounts for its goodwill under ASC 350. Current authoritative guidance allows the Company to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If, after completing the qualitative assessment, the Company determines that it is more likely than not that the estimated fair value is greater than the carrying value, the Company concludes that no impairment exists. Alternatively, if the Company determines in the qualitative assessment that it is more likely than not that the fair value is less than its carrying value, then the Company performs a quantitative goodwill impairment test to identify both the existence of an impairment and the amount of impairment loss, by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying value, then a goodwill impairment charge will be recognized in the amount by which the carrying amount exceeds the fair value, limited to the total amount of goodwill allocated to that reporting unit. The Company tests goodwill for impairment during the fourth quarter every fiscal year and when an event occurs or circumstances change such that it is reasonably possible that an impairment may exist.
In accordance with ASC 350, the Company assesses qualitative factors to determine whether goodwill is impaired. The qualitative analysis includes assessing the impact of changes in certain factors including: (1) changes in forecasted operating results and comparing actual results to projections, (2) changes in the industry or its competitive environment since the acquisition date, (3) changes in the overall economy, its market share and market interest rates since the acquisition date, (4) trends in the stock price and related market capitalization and enterprise values, (5) trends in peer companies' total enterprise value metrics, and (6) additional factors such as management turnover, changes in regulation and changes in litigation matters.
Based on the Company’s qualitative assessment performed during the fourth quarter of fiscal year 2026, the Company concluded that it was more likely than not that the estimated fair value of each of the Company’s reporting units exceeded their related carrying value as of March 31, 2026 , and therefore, determined it was not necessary to perform a quantitative impairment analysis. No impairments were recorded by the Company related to goodwill and other intangible assets for fiscal years 2026, 2025 and 2024 .

F- 13

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Fair value of financial instruments
The carrying amounts of the Company’s financial instruments, including cash equivalents, receivables, accounts payable and accrued liabilities, approximate their fair values due to their short-term maturities. The estimated fair value of the Company’s long-term borrowings and other long-term interest bearing liabilities is determined by using available market information for those securities or similar financial instruments (see Note 3 — Fair Value Measurements).

Self-insurance and post-retirement medical benefit liabilities
The Company has self-insurance plans to retain a portion of the exposure for losses related to employee medical benefits and workers’ compensation. The self-insurance plans include policies which provide for both specific and aggregate stop-loss limits. The Company utilizes actuarial methods as well as other historical information for the purpose of estimating ultimate costs for a particular plan year. Based on these actuarial methods, along with currently available information and insurance industry statistics, the Company recorded self-insurance liability for its plans of $ 5.6 million and $ 5.9 million as of March 31, 2026 and 2025, respectively. The Company’s estimate, which is subject to inherent variability, is based on average claims experience in the Company’s industry and its own experience in terms of frequency and severity of claims, including asserted and unasserted claims incurred but not reported, with no explicit provision for adverse fluctuation from year to year. This variability may lead to ultimate payments being either greater or less than the amounts presented above. Self-insurance liabilities have been classified as a current liability in accrued and other liabilities in the consolidated balance sheets in accordance with the estimated timing of the projected payments.

As a part of the Inmarsat Acquisition, the Company assumed a post-retirement medical benefit plan for retired employees (and their dependents) who were employed by Inmarsat before January 1, 1998. The plan is funded by the Company and there are no plan assets from which the costs are paid. The cost of providing these benefits is actuarially determined and accrued over the service period of the active employee groups. The annual increase in Inmarsat's contribution to post-retirement medical liability is capped at the United Kingdom Consumer Price Index +1%.
Indemnification provisions
In the ordinary course of business, the Company includes indemnification provisions in certain of its contracts, generally relating to parties with which the Company has commercial relations. Pursuant to these agreements, the Company will indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, including but not limited to losses relating to third-party intellectual property claims. To date, there have not been any material costs incurred in connection with such indemnification clauses. The Company’s insurance policies do not necessarily cover the cost of defending indemnification claims or providing indemnification, so if a claim was filed against the Company by any party that the Company has agreed to indemnify, the Company could incur substantial legal costs and damages. A claim would be accrued when a loss is considered probable and the amount can be reasonably estimated. At March 31, 2026 and 2025 , no such amounts were accrued related to the aforementioned provisions.

Noncontrolling interests
A noncontrolling interest represents the equity interest in a subsidiary that is not attributable, either directly or indirectly, to the Company and is reported as equity of the Company, separate from the Company’s controlling interest. Revenues, expenses, gains, losses, net income (loss) and other comprehensive income (loss) are reported in the consolidated financial statements at the consolidated amounts, which include the amounts attributable to both the controlling and noncontrolling interest.
In June 2025, TrellisWare declared a cash dividend for a total of $ 155.7 million. The Company's share of this dividend was $ 96.0 million. The remaining $ 59.7 million was recorded as a reduction to noncontrolling interest in subsidiary and was paid to minority shareholders during fiscal year 2026.

F- 14

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Common stock held in treasury
As of March 31, 2026 and 2025 , the Company had zero shares of common stock held in treasury.
During fiscal years 2026, 2025 and 2024, the Company issued 2,499,417 shares, 1,575,356 shares and 1,547,027 shares of common stock, respectively, based on the vesting terms of certain restricted stock unit (RSU) and performance-based RSU (PSU) agreements. In order for employees to satisfy minimum statutory employee tax withholding requirements related to the issuance of common stock underlying these RSU and PSU agreements, the Company repurchased 932,878 shares, 553,495 shares and 531,091 shares of common stock at cost and with a total value of $ 18.3 million, $ 5.5 million and $ 11.7 million during fiscal years 2026, 2025 and 2024, respectively. Although shares withheld for employee withholding taxes are technically not issued, they are treated as common stock repurchases for accounting purposes (with such shares deemed to be repurchased and then immediately retired), as they reduce the number of shares that otherwise would have been issued upon vesting of the RSUs and PSUs. These retired shares remain as authorized stock and are considered to be unissued. The retirement of treasury stock had no impact on the Company’s total consolidated stockholders’ equity.
Derivatives
As a result of the Inmarsat Acquisition, the Company assumed interest rate cap contracts to hedge the variable interest rate under Inmarsat's senior secured term loan facilities. The interest rate cap contracts provided protection from Compound SOFR rates over 2 %, covered the total nominal amount of Inmarsat's senior secured term loan facilities of $ 1.6 billion, and matured in February 2025. At the time of the acquisition, the Company continued to account for the interest rate cap contracts as cash-flow hedges. Upon amendment of Inmarsat's senior secured term loan facilities in March 2024 (see Note 7 — Senior Notes and Other Long-Term Debt for more information), the portion of the interest rate cap contracts related to Inmarsat's $1.3 billion senior secured term loan facility (the Inmarsat Term Loan Facility) continued to be accounted for as cash-flow hedges, as the interest rate cap contracts remained in place with their original maturity date.
The Company did not use this instrument, or these types of instruments in general, for speculative or trading purposes. The Company’s objective was to reduce the risk to earnings and cash flows associated with changes in debt with variable interest rates. Derivative instruments are recognized as either assets or liabilities in the consolidated balance sheets and are measured at fair value. The value of a hedging derivative is classified as a non-current asset or liability if the cash flows are due to be received in greater than 12 months, and as a current asset or liability if the cash flows are due to be received in less than 12 months.
Gains and losses arising from changes in the fair value of derivative instruments which are designated as cash-flow hedging instruments are recorded in accumulated other comprehensive income (loss) as unrealized gains (losses) on derivative instruments until the underlying transaction affects the Company’s earnings, at which time they are then recorded in the same income statement line as the underlying transaction. The Company may designate a derivative with periodic cash settlements and a non-zero fair value at hedge inception as the hedging instrument in a qualifying cash flow hedging relationship. The non-zero fair value of cash flow hedges on the designation date is recognized into income under a systematic and rational method over the life of the hedging instrument and in the same line item in the consolidated statements of operations and comprehensive income (loss) as the earnings of the hedge item, with the offset recorded to other comprehensive income (loss).
During fiscal years 2025 and 2024, the Company recognized a gain of an insignificant amount (and related tax expense of an insignificant amount) and a gain of $ 20.2 million (and related tax expense of $ 5.1 million), respectively, in other comprehensive income arising from changes in the fair value of the interest rate cap contracts (designated as cash-flow hedging instruments) related to Inmarsat's senior secured term loan facilities. During fiscal years 2025 and 2024, the Company recorded a decrease of $ 15.9 million (and related tax benefit of $ 4.0 million) and a decrease of $ 5.5 million (and related tax benefit of an insignificant amount), respectively, to other comprehensive income and interest expense, net of the recognition into income of the non-zero hedge inception fair value (based on the nature of the underlying transaction). During fiscal years 2025 and 2024, the Company received $ 46.3 million and $ 45.6 million in cash, respectively, as a result of periodic cash settlements, which were included in operating cash flows in the consolidated statements of cash flows.

F- 15

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Foreign currency
The Company operates internationally through various subsidiaries whose functional currencies are generally the local country’s currency, with few exceptions of subsidiaries using a functional currency that is different than their local currency. The assets and liabilities of these foreign subsidiaries are translated into U.S. dollars using exchange rates at the end of the reporting period. Revenue and other expenses are recorded using average exchange rates for the period. Resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in the consolidated financial statements.
Other comprehensive income or loss related to foreign currency translation adjustments attributable to Viasat, Inc. during fiscal years 2026, 2025 and 2024 was a gain of $ 22.3 million (net of an insignificant amount of tax), a loss of $ 9.3 million (net of an insignificant amount of tax), and a gain of $ 3.0 million (net of an insignificant amount of tax), respectively.

Revenue recognition
In accordance with the authoritative guidance for revenue from contracts with customers (ASC 606), the Company applies the five-step model to its contracts with its customers. Under this model the Company (1) identifies the contract with the customer, (2) identifies its performance obligations in the contract, (3) determines the transaction price for the contract, (4) allocates the transaction price to its performance obligations and (5) recognizes revenue when or as it satisfies its performance obligations. These performance obligations generally include the purchase of services (including broadband capacity and the leasing of broadband equipment), the purchase of products, and the development and delivery of complex equipment built to customer specifications under long-term contracts. Taxes imposed by governmental authorities on the Company’s revenues, such as sales taxes and value added taxes, are excluded from net sales.
Furthermore, from time to time, the Company participates in U.S. federal and state programs under which the government funds part of the costs of providing services in targeted locations such as unserved or under-served high cost or rural areas, or for certain types of customers. The Company accounts for funds received from the government by analogy to International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, and recognizes funds received in the consolidated statement of operations and comprehensive income (loss) when there is reasonable assurance that it will comply with the conditions associated with the grant and the grant will be received. Recognition occurs on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grant is intended to compensate. During the fiscal years ended March 31, 2026, 2025 and 2024, the amounts recorded in the Company’s consolidated financial statements related to these types of arrangements were not material.
Performance obligations
The timing of satisfaction of performance obligations may require judgment. The Company derives a substantial portion of its revenues from contracts with customers for services, primarily consisting of connectivity services. These contracts typically require advance or recurring monthly payments by the customer. The Company’s obligation to provide connectivity services is satisfied over time as the customer simultaneously receives and consumes the benefits provided. The measure of progress over time is based upon either a period of time (e.g., over the estimated contractual term) or usage (e.g., bandwidth used/bytes of data processed). The Company evaluates whether broadband equipment provided to its customers as part of the delivery of connectivity services represents a lease in accordance with ASC 842. As discussed above under “Leases - Lessor accounting”, for broadband equipment leased to customers in conjunction with the delivery of connectivity services, the Company accounts for the lease and non-lease components of connectivity service arrangements as a single performance obligation as the connectivity services represent the predominant component.
The Company also derives a portion of its revenues from contracts with customers to provide products. Performance obligations to provide products are satisfied at the point in time when control is transferred to the customer. These contracts typically require payment by the customer upon passage of control and determining the point at which control is transferred may require judgment. To identify the point at which control is transferred to the customer, the Company considers indicators that include, but are not limited to, whether (1) the Company has the present right to payment for the asset, (2) the customer has legal title to the asset, (3) physical possession of the asset has been transferred to the customer, (4) the customer has the significant risks and rewards of ownership of the asset, and (5) the customer has accepted the asset. For product revenues, control generally passes to the customer upon delivery of goods to the customer.

F- 16

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The Company’s contracts with the U.S. Government typically are subject to the Federal Acquisition Regulation (FAR) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. Government contracts. The pricing for non-U.S. Government contracts is based on the specific negotiations with each customer. Under the typical payment terms of the Company’s U.S. Government fixed-price contracts, the customer pays the Company either performance-based payments (PBPs) or progress payments. PBPs are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments based on a percentage of the costs incurred as the work progresses. Because the customer can often retain a portion of the contract price until completion of the contract, the Company’s U.S. Government fixed-price contracts generally result in revenue recognized in excess of billings which the Company presents as unbilled accounts receivable on the balance sheet. Amounts billed and due from the Company’s customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For the Company’s U.S. Government cost-type contracts, the customer generally pays the Company for its actual costs incurred within a short period of time. For non-U.S. Government contracts, the Company typically receives interim payments as work progresses, although for some contracts, the Company may be entitled to receive an advance payment. The Company recognizes a liability for these advance payments in excess of revenue recognized and presents it as collections in excess of revenues and deferred revenues on the balance sheet. An advance payment is not typically considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract and to protect the Company from the other party failing to adequately complete some or all of its obligations under the contract.
Performance obligations related to developing and delivering complex equipment built to customer specifications under long-term contracts are recognized over time as these performance obligations do not create assets with an alternative use to the Company and the Company has an enforceable right to payment for performance to date. To measure the transfer of control, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because that best depicts the transfer of control to the customer, which occurs as the Company incurs costs on its contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Estimating the total costs at completion of a performance obligation requires management to make estimates related to items such as subcontractor performance, material costs and availability, labor costs and productivity and the costs of overhead. When estimates of total costs to be incurred on a contract exceed total estimates of revenue to be earned, a provision for the entire loss on the contract is recognized in the period the loss is determined.
Contract costs on U.S. Government contracts are subject to audit and review by the Defense Contract Management Agency (DCMA), the Defense Contract Audit Agency (DCAA), and other U.S. Government agencies, as well as negotiations with U.S. Government representatives. As of March 31, 2026, the DCMA had approved the Company’s incurred costs through fiscal year 2022. The DCAA is currently auditing the Company's fiscal year 2025 recurring incurred cost submission. The Company's cost accounting practices are examined for compliance with the applicable Cost Accounting Standards (CAS). Although the Company has recorded contract revenues subsequent to fiscal year 2022 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. The Company had $ 15.1 million and $ 14.8 million as of March 31, 2026 and March 31, 2025, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. Government cost reimbursable contracts (see Note 14 — Contingencies for more information).

F- 17

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Evaluation of transaction price
The evaluation of transaction price, including the amounts allocated to performance obligations, may require significant judgments. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue, and, where applicable, the cost at completion, is complex, subject to many variables and requires significant judgment. The Company’s contracts may contain award fees, incentive fees, or other provisions, including the potential for significant financing components, that can either increase or decrease the transaction price. These amounts, which are sometimes variable, can be dictated by performance metrics, program milestones or cost targets, the timing of payments, and customer discretion. The Company estimates variable consideration at the amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. In the event an agreement includes embedded financing components, the Company recognizes interest expense or interest income on the embedded financing components using the effective interest method. This methodology uses an implied interest rate which reflects the incremental borrowing rate which would be expected to be obtained in a separate financing transaction. The Company has elected the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.
If a contract is separated into more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Estimating standalone selling prices may require judgment. When available, the Company utilizes the observable price of a good or service when the Company sells that good or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the standalone selling price by considering all information (including market conditions, specific factors, and information about the customer or class of customer) that is reasonably available.
Transaction price allocated to remaining performance obligations
The Company’s remaining performance obligations represent the transaction price of firm contracts and orders for which work has not been performed. The Company includes in its remaining performance obligations only those contracts and orders for which it has accepted purchase orders. Remaining performance obligations associated with the Company’s subscribers for residential and enterprise fixed broadband services in its communication services segment exclude month-to-month service contracts in accordance with a practical expedient and are estimated using a portfolio approach in which the Company reviews all relevant promotional activities and calculates the remaining performance obligation using the average service component for the portfolio and the average time remaining under the contract. The Company’s future recurring IFC service contracts in its communication services segment do not have minimum service purchase requirements and therefore are not included in the Company’s remaining performance obligations. As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4.1 billion, of which the Company expects to recognize a little less than half over the next 12 months, with the balanc e recognized thereafter .
Disaggregation of revenue
The Company operates and manages its business in two reportable segments: communication services and defense and advanced technologies. Revenue is disaggregated by products and services, customer type, contract type, business line and geographic area, as the Company believes this approach best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. See Note 16 — Segment Information for disaggregation of revenue by business line and additional disaggregated revenue disclosures.

F- 18

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The following sets forth disaggregated reported revenue by segment and products and services for the fiscal years ended March 31, 2026, 2025 and 2024:
 

 

 

Fiscal Year Ended March 31, 2026

 

 

 

Communication Services

 

 

Defense and Advanced Technologies

 

 

Total Revenues

 

 

 

(In thousands)

 

Service revenues

 

$

3,057,223

 

 

$

217,200

 

 

$

3,274,423

 

Product revenues

 

 

242,428

 

 

 

1,123,429

 

 

 

1,365,857

 

Total revenues

 

$

3,299,651

 

 

$

1,340,629

 

 

$

4,640,280

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended March 31, 2025

 

 

 

Communication Services

 

 

Defense and Advanced Technologies

 

 

Total Revenues

 

 

 

(In thousands)

 

Service revenues

 

$

3,022,346

 

 

$

203,430

 

 

$

3,225,776

 

Product revenues

 

 

276,139

 

 

 

1,017,656

 

 

 

1,293,795

 

Total revenues

 

$

3,298,485

 

 

$

1,221,086

 

 

$

4,519,571

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended March 31, 2024

 

 

 

Communication Services

 

 

Defense and Advanced Technologies

 

 

Total Revenues

 

 

 

(In thousands)

 

Service revenues

 

$

2,798,512

 

 

$

206,082

 

 

$

3,004,594

 

Product revenues

 

 

343,028

 

 

 

936,136

 

 

 

1,279,164

 

Total revenues

 

$

3,141,540

 

 

$

1,142,218

 

 

$

4,283,758

 

 
Revenues from the U.S. Government as an individual customer comprised approximately 16 % , 18 % and 17 % of total revenues for fiscal years 2026, 2025 and 2024, respectively. Revenues from the U.S. Government were attributable to each of the Company's two segments, with higher revenues from the U.S. Government reported within the Company's communication services segment for fiscal year 2026, and approximately half of such revenues reported within each of the Company's two segments for each of fiscal years 2025 and 2024.
Almost all of the Company's revenues are derived from fixed-price contracts (which require the Company to provide products and services under a contract at a specified price), which are reported in both of the Company's segments. The remainder of the Company's revenues is primarily from cost-reimbursement contracts (under which the Company is reimbursed for all actual costs incurred in performing the contract to the extent such costs are within the contract ceiling and allowable under the terms of the contract, plus a fee or profit), which are mainly reported within the Company's defense and advanced technologies segment.
A portion of the Company’s revenues is derived from customer contracts that include the development of products. The development efforts are conducted in direct response to the customer’s specific requirements and, accordingly, expenditures related to such efforts are included in cost of sales when incurred and the related funding (which includes a profit component) i s included in revenues. Revenues for the Company’s funded development from its customer contracts were approximately 11 % , 11 % and 12 % of its total revenues for fiscal years 2026, 2025 and 2024, respectively, mainly reported within the Company's defense and advanced technologies segment.
Contract balances
Contract balances consist of contract assets and contract liabilities. A contract asset, or with respect to the Company, an unbilled accounts receivable, is recorded when revenue is recognized in advance of the Company’s right to bill and receive consideration, typically resulting from sales under long-term contracts. Unbilled accounts receivable are generally expected to be billed and collected within one year. The unbilled accounts receivable will decrease as provided services or delivered products are billed. The Company receives payments from customers based on a billing schedule established in the Company’s contracts.

F- 19

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

When consideration is received in advance of the delivery of goods or services, a contract liability, or with respect to the Company, collections in excess of revenues and deferred revenues, is recorded. Reductions in the collections in excess of revenues and deferred revenues will be recorded as the Company satisfies the performance obligations.
The following table presents contract assets and liabilities as of March 31, 2026 and March 31, 2025:
 

 

 

As of
March 31, 2026

 

 

As of
March 31, 2025

 

 

 

(In thousands)

 

Unbilled accounts receivable

 

$

227,840

 

 

$

180,871

 

Collections in excess of revenues and deferred revenues

 

 

292,592

 

 

 

294,034

 

Deferred revenues, long-term portion

 

 

1,064,261

 

 

 

786,710

 

 
Unbilled accounts receivable increased by $ 47.0 million during fiscal year 2026, driven by revenue recognized in excess of billings related to the Company's IFC business and for certain larger development projects.
Collections in excess of revenues and deferred revenues decreased by an insignificant amount during fiscal year 2026, primarily driven by revenue recognized in excess of advances on goods or services received.
During fiscal year 2026, the Company recognized revenue of $ 270.8 million that was previously included in the Company’s collections in excess of revenues and deferred revenu es at March 31, 2025. During fiscal year 2025 , the Company recognized revenue of $ 238.6 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2024 .

Other assets and deferred costs – contracts with customers
Per ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers, the Company recognizes an asset from the incremental costs of obtaining a contract with a customer if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. ASC 340-40 also requires the recognition of an asset from the costs incurred to fulfill a contract when (1) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify, (2) the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future, and (3) the costs are expected to be recovered. In accordance with the guidance, the Company recognizes an asset related to commission costs incurred, primarily in the Company’s communication services segment, and recognizes an asset related to costs incurred to fulfill contracts. Costs to acquire customer contracts are amortized over the estimated customer contract life. Costs to fulfill customer contracts are amortized in proportion to the revenue to which the costs relate. For contracts with an estimated amortization period of less than one year, the Company elected the practical expedient and expenses incremental costs immediately. The Company’s deferred customer contr act acquisition costs and costs to fulfill contract balances were $ 8.2 million and $ 72.9 million, respectively, as of March 31, 2026 . Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $ 25.0 million was included in other current assets within the prepaid expenses and other current assets caption on the Co mpany’s consolidated balance sheets a nd $ 56.1 million was included in other assets on the Company’s consolidated balance sheets as of March 31, 2026. The Comp any’s deferred customer contract acquisition costs and costs to fulfill contract balances were $ 13.0 million and $ 56.4 million, respectively, as of March 31, 2025 . Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $ 15.2 million was included in other current assets within the prepaid expenses and other current assets caption on the Company’s consolidated balance sheets and $ 54.2 million was included in other assets on the Company’s consolidated balance sheets as of March 31, 2025. For total deferred customer contract acquisition costs and contract fulfillment costs, the Company’s amortization and reduction of carrying value associated with contract termination was $ 23.7 million, $ 33.1 million and $ 40.4 million for fiscal years 2026, 2025 and 2024 , respectively.

Advertising costs
In accordance with the authoritative guidance for advertising costs (ASC 720-35), advertising costs are expensed as incurred and included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Advertising expenses for fiscal years 2026, 2025 and 2024 wer e $ 20.7 million, $ 19.2 million and $ 26.4 million, respectively.

F- 20

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Stock-based compensation
In accordance with the authoritative guidance for share-based payments (ASC 718), the Company measures stock-based compensation cost at the grant date, based on the estimated fair value of the award. Expense for RSUs and stock options is recognized on a straight-line basis over the employee’s requisite service period. Expense for market-based performance stock options (PSOs) that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis. Expense for PSUs with a market condition (such as a stock price milestone) (market condition PSUs) that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis. Expense for PSUs with a performance condition (such as an operational milestone) (performance condition PSUs) that vest is recorded each period based on a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period and is recognized on a graded-vesting basis. The Company accounts for forfeitures as they occur. The Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows are classified within operating activities. The Company also has an insignificant amount of long-term cash awards, or liability awards, which are remeasured at fair value each reporting period until the awards are settled.

Independent research and development
IR&D, which is not directly funded by a third party, is expensed as incurred. IR&D expenses consist primarily of salaries and other personnel-related expenses, supplies, prototype materials and other expenses related to research and development (R&D) programs.

Income taxes
Accruals for uncertain tax positions are provided for in accordance with the authoritative guidance for accounting for uncertainty in income taxes (ASC 740). The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition of income tax assets and liabilities, classification of deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense.
A deferred income tax asset or liability is established for the expected future tax consequences resulting from differences in the financial reporting and tax bases of assets and liabilities and for the expected future tax benefit to be derived from tax credit and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The Company’s analysis of the need for a valuation allowance on deferred tax assets considered historical as well as forecasted future operating results, the reversal of temporary differences, taxable income in prior carryback years (if permitted), and the availability of tax planning strategies.

Earnings per share
Basic earnings per share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share is based upon the weighted average number of common shares outstanding and potential common stock, if dilutive during the period, which are included in the earnings per share calculations using the treasury stock method. Potential common stock includes options granted (including PSOs), RSUs (other than PSUs), market condition PSUs and performance condition PSUs awarded under the Company’s equity compensation plan, common shares expected to be issued under the Company’s employee stock purchase plan, and shares potentially issuable under the Viasat 401(k) Profit Sharing Plan in connection with the Company’s decision to pay a discretionary match in common stock or cash.

Segment reporting
The Company reports its results in two separate segments consisting of communication services and defense and advanced technologies. The Company's segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance.

F- 21

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The Company’s reportable segments (communication services and defense and advanced technologies) have been determined based upon their market and economic characteristics while also giving consideration to the structure and management of various business lines. The reportable segments are primarily determined based upon industry categories and core competencies relating to product or service end market distribution, operations, and servicing and distinguished by the type of customer and, to a lesser extent, the related contractual requirements.
The Company’s communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. The Company’s defense and advanced technologies segment develops and offers a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateways, modems and waveforms. The more regulated government environment for defense, encryption and other products is subject to unique contractual requirements and possesses economic characteristics that differ from the communication services segment.

Recent authoritative guidance
In October 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU amends certain disclosure and presentation requirements for a variety of topics within the FASB ASC. These amendments will also align the requirements in the ASC with the SEC's regulations. The effective date for each amended topic in the ASC is the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, and will not be effective if the SEC has not removed the applicable disclosure requirements by June 30, 2027. Early adoption is prohibited. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances annual income tax disclosures by requiring disclosure of specific categories in the income tax rate reconciliation table and disaggregation of income taxes paid. Beginning with the annual reporting of fiscal year 2026, the Company adopted the new guidance on a prospective basis and applied its provisions to the Company's income tax disclosures. See Note 10 — Income Taxes for additional information.
In March 2024, the FASB issued ASU 2024-02, Codification Improvements – Amendments to Remove References to the Concepts Statements. This update contains amendments to the Codification that remove references to various Concepts Statements. The amendments in this update are not intended to result in significant accounting changes for most entities. The Company adopted the new guidance on a prospective basis in the first quarter of fiscal year 2026 and the guidance did not have an impact on its consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures about certain categories of costs and expenses in the notes to financial statements. As clarified in ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, the new standard will become effective for the Company’s annual disclosures beginning in fiscal year 2028 and for interim disclosures beginning in fiscal year 2029. Early adoption is permitted and the amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date of the ASU or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In May 2025, the FASB issued ASU 2025-04, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer. The purpose of this ASU is to reduce diversity in practice and improve the decision usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services. The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028. Early adoption is permitted and the new guidance should be applied either on a modified retrospective or a retrospective basis. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

F- 22

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The purpose of this ASU is to allow entities to apply a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Topic 606. The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2027. Early adoption is permitted and the new guidance should be applied prospectively. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The purpose of this ASU is to modernize the accounting guidance for the costs to develop software for internal use by removing all references to prescriptive and sequential software development project stages and providing further guidance on when an entity is required to start capitalizing eligible costs. The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2029. Early adoption is permitted and the new guidance should be applied either on a prospective transition, a modified transition or a retrospective transition approach. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In September 2025, the FASB issued ASU 2025-07, Derivative and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. This ASU expands the scope exception in Topic 815 and clarifies the guidance on share-based noncash consideration from a customer in Topic 606. The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028. Early adoption is permitted and the new guidance should be applied either on a prospective or a modified retrospective basis. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans. This ASU expands the population of acquired financial assets subject to the gross-up approach to include purchased seasoned loans. The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028. Early adoption is permitted and the new guidance should be applied prospectively. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This ASU includes five targeted amendments intended to more closely align hedge accounting with the underlying economics of entities' risk management activities. The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028. Early adoption is permitted and the new guidance should be applied prospectively. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. The purpose of this ASU is to reduce diversity in practice by establishing accounting guidance for recognition, measurement and presentation of a government grant received by a business entity. The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2030. Early adoption is permitted and the new guidance should be applied either on a modified prospective, a modified retrospective or a full retrospective basis. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU provides a comprehensive list of interim disclosures that are required by GAAP and clarifies the applicability of Topic 270, as well as a requirement to disclose events since the end of the last annual reporting period that have a material impact on the entity. The new standard will become effective for the Company's interim disclosures beginning in fiscal year 2029. Early adoption is permitted and the new guidance should be applied prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

F- 23

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

In December 2025, the FASB issued ASU 2025-12, Codification Improvements. This ASU includes amendments to the FASB Accounting Standards Codification for a broad range of topics arising from technical corrections, unintended application of the Codification, clarifications, and other minor improvements. These amendments are not expected to have a significant effect on current accounting practice for most entities. The new standard will become effective for the Company's interim and annual reporting periods beginning in fiscal year 2028. Early adoption is permitted on an issue-by-issue basis and the new guidance should be applied prospectively or retrospectively on an issue-by-issue basis. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

F- 24

 
 

Note 2 — Composition of Certain Balance Sheet Captions
 

 

 

As of
March 31, 2026

 

 

As of
March 31, 2025

 

 

 

(In thousands)

 

Accounts receivable, net:

 

 

 

 

 

 

Billed

 

$

539,758

 

 

$

539,522

 

Unbilled

 

 

227,840

 

 

 

180,871

 

Allowance for doubtful accounts

 

 

( 14,168

)

 

 

( 20,841

)

 

$

753,430

 

 

$

699,552

 

Inventories:

 

 

 

 

 

 

Raw materials

 

$

108,697

 

 

$

96,893

 

Work in process

 

 

25,054

 

 

 

19,761

 

Finished goods

 

 

147,469

 

 

 

177,289

 

 

 

$

281,220

 

 

$

293,943

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

Prepaid expenses

 

$

179,081

 

 

 

176,694

 

Other

 

 

163,441

 

 

 

105,649

 

 

 

$

342,522

 

 

$

282,343

 

Property, equipment and satellites, net:

 

 

 

 

 

 

Equipment and software (estimated useful life of 3 - 10  years)

 

$

4,298,300

 

 

$

3,837,083

 

CPE leased equipment (estimated useful life of 3 - 7  years)

 

 

522,882

 

 

 

525,972

 

Furniture and fixtures (estimated useful life of 7 - 10  years)

 

 

54,185

 

 

 

58,153

 

Leasehold improvements (estimated useful life of 2 - 20  years)

 

 

325,087

 

 

 

313,249

 

Buildings (estimated useful life of 20 - 38  years)

 

 

15,062

 

 

 

15,388

 

Land

 

 

11,251

 

 

 

19,661

 

Construction in progress

 

 

662,841

 

 

 

722,194

 

Satellites (estimated useful life of 7 - 17  years)

 

 

3,410,741

 

 

 

3,405,067

 

Satellite Ka-band capacity obtained under finance leases (estimated useful life of 7 - 15  years)

 

 

339,428

 

 

 

338,201

 

Satellites under construction

 

 

2,644,050

 

 

 

2,205,305

 

 

 

 

12,283,827

 

 

 

11,440,273

 

Less: accumulated depreciation and amortization

 

 

( 5,011,190

)

 

 

( 4,034,609

)

 

 

$

7,272,637

 

 

$

7,405,664

 

Other assets:

 

 

 

 

 

 

Deferred income taxes

 

$

68,699

 

 

$

160,452

 

Capitalized software costs, net

 

 

316,947

 

 

 

264,492

 

Patents, orbital slots and other licenses, net

 

 

120,194

 

 

 

119,193

 

Other

 

 

273,669

 

 

 

301,641

 

 

$

779,509

 

 

$

845,778

 

Accrued and other liabilities:

 

 

 

 

 

 

Collections in excess of revenues and deferred revenues

 

$

292,592

 

 

$

294,034

 

Accrued employee compensation

 

 

207,741

 

 

 

185,556

 

Operating lease liabilities

 

 

60,879

 

 

 

65,310

 

Interest payable

 

 

34,064

 

 

 

52,183

 

Other

 

 

355,916

 

 

 

311,446

 

 

 

$

951,192

 

 

$

908,529

 

Other liabilities:

 

 

 

 

 

 

Deferred revenues, long-term portion

 

$

1,064,261

 

 

$

786,710

 

Deferred income taxes

 

 

1,016,850

 

 

 

1,069,717

 

Other

 

 

298,190

 

 

 

324,726

 

 

 

$

2,379,301

 

 

$

2,181,153

 

 

F- 25

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Note 3 — Fair Value Measurements
In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants, and prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions:
• Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date.

• Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation.

The following tables present the Company's hierarchy for its assets measured at fair value on a recurring basis as of March 31, 2026 and March 31, 2025 . The Company had no liabilities measured at fair value on a recurring basis as of both March 31, 2026 and March 31, 2025.
 

 

 

Fair Value as of
March 31, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

748,495

 

 

$

748,495

 

 

$

—

 

 

$

—

 

Total assets measured at fair value on a recurring basis

 

$

748,495

 

 

$

748,495

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value as of
March 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

572,256

 

 

$

572,256

 

 

$

—

 

 

$

—

 

Total assets measured at fair value on a recurring basis

 

$

572,256

 

 

$

572,256

 

 

$

—

 

 

$

—

 

The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value:
Cash equivalents — The Company’s cash equivalents consist of money market funds, with a significant portion held in U.S. government-backed securities and treasuries.

F- 26

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Long-term debt — As of March 31, 2026, the Company’s long-term debt (including current portion) was comprised of (1) $600.0 million in aggregate principal amount of Viasat's 5.625% Senior Secured Notes due 2027 (the 2027 Notes), $400.0 million in aggregate principal amount of Viasat's 6.500% Senior Notes due 2028 (the 2028 Notes), $1.975 billion in aggregate principal amount of Inmarsat's 9.000% Senior Secured Notes due 2029 (the Inmarsat 2029 Notes), and $733.4 million in aggregate principal amount of Viasat’s 7.500% Senior Notes due 2031 (the 2031 Notes), (2) borrowings under Viasat’s $700.0 million senior secured term loan facility (the 2022 Term Loan Facility), borrowings under Viasat’s $616.7 million senior secured term loan facility (the 2023 Term Loan Facility), borrowings under the Inmarsat Term Loan Facility and borrowings under Viasat’s direct loan facility (the Ex-Im Credit Facility) with the Export-Import Bank of the United States (Ex-Im Bank), and (3) finance lease obligations reported at the present value of future minimum lease payments with current accrued interest. Long-term debt related to the Revolving Credit Facilities is reported at the outstanding principal amount of borrowings, while long-term debt related to the Company's other Credit Facilities and the Notes is reported at amortized cost. However, for disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. The fair value of the Company’s long-term debt related to the Company's variable rate Credit Facilities approximates its carrying amount due to its variable interest rate, which approximates a market interest rate. The estimated fair value of Viasat's former direct loan facility (the Former Ex-Im Credit Facility) with Ex-Im Bank, which was fully repaid at maturity in October 2025, was Level 2 and $ 19.2 million as of March 31, 2025. The estimated fair value of the Company's long-term debt related to the Ex-Im Credit Facili ty was Level 2 and was $ 186.2 million as of March 31, 2026. As of March 31, 2026 and 2025, the esti mated fair value of the Company’s outstanding long-term debt related to each series of Notes was Level 2 and was $ 597.8 million and $ 575.0 million, respectively, for the 2027 Notes, $ 395.0 million and $ 350.0 million, respectively, for the 2028 Notes, $ 2.07 billion and $ 1.82 billion for the Inmarsat 2029 Notes, and $ 724.9 million and $ 552.8 million, respectively, for the 2031 Notes. During the first quarter of fiscal year 2026, Viasat's 5.625 % Senior Notes due 2025 (the 2025 Notes) were redeemed in full, and as of March 31, 2025, their estimated fair value was Level 2 and $ 438.6 million.
Satellite performance incentive obligations — The Company’s contracts with satellite manufacturers require the Company to make monthly in-orbit satellite performance incentive payments with respect to certain satellites in commercial service, including interest, through fiscal year 2028 , subject to the continued satisfactory performance of the applicable satellites. The Company records the net present value of these expected future payments as a liability and as a component of the cost of the satellites. However, for disclosure purposes, the Company is required to measure the fair value of outstanding satellite performance incentive obligations on a recurring basis. The fair value of the Company’s outstanding satellite performance incentive obligations is estimated to approximate their carrying value based on current rates (Level 2). As of March 31, 2026 and 2025, the Company’s estimated satellite performance incentive obligations relating to certain satellites in commercial service, including accrued interest, were $ 6.1 million a nd $ 11.4 million, respectively.
Contingencies — In connection with the acquisition of the remaining 51 % interest in Euro Broadband Infrastructure Sàrl (EBI) on April 30, 2021, part of the purchase price consideration was determined approximately two years after the closing date, and as a result, the Company received € 20.0 million, or approximately $ 22.0 million, in cash and recorded a gain of approximately $ 18.1 million in the second quarter of fiscal year 2024 in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). The consideration paid was contingent based on certain outcomes as defined in the acquisition agreement. For each applicable reporting period, the Company estimated the fair value of the contingent consideration based on unobservable inputs and probability weightings using standard valuation techniques (Level 3). For fiscal year 2024, the change in fair value of the contingent consideration was immaterial.

Note 4 — Acquisition
In May 2023, the Company completed the acquisition of all outstanding shares of Inmarsat Holdings, a privately held leading provider of global mobile satellite communications services. The Inmarsat Acquisition positions the Company as a leading global communications innovator with enhanced scale and scope to connect the world affordably, securely and reliably. The complementary assets and resources of the combined company position the Company to provide advanced new services in mobile and fixed segments, driving greater customer choice in broadband communications and narrowband services (including the Internet of Things (IoT)). These benefits and additional opportunities were among the factors that contributed to a purchase price resulting in the recognition of goodwill of $ 1.5 billion which was recognized in the Company's communication services segment. The goodwill recognized was not deductible for U.S. and foreign income tax purposes.

F- 27

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The consideration transferred of approximately $ 2.7 billion was comprised of $ 2.1 billion of the fair value of approximately 46.36 million shares of the Company’s common stock issued at the closing of the transaction and $ 550.7 million in cash consideration. In connection with the Inmarsat Acquisition, the Company recorded acquisition-related transaction costs of $ 31.3 million during fiscal year 2024, included in selling, general and administrative expenses.
The purchase price allocation of the acquired assets and assumed liabilities in the Inmarsat Acquisition based on the estimated fair values as of May 30, 2023, adjusted since the closing of the Inmarsat Acquisition, primarily between property, equipment and satellites, identifiable intangible assets, deferred tax liabilities and goodwill, was as follows:
 

 

 

(In thousands)

 

Current assets

 

$

641,893

 

Property, equipment and satellites

 

 

4,363,049

 

Identifiable intangible assets

 

 

2,570,000

 

Other assets

 

 

388,745

 

Total assets acquired

 

$

7,963,687

 

Current liabilities

 

 

( 598,296

)

Long-term debt, excluding short-term portion

 

 

( 3,519,774

)

Other long-term liabilities

 

 

( 2,629,406

)

Total liabilities assumed

 

$

( 6,747,476

)

Goodwill

 

 

1,462,881

 

Total consideration transferred

 

$

2,679,092

 

Current liabilities and other long-term liabilities included approximately $ 29.6 million and $ 248.3 million, respectively, of unfavorable contract liabilities amortized into service revenue over a weighted average estimated useful life of approximately nine years. Amounts assigned to identifiable intangible assets are being amortized on a straight-line basis over their determined useful lives (which approximates the economic pattern of benefit) and were as follows as of May 30, 2023:
 

 

 

Fair Value

 

 

Weighted Average Useful Life

 

 

 

(In thousands)

 

 

(In years)

 

Orbital slots and spectrum assets

 

$

1,080,000

 

 

 

12

 

Customer relationships

 

 

1,305,000

 

 

 

11

 

Technology

 

 

100,000

 

 

 

7

 

Trade names

 

 

85,000

 

 

 

8

 

Total identifiable intangible assets

 

$

2,570,000

 

 

 

11

 

Management determined the fair value of acquired customer relationships by applying the multi-period excess earnings method, which involved the use of significant judgments and assumptions related to revenue growth rates, customer attrition rates, discount rates, and contributory asset charges. Additionally, management determined the fair value of acquired orbital slots and spectrum assets using an avoided cost method, which involved the use of significant judgments and assumptions related to hypothetical lease payments, discount rates, and contributory asset charges.
The intangible assets acquired in the Inmarsat Acquisition were determined in accordance with ASC 805, based on estimated fair values using valuation techniques consistent with the market approach, income approach and/or cost approach to measure fair value.
The consolidated financial statements include the operating results of Inmarsat from the date of acquisition. The Company recorded approximately $ 1.4 billion in revenue and $ 214.6 million of net loss during fiscal year 2024 from the Inmarsat business following the acquisition date, which were recorded in the Company's communication services segment in the consolidated statements of operations and comprehensive income (loss).

F- 28

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

In November 2023, as a part of an important milestone in the Company’s integration program following the Inmarsat Acquisition and as part of the Company’s ongoing strategy to streamline operations and better serve the Company’s growing customer base, the Company completed work on the rationalization of roles in the Company’s global business, which was intended to achieve both operational and cost efficiencies. As part of the role rationalization, the Company reduced its global workforce and recorded total costs (primarily related to employee severance payments, benefits and related termination costs) of approximately $ 48 million during fiscal year 2024. These one-time costs were recorded within operating expenses in the Company’s consolidated statements of operations and comprehensive income (loss) in both of the Company’s segments.
Unaudited Pro Forma Financial Information
The unaudited financial information in the table below summarizes the combined results of operations for the Company and Inmarsat on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2023, April 1, 2022. The pro forma information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the related fiscal period. The pro forma financial information for fiscal year 2024 includes the business combination accounting effects primarily related to the amortization and depreciation changes from acquired intangible and tangible assets, interest expense from the debt issued to finance the acquisition, acquisition-related transaction costs and related tax effects.
 

 

 

Fiscal Year Ended

 

 

 

March 31, 2024

 

 

 

(In thousands)

 

Total revenues

 

$

4,565,433

 

Net income (loss) attributable to Viasat, Inc.

 

$

( 1,014,047

)

 
Note 5 — Goodwill and Acquired Intangible Assets
During fiscal years 2026 and 2025, the Company’s goodwill remained flat.
Goodwill by segment as of March 31, 2026 and 2025 was as follows:
 

 

 

As of
March 31, 2026

 

 

As of
March 31, 2025

 

 

 

(In thousands)

 

Communication services

 

$

1,584,603

 

 

$

1,582,083

 

Defense and advanced technologies

 

 

40,410

 

 

 

40,049

 

Total

 

$

1,625,013

 

 

$

1,622,132

 

Acquired intangible assets are amortized using the straight-line method over their estimated useful live s of two to 12 years (which approximates the economic pattern of benefit). Amortization expense related to acquired intangible assets was $ 260.7 million, $ 263.9 million and $ 227.2 million for fiscal years 2026, 2025 and 2024, respectively.
Acquired intangible assets and the related accumulated amortization as of March 31, 2026 and 2025 were as follows:
 

 

 

 

 

 

As of March 31, 2026

 

 

As of March 31, 2025

 

 

 

Weighted
Average
Useful Life

 

 

Total

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

Total

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

 

(In years)

 

 

(In thousands)

 

Contracts and customer relationships

 

 

11

 

 

$

1,432,934

 

 

$

( 413,945

)

 

$

1,018,989

 

 

$

1,432,562

 

 

$

( 280,309

)

 

$

1,152,253

 

Orbital slots and spectrum assets

 

 

12

 

 

 

1,088,600

 

 

 

( 263,600

)

 

 

825,000

 

 

 

1,088,600

 

 

 

( 173,600

)

 

 

915,000

 

Technology

 

 

7

 

 

 

223,954

 

 

 

( 142,147

)

 

 

81,807

 

 

 

247,921

 

 

 

( 131,805

)

 

 

116,116

 

Trade names

 

 

8

 

 

 

114,570

 

 

 

( 50,811

)

 

 

63,759

 

 

 

116,949

 

 

 

( 38,453

)

 

 

78,496

 

Other

 

 

9

 

 

 

18,995

 

 

 

( 11,114

)

 

 

7,881

 

 

 

18,017

 

 

 

( 9,105

)

 

 

8,912

 

Total other acquired intangible assets

 

 

11

 

 

$

2,879,053

 

 

$

( 881,617

)

 

$

1,997,436

 

 

$

2,904,049

 

 

$

( 633,272

)

 

$

2,270,777

 

 

F- 29

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The expected amortization expense of amortizable acquired intangible assets may change due to the effects of foreign currency fluctuations as a result of international businesses acqu ired. Expected amortization expense for acquired intangible assets for each of the following periods is as follows:

 

 

Amortization

 

 

 

(In thousands)

 

Expected for fiscal year 2027

 

$

263,329

 

Expected for fiscal year 2028

 

 

263,291

 

Expected for fiscal year 2029

 

 

262,266

 

Expected for fiscal year 2030

 

 

247,160

 

Expected for fiscal year 2031

 

 

234,951

 

Thereafter

 

 

726,439

 

 

$

1,997,436

 

 
Note 6 — Leases
The Company’s operating leases consist primarily of leases for office space, data centers and satellite ground facilities and have remaining terms that typically range from less than one year to 16 years , some of which include renewal options, and some of which include options to terminate the leases within one year. Cer tain earth station leases have renewal terms that have been deemed to be reasonably certain to be exercised and as such have been recognized as part of the Company’s right-of-use assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognizes right-of-use assets and lease liabilities for such leases in accordance with ASC 842. The Company reports operating lease right-of-use assets in operating lease right-of-use assets and the current and non-current portions of its operating lease liabilities in accrued and other liabilities and non-current operating lease liabilities, respectively, in the consolidated balance sheets.
The Company’s finance leases consist primar ily of satellite lifetime Ka-band capacity leases and have remaining terms from less than one year to 14 years . The Company reports assets obtained under finance leases in property, equipment and satellites, net and the current and n on-current portions of its finance lease liabilities in current portion of long-term debt and other long-term debt, respectively, in the consolidated balance sheets.

F- 30

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The components of the Company's lease costs, weighted average lease terms and discount rates are presented in the tables below:
 

 

 

Fiscal Years Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

 

March 31, 2024

 

 

 

(In thousands)

 

Lease cost:

 

 

 

 

 

 

 

 

 

Operating lease cost

 

$

94,340

 

 

$

99,067

 

 

$

105,365

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

Depreciation of assets obtained under finance leases

 

 

20,716

 

 

 

14,948

 

 

 

11,824

 

Interest on lease liabilities

 

 

15,764

 

 

 

6,514

 

 

 

2,018

 

Short-term lease cost

 

 

17,096

 

 

 

21,559

 

 

 

13,990

 

Variable lease cost

 

 

28,544

 

 

 

27,067

 

 

 

13,214

 

Net lease cost

 

$

176,460

 

 

$

169,155

 

 

$

146,411

 

 

 

 

As of

 

 

As of

 

 

As of

 

 

 

March 31, 2026

 

 

March 31, 2025

 

 

March 31, 2024

 

Lease term and discount rate:

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (in years):

 

 

 

 

 

 

 

 

 

Operating leases

 

 

8.2

 

 

 

8.5

 

 

 

7.3

 

Finance leases

 

13.4

 

 

13.5

 

 

 

2.4

 

 

 

 

 

 

 

 

 

 

 

Weighted average discount rate:

 

 

 

 

 

 

 

 

 

Operating leases

 

 

6.1

%

 

 

6.2

%

 

 

6.2

%

Finance leases

 

 

10.8

%

 

 

10.5

%

 

 

6.3

%

 
The following table details components of the consolidated statements of cash flows for operating and finance leases:
 

 

 

Fiscal Years Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

 

March 31, 2024

 

 

 

(In thousands)

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

89,248

 

 

$

92,600

 

 

$

93,350

 

Operating cash flows from finance leases

 

 

15,836

 

 

 

5,259

 

 

 

2,074

 

Financing cash flows from finance leases

 

 

20,692

 

 

 

15,176

 

 

 

11,941

 

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease liabilities:

 

 

 

 

 

 

 

 

 

Operating leases

 

$

71,548

 

 

$

94,350

 

 

$

29,035

 

Finance leases

 

 

1,150

 

 

 

145,625

 

 

 

1,946

 

 
 

F- 31

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The following table presents maturities of the Company’s lease liabilities as of March 31, 2026:
 

 

 

Operating Leases

 

 

Finance Leases

 

 

 

(In thousands)

 

Expected for fiscal year 2027

 

$

88,383

 

 

$

22,633

 

Expected for fiscal year 2028

 

 

82,856

 

 

 

19,633

 

Expected for fiscal year 2029

 

 

83,539

 

 

 

19,615

 

Expected for fiscal year 2030

 

 

79,729

 

 

 

19,630

 

Expected for fiscal year 2031

 

 

72,192

 

 

 

19,650

 

Thereafter

 

 

225,868

 

 

 

157,785

 

Total future lease payments required

 

 

632,567

 

 

 

258,946

 

Less: interest

 

 

141,606

 

 

 

119,994

 

Total

 

$

490,961

 

 

$

138,952

 

 
As of March 31, 2026, the Company h ad additional operating and finance leases that have not yet commenced, with total lease obligations of approximately $ 92.7 million. These operating and finance leases will commence between fiscal year 2027 and fiscal year 2030 with lease terms of three to 16 years .

F- 32

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Note 7 — Senior Notes and Other Long-Term Debt
Total long-term debt consisted of the following as of March 31, 2026 and 2025:
 

 

 

As of
March 31, 2026

 

 

As of
March 31, 2025

 

 

 

(In thousands)

 

2022 Term Loan Facility

 

$

673,750

 

 

$

680,750

 

2023 Term Loan Facility

 

 

601,283

 

 

 

607,450

 

Original Inmarsat Term Loan Facility

 

 

—

 

 

 

300,000

 

Inmarsat Term Loan Facility

 

 

1,274,000

 

 

 

1,287,000

 

Ex-Im Credit Facility

 

 

188,730

 

 

 

—

 

Former Ex-Im Credit Facility

 

 

—

 

 

 

19,652

 

Inmarsat Revolving Credit Facility

 

 

—

 

 

 

—

 

Viasat Revolving Credit Facility

 

 

—

 

 

 

—

 

2025 Notes

 

 

—

 

 

 

442,550

 

2027 Notes

 

 

600,000

 

 

 

600,000

 

2028 Notes

 

 

400,000

 

 

 

400,000

 

Inmarsat 2029 Notes

 

 

1,975,000

 

 

 

1,975,000

 

2031 Notes

 

 

733,400

 

 

 

733,400

 

Finance lease obligations  (see Note 6)

 

 

138,952

 

 

 

158,473

 

Total debt

 

 

6,585,115

 

 

 

7,204,275

 

Unamortized discount, debt issuance costs and fair value adjustments made in purchase accounting

 

 

( 136,510

)

 

 

( 168,166

)

Less: current portion of long-term debt

 

 

57,753

 

 

 

503,825

 

Total long-term debt

 

$

6,390,852

 

 

$

6,532,284

 

 
The estimated aggregate amounts and timing of payments on the Company’s long-term debt obligations as of March 31, 2026 for the next five fiscal years and thereafter were as follows (excluding the effects of discount accretion under the Notes, the Term Loan Facilities and the Ex-Im Credit Facility):
 

For the Fiscal Years Ending

 

(In thousands)

 

2027

 

$

57,753

 

2028

 

 

655,322

 

2029

 

 

1,108,693

 

2030

 

 

3,246,671

 

2031

 

 

1,341,337

 

Thereafter

 

 

175,339

 

 

 

6,585,115

 

Unamortized discount, debt issuance costs and fair value adjustments made in purchase accounting

 

 

( 136,510

)

Total

 

$

6,448,605

 

 

F- 33

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

2022 Term Loan Facility
In March 2022, the Company entered into the $ 700.0 million 2022 Term Loan Facility, w hich was fully drawn at closing and matures on March 4, 2029 . At March 31, 2026, the Company had $ 673.8 million in principal amount of outstanding borrowings under the 2022 Term Loan Facility.
Borrowings under the 2022 Term Loan Facility are required to be repaid in quarterly installments of $ 1.75 million each, which commenced on September 30, 2022 , followed by a final installment of $ 654.5 million at maturity. Borrowings under the 2022 Term Loan Facility bear interest, at the Company’s option, at either (1) a base rate equal to the greater of the administrative agent’s prime rate as announced from time to time, the federal funds effective rate plus 0.50%, and the forward-looking term SOFR rate administered by CME for a one-month interest period plus 1.00%, subject to a floor of 1.50% for the initial term loans, plus an applicable margin of 3.50%, or (2) the forward-looking term SOFR rate administered by CME for the applicable interest period, subject to a floor of 0.50% for the initial term loans, plus an applicable margin of 4.50%. As of March 31, 2026, the effective interest rate on the Company’s outstanding borrowings under the 2022 Term Loan Facility was 8.82 % . The 2022 Term Loan Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the 2022 Term Loan Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets. As of March 31, 2026, none of the Company’s subsidiaries guaranteed the 2022 Term Loan Facility.
The 2022 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make investments, pay dividends and make certain other restricted payments . The Comp any was in compliance with its covenants under the 2022 Term Loan Facility as of March 31, 2026.
Borrowings under the 2022 Term Loan Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s consolidated financial statements. The 2022 Term Loan Facility was issued with an original issue discount of 2.00 %, or $ 14.0 million. The original issue discount and deferred financing cost associated with the issuance of the borrowings under the 2022 Term Loan Facility are amortized to interest expense on a straight-line basis over the term of the 2022 Term Loan Facility, the results of which are not materially different from the effective interest rate basis.
2023 Term Loan Facility
In connection with the closing of the Inmarsat Acquisition, in May 2023, the Company entered into the $ 616.7 million 2023 Term Loan Facility, which was fully drawn at closing and mat ures on May 30, 2030 . At March 31, 2026, the Company had $ 601.3 million in principal amount of outstanding borrowings under the 2023 Term Loan Facility.
Borrowings under the 2023 Term Loan Facility are required to b e repaid in quarterly installments of $ 1.5 million each, which commenced on December 31, 2023 , followed by a final installment of $ 576.6 million at maturity. Borrowings under the 2023 Term Loan Facility bear interest, at the Company's option, at either (1) a base rate equal to the greater of the administrative agent’s prime rate as announced from time to time, the federal funds effective rate plus 0.50%, and the forward-looking term SOFR rate administered by CME for a one-month interest period plus 1.00%, subject to a floor of 1.50% for the initial term loans, plus an applicable margin of 3.50%, or (2) the forward-looking term SOFR rate administered by CME for the applicable interest period, subject to a floor of 0.50% for the initial term loans, plus an applicable margin of 4.50%, plus a credit spread adjustment ranging from 0.11% to 0.43%. As of Ma rch 31, 2026, the effective interest rate on the Company’s outstanding borrowings under the 2023 Term Loan Facility was 9.29 % . The 2023 Term Loan Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company ( as defined in the 2023 Term Loan Facility) and secured by substantially all of the Company’s assets and any such subsidiaries' assets. As of March 31, 2026, none of the Company’s subsidiaries guaranteed the 2023 Term Loan Facility.
The 2023 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make in vestments, pay dividends and make certain other restricted payments. The Company was in compliance with its covenants under the 2023 Term Loan Facility as of March 31, 2026.
Borrowings under the 2023 Term Loan Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s consolidated financial statements. The 2023 Term Loan Facility was issued with an original issue discount of 2.50 %, or $ 15.4 million. The original issue discount and deferred financing cost associated with the issuance of the borrowings under the 2023 Term Loan Facility are amortized to interest expense on a straight-line basis over the term of the 2023 Term Loan Facility, the results of which are not materially different from the effective interest rate basis.

F- 34

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Inmarsat Secured Credit Facilities
In March 2024, Inmarsat amended its then-existing senior secured credit facilities to (among other matters): (1) establish the $ 1.3 billion Inmarsat Term Loan Facility, the proceeds of which, together with cash on hand, were used to repay approximately $ 1.38 billion of the outstanding borrowings under the Original Inmarsat Term Loan Facility, resulting in $ 300.0 million in principal amount of borrowings remaining outstanding under the Original Inmarsat Term Loan Facility at the closing of the amendment, and (2) replace the prior $ 700.0 million revolving credit facility with a new $ 550.0 million revolving line of credit (including up to $ 100.0 million of letters of credit) (the Inmarsat Revolving Credit Facility and, together with the Inmarsat Term Loan Facility, the Inmarsat Secured Credit Facilities).
In November 2025, th e Company repaid early all of the $ 300.0 million in principal amount of outstanding borrowings under the Original Inmarsat Term Loan Facility plus accrued and unpaid interest thereon. As a result of the repayment of the Original Inmarsat Term Loan Facility, during fiscal year 2026, the Company recorded a loss of $ 11.6 million in loss ( gain) on extinguishment of debt, net in the consolidated statement of operations and comprehensive income (loss) related to an unamortized fair value adjustment made in purchase accounting. Borrowings under the Original Inmarsat Term Loan Facility were recorded as other long-term debt, net of unamortized discount, unamortized fair value adjustment made in purchase accounting and debt issuance costs, in the Company’s consolidated financial statements as of March 31, 2025.
The maturity date for the Inmarsat Term Loan Facility is September 28, 2029 and for the Inmarsat Revolving Credit Facility is March 28, 2027 . As of March 31, 2026, Inmarsat had $ 1.3 billion in principal amount of outstanding borrowings under the Inmarsat Term Loan Facility, the Inmarsat Revolving Credit Facility was undrawn and there were no amounts outstanding under standby letters of credit, leaving borrowing availability under the Inmarsat Revolving Credit Facility of $ 550.0 million.
Borrowings under the Inmarsat Term Loan Facility are required to be repaid in quarterly installments of $ 3.25 million each, which commenced in June 2024 , followed by a final installment of $ 1.23 billion at maturity.
Borrowings under the Inmarsat Secured Credit Facilities: (1) in the case of borrowings denominated in U.S. Dollars, bear interest, at Inmarsat's option, at either (i) the highest of (x) the federal funds rate plus 0.50%, (y) the forward-looking one-month term SOFR rate plus 1.00% or (z) the administrative agent's prime rate as announced from time to time, or (ii) the forward-looking term SOFR rate for the applicable interest period (subject to, in the case of the Inmarsat Term Loan Facility, a floor of 0.50% per annum and, in the case of the Inmarsat Revolving Credit Facility, a floor of 0.00% per annum), and (2) in the case of borrowings denominated in available currencies other than U.S. Dollars, bear interest based upon the applicable benchmark for such currencies (as described in the Inmarsat Secured Credit Facilities) plus, in all cases, an applicable margin. The applicable margin for the Inmarsat Term Loan Facility is 3.50% per annum for base rate loans and 4.50% per annum for SOFR loans. The applicable margin for borrowings under the Inmarsat Revolving Credit Facility is based on Inmarsat’s total net leverage ratio and ranges between 1.50% and 2.25% per annum for base rate loans and 2.50% and 3.25% per annum for SOFR loans. As of March 31, 2026, the effective interest rate on the Company's outstanding borrowings under the Inmarsat Term Loan Facility was 9.11 % . The I nmarsat Secured Credit Facilities are required to be guaranteed by certain material Inmarsat subsidiaries and secured by substantially all of the assets of the Inmarsat borrowers and subsidiary guarantors.
The Inmarsat Secured Credit Facilities contain covenants that restrict, among other things, Inmarsat’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, pay dividends and make certain other restricted payments. In addition, covenants regarding Inmarsat’s total net leverage ratio and intere st coverage ratio apply to the Inmarsat Revolving Credit Facility. The borrowers under the Inmarsat Secured Credit Facilities were in compliance with the covenants under the Inmarsat Secured Credit Facilities as of March 31, 2026 .
Borrowings under the Inmarsat Term Loan Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount, unamortized fair value adjustment made in purchase accounting and debt issuance costs, in the Company’s consolidated financial statements. The Inmarsat Term Loan Facility was issued with an original issue discount of 2.00 %.

F- 35

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Former Ex-Im Credit Facility
The Former Ex-Im Credit Facility provided a $ 362.4 million senior secured direct loan facility, $ 321.2 million of which was used to finance up to 85 % of the costs of construction, launch and insurance of the ViaSat-2 satellite and related goods and services, with the remaining $ 41.2 million used to finance the total exposure fees incurred under the Former Ex-Im Credit Facility. Borrowings under the Former Ex-Im Credit Facility bore interest at a fixed rate of 2.38 %, payable semi-annually in arrears. The effective interest rate on the Company’s outstanding borrowings under the Former Ex-Im Credit Facility, which took into account timing and amount of borrowings and payments, exposure fees, debt issuance costs and other fees, was 4.54 %. The Former Ex-Im Credit Facility was fully repaid and discharged at maturity on October 15, 2025 . Borrowings under the Former Ex-Im Credit Facility were recorded as current portion of long-term debt, net of unamortized discount and debt issuance costs, in the Company’s consolidated financial statements as of March 31, 2025. The discount of $ 42.3 million (consisting of the initial $ 6.0 million pre-exposure fee, $ 35.3 million of completion exposure fees, and other customary fees) and deferred financing cost associated with the issuance of the borrowings under the Former Ex-Im Credit Facility were amortized to interest expense on an effective interest rate basis over the weighted average term of the Former Ex-Im Credit Facility and in accordance with the related payment obligations.
Ex-Im Credit Facility
The Ex-Im Credit Facility provided a $ 188.7 million senior secured direct loan facility, which was fully drawn. Of the $ 188.7 million in principal amount of borrowings made under the Ex-Im Credit Facility, $ 175.8 million was used to finance up to 85 % of the costs of launch and insurance of the ViaSat-3 F1 satellite and related goods and services, with the remainder used to finance the total exposure fees incurred under the Ex-Im Credit Facility of $ 12.9 million. As of March 31, 2026, the Company had $ 188.7 million in principal amount of outstanding borrowings under the Ex-Im Credit Facility.
Borrowings under the Ex-Im Credit Facility bear interest at a fixed rate equal to 4.78 % per annum, payable semi-annually in arrears. The effective interest rate on the Company’s outstanding borrowings under the Ex-Im Credit Facility, which takes into account exposure fees and debt issuance costs, is 7.52 %. Borrowings under the Ex-Im Credit Facility are required to be repaid in 16 semi-annual principal installments, which commenced in May 2026 , with a maturity date of November 25, 2033 . The Ex-Im Credit Facility is guaranteed by Viasat and is secured by first-priority liens on the ViaSat-2 satellite and related assets, as well as a pledge of the capital stock of the borrower under the facility.
The Ex-Im Credit Facility contains covenants regarding Viasat’s maximum total leverage ratio and minimum interest coverage ratio. In addition, the Ex-Im Credit Facility contains covenants that restrict, among other things, the Company’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricte d payments. The Company was in compliance with its covenants under the Ex-Im Credit Facility as of March 31, 2026.
Borrowings under the Ex-Im Credit Facility are recorded as current portion of long-term debt and as other long-term debt , net of unamortized discount and debt issuance costs, in the Company’s consolidated financial statements. The discount of $ 12.9 million (comprised of the exposure fees) and deferred financing cost associated with the issuance of the borrowings under the Ex-Im Credit Facility are amortized to interest expense on a straight-line basis over the term of the Ex-Im Credit Facility, the results of which are not materially different from the effective interest rate basis.
Viasat Revolving Credit Facility
As of March 31, 2026 , Viasat's revolving credit facility (the Viasat Revolving Credit Facility) provided a $ 647.5 million revolving line of credit (including up to $ 150.0 million of letters of credit), with a maturity date of the earliest of (A) August 24, 2028 and (B) the springing maturity date (as defined in the Viasat Revolving Credit Agreement, which is effectively 91 days prior to the maturity date of certain material debt fo r borrowed money of Viasat and its subsidiaries to the extent certain conditions have not been satisfied as of such date). At March 31, 2026, the Viasat Revolving Credit Facility was undrawn and there was $ 49.3 million outstanding under standby letters of credit, leaving borrowing availability under the Viasat Revolving Credit Facility of $ 598.2 million.

F- 36

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Borrowings under the Viasat Revolving Credit Facility bear interest, at the Company’s option, at either (1) the highest of the federal funds rate plus 0.50%, forward-looking term SOFR (as defined in the definitive credit agreement governing the Viasat Revolving Credit Facility) for an interest period of one month plus 1.00%, or the administrative agent’s prime rate as announced from time to time, or (2) forward-looking term SOFR (not to be less than 0.00% per annum), plus, in the case of each of (1) and (2), an applicable margin that is based on the Company’s total leverage ratio. The Company has capitalized certain amounts of interest expense on the Viasat Revolving Credit Facility in connection with the construction of various assets during the construction period. The Viasat Revolving Credit Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the Viasat Revolving Credit Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets . As of March 31, 2026, none of the Company’s subsidiaries guaranteed the Viasat Revolving Credit Facility.
The Viasat Revolving Credit Facility contains covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the Viasat Revolving Credit Facility contains covenants that restrict, among other things, the Company’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, make capital expenditures, pay dividends and make certain other restricted payments. The Company was in compliance with its covenants under the Viasat Revolving Credit Facility as of March 31, 2026 .
Senior Notes
Senior Notes due 2025; Discharge of Indenture and Gain (Loss) on Extinguishment of Debt
In September 2017, the Company issued $ 700.0 million in principal amount of 2025 Notes in a private placement to institutional buyers. During fiscal year 2025, the Company repurchased $ 257.5 million in aggregate principal amount of 2025 Notes in open market transactions, and during fiscal year 2026, the Company redeemed all of the remaining $ 442.6 million in principal amount of 2025 Notes at a redemption price of 100 % of the principal amount so redeemed plus accrued and unpaid interest thereon to the redemption date, and the indenture governing the 2025 Notes was satisfied and discharged in accordance with its terms. As a result, the Company recorded an insignificant amount in loss (gain) on extinguishment of debt, net in the consolidated statement of operations and comprehensive income (loss) during fiscal years 2026 and 2025. The 2025 Notes bore interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, and were recorded as current portion of long-term debt, net of debt issuance costs, in the Company's consolidated financial statements as of March 31, 2025.
Inmarsat Senior Secured Notes due 2026; Discharge of Indenture and Loss on Extinguishment of Debt
In October 2019, certain subsidiaries of Inmarsat Holdings issued $ 2.08 billion in principal amount of Inmarsat 2026 Notes in a private placement to institutional buyers. During fiscal year 2025, Inmarsat repurchased $ 101.7 million in aggregate principal amount of Inmarsat 2026 Notes in open market transactions and subsequently, Inmarsat used the net proceeds from the issuance of the Inmarsat 2029 Notes, together with cash on hand, to redeem all of the remaining $ 1.97 billion in principal amount of Inmarsat 2026 Notes at a redemption price of 100 % of the principal amount so redeemed plus accrued and unpaid interest thereon to the redemption date, and the indenture governing the Inmarsat 2026 Notes was satisfied and discharged in accordance with its terms. As a result, the Company recorded a loss of $ 100.3 million in fiscal year 2025 in (loss) gain on extinguishment of debt, net in the consolidated statement of operations and comprehensive income (loss), related to an unamortized fair value adjustment made in purchase accounting. The Inmarsat 2026 Notes bore interest at the rate of 6.750 % per year, payable semi-annually in cash in arrears.
Senior Secured Notes due 2027
In March 2019, the Company issued $ 600.0 million in principal amount of 2027 Notes in a private placement to institutional buyers. The 2027 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements. The 2027 Notes bear interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, which interest payments commenced in October 2019. Debt issuance costs associated with the issuance of the 2027 Notes are amortized to interest expense on a straight-line basis over the term of the 2027 Notes, the results of which are not materially different from the effective interest rate basis.
The 2027 Notes are required to be guaranteed on a senior secured basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility. As of March 31, 2026, none of the Company’s subsidiaries guaranteed the 2027 Notes. The 2027 Notes are secured, equally and ratably with the 2022 Term Loan Facility, the 2023 Term Loan Facility, the Viasat Revolving Credit Facility and any future parity lien debt, by liens on substantially all of the Company’s and such subsidiaries' assets.

F- 37

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The 2027 Notes are the Company’s general senior secured obligations and rank equally in right of payment with all of its existing and future unsubordinated debt. The 2027 Notes are effectively senior to all of the Company’s existing and future unsecured debt (including the 2028 Notes and the 2031 Notes) as well as to all of any permitted junior lien debt that may be incurred in the future, in each case to the extent of the value of the assets securing the 2027 Notes. The 2027 Notes are effectively subordinated to any obligations that are secured by liens on assets that do not constitute a part of the collateral securing the 2027 Notes (such as the Inmarsat 2029 Notes), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2027 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness.
The indenture governing the 2027 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person.
The 2027 Notes may be redeemed, in whole or in part, at any time at a redemption price of 100 % plus accrued and unpaid interest, if any, thereon to the redemption date.
In the event a change of control triggering event occurs (as defined in the indenture governing the 2027 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2027 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2027 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).
Senior Notes due 2028
In June 2020, the Company issued $ 400.0 million in principal amount of 2028 Notes in a private placement to institutional buyers. The 2028 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements. The 2028 Notes bear interest at the rate of 6.500 % per year, payable semi-annually in cash in arrears, which interest payments commenced in January 2021. Debt issuance costs associated with the issuance of the 2028 Notes are amortized to interest expense on a straight-line basis over the term of the 2028 Notes, the results of which are not materially different from the effective interest rate basis.
The 2028 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility. As of March 31, 2026, none of the Company’s subsidiaries guaranteed the 2028 Notes. The 2028 Notes are the Company’s general senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future unsecured unsubordinated debt. The 2028 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facilities and the 2027 Notes (to the extent of the value of the assets securing such debt), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2028 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness.
The indenture governing the 2028 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person.
The 2028 Notes may be redeemed, in whole or in part, at any time at a redemption price of 100 % plus accrued and unpaid interest, if any, thereon to the redemption date .
In the event a change of control triggering event occurs (as defined in the indenture governing the 2028 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2028 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2028 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

F- 38

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Inmarsat Senior Secured Notes due 2029
In September 2024, certain subsidiaries of Inmarsat Holdings issued $ 1.975 billion in principal amount of Inmarsat 2029 Notes in a private placement to institutional buyers. The Inmarsat 2029 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements. The Inmarsat 2029 Notes bear interest at the rate of 9.000 % per year, payable semi-annually in cash in arrears, which interest payments commenced in March 2025. Debt issuance costs associated with the issuance of the Inmarsat 2029 Notes are amortized to interest expense on a straight-line basis over the term of the Inmarsat 2029 Notes, the results of which are not materially different from the effective interest rate basis.
The Inmarsat 2029 Notes are secured by pari passu first priority liens on the collateral securing the Inmarsat Secured Credit Facilities, and are required to be guaranteed on a senior secured basis by the subsidiaries of Inmarsat Holdings guaranteeing the Inmarsat Secured Credit Facilities.
The indenture governing the Inmarsat 2029 Notes limits, among other things, the ability of the issuers and their restricted subsidiaries to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; and consolidate or merge with, or sell substantially all of their assets to, another person.
Prior to September 15, 2026, the issuers may redeem up to 40% of the Inmarsat 2029 Notes at a redemption price 109.000 % of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings so long as at least 50% of the aggregate principal amount of the Inmarsat 2029 Notes originally issued remains outstanding after such redemptions. The issuers may also redeem the Inmarsat 2029 Notes prior to September 15, 2026, in whole or in part, at a redemption price equal to 100 % of the principal amount thereof plus a “make-whole” premium and any accrued and unpaid interest, if any, thereon to the redemption date. The Inmarsat 2029 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on September 15, 2026 at a redemption price of 104.500 % , at any time during the 12 months beginning on September 15, 2027 at a redemption price of 102.250 % , and at any time on or after September 15, 2028 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date.
In the event a change of control occurs (as defined in the indenture governing the Inmarsat 2029 Notes), each holder will have the right to require the issuers to repurchase all or a portion of such holder’s Inmarsat 2029 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the Inmarsat 2029 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).
Senior Notes due 2031
In September 2023, the Company issued $ 733.4 million in principal amount of 2031 Notes in a private placement to institutional buyers to replace the $ 733.4 million unsecured bridge loan facility that was entered into in connection with the closing of the Inmarsat Acquisition in May 2023. The 2031 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements. The 2031 Notes bear interest at the rate of 7.500 % per year, payable semi-annually in cash in arrears, which interest payments commenced in May 2024. Debt issuance costs associated with the issuance of the 2031 Notes are amortized to interest expense on a straight-line basis over the term of the 2031 Notes, the results of which are not materially different from the effective interest rate basis.
The 2031 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility. As of March 31, 2026, none of the Company’s subsidiaries guaranteed the 2031 Notes. The 2031 Notes are the Company’s general senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future unsecured unsubordinated debt. The 2031 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facilities and the 2027 Notes (to the extent of the value of the assets securing such debt), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2031 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness.

F- 39

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

The indenture governing the 2031 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person.
Prior to May 30, 2026, the Company may redeem up to 40% of the 2031 Notes at a redemption price of 107.500 % of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings. The Company may also redeem the 2031 Notes prior to May 30, 2026, in whole or in part, at a redemption price equal to 100 % of the principal amount thereof plus a “make whole” premium and any accrued and unpaid interest, if any, thereon to the redemption date. The 2031 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on May 30, 2026 at a redemption price of 103.750 % , during the 12 months beginning on May 30, 2027 at a redemption price of 101.875 % , and at any time on or after May 30, 2028 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date.
In the event a change of control triggering event occurs (as defined in the indenture governing the 2031 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2031 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2031 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

Note 8 — Common Stock and Stock Plans
From time to time, the Company files universal shelf registration statements with the SEC for the future sale of an unlimited amount of common stock, preferred stock, debt securities, depositary shares, warrants and rights, which securities may be offered from time to time, separately or together, directly by the Company, by selling security holders, or through underwriters, dealers or agents at amounts, prices, interest rates and other terms to be determined at the time of the offering.
In November 1996, the Company adopted the 1996 Equity Participation Plan (the Equity Participation Plan). The Equity Participation Plan provides for the grant to executive officers, other eligible employees, consultants and non-employee directors of the Company a broad variety of stock-based compensation alternatives such as nonqualified stock options, incentive stock options, RSUs and performance awa rds. Following the approval of the amended Equity Participation Plan at the 2025 Annual Meeting of Stockholders, the number of shares available for issuance under the amended Equity Participation Plan is (i) 6,410,000 shares, plus (ii) the number of shares, if any, subject to awards outstanding under the former Equity Participation Plan on July 1, 2025 or granted under the amended Equity Participation Plan after such date that again become available for issuance in accordance with the share counting provisions of the amended Equity Participation Plan, based on the deduction from the share reserve originally taken with respect to such awards. The Company believes that such awards align the interests of its executive officers, employees, consultants and non-employee directors with those of its stockholders. Shares of the Company’s common stock granted under the Equity Participation Plan in the form of stock options or stock appreciation right or as a stock appreciation right with a per share purchase price lower than 100 % of fair market value on the date of grant are counted against the Equity Participation Plan share reserve on a one-for-one basis, and PSOs and PSUs are calculated assuming “maximum” performance.
In Septe mber 2024, the Company adopted the 2024 Employment Inducement Incentive Award Plan (the Inducement Plan). The Inducement Plan provided for RSU and market condition PSU grants to the Company's Senior Vice President and Chief Financial Officer. The maximum number of shares reserved for issuance under this plan is 377,500 . Shares of the Company’s common stock granted under the Inducement Plan as RSUs are counted against the Inducement Plan share reserve on a one-for-one basis and market condition PSU grants are calculated assuming “maximum” performance.

F- 40

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

In November 1996, the Company adopted the Viasat, Inc. Employee Stock Purchase Plan (the Employee Stock Purchase Plan) to assist employees in acquiring a stock ownership interest in the Company and to encourage them to remain in the employment of the Company. The Employee Stock Purchase Plan is intended to qualify under Section 423 of the Internal Revenue Code. The number of shares reserved for issuance under the Employee Stock Purchase Plan is 16,950,000 shares. To fa cilitate participation for employees located outside of the United States in light of non-U.S. law and other considerations, the amended Employee Stock Purchase Plan also provides for the grant of purchase rights that are not intended to be tax-qualified. The Employee Stock Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during specified six-month offering periods. No employee may purchase more than $25,000 worth of stock in any calendar year. The price of shares purchased under the Employee Stock Purchase Plan is equal to 85 % of the fair market value of the common stock on the first or last day of the offering period, whichever is lower.
Total stock-based compensation expense recognized in accordance with ASC 718 was as follows:
 

 

 

Fiscal Years Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

 

March 31, 2024

 

 

 

(In thousands)

 

Stock-based compensation expense before taxes

 

$

81,070

 

 

$

80,385

 

 

$

83,631

 

Related income tax benefits

 

 

( 3,055

)

 

 

( 2,181

)

 

 

( 5,292

)

Stock-based compensation expense, net of taxes

 

$

78,015

 

 

$

78,204

 

 

$

78,339

 

 
In accordance with ASC 718, the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities.
The compensation cost that has been charged against income for the Equity Participation Plan and Inducement Plan under ASC 718 w as $ 73.5 million, $ 72.9 million and $ 75.6 million, and for the Employee Stock Purchase Plan was $ 7.5 million, $ 7.5 milli on and $ 8.0 million, for fiscal years 2026, 2025 and 2024, respectively. The Company capitaliz ed $ 9.6 million, $ 8.1 million and $ 10.7 million of stock-based compensation expense as a part of property, equipment and satellites, net for fiscal years 2026, 2025 and 2024, respectively. During fiscal years 2026 and 2025, the Company modified certain RSUs, PSUs and PSOs in connection with termination of executives, resulting in an insignificant amount of incremental compensation expense for each of the periods.
As of March 31, 2026, total unrecognized compensation cost related to unvested stock-based compensation arrangements granted under the Equity Participation Plan and Inducement Plan (including stock options, PSOs, RSUs and PSUs) and the Employee Stock Purchase Plan was $ 159.2 million and $ 2.5 million, respe ctively. These costs are expected to be recognized over a weighted average period of 2.1 years, 0.5 years, 1.8 years and 1.5 years, for stock options, PSOs, RSUs and PSUs, respectively, under the Equity Participation Plan and the Inducement Plan, and less than six months under the Employee Stock Purchase Plan.

F- 41

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

Stock options, market-based performance stock options and employee stock purchase plan. The Company’s stock options (primarily granted to the members of the Company's Board of Directors) typically have a simple one - or three-year vesting schedule and a six-year contractual term. The Company grants total shareholder return (TSR) performance stock options to executive officers under the Equity Participation Plan. The number of shares of TSR PSOs that will become vested and exercisable will range from 0% to 175% of the target number of options based on the time-based vesting schedule described below and is based on a comparison over the performance period of the Company’s TSR to the TSR of the companies included in an index. The Company’s TSR PSOs have a four-year time-based vesting schedule and a six-year contractual term. The TSR PSOs must be vested under both the time-based vesting schedule and the performance-based vesting conditions in order to become exercisable. In fiscal year 2024, the Company granted price hurdle PSOs to executive officers and certain other high-level employees under the Equity Participation Plan. The price hurdle PSOs must be vested under both a three-year time-based vesting schedule and a market-based vesting condition in order to become exercisable and have a six-year contractual term. The number of options that may become vested and exercisable will range from 0% to 250% of the target number of options granted depending on whether the forty-five calendar day trailing average market closing price of the Company's common stock ending on and including such date equals or exceeds certain levels. The Company estimates the fair value of the TSR PSOs and the price hurdle PSOs (collectively, the PSOs) at the grant date using a Monte Carlo simulation. Expense for vested PSOs with a market condition that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis.
There were no PSOs granted during fiscal years 2026 and 2025. The estimated weighted average fair value of PSOs granted during fiscal year 2024 was $ 16.01 using a Monte Carlo simulation.
The weighted average estimated fair value of stock options granted and shares issued under the Employee Stock Purchase Plan during fiscal year 2026 wa s $ 5.79 and $ 9.31 per share, respectively, during fiscal year 2025 was $ 9.87 and $ 5.22 per share, respectively, and during fiscal year 2024 was $ 15.73 and $ 8.79 per share, respectively, using a Black-Scholes model.
The weighted average assumptions (annualized percentages) used in the Black-Scholes model and Monte Carlo simulation were as follows:
 

 

 

Stock Options

 

 

PSOs

 

 

Employee Stock Purchase Plan

 

 

 

Fiscal Year
2026

 

 

Fiscal Year
2025

 

 

Fiscal Year
2024

 

 

Fiscal Year
2026

 

Fiscal Year
2025

 

Fiscal Year
2024

 

 

Fiscal Year
2026

 

 

Fiscal Year
2025

 

 

Fiscal Year
2024

 

Volatility

 

 

68.3

%

 

 

64.5

%

 

 

54.2

%

 

—

 

—

 

 

56.4

%

 

 

81.3

%

 

 

97.3

%

 

 

66.6

%

Risk-free interest rate

 

 

4.0

%

 

 

3.5

%

 

 

4.2

%

 

—

 

—

 

 

4.4

%

 

 

4.0

%

 

 

4.6

%

 

 

5.3

%

Dividend yield

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

—

 

—

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Expected life

 

5.0  years

 

 

5.0  years

 

 

5.0  years

 

 

—

 

—

 

4.6  years

 

 

0.5  years

 

 

0.5  years

 

 

0.5  years

 

 
The Company’s expected volatility is a measure of the amount by which its stock price is expected to fluctuate over the expected term of the stock-based award. The estimated volatilities for stock options and PSOs are based on the historical volatility calculated using the daily stock price of the Company’s stock over a recent historical period equal to the expected term. The risk-free interest rate that the Company uses in determining the fair value of its stock-based awards is based on the implied yield on U.S. Treasury zero-coupon issues with remaining terms equivalent to the expected term of its stock-based awards. The expected terms or lives of stock options and PSOs represent the expected period of time from the date of grant to the estimated date that the options under the Company’s Equity Participation Plan would be fully exercised. The expected term assumption is estimated based primarily on the options’ vesting terms and remaining contractual life and employees’ expected exercise and post-vesting employment termination behavior.
The total intrinsic value of stock options exercised during fiscal years 2026, 2025 and 2024 was an insignificant amount, zero and an insignificant amount, respectively. The total intrinsic value of PSOs exercised during fiscal year 2026 was $ 3.7 million. All options issued under the Company’s Equity Participation Plan have an exercise price equal to the fair market value of the Company’s stock on the date of the grant . For all options exercised, the Company recorded no tax benefits during fiscal years 2026, 2025 and 2024.

F- 42

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
 

A summary of stock option activity for fiscal year 2026 is presented below:
 

 

 

Number of
Shares

 

 

Weighted
Average
Exercise Price
per Share

 

 

Weighted Average
Remaining
Contractual
Term in Years

 

 

Aggregate
Intrinsic
Value
(In thousands)

 

Outstanding at March 31, 2025

 

 

188,718

 

 

$

42.02

 

 

 

 

 

 

 

Granted

 

 

18,000

 

 

 

9.69

 

 

 

 

 

 

 

Expired

 

 

( 73,773

)

 

 

48.98

 

 

 

 

 

 

 

Exercised

 

 

( 8,384

)

 

 

27.14

 

 

 

 

 

 

 

Outstanding at March 31, 2026

 

 

124,561

 

 

$

34.22

 

 

 

2.6

 

 

$

1,952

 

Vested and exercisable at March 31, 2026

 

 

106,561

 

 

$

38.37

 

 

 

2.1

 

 

$

1,302

 

 
A summary of PSO activity for fiscal year 2026 is presented below:
 

 

 

Number of
Shares (1)

 

 

Weighted
Average
Exercise Price
per Share

 

 

Weighted Average
Remaining
Contractual
Term in Years

 

 

Aggregate
Intrinsic
Value
(In thousands)

 

Outstanding at March 31, 2025

 

 

2,563,005

 

 

$

30.50

 

 

 

 

 

 

 

Granted

 

—

 

 

—

 

 

 

 

 

 

 

Performance adjustment

 

 

( 512,507

)

 

 

53.43

 

 

 

 

 

 

 

Forfeited

 

 

( 378,300

)

 

 

21.27

 

 

 

 

 

 

 

Exercised

 

 

( 134,872

)

 

 

15.96

 

 

 

 

 

 

 

Outstanding at March 31, 2026

 

 

1,537,326

 

 

$

26.40

 

 

 

2.8

 

 

$

30,244

 

Vested and exercisable at March 31, 2026

 

 

355,038

 

 

$

21.69

 

 

 

1.6

 

 

$

8,975

 

 
(1) Number of PSOs granted is presented based on the target number of PSOs granted. Outstanding shares are adjusted when the final market condition has been achieved.

Restricted stock units. RSUs represent a right to receive shares of common stock at a future date determined in accordance with the participant’s award agreement. There is no exercise price and no monetary payment required for receipt of RSUs or the shares issued in settlement of the award. Instead, consideration is furnished in the form of the participant’s services to the Company. RSUs generally vest over three or four years (except for a one -year vesting schedule for RSUs granted to the members of the Company’s Board of Directors). Compensation cost for these awards is based on the fair value on the date of grant and is recognized as compensation expense on a straight-line basis over the requisite service period. For fiscal years 2026, 2025 and 2024, the Company recogniz ed $ 67.0 million, $ 56.6 million and $ 57.4 million, respectively, in stock-based compensation expense related to RSU awards.
The per unit weighted average grant date fair value of RSUs granted during fiscal years 2026, 2025 and 2024 was $ 27.49 , $ 15.77 and $ 29.21 , respectively.
A summary of RSU activity for fiscal year 2026 is presented below:
 

 

 

Number of
Shares

 

 

Weighted
Average Grant
Date Fair Value
per Share

 

Outstanding at March 31, 2025

 

 

5,758,553

 

 

$

24.05

 

Awarded

 

 

5,378,977

 

 

 

27.49

 

Forfeited

 

 

( 631,443

)

 

 

22.15

 

Vested

 

 

( 2,314,111

)

 

 

26.60

 

Outstanding at March 31, 2026

 

 

8,191,976

 

 

$

25.73

 

Vested and deferred at March 31, 2026

 

 

219,687

 

 

$

50.13

 

 

F- 43

VIASAT, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)