Recent News
On April 2, 2026 Telesat announced a multi‑year agreement with Northwestel to deliver Telesat Lightspeed LEO services across Canada’s North. On March 17, 2026 Telesat added 500 MHz of military Ka‑band spectrum to the initial Lightspeed constellation to address allied defence demand. On February 12, 2026 Telesat Government Solutions disclosed an award under the U.S. Missile Defense Agency SHIELD IDIQ contract.
Technical Analysis
ADX at 28.61 indicates a strong trend environment, implying directional conviction that will influence near-term price movement and valuation sensitivity.
DI+ shows a dip‑and‑reversal, which reads as bullish momentum, while DI‑ sits higher and is increasing, which reads as bearish pressure; that combination signals a contested directional bias that can amplify short‑term volatility and challenge valuation stability.
MACD registers 2.40 and the MACD line sits below the signal line (signal = 2.84) with a decreasing MACD trend, indicating bearish momentum and absence of a bullish MACD crossover to support immediate upside from current levels.
MRO at 35.75 with a peak‑and‑reversal indicates the price sits above the model target and presents downward pressure on price convergence toward fair value, reinforcing downside risk to the present valuation.
RSI at 58.46 with a dip‑and‑reversal shows renewed buying momentum without yet reaching overbought territory; this supports short bursts of upside but does not cancel the bearish momentum signals from MACD and MRO.
Price trades near the 20‑day average ($48.45) and above the 200‑day average ($30.41); the 12‑day EMA shows a peak‑and‑reversal, which aligns with momentum indicators pointing to near‑term pullback risk despite the longer‑term average remaining constructive.
High short‑term beta (42‑day 3.13) and elevated 20‑day volatility imply amplified move sizes; traders should expect intermittent gaps and wide intra‑session swings that affect short‑term valuation realization.
Fundamental Analysis
Revenue totaled $94,041,000 with gross profit $87,146,000, producing a gross margin of 92.668%, essentially reflecting high‑margin satellite capacity economics. Revenue growth shows a QoQ increase of 46.03% but a YoY decline of 7.95%.
EBIT stands at −$435,035,000 producing an EBIT margin of −462.601%; QoQ improvement in EBIT margin equals +460.294% and YoY change +33.815%. The EBIT margin falls well below the industry peer range (industry peer low −73.265%, mean −5.749%, median −9.542%), underscoring large non‑operating or one‑time impacts that pressure operating profitability on a reported basis.
EBITDA at −$397,985,000 and free cash flow −$70,454,000 generate a free cash flow yield of −16.199% despite reported free cash growth YoY of +125.216%; cash conversion ratios remain stressed (cash conversion ratio −3.784%). Cash on hand equals $509,798,000 while net debt reads $2,983,809,000, leaving a net leverage profile materially heavy and debt servicing a structural consideration.
Liquidity metrics show current ratio 0.25 and quick ratio 0.25037, both below the industry peer range low (current‑ratio low 0.46201), signaling constrained near‑term liquidity relative to peers. Days payable outstanding at 1,116.28 and a cash conversion cycle of −1,075.65 days reflect an operational working‑capital pattern driven by extended payables rather than receivables efficiency.
Leverage and coverage: debt‑to‑equity stands near 6.66x and debt‑to‑capital 86.94%; interest coverage reads −8.14x, which sits marginally below the industry peer mean on coverage metrics. Forward EPS at −$1.8225 and forward PE at −15.35 reflect negative forward profitability; forward PS at 86.12 signals high multiple on revenue expectations rather than current earnings power.
Valuation summary: WMDST values the stock as over‑valued. Enterprise value metrics (EVR 36.78 and an enterprise multiple of −8.69 driven by negative earnings) indicate market pricing that presumes significant future operating leverage capture and Lightspeed revenue realization to justify current capitalization.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-03 |
| NEXT REPORT DATE: | 2026-05-05 |
| CASH FLOW | Begin Period Cash Flow | $ 482.6 M |
| Operating Cash Flow | $ -30.21 M | |
| Capital Expenditures | $ -40.25 M | |
| Change In Working Capital | $ -1.93 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 27.2 M | |
| End Period Cash Flow | $ 509.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 94.0 M | |
| Forward Revenue | $ 5.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 6.9 M | |
| Depreciation | $ 26.7 M | |
| Depreciation and Amortization | $ 37.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 87.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 87.1 M | |
| EBITDA | $ -397.99 M | |
| EBIT | $ -435.04 M | |
| Operating Income | $ 6.7 M | |
| Interest Income | $ 5.3 M | |
| Interest Expense | $ 53.4 M | |
| Net Interest Income | $ -48.14 M | |
| Income Before Tax | $ -488.48 M | |
| Tax Provision | $ -55.27 M | |
| Tax Rate | 11.315 % | |
| Net Income | $ -125.54 M | |
| Net Income From Continuing Operations | $ -433.21 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ -1.82 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.6 B | |
| Intangible Assets | $ 2.7 B | |
| Net Tangible Assets | $ -2.13 B | |
| Total Current Assets | $ 832.1 M | |
| Cash and Short-Term Investments | $ 510.2 M | |
| Cash | $ 509.8 M | |
| Net Receivables | $ 30.6 M | |
| Inventory | $ 1.5 M | |
| Long-Term Investments | $ 869.0 K | |
| LIABILITIES | ||
| Accounts Payable | $ 5.2 M | |
| Short-Term Debt | $ 2.3 B | |
| Total Current Liabilities | $ 3.3 B | |
| Net Debt | $ 3.0 B | |
| Total Debt | $ 3.5 B | |
| Total Liabilities | $ 4.8 B | |
| EQUITY | ||
| Total Equity | $ 530.8 M | |
| Retained Earnings | $ 330.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 35.87 | |
| Shares Outstanding | 14.844 M | |
| Revenue Per-Share | $ 6.35 | |
| VALUATION | Market Capitalization | $ 434.9 M |
| Enterprise Value | $ 3.5 B | |
| Enterprise Multiple | -8.69 | |
| Enterprise Multiple QoQ | -87.647 % | |
| Enterprise Multiple YoY | 26.152 % | |
| Enterprise Multiple IPRWA | high: 179.9 median: 179.9 mean: 147.344 TSAT: -8.69 low: -24.028 |
|
| EV/R | 36.776 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 12.441 | |
| Asset To Liability | 1.366 | |
| Debt To Capital | 0.869 | |
| Debt To Assets | 0.535 | |
| Debt To Assets QoQ | 11.997 % | |
| Debt To Assets YoY | 18.734 % | |
| Debt To Assets IPRWA | high: 0.913 mean: 0.607 median: 0.588 TSAT: 0.535 low: 0.025 |
|
| Debt To Equity | 6.657 | |
| Debt To Equity QoQ | 34.187 % | |
| Debt To Equity YoY | 51.067 % | |
| Debt To Equity IPRWA | high: 10.201 TSAT: 6.657 mean: 3.808 median: 3.088 low: -10.872 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.819 | |
| Price To Book QoQ | 34.382 % | |
| Price To Book YoY | 119.888 % | |
| Price To Book IPRWA | high: 4.852 median: 3.149 mean: 2.988 TSAT: 0.819 low: -2.435 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 4.625 | |
| Price To Sales QoQ | 14.924 % | |
| Price To Sales YoY | 123.664 % | |
| Price To Sales IPRWA | high: 5.042 median: 5.042 TSAT: 4.625 mean: 4.351 low: 1.015 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -15.354 | |
| Forward PE/G | — | |
| Forward P/S | 86.117 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -60.671 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.014 | |
| Asset Turnover Ratio QoQ | -5.89 % | |
| Asset Turnover Ratio YoY | -27.905 % | |
| Asset Turnover Ratio IPRWA | high: 0.335 mean: 0.129 low: 0.117 median: 0.117 TSAT: 0.014 |
|
| Receivables Turnover | 2.246 | |
| Receivables Turnover Ratio QoQ | 15.603 % | |
| Receivables Turnover Ratio YoY | -3.996 % | |
| Receivables Turnover Ratio IPRWA | TSAT: 2.246 high: 1.981 mean: 1.26 median: 1.235 low: 1.136 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 40.631 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -1075.651 | |
| Cash Conversion Cycle Days QoQ | -48.038 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 62.438 median: 54.99 mean: 48.163 low: -25.456 TSAT: -1075.651 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -0.038 | |
| CapEx To Revenue | -0.428 | |
| CapEx To Depreciation | -1.506 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.7 B | |
| Net Invested Capital | $ 4.0 B | |
| Invested Capital | $ 4.0 B | |
| Net Tangible Assets | $ -2.13 B | |
| Net Working Capital | $ -2.49 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.154 | |
| Current Ratio | 0.251 | |
| Current Ratio QoQ | -93.902 % | |
| Current Ratio YoY | -93.699 % | |
| Current Ratio IPRWA | high: 3.043 mean: 2.078 median: 2.072 low: 0.462 TSAT: 0.251 |
|
| Quick Ratio | 0.25 | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | -93.701 % | |
| Quick Ratio IPRWA | high: 2.656 mean: 1.256 median: 0.99 TSAT: 0.25 low: 0.067 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -8.879 | |
| Cost Of Debt | 1.385 % | |
| Interest Coverage Ratio | -8.14 | |
| Interest Coverage Ratio QoQ | 431.343 % | |
| Interest Coverage Ratio YoY | 6.654 % | |
| Interest Coverage Ratio IPRWA | high: 2.464 mean: -1.011 median: -1.352 low: -7.162 TSAT: -8.14 |
|
| Operating Cash Flow Ratio | -0.052 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 1116.283 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -4.652 % | |
| Revenue Growth | -6.945 % | |
| Revenue Growth QoQ | 46.026 % | |
| Revenue Growth YoY | -7.952 % | |
| Revenue Growth IPRWA | high: 11.397 % median: 7.596 % mean: 7.579 % low: -5.897 % TSAT: -6.945 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 92.668 % | |
| Gross Margin QoQ | -2.739 % | |
| Gross Margin YoY | 0.496 % | |
| Gross Margin IPRWA | TSAT: 92.668 % high: 56.168 % median: 56.168 % mean: 52.923 % low: 13.533 % |
|
| EBIT Margin | -462.601 % | |
| EBIT Margin QoQ | 460.294 % | |
| EBIT Margin YoY | 33.815 % | |
| EBIT Margin IPRWA | high: 24.761 % mean: -5.749 % median: -9.542 % low: -73.265 % TSAT: -462.601 % |
|
| Return On Sales (ROS) | 7.092 % | |
| Return On Sales QoQ | 25.168 % | |
| Return On Sales YoY | -102.051 % | |
| Return On Sales IPRWA | high: 41.004 % median: 19.86 % mean: 17.857 % TSAT: 7.092 % low: -16.046 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -70.45 M | |
| Free Cash Flow Yield | -16.199 % | |
| Free Cash Flow Yield QoQ | 58.07 % | |
| Free Cash Flow Yield YoY | 131.018 % | |
| Free Cash Flow Yield IPRWA | high: 8.501 % mean: 2.886 % median: 2.093 % low: -0.823 % TSAT: -16.199 % |
|
| Free Cash Growth | 69.04 % | |
| Free Cash Growth QoQ | -287.997 % | |
| Free Cash Growth YoY | 12521.572 % | |
| Free Cash Growth IPRWA | high: 112.532 % TSAT: 69.04 % median: 56.322 % mean: 15.617 % low: -236.207 % |
|
| Free Cash To Net Income | 0.561 | |
| Cash Flow Margin | -183.183 % | |
| Cash Flow To Earnings | 1.372 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | -1.856 % | |
| Return On Assets QoQ | 259.69 % | |
| Return On Assets YoY | -2.47 % | |
| Return On Assets IPRWA | high: 1.893 % mean: -1.241 % median: -1.503 % TSAT: -1.856 % low: -10.594 % |
|
| Return On Capital Employed (ROCE) | -13.238 % | |
| Return On Equity (ROE) | -0.237 | |
| Return On Equity QoQ | 347.258 % | |
| Return On Equity YoY | 32.998 % | |
| Return On Equity IPRWA | high: 0.246 mean: -0.048 median: -0.08 TSAT: -0.237 low: -0.698 |
|
| DuPont ROE | -20.959 % | |
| Return On Invested Capital (ROIC) | -9.587 % | |
| Return On Invested Capital QoQ | 420.184 % | |
| Return On Invested Capital YoY | -37.511 % | |
| Return On Invested Capital IPRWA | high: 4.045 % mean: -0.789 % median: -1.164 % TSAT: -9.587 % low: -18.711 % |
|