Recent News
On November 4, 2025 Telesat announced a US$5 million equity investment in Farcast to accelerate development of integrated user terminals for the Telesat Lightspeed network, and disclosed a memorandum of understanding with ALL.SPACE to integrate terminals for government solutions; the company also named Donald Tremblay as CFO effective October 20, 2025. Analysts revised one-year price targets upward in late October, lifting the average target to the mid-$30s.
Technical Analysis
ADX at 21.31 indicates an emerging trend rather than a strong directional move; directional indicators show bearish structure with DI+ decreasing at 16.73 and DI- exhibiting a dip & reversal at 24.02, which together bias price action lower and increase downside vulnerability relative to current valuation.
MACD at -1.24 sits below its signal line (-0.72) and the MACD trend declines; that configuration signals bearish momentum and suggests short-term selling pressure rather than accumulation.
MRO registers 4.0 and trends lower; the positive MRO indicates the price sits above the model target and therefore carries pressure toward contraction back to target levels, supporting a near-term negative price bias consistent with the MACD and DI structure.
RSI at 47.5 and falling points to mild bearish momentum without oversold extremes, which allows further downside before clear oversold support emerges; price trades below the 12-day and 26-day EMAs (12-day EMA $25.56, 26-day EMA $27.02) and beneath the 20- and 50-day averages ($25.82 and $28.31), while remaining above the 200-day average ($22.22), creating a technical profile of near-term resistance overhead and longer-term support near the low $20s.
Bollinger placement shows the close ($23.58) sitting below the 1x lower band ($23.90) and above the 2x lower band ($21.98), which reflects compressed volatility with a recent move toward the lower volatility boundary; short-term beta (42-day) at 2.79 signals elevated volatility on intramonth moves, and volume near 10-day and 200-day averages suggests mixed conviction behind recent price changes.
Fundamental Analysis
Revenue declined sharply year-over-year by 48.19% and quarter-over-quarter by 47.83%, reflecting material top-line contraction that pressures margins and cash generation. Total revenue for the period stands at $101,060,000 while operating income reads $5,726,000, but EBIT shows a loss of $83,439,000, driven by non-operating and financing items. The company reported net income of -$35,269,000. Recent quarterly disclosures confirmed the revenue and adjusted-EBITDA declines tied to lower rates on legacy agreements and reduced services.
Margins display severe stress: EBIT margin equals -82.56% versus an industry peer range from -7.20% to 15.86% (industry peer mean 14.22%), placing EBIT well below the peer range and signaling material underperformance on operating profitability relative to comparable firms. Operating margin sits at 5.67% but shows a large year-over-year contraction (operating margin YoY -94.08%), indicating recent operations no longer offset financing and other charges. Free cash flow registers -$41,679,000 with a free cash flow yield of -10.25%, and free cash flow declined sharply quarter-over-quarter. These cash metrics underscore ongoing negative FCF generation despite positive operating-cashline items (cash flow margin 21.24%).
Leverage stands high: total debt equals $3,309,132,000 with net debt of $2,826,527,000 versus a market capitalization of $406,703,366, producing significant financial leverage and interest pressure (interest expense $54,465,000; interest coverage ratio -1.53). Debt-to-equity at 4.96 highlights heavy reliance on debt financing compared with the industry peer mean debt-to-equity of 3.78. Liquidity reads stronger: cash and short-term investments total $483,047,000, current ratio equals 4.11, and cash ratio equals 2.36, which together provide runway to fund near-term obligations while the company pursues capital-intensive LEO deployment.
Efficiency metrics remain weak: asset turnover equals 1.48% versus an industry peer mean of 11.70%, reflecting low revenue generation from invested assets and amplifying the capital-intensity of the business model. Book value per share stands at $45.07 while price-to-book equals 0.61, below the industry peer mean price-to-book of 2.51. Forward EPS shows -$1.8225 and forward P/E is negative, consistent with ongoing losses.
Valuation conclusion: The current valuation as determined by WMDST classifies the stock as over-valued, a conclusion supported by negative free cash flow, very high leverage relative to market capitalization, and an EBIT margin far below the industry peer range despite sizeable cash reserves and an active LEO backlog cited in corporate releases. Analyst mean price target sits near $32.66 while the close trades at $23.58, reflecting divergent views on recovery versus balance-sheet and margin risks.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-04 |
| NEXT REPORT DATE: | 2026-02-03 |
| CASH FLOW | Begin Period Cash Flow | $ 547.4 M |
| Operating Cash Flow | $ -11.35 M | |
| Capital Expenditures | $ -30.33 M | |
| Change In Working Capital | $ -33.61 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -64.78 M | |
| End Period Cash Flow | $ 482.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 101.1 M | |
| Forward Revenue | $ 19.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 4.8 M | |
| Depreciation | $ 26.2 M | |
| Depreciation and Amortization | $ 37.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 95.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 96.3 M | |
| EBITDA | $ -45.96 M | |
| EBIT | $ -83.44 M | |
| Operating Income | $ 5.7 M | |
| Interest Income | $ 6.0 M | |
| Interest Expense | $ 54.5 M | |
| Net Interest Income | $ -48.48 M | |
| Income Before Tax | $ -137.90 M | |
| Tax Provision | $ -16.82 M | |
| Tax Rate | 12.198 % | |
| Net Income | $ -35.27 M | |
| Net Income From Continuing Operations | $ -121.08 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ -1.82 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.9 B | |
| Intangible Assets | $ 3.0 B | |
| Net Tangible Assets | $ -2.34 B | |
| Total Current Assets | $ 840.5 M | |
| Cash and Short-Term Investments | $ 483.0 M | |
| Cash | $ 482.6 M | |
| Net Receivables | $ 53.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 396.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 111.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 204.4 M | |
| Net Debt | $ 2.8 B | |
| Total Debt | $ 3.3 B | |
| Total Liabilities | $ 4.7 B | |
| EQUITY | ||
| Total Equity | $ 667.0 M | |
| Retained Earnings | $ 452.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 45.07 | |
| Shares Outstanding | 14.798 M | |
| Revenue Per-Share | $ 6.83 | |
| VALUATION | Market Capitalization | $ 406.7 M |
| Enterprise Value | $ 3.2 B | |
| Enterprise Multiple | -70.344 | |
| Enterprise Multiple QoQ | -505.003 % | |
| Enterprise Multiple YoY | 1217.946 % | |
| Enterprise Multiple IPRWA | high: 60.377 median: 31.77 mean: 29.843 low: -63.738 TSAT: -70.344 |
|
| EV/R | 31.989 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 10.383 | |
| Asset To Liability | 1.481 | |
| Debt To Capital | 0.832 | |
| Debt To Assets | 0.478 | |
| Debt To Assets QoQ | 1.265 % | |
| Debt To Assets YoY | 17794.382 % | |
| Debt To Assets IPRWA | high: 0.907 mean: 0.592 median: 0.569 TSAT: 0.478 low: 0.023 |
|
| Debt To Equity | 4.961 | |
| Debt To Equity QoQ | 5.278 % | |
| Debt To Equity YoY | 21803.046 % | |
| Debt To Equity IPRWA | high: 12.228 TSAT: 4.961 mean: 3.781 median: 2.8 low: -13.085 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.61 | |
| Price To Book QoQ | 27.826 % | |
| Price To Book YoY | 173.287 % | |
| Price To Book IPRWA | high: 2.762 median: 2.585 mean: 2.505 TSAT: 0.61 low: -2.85 |
|
| 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) | 4.024 | |
| Price To Sales QoQ | 32.374 % | |
| Price To Sales YoY | 234.515 % | |
| Price To Sales IPRWA | high: 4.932 median: 4.932 mean: 4.273 TSAT: 4.024 low: 0.998 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -12.534 | |
| Forward PE/G | — | |
| Forward P/S | 21.051 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 34.224 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.015 | |
| Asset Turnover Ratio QoQ | -3.401 % | |
| Asset Turnover Ratio YoY | -32.061 % | |
| Asset Turnover Ratio IPRWA | high: 0.29 mean: 0.117 low: 0.106 median: 0.106 TSAT: 0.015 |
|
| Receivables Turnover | 1.943 | |
| Receivables Turnover Ratio QoQ | 3.591 % | |
| Receivables Turnover Ratio YoY | -4.841 % | |
| Receivables Turnover Ratio IPRWA | TSAT: 1.943 high: 1.853 mean: 1.208 low: 1.177 median: 1.177 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 46.971 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -2070.086 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 63.319 median: 53.747 mean: 41.699 low: -36.285 TSAT: -2070.086 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.159 | |
| CapEx To Revenue | -0.3 | |
| CapEx To Depreciation | -1.159 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.0 B | |
| Net Invested Capital | $ 4.0 B | |
| Invested Capital | $ 4.0 B | |
| Net Tangible Assets | $ -2.34 B | |
| Net Working Capital | $ 636.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 2.364 | |
| Current Ratio | 4.113 | |
| Current Ratio QoQ | -19.056 % | |
| Current Ratio YoY | -5.663 % | |
| Current Ratio IPRWA | TSAT: 4.113 high: 2.738 mean: 1.88 median: 1.87 low: 0.884 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -72.005 | |
| Cost Of Debt | 1.472 % | |
| Interest Coverage Ratio | -1.532 | |
| Interest Coverage Ratio QoQ | -161.795 % | |
| Interest Coverage Ratio YoY | -168.779 % | |
| Interest Coverage Ratio IPRWA | high: 2.021 median: 2.021 mean: 1.687 TSAT: -1.532 low: -3.046 |
|
| Operating Cash Flow Ratio | 0.105 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 2117.057 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.542 % | |
| Revenue Growth | -4.756 % | |
| Revenue Growth QoQ | -47.828 % | |
| Revenue Growth YoY | -48.186 % | |
| Revenue Growth IPRWA | high: 19.75 % mean: -1.802 % median: -2.522 % TSAT: -4.756 % low: -7.526 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 95.278 % | |
| Gross Margin QoQ | -0.655 % | |
| Gross Margin YoY | -0.244 % | |
| Gross Margin IPRWA | TSAT: 95.278 % high: 53.088 % median: 53.088 % mean: 50.563 % low: 12.398 % |
|
| EBIT Margin | -82.564 % | |
| EBIT Margin QoQ | -165.889 % | |
| EBIT Margin YoY | -186.275 % | |
| EBIT Margin IPRWA | high: 15.86 % median: 15.86 % mean: 14.221 % low: -7.2 % TSAT: -82.564 % |
|
| Return On Sales (ROS) | 5.666 % | |
| Return On Sales QoQ | -66.35 % | |
| Return On Sales YoY | -94.079 % | |
| Return On Sales IPRWA | high: 14.608 % median: 14.608 % mean: 12.443 % TSAT: 5.666 % low: -2.223 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -41.68 M | |
| Free Cash Flow Yield | -10.248 % | |
| Free Cash Flow Yield QoQ | -49.814 % | |
| Free Cash Flow Yield YoY | -7.526 % | |
| Free Cash Flow Yield IPRWA | high: 4.059 % median: 1.472 % mean: 0.594 % low: -6.053 % TSAT: -10.248 % |
|
| Free Cash Growth | -36.724 % | |
| Free Cash Growth QoQ | -77.501 % | |
| Free Cash Growth YoY | 146.702 % | |
| Free Cash Growth IPRWA | high: 24.599 % TSAT: -36.724 % median: -60.092 % mean: -75.783 % low: -596.064 % |
|
| Free Cash To Net Income | 1.182 | |
| Cash Flow Margin | 21.242 % | |
| Cash Flow To Earnings | -0.609 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | -0.516 % | |
| Return On Assets QoQ | -270.297 % | |
| Return On Assets YoY | -283.63 % | |
| Return On Assets IPRWA | high: 0.62 % median: 0.62 % mean: 0.419 % TSAT: -0.516 % low: -2.32 % |
|
| Return On Capital Employed (ROCE) | -1.241 % | |
| Return On Equity (ROE) | -0.053 | |
| Return On Equity QoQ | -270.306 % | |
| Return On Equity YoY | -320.517 % | |
| Return On Equity IPRWA | high: 0.158 median: 0.031 mean: 0.023 TSAT: -0.053 low: -0.124 |
|
| DuPont ROE | -5.25 % | |
| Return On Invested Capital (ROIC) | -1.843 % | |
| Return On Invested Capital QoQ | -156.24 % | |
| Return On Invested Capital YoY | -84.122 % | |
| Return On Invested Capital IPRWA | high: 1.488 % median: 1.488 % mean: 1.325 % TSAT: -1.843 % low: -2.685 % |
|