Telesat Reports Second-Quarter Loss Amid Ongoing Investment in Lightspeed

Telesat, a leading global satellite operator, reported a net loss of CAD 559 million in its second-quarter earnings call. The company continued to invest heavily in its Lightspeed low Earth orbit network, which saw an expansion of its constellation and deployment plan.

The quarterly loss was largely due to a CAD 475 million increase in the fair value of Telesat Lightspeed Financing Warrants and the effect of a weaker Canadian dollar on the company's U.S. dollar-denominated debt. The warrants were valued at over CAD 1.3 billion at quarter-end.

Despite the loss, Telesat's CEO Dan Goldberg highlighted the company's recent contract with Canada's Enhanced Satellite Communications Project, Polar (ESCP-P) and a five-year deal with Northwestel to provide rural broadband connectivity in Canada. The contracts brought Telesat Lightspeed's contractual backlog to approximately CAD 5.6 billion.

The company also raised its annual Lightspeed investment guidance to CAD 1.3 billion to CAD 1.5 billion for 2026, up from a previous range of CAD 1 billion to CAD 1.2 billion. This increase reflects the accelerated constellation expansion and will be funded by pre-service milestone payments from the Government of Canada.