Lightspeed Upsized and Funded, GEO Refinancing Now the Key Risk
 
Revenue tumbles. Q2 revenue fell 25% y/y to $79.5M, reflecting broadcast non-renewals and lower Nimiq-5 pricing, alongside reduced broadband service and the loss of an ISP customer following expiry of government funding.
 
Margins under pressure. Q2 AEBITDA fell 62% y/y to $22M, as broadcast (-30% y/y) and enterprise (-22% y/y) revenue declines were compounded by a 22% increase in opex, driven by Lightspeed development and GEO refinancing costs. AEBITDA margin contracted 27.4pp to 27.8%, the sharpest decline in five years.
 
ESCP-P secured. Telesat LEO signed a $2.3B agreement (up to $2.7B including two five-year options) with Canada's Defense Investment Agency for Mil-Ka connectivity — the largest contract in company history — expanding the fully-funded Lightspeed constellation from 156 to 225 satellites (a >40% capacity increase) with no change to the 1Q28 service date.