Aug 13, 2026 earnings call — Lightspeed expansion and ESCAPE defense contract
Telesat expanded Lightspeed to 225 satellites and now has a $5.6 billion Lightspeed backlog.
Revenue $0.1B (est $0.1B) · EPS $-7.67 (est $-0.71)
Key quotes
"We are very pleased to have secured that key strategic opportunity to provide such a critical capability to the Canadian Armed Forces."
"For a total investment of $336 million this year."
"Under the terms of the report and order, Telesat is due to receive US$189 million in incentive payments for our role in freeing up that valuable spectrum"
Analyst Q&A 7
Lightspeed partner role; Relay revenue timing
Q (Caleb Henry · Quilty Space): Analyst asked what role Telesat will play in the UHF/MEO Lightspeed-related constellation with MDA and whether Telesat can sell capacity. He also asked when and how Relay revenue from Lightspeed will start and what drives it.
A: Telesat said it will be a subcontractor to MDA on the MEO UHF constellation, providing network integration, ground segment and Escape integration work while contracts and capability definitions are still being worked out. Management said it does not expect to own the MEO constellation and is unsure if it could resell excess capacity now. On Space Relay, they are already working with NASA and other potential customers, expect revenue to ramp gradually, and are bullish about defense and civil demand.
"it is not my expectation that we are gonna end up owning that MEO constellation." — Daniel S. Goldberg (CEO)
D2D interest; Lightspeed assumptions; maturities
Q (Deutsche Bank): Analyst asked whether Telesat would participate in D2D/space-RAN proposals or operate such constellations, and asked for more detail on the assumptions behind the updated Lightspeed forecasts (pricing, price per bit). He also asked for an update on negotiations around upcoming debt maturities.
A: Management said D2D is not their principal focus but they have had conversations and could participate opportunistically if it adds value and does not distract from Lightspeed execution. On Lightspeed assumptions they said the big change was mix toward military Ka-band for defense, and they updated pricing, take-up and geography assumptions without wholesale changes to pricing expectations. Regarding maturities, they said they remain focused on reaching a consensual outcome with legacy lenders and will share material updates when possible.
"it is not in any sense our principal area of focus." — Daniel S. Goldberg (CEO)
Warrant value; defense backlog timing
Q (David McFadgen · ATB): Analyst asked whether the company could be valued from the warrant increase (LEO value implied) and when more defense customers or NATO contracts might be announced. He also asked about collateral for the additional GEO loan.
A: Management said they will not extrapolate Lightspeed value from the warrants, though they noted the warrant value rose by more than 50% after the Escape contract and accelerated revenue/EBITDA expectations. They expect backlog to be meaningfully higher by the end of next year as pipeline opportunities convert into firm take-or-pay contracts, and said they will not go into the weeds on loan collateral but disclosed the financing and will file the loan agreement.
"We are we are not gonna do that for folks." — Daniel S. Goldberg (CEO)
Why add satellites now; tech same as first 156
Q (Scotiabank): Analyst asked whether the 69 new satellites are technologically different from the initial 156 and why Telesat chose to deploy more satellites immediately rather than after commercial launch.
A: Management said the additional satellites are identical to the first 156 and will follow the same assembly line so delivery of the first 156 is not slowed. They explained they converted the frequency plan to add military Ka, which took 25% of frequencies off the commercial market, and the Escape deal lets them restore that commercial capacity, accelerate expansion, and improve resiliency and redundancy.
"But at the same time, we took 25% of the frequencies that were going to be available for our commercial customers sort of off the market." — Daniel S. Goldberg (CEO)
Launch contracts; satellite changes
Q (LightShed): Analyst asked whether the additional launches are contracted (given SpaceX comments about bookings beyond 2028) and whether launches must be Falcon 9. He also asked if the first 225 satellites can be modified to add spectrum or hosted payloads before launch.
A: Management said they need 15 rockets for 225 satellites and they already have 14 under contract with SpaceX, and they are arranging the one additional Falcon 9 and expect all launches done by end of 2028. They said the design and hardware for the first 225 are done and in MDA's factory, so there is no scope to modify these without massive delay; future satellites could accommodate other bands or hosted payloads but not the first 225.
"We already have 14 under contract with SpaceX" — Daniel S. Goldberg (CEO)
Refinancing vs bankruptcy; new loan position
Q (James Ratzer · New Street): Analyst asked if Chapter 11 is being considered as an outcome and where the $120 million of new financing sits in the creditor stack (pari passu with senior or unsecured).
A: Management said they are not entertaining bankruptcy and are strongly focused on refinancing the debt and reaching a consensual outcome with lenders prior to maturities. On the $120 million, they would not discuss detailed terms on the call, noting the borrowings were made in a non-guarantor subsidiary (Telesat Geo) within the legacy debt silo and that the loan agreement will be filed and made available.
"Our focus is strongly on refinancing the debt prior to the maturities achieving a consensual outcome." — Daniel S. Goldberg (CEO)
Ground segment build and partners
Q (Chris Quilty · Quilty Space): Analyst asked whether Escape requires additional ground segment or if existing Lightspeed ground can be leased back, and where the company stands on ground segment rollout and bringing in outside financing or partners. He also asked timing (this year or next) for any third-party deals.
A: Management said they are making good progress on the ground segment rollout with landing stations: at least 3–4 landing stations in Canada, gateways being tested, ground stations in Australia, and a deal with Orange in France being commissioned. They said they already work with third-party teleports and are open to broader partnerships if they accelerate rollout and are secure; they have at least 8-plus teleports under development now and expect to share more details.
"We have got at least, you know, 8-plus teleports, landing stations, under development, various stages right now." — Daniel S. Goldberg (CEO)