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Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Information [Abstract] |
SEGMENT INFORMATION | 4. SEGMENT INFORMATION The Company reports under two operating segments, which are GEO and LEO. Transactions that do not belong to a particular operating segment, such as certain corporate entities, are reported within “Other”. The Company’s Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, is provided with information to review the operating results, assess performance of the operations and make capital allocation decisions at the operating segment level comprising GEO and LEO. The accounting policies of the reportable segments are the same as those described in Note 2 and Note 3 above. The segment information regularly reviewed by the CODM and the reconciliation thereof to the net income (loss) as well as the capital expenditures by operating segment are included in the following tables:
Nine months ended September 30, 2025 |  | GEO |  | LEO |  | Other |  | Consolidated
Revenue |  | $ | 321,395 |  |  | $ | 2,520 |  |  | $ | — |  |  | $ | 323,915 |
Operating expenses, net of share-based compensation and non-recurring items(1) |  |  | (97,353 | ) |  |  | (50,728 | ) |  |  | (2,923 | ) |  |  | (151,004 | )
Adjusted EBITDA(1) |  | $ | 224,042 |  |  | $ | (48,208 | ) |  | $ | (2,923 | ) |  |  | 172,911 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (8,610 | )
Non-recurring items(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,836 | )
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (77,991 | )
Amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (33,852 | )
Other operating gains (losses), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,070 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 54,692 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (164,492 | )
Interest and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18,760 |
Gain on repurchase of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,896 |
Gain (loss) on changes in fair value of financial instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (109,780 | )
Gain (loss) on foreign exchange |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 84,808 |
Income (loss) before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (109,116 | )
Tax (expense) recovery |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 12,105 |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (97,011 | )
Capital expenditures |  | $ | 2,998 |  |  | $ | 521,608 |  |  | $ | — |  |  | $ | 524,606 |
Three months ended September 30, 2025 |  | GEO |  | LEO |  | Other |  | Consolidated
Revenue |  | $ | 100,515 |  |  | $ | 545 |  |  | $ | — |  |  | $ | 101,060 |
Operating expenses, net of share-based compensation and non-recurring items(1) |  |  | (36,765 | ) |  |  | (16,476 | ) |  |  | (979 | ) |  |  | (54,220 | )
Adjusted EBITDA(1) |  | $ | 63,750 |  |  | $ | (15,931 | ) |  | $ | (979 | ) |  |  | 46,840 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,018 | )
Non-recurring items(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (614 | )
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (26,168 | )
Amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,314 | )
Other operating gains (losses), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 251 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,977 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (54,197 | )
Interest and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,718 |
Gain on repurchase of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Gain (loss) on changes in fair value of financial instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (63,120 | )
Gain (loss) on foreign exchange |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (32,282 | )
Income (loss) before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (137,904 | )
Tax (expense) recovery |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16,821 |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (121,083 | )
Capital expenditures |  | $ | 739 |  |  | $ | 139,097 |  |  | $ | — |  |  | $ | 139,836 |
Nine months ended September 30, 2024 |  | GEO |  | LEO |  | Other |  | Consolidated
Revenue |  | $ | 429,404 |  |  | $ | 13,645 |  |  | $ | — |  |  | $ | 443,049 |
Operating expenses, net of share-based compensation and non-recurring items(1) |  |  | (83,435 | ) |  |  | (46,556 | ) |  |  | (2,770 | ) |  |  | (132,761 | )
Adjusted EBITDA(1) |  | $ | 345,969 |  |  | $ | (32,911 | ) |  | $ | (2,770 | ) |  |  | 310,288 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (14,504 | )
Non-recurring items(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,065 | )
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (100,272 | )
Amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (8,438 | )
Other operating gains (losses), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,254 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 187,263 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (185,815 | )
Interest and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 57,033 |
Gain on repurchase of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 193,690 |
Gain (loss) on foreign exchange |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (67,215 | )
Income (loss) before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 184,956 |
Tax (expense) recovery |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (40,192 | )
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 144,764 |
Capital expenditures |  | $ | 4,041 |  |  | $ | 656,632 |  |  | $ | — |  |  | $ | 660,673 |
Three months ended September 30, 2024 |  | GEO |  | LEO |  | Other |  | Consolidated
Revenue |  | $ | 137,337 |  |  | $ | 1,104 |  |  | $ | — |  |  | $ | 138,441 |
Operating expenses, net of share-based compensation and non-recurring items(1) |  |  | (26,869 | ) |  |  | (13,686 | ) |  |  | (1,642 | ) |  |  | (42,197 | )
Adjusted EBITDA(1) |  | $ | 110,468 |  |  | $ | (12,582 | ) |  | $ | (1,642 | ) |  |  | 96,244 |
Share-based compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,061 | )
Non-recurring items(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (677 | )
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (32,233 | )
Amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,807 | )
Other operating gains (losses), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,272 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 59,738 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (59,443 | )
Interest and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15,668 |
Gain on repurchase of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 21,368 |
Gain (loss) on foreign exchange |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 35,675 |
Income (loss) before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 73,006 |
Tax (expense) recovery |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,164 | )
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 67,842 |
Capital expenditures |  | $ | 1,753 |  |  | $ | 324,653 |  |  | $ | — |  |  | $ | 326,406 |
(1) The performance of each segment is evaluated by the CODM based on Adjusted EBITDA. Adjusted EBITDA is defined as operating income (excluding certain operating expenses such as share-based compensation expenses and unusual and non-recurring items, including restructuring related expenses) before interest expense, taxes, depreciation and amortization. Adjusted EBITDA margin is used to measure Telesat’s operating performance. (2) Non-recurring payments include severance payments and special compensation and benefits for executives and employees. Service Revenue The Company derives revenue from the following services: Broadcast — Direct-to-home television, video distribution and contribution, and occasional use services. Enterprise — Telecommunication carrier and integrator, government, consumer broadband, resource, maritime and aeronautical, retail and satellite operator services. Consulting and other — Consulting services related to space and earth segments, government studies, satellite control services, and research and development. Consolidated Revenue derived from the above services was as follows:
|  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Broadcast |  | $ | 48,615 |  | $ | 71,949 |  | $ | 154,897 |  | $ | 217,923
Enterprise |  |  | 50,503 |  |  | 63,133 |  |  | 159,936 |  |  | 203,096
Consulting and other |  |  | 1,942 |  |  | 3,359 |  |  | 9,082 |  |  | 22,030
Revenue |  | $ | 101,060 |  | $ | 138,441 |  | $ | 323,915 |  | $ | 443,049
Operating Segments Revenue derived from the GEO operating segment was as follows:
|  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Broadcast |  | $ | 48,615 |  | $ | 71,949 |  | $ | 154,897 |  | $ | 217,923
Enterprise |  |  | 50,503 |  |  | 63,133 |  |  | 159,936 |  |  | 203,096
Consulting and other |  |  | 1,397 |  |  | 2,255 |  |  | 6,562 |  |  | 8,385
Revenue |  | $ | 100,515 |  | $ | 137,337 |  | $ | 321,395 |  | $ | 429,404
Revenue derived from the LEO operating segment was as follows:
|  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Consulting and other |  | $ | 545 |  | $ | 1,104 |  | $ | 2,520 |  | $ | 13,645
Revenue |  | $ | 545 |  | $ | 1,104 |  | $ | 2,520 |  | $ | 13,645
Equipment sales Equipment sales included within the various services were as follows:
|  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Broadcast |  | $ | 1 |  | $ | — |  | $ | 1 |  | $ | —
Enterprise |  |  | 334 |  |  | 339 |  |  | 1,686 |  |  | 6,029
Equipment sales |  | $ | 335 |  | $ | 339 |  | $ | 1,687 |  | $ | 6,029
All revenue from equipment sales relate to the GEO segment. Geographic Information Revenue by geographic region was based on the point of origin of the revenue, which was the destination of the billing invoice, and was allocated as follows:
|  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Canada |  | $ | 55,063 |  | $ | 64,333 |  | $ | 169,850 |  | $ | 200,873
United States |  |  | 28,942 |  |  | 50,815 |  |  | 99,750 |  |  | 167,974
Latin America & Caribbean |  |  | 7,483 |  |  | 9,293 |  |  | 22,606 |  |  | 27,366
Europe, Middle East & Africa |  |  | 7,225 |  |  | 8,077 |  |  | 21,906 |  |  | 24,079
Asia & Australia |  |  | 2,347 |  |  | 5,923 |  |  | 9,803 |  |  | 22,757
Revenue |  | $ | 101,060 |  | $ | 138,441 |  | $ | 323,915 |  | $ | 443,049
For the three and nine months ended September 30, 2025 and 2024, the revenue from the LEO segment was from the United States. The satellites and intangible assets have been classified based on ownership. Satellites, property and other equipment, and intangible assets by geographic region were allocated as follows:
As at, |  | September 30, 2025 |  | December 31, 2024
Canada |  | $ | 2,331,339 |  | $ | 1,903,673
United Kingdom |  |  | 303,509 |  |  | 349,619
United States |  |  | 12,916 |  |  | 14,964
Europe, Middle East & Africa (excluding United Kingdom) |  |  | 4,477 |  |  | 7,427
All others |  |  | 1,378 |  |  | 1,460
Satellites, property and other equipment |  | $ | 2,653,619 |  | $ | 2,277,143
As at, |  | September 30, 2025 |  | December 31, 2024
Canada |  | $ | 445,897 |  | $ | 477,221
United States |  |  | 6,334 |  |  | 7,896
Latin America & Caribbean |  |  | 8,720 |  |  | 8,817
All others |  |  | 452 |  |  | 3,532
Intangible assets |  | $ | 461,403 |  | $ | 497,466
Other long-term assets by geographic region were allocated as follows:
As at, |  | September 30, 2025 |  | December 31, 2024
Canada |  | $ | 370,461 |  | $ | 516,507
United States |  |  | 25,964 |  |  | —
Other long-term assets |  | $ | 396,425 |  | $ | 516,507
Goodwill was not allocated to geographic regions. Major Customers For the three and nine months ended September 30, 2025 and 2024, there were two significant customers each representing more than 10% of consolidated revenue.

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