CARLSBAD, Calif. - Viasat, Inc. (NASDAQ: VSAT), a $1.14 billion market cap company specializing in satellite communications, has been selected by NASA to provide support for the agency's direct-to-Earth (DTE) capabilities through the Near Space Network (NSN) Services contract. The company's stock has shown strong momentum recently, gaining over 18% in the past week, according to InvestingPro data. This contract is a part of a broader five-year indefinite delivery, indefinite quantity (IDIQ) program, which may extend for an additional five years, reaching a total potential value of $4.82 billion. This contract comes at a crucial time for Viasat, which has demonstrated strong revenue growth of 36.25% over the last twelve months, though InvestingPro analysis indicates the company operates with significant debt levels.
Viasat is among four commercial entities chosen to receive Task Order awards under this initiative. The company will initially offer global ground segment support services for NASA missions and may expand to additional services in the future. The NSN Services contract aims to use commercial ground and space relay services for NASA missions ranging from low Earth orbit (LEO) to two million kilometers away from Earth.
In 2023, NASA reported approximately 36% of its DTE services were fulfilled by commercial providers, indicating significant potential for expansion. Viasat's Defense and Advanced Technologies (DAT) division will collaborate with other commercial providers to deliver DTE connectivity for ongoing and planned NASA space missions.
Viasat's involvement will leverage its Real-Time Earth (RTE) Ground-Segment-as-a-Service (GSaaS) network, which offers a resilient and high-throughput satellite to ground communication solution for LEO missions. The company has partnered with ATLAS Space Operations and the Alaska Satellite Facility (ASF) to provide NASA with a modern and geographically diverse satellite ground network.
The Viasat RTE network promises multi-gigabit per second downlinks and incorporates advancements in artificial intelligence, machine learning, and cloud-based optimization. This network is expected to enhance performance, increase efficiencies over legacy systems, and offer a more cost-effective service for NASA's mission data delivery.
Kent Leka, Vice President and General Manager of Antenna Systems at Viasat, expressed enthusiasm about being selected to support NASA's critical mission needs. He highlighted that the Viasat RTE ground service was designed to be scalable and automated, ideal for supporting data-intensive missions in space.
The contract with NASA aligns with the agency's objective to utilize commercial capabilities for mission communication and navigation requirements, facilitating the transport of more science and data. This move is part of NASA's broader strategy to transition from its legacy Tracking and Data Relay Satellite System (TDRSS) to commercial services. While Viasat's stock currently trades near its InvestingPro Fair Value, analysts maintain optimistic projections for the company's profitability this year. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
This article is based on information provided in a press release statement from Viasat, Inc.
In other recent news, Viasat Inc. has announced a series of significant developments. The company has reported improved Q2 2025 results, with its net loss dramatically decreasing to $138 million from the previous $767 million, despite a slight decrease in revenue to $1.12 billion from the prior year's $1.13 billion. In addition, Viasat has reported record contract awards of approximately $1.3 billion, primarily driven by Defense and Advanced Technologies.
Furthermore, Viasat has completed the sale of its Energy Services System Integration (SI) business to MAG Capital Partners (WA:CPAP), aligning with the company's strategy to enhance its financial position. The sale includes the transfer of approximately 80 employees to the new entity, Nessco, and the SI facility located in Aberdeen, Scotland.
In collaboration with Altán, a Mexican telecommunications wholesaler, Viasat has launched a new broadband service in Mexico. This service aims to provide internet connectivity to regions previously lacking broadband access, reaching over 150,000 individuals across 13 states.
These recent developments highlight Viasat's ongoing efforts to enhance its financial position, expand its services, and navigate market challenges. As part of its future expectations, Viasat anticipates its revenue to be flat to slightly up year-over-year and adjusted EBITDA growth in the mid-single digits.
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