Telesat stock slipped 3.8% to $50.64 today, yet the real story sits on the income statement. The satellite operator posted Q2 revenue of $79.5m and a net loss of $559m, with the loss heavily shaped by a large non cash hit linked to Lightspeed warrants and foreign exchange on United States dollar debt. For a company often framed as a high growth, low Earth orbit opportunity, this quarter put the focus squarely on how much profit pressure the current build out is placing on the business.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): $79.5m CAD vs. $106.1m CAD (decline of 25.1%)
• Net Income or Loss (Q2 2026 vs. Q2 2025): loss of $165.8m CAD vs. profit of $21.0m CAD (swing into loss)
• Basic EPS (Q2 2026 vs. Q2 2025): loss of $10.89 CAD per share vs. profit of $1.43 CAD per share (very large deterioration)
• Trailing Twelve Month Revenue (Q2 2026 vs. Q2 2025): $361.7m CAD vs. $489.3m CAD (decline of 26.1%)

Prefer clean charts to another wall of earnings figures for Telesat? Get a full visual view of the stock, along with a clear look at its balance sheet strength and funding position, in the company report for Telesat.

Telesat bullish story leans on LEO funding

Telesat still offers a constructive angle for bulls who focus on long term infrastructure and government backed contracts. Lightspeed now has about $5.6b of backlog anchored by the Canadian ESCP P deal, and management says the constellation is fully funded through to planned global service. Q2 revenue of $79.5m and adjusted EBITDA of $22m show the GEO business is still generating cash. The reiterated GEO guidance for 2026 also gives some visibility while Lightspeed capex ramps.

Profit pressure keeps Telesat bear case alive

The bearish read on Telesat is supported by the immediate numbers. Q2 revenue of $79.5m declined 25.1% year on year, and the company moved from a $21.0m profit to a $165.8m loss, even before the very large non cash warrant and FX hit that took the headline loss to $559m. GEO revenue is under pressure from contract losses and satellite retirements. Lightspeed capex guidance has stepped up to $1.3b to $1.5b for 2026, which keeps financing and execution risk firmly in focus.

After a revenue slide, a swing into heavy losses and rising capex, you might ask whether this is the full risk picture. Review our independent risk analysis for Telesat which shows 3 important warning signs

Stay Ahead Of Your Next Move

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.