Segment Information

3 Months Ended

Mar. 31, 2026

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.

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.

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:

Three-month ended March 31, 2026	GEO			LEO			Other(3)			Consolidated
Broadcast	$	35,710		$			$	—		$	35,710
Enterprise		48,836			65			—			48,901
Consulting and other		1,082			1,367			—			2,449
Revenue		85,628			1,432			—			87,060
Operating expenses, net of share-based compensation and non-recurring items(1)		(30,406	)		(19,705	)		(1,808	)		(51,919	)
Adjusted EBITDA(1)	$	55,222		$	(18,273	)	$	(1,808	)		35,141
Share-based compensation											(3,129	)
Non-recurring items(2)											(288	)
Depreciation											(22,130	)
Amortization											(8,611	)
Other operating gains (losses), net											(82,347	)
Operating income											(81,364	)
Interest expense											(49,958	)
Gain (loss) on changes in fair value of financial instruments											(15,821	)
Interest and other income											4,149
Gain (loss) on foreign exchange											(17,306	)
Income (loss) before income taxes											(160,300	)
Tax (expense) recovery											9,351
Net income (loss)										$	(150,949	)
Capital expenditures	$	646		$	151,975		$	—		$	152,621

Three-month ended March 31, 2025	GEO			LEO			Other(3)			Consolidated
Broadcast	$	55,056		$	—		$	—		$	55,056
Enterprise		56,843			—			—			56,843
Consulting and other		3,234			1,616			—			4,850
Revenue		115,133			1,616			—			116,749
Operating expenses, net of share-based compensation and non-recurring items(1)		(29,660	)		(18,478	)		(1,204	)		(49,342	)
Adjusted EBITDA(1)	$	85,473			(16,862	)		(1,204	)		67,407
Share-based compensation											(3,241	)
Non-recurring items(2)											(459	)
Depreciation											(25,909	)
Amortization											(10,899	)
Other operating gains (losses), net											3,950
Operating income											30,849
Interest expense											(56,664	)
Gain (loss) on foreign exchange											2,480
Gain (loss) on changes in fair value of financial instruments											(33,412	)
Interest and other income											6,208
Income (loss) before income taxes											(50,539	)
Tax (expense) recovery											(918	)
Net income (loss)											(51,457	)
Capital expenditures	$	408		$	178,120		$	—		$	178,528

(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.

(3) Transactions that do not belong to a particular operating segment such as certain corporate entities are reported within “Other”.

Equipment sales

Equipment sales included within the various services were as follows:

Three-month ended March 31,	2026		2025
GEO	$	3,736	$	1,148
LEO		65		—
Equipment sales	$	3,801	$	1,148

All equipment sales were from Enterprise services.

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-month ended March 31,	2026		2025
Canada	$	45,032	$	58,540
United States		28,471		38,579
Europe, Middle East & Africa		5,822		7,590
Latin America & Caribbean		5,726		7,550
Asia & Australia		2,009		4,490
Revenue	$	87,060	$	116,749

For the three months ended March 31, 2026 and 2025, all revenue from the LEO segment was from the United States geographic region.

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,	March 31, 2026		December 31, 2025
Canada	$	2,640,013	$	2,464,818
United Kingdom		232,074		238,478
United States		12,016		12,276
All others		1,160		1,136
Satellites, property and other equipment	$	2,885,263	$	2,716,708

As at,	March 31, 2026		December 31, 2025
Canada	$	422,301	$	428,909
United States		5,099		5,426
Latin America & Caribbean		8,144		7,943
Intangible assets	$	435,544	$	442,278

Other long-term assets by geographic region were allocated as follows:

As at,	March 31, 2026		December 31, 2025
Canada	$	300,484	$	343,059
United States		25,956		25,598
Other long-term assets	$	326,440	$	368,657

Goodwill was not allocated to geographic regions.

Major Customers

For the three months ended March 31, 2026 and 2025, there were two significant customers each representing more than 10% of consolidated revenue totaling $26.1 million and $12.6 million respectively (March 31, 2025 — $32.9 million and $23.8 million).