| Schedule of CODM and the Reconciliation Thereof to the Net Income (Loss) |
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: | Six months ended June 30, 2026 | | GEO | | LEO | | Other(3) | | Consolidated | | Broadcast | | $ | 71,604 | | | $ | — | | | $ | — | | | $ | 71,604 | | | Enterprise | | | 89,709 | | | | 65 | | | | — | | | | 89,774 | | | Consulting and other | | | 2,435 | | | | 2,740 | | | | — | | | | 5,175 | | | Revenue | | | 163,748 | | | | 2,805 | | | | — | | | | 166,553 | | | Operating expenses, net of share-based compensation and non-recurring items(1) | | | (65,470 | ) | | | (40,106 | ) | | | (3,743 | ) | | | (109,319 | ) | | Adjusted EBITDA(1) | | $ | 98,278 | | | $ | (37,301 | ) | | $ | (3,743 | ) | | $ | 57,234 | | | Share-based compensation | | | | | | | | | | | | | | | (6,939 | ) | | Non-recurring items(2) | | | | | | | | | | | | | | | (806 | ) | | Depreciation | | | | | | | | | | | | | | | (44,194 | ) | | Amortization | | | | | | | | | | | | | | | (17,340 | ) | | Other operating gains (losses), net | | | | | | | | | | | | | | | (82,054 | ) | | Operating income | | | | | | | | | | | | | | | (94,099 | ) | | Interest expense | | | | | | | | | | | | | | | (100,404 | ) | | Interest and other income | | | | | | | | | | | | | | | 6,013 | | | Gain (loss) on change in fair value of financial instruments | | | | | | | | | | | | | | | (487,746 | ) | | Gain (loss) on foreign exchange | | | | | | | | | | | | | | | (37,206 | ) | | Income (loss) before income taxes | | | | | | | | | | | | | | | (713,442 | ) | | Tax (expense) recovery | | | | | | | | | | | | | | | 3,943 | | | Net income (loss) | | | | | | | | | | | | | | $ | (709,499 | ) | | Capital expenditures | | $ | 2,183 | | | $ | 296,926 | | | $ | — | | | $ | 299,109 | | | Three months ended June 30, 2026 | | GEO | | LEO | | Other(3) | | Consolidated | | Broadcast | | $ | 35,894 | | | $ | — | | | $ | — | | | $ | 35,894 | | | Enterprise | | | 40,873 | | | | — | | | | — | | | | 40,873 | | | Consulting and other | | | 1,353 | | | | 1,373 | | | | — | | | | 2,726 | | | Revenue | | | 78,120 | | | | 1,373 | | | | — | | | | 79,493 | | | Operating expenses, net of share-based compensation and non-recurring items(1) | | | (35,064 | ) | | | (20,401 | ) | | | (1,935 | ) | | | (57,400 | ) | | Adjusted EBITDA(1) | | $ | 43,056 | | | $ | (19,028 | ) | | $ | (1,935 | ) | | $ | 22,093 | | | Share-based compensation | | | | | | | | | | | | | | | (3,810 | ) | | Non-recurring items(2) | | | | | | | | | | | | | | | (518 | ) | | Depreciation | | | | | | | | | | | | | | | (22,064 | ) | | Amortization | | | | | | | | | | | | | | | (8,729 | ) | | Other operating gains (losses), net | | | | | | | | | | | | | | | 293 | | | Operating income | | | | | | | | | | | | | | | (12,735 | ) | | Interest expense | | | | | | | | | | | | | | | (50,446 | ) | | Interest and other income | | | | | | | | | | | | | | | 1,864 | | | Three months ended June 30, 2026 | | GEO | | LEO | | Other(3) | | Consolidated | | Gain (loss) on change in fair value of financial instruments | | | | | | | | | | | | (471,925 | ) | | Gain (loss) on foreign exchange | | | | | | | | | | | | (19,900 | ) | | Income (loss) before income taxes | | | | | | | | | | | | (553,142 | ) | | Tax (expense) recovery | | | | | | | | | | | | (5,408 | ) | | Net income (loss) | | | | | | | | | | | $ | (558,550 | ) | | Capital expenditures | | $ | 1,537 | | $ | 144,951 | | $ | — | | $ | 146,488 | | | Six months ended June 30, 2025 | | GEO | | LEO | | Other(3) | | Consolidated | | Broadcast | | $ | 106,282 | | | $ | — | | | $ | — | | | $ | 106,282 | | | Enterprise | | | 109,433 | | | | — | | | | — | | | | 109,433 | | | Consulting and other | | | 5,165 | | | | 1,975 | | | | — | | | | 7,140 | | | Revenue | | | 220,880 | | | | 1,975 | | | | — | | | | 222,855 | | | Operating expenses, net of share-based compensation and non-recurring items(1) | | | (60,588 | ) | | | (34,252 | ) | | | (1,944 | ) | | | (96,784 | ) | | Adjusted EBITDA(1) | | $ | 160,292 | | | $ | (32,277 | ) | | $ | (1,944 | ) | | $ | 126,071 | | | Share-based compensation | | | | | | | | | | | | | | | (5,592 | ) | | Non-recurring items(2) | | | | | | | | | | | | | | | (1,222 | ) | | Depreciation | | | | | | | | | | | | | | | (51,823 | ) | | Amortization | | | | | | | | | | | | | | | (22,538 | ) | | Other operating gains (losses), net | | | | | | | | | | | | | | | 3,819 | | | Operating income | | | | | | | | | | | | | | | 48,715 | | | Interest expense | | | | | | | | | | | | | | | (110,295 | ) | | Interest and other income | | | | | | | | | | | | | | | 13,042 | | | Gain on repurchase of debt | | | | | | | | | | | | | | | 6,896 | | | Gain (loss) on change in fair value of financial instruments | | | | | | | | | | | | | | | (46,660 | ) | | Gain (loss) on foreign exchange | | | | | | | | | | | | | | | 117,090 | | | Income (loss) before income taxes | | | | | | | | | | | | | | | 28,788 | | | Tax (expense) recovery | | | | | | | | | | | | | | | (4,716 | ) | | Net income (loss) | | | | | | | | | | | | | | $ | 24,072 | | | Capital expenditures | | $ | 2,259 | | | $ | 382,511 | | | $ | — | | | $ | 384,770 | | | Three months ended June 30, 2025 | | GEO | | LEO | | Other(3) | | Consolidated | | Broadcast | | $ | 51,226 | | | $ | — | | | $ | — | | | $ | 51,226 | | | Enterprise | | | 52,590 | | | | — | | | | — | | | | 52,590 | | | Consulting and other | | | 1,931 | | | | 359 | | | | — | | | | 2,290 | | | Revenue | | | 105,747 | | | | 359 | | | | — | | | | 106,106 | | | Operating expenses, net of share-based compensation and non-recurring items(1) | | | (30,928 | ) | | | (15,774 | ) | | | (740 | ) | | | (47,442 | ) | | Adjusted EBITDA(1) | | $ | 74,819 | | | $ | (15,415 | ) | | $ | (740 | ) | | $ | 58,664 | | | Share-based compensation | | | | | | | | | | | | | | | (2,351 | ) | | Non-recurring items(2) | | | | | | | | | | | | | | | (763 | ) | | Depreciation | | | | | | | | | | | | | | | (25,914 | ) | | Three months ended June 30, 2025 | | GEO | | LEO | | Other(3) | | Consolidated | | Amortization | | | | | | | | | | | | (11,639 | ) | | Other operating gains (losses), net | | | | | | | | | | | | (131 | ) | | Operating income | | | | | | | | | | | | 17,866 | | | Interest expense | | | | | | | | | | | | (53,631 | ) | | Interest and other income | | | | | | | | | | | | 6,834 | | | Gain on repurchase of debt | | | | | | | | | | | | 6,896 | | | Gain (loss) on change in fair value of financial instruments | | | | | | | | | | | | (13,248 | ) | | Gain (loss) on foreign exchange | | | | | | | | | | | | 114,610 | | | Income (loss) before income taxes | | | | | | | | | | | | 79,327 | | | Tax (expense) recovery | | | | | | | | | | | | (3,798 | ) | | Net income (loss) | | | | | | | | | | | $ | 75,529 | | | Capital expenditures | | $ | 1,851 | | $ | 204,391 | | $ | — | | $ | 206,242 | | ____________ (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”.
|
| Schedule of Geographic Regions |
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
June 30, | | Six months ended
June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | Canada | | $ | 39,277 | | $ | 56,247 | | $ | 84,309 | | $ | 114,787 | | United States | | | 27,138 | | | 32,229 | | | 55,609 | | | 70,808 | | Latin America & Caribbean | | | 5,560 | | | 7,573 | | | 11,382 | | | 15,123 | | Europe, Middle East & Africa | | | 5,648 | | | 7,091 | | | 11,374 | | | 14,681 | | Asia & Australia | | | 1,870 | | | 2,966 | | | 3,879 | | | 7,456 | | Revenue | | $ | 79,493 | | $ | 106,106 | | $ | 166,553 | | $ | 222,855 | 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, | | June 30,
2026 | | December 31,
2025 | | Canada | | $ | 2,819,038 | | $ | 2,464,818 | | United Kingdom | | | 226,867 | | | 238,478 | | United States | | | 11,823 | | | 12,276 | | Europe, Middle East & Africa (Excluding UK) | | | 6,850 | | | — | | All others | | | 3,144 | | | 1,136 | | Satellites, property and other equipment | | $ | 3,067,722 | | $ | 2,716,708 | | As at, | | June 30,
2026 | | December 31,
2025 | | Canada | | $ | 416,164 | | $ | 428,909 | | Latin America & Caribbean | | | 7,928 | | | 7,943 | | United States | | | 4,785 | | | 5,426 | | Intangible assets | | $ | 428,877 | | $ | 442,278 | Other long-term assets by geographic region were allocated as follows: | As at, | | June 30,
2026 | | December 31,
2025 | | Canada | | $ | 298,083 | | $ | 343,059 | | United States | | | 26,479 | | | 25,598 | | Other long-term assets | | $ | 324,562 | | $ | 368,657 |
|