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OTTAWA/SAN FRANCISCO - Telesat (NASDAQ:TSAT) (TSX:TSAT) announced Tuesday it has expanded its partnership with San Francisco-based startup Farcast and made a $5 million equity investment in the satellite terminal manufacturer. The investment comes as Telesat, currently valued at $1.51 billion, has seen its stock surge 137% over the past year despite operating with a significant debt burden, according to InvestingPro data.
Under the new agreement, Farcast will deliver enterprise-class Flat Panel Antenna User Terminals fully integrated with Telesat Lightspeed modems and ready for volume production by 2027.
The satellite operator will also take a seat on Farcast’s board of directors to support alignment with the Telesat Lightspeed program, according to a company press release.
Farcast has developed proprietary Active Electronically Scanned Antenna technology that can simultaneously transmit and receive data from the same aperture, resulting in reduced size, weight, power, and cost for terminals.
The two companies have collaborated since 2022 on pre-production development to ensure Farcast’s technology reaches maturity levels required for the Telesat Lightspeed network. Multiple hardware iterations have been built and tested as prerequisites for the new agreement.
"We’ve seen firsthand Farcast’s innovative approach to extending satellite communications capability and reach through small form factor FPAs that deliver outstanding performance," said Michel Forest, Chief Technology Officer for Telesat.
Farcast, founded in 2019, has secured $13.6 million in funding across pre-seed, seed, and Series A rounds. The company is currently raising a $10 million Series Extension aimed at strategic investors as it transitions to commercial manufacturing.
The company plans to enter production ramp in 2026, with full-scale manufacturing scheduled for 2027.
In other recent news, Telesat Corp announced its Q2 2025 earnings, which revealed a significant increase in revenue, surpassing analysts’ expectations. The company reported earnings per share of 1.38 Canadian dollars, which was well above the projected -1.52 CAD. Additionally, Telesat’s revenue reached 106 million CAD, exceeding the forecasted 79.53 million CAD. In another development, Telesat completed the distribution of 62% equity in its Telesat Lightspeed business to an indirect subsidiary of Telesat Corporation. This recipient entity is fully owned by Telesat Canada’s parent companies and is noted as a non-guarantor under Telesat Canada’s debt documents. These recent developments highlight Telesat’s strategic financial maneuvers and operational growth.
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