Toronto, June 3, 2026, 10:03 EDT
Telesat Corp shares dropped 5.1% to $47.57 early Wednesday on Nasdaq, as trading stayed volatile before the Canadian satellite company’s annual shareholder meeting scheduled for later. Shares began the day at $49.39 and sank to an intraday low of $47.18, according to the latest data.
Telesat shareholders meet online at 1:30 p.m. Ottawa time, where they’ll vote on typical annual items like the audited financials, board members and Deloitte’s auditor role. But investors are watching for signs on how fast the company can get its Lightspeed satellite project moving and start showing growth.
Telesat’s Lightspeed is its planned low-Earth orbit network. LEO satellites orbit closer to the planet than older satellites, which means less signal lag. Telesat is selling Lightspeed to telecom, government, maritime, and aviation clients as its traditional geostationary orbit business with fixed, higher satellites keeps shrinking.
Telesat reported a sharp drop in first-quarter revenue, down 25% to C$87 million. Adjusted EBITDA fell 48% to C$35 million. Net loss was C$151 million, a much bigger deficit than the C$51 million loss reported a year ago.
Telesat kept its 2026 targets unchanged, looking for C$300 million to C$320 million in GEO revenue and projecting overall Lightspeed spending between C$1.0 billion and C$1.2 billion. The company said it had put about C$2.7 billion into Lightspeed by quarter’s end.
Telesat CEO Daniel Goldberg told investors last month the company still plans to launch full global commercial service for Lightspeed by the end of the first quarter of 2028. CFO Donald Tremblay put the LEO unit’s cash at almost C$300 million, with another C$1.72 billion available under Lightspeed financing and $325 million in vendor financing. That amount should be “sufficient to fully fund” the project until service begins, Tremblay said.
Competition keeps coming up for investors. Goldberg told analysts Starlink is “far ahead” in the LEO market and said, “the market is competitive.” He also flagged that Amazon Leo “is coming.” For Telesat, he said its entry will depend on hitting service needs while staying “cost competitive.”
Competition in the LEO constellation market isn’t limited to Telesat. Caleb Henry, director of research at Quilty Space, told Via Satellite the sector is now in a “legitimate race.” Amazon, Eutelsat OneWeb and Telesat are all working to catch up to Starlink. Via Satellite
Telesat shares have been volatile around the debate. Investing.com data showed the stock slumped 8.3% Monday, gained 0.9% Tuesday, then slipped again Wednesday. On the same page, the Nasdaq was off 0.6% during morning trading.
Wall Street analysts are not on the same page. New Street Research started coverage of Telesat at Sell with a $30 target price on May 14, pointing to concerns that the company’s Lightspeed project could face stiff competition in capacity and pricing. New Street said Telesat’s value hangs on long-term revenue from its planned 198-satellite Lightspeed network.
The bear case focuses on a few risks: Lightspeed might miss targets or cede ground if rivals move quicker on pricing. Telesat could also run into trouble refinancing GEO debt before maturities kick in later this year. The company’s risk disclosures mention capital needs, launch timing, LEO competition, and hitting deployment schedules for the constellation.
For now, the meeting probably won’t resolve the main valuation dispute. Investors want updates on defence demand, financing, and how fast Lightspeed moves forward. They’re also looking to see if management can keep the narrative from turning into just another costly satellite project.
