Foreign issuer report

Summary

• Telesat disclosed a material uncertainty and substantial doubt about Telesat GEO's ability to meet its debt obligations, with roughly $2.7 billion of Telesat GEO Debt reclassified as a current liability as at June 30, 2026 due to maturities scheduled between December 2026 and October 2027.
• Revenue for the three months ended June 30, 2026 was $79,493 thousand, down from $106,106 thousand a year earlier, and six-month revenue was $166,553 thousand versus $222,855 thousand.
• The net loss for the quarter was $558,550 thousand and $709,499 thousand for the six months, driven mainly by a $471,925 thousand loss on change in fair value of financial instruments in the quarter.
• A goodwill impairment loss of $84.5 million was recognized against the GEO segment for the six months ended June 30, 2026 after the discount rate range rose from 9.3%-10.3% to 10.3%-11.3%.
• The Company held about $383.2 million of cash and cash equivalents at June 30, 2026, of which $160.8 million was held within Telesat GEO, and on August 12, 2026 a subsidiary closed a US$120 million financing.
• Telesat LEO drew $193.8 million from the Government of Canada and $36.2 million from the Government of Quebec during the six months toward the Telesat Lightspeed constellation, now planned to comprise 225 satellites in service in 2028.

Why it mattersThe filing formally reclassifies about $2.7 billion of GEO debt as current and states a material uncertainty over refinancing December 2026 maturities. It also documents continued government-funded drawdowns for the Lightspeed LEO build.