Globalstar Swings to Profit on Revenue Growth, Network Expansion

Ticker: GSAT · Form: 10-Q · Filed: Nov 6, 2025 · CIK: 1366868

Sentiment: mixed

Topics: Satellite Communications, 10-Q Analysis, Earnings Report, Network Infrastructure, Capital Expenditure, Reverse Stock Split, Telecommunications

Related Tickers: GSAT, IRDM, VSAT, ASTS

TL;DR

**GSAT is making big moves with network upgrades and finally turning a profit, but watch that rising debt.**

AI Summary

Globalstar, Inc. reported a significant increase in total revenue for the nine months ended September 30, 2025, reaching $201.0 million, up from $189.2 million in the prior year, an increase of 6.2%. Service revenue specifically grew to $189.9 million from $180.0 million, a 5.5% increase. Net income for the nine-month period dramatically improved to $3.0 million in 2025, compared to a net loss of $12.9 million in 2024. This turnaround was largely driven by a substantial foreign currency gain of $15.5 million in 2025, contrasting with a $3.4 million loss in 2024, and a derivative and other income of $9.9 million. However, interest income and expense, net, increased significantly to a $26.4 million expense in 2025 from $10.3 million in 2024. The company also saw a substantial increase in property and equipment, net, to $1.21 billion from $673.6 million at December 31, 2024, reflecting significant network upgrades, including $383.4 million for the Extended MSS Network. Cash and cash equivalents decreased by $44.9 million to $346.3 million as of September 30, 2025, primarily due to these investing activities.

Why It Matters

Globalstar's return to profitability and significant investment in network upgrades, particularly the Extended MSS Network, signals a strategic pivot that could enhance its competitive position against rivals like Iridium and Viasat. For investors, the improved net income of $3.0 million for the nine months ended September 30, 2025, from a $12.9 million loss, suggests operational improvements and potential for future growth, though increased interest expenses bear watching. Employees may see increased job security and opportunities with the expanded infrastructure. Customers could benefit from enhanced service capabilities and reliability, potentially attracting new users to Globalstar's MSS offerings and strengthening its market share in the satellite communications sector.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to a significant increase in long-term debt to $485.1 million from $476.8 million, and a substantial increase in interest expense to $26.4 million for the nine months ended September 30, 2025, up from $10.3 million in the prior year. While net income improved, the heavy capital expenditure of $383.4 million for the Extended MSS Network and a $44.9 million decrease in cash and cash equivalents indicate substantial financial commitments and potential liquidity strain if revenue growth doesn't keep pace.

Analyst Insight

Investors should monitor Globalstar's ability to monetize its significant network investments, particularly the Extended MSS Network, to ensure these capital expenditures translate into sustained revenue growth and improved cash flow. Evaluate future earnings reports for continued profitability and a reduction in the growth rate of interest expenses. Consider the impact of foreign currency fluctuations, which significantly boosted current period net income, on future results.

Financial Highlights

revenue
$201,025,000
operating Margin
3.9%
net Income
$2,967,000
eps
-$0.04
cash Position
$346,293,000
revenue Growth
+6.2%

Revenue Breakdown

SegmentRevenueGrowth
Service revenue$189,918,000+5.5%
Subscriber equipment sales$11,107,000+21.2%

Key Numbers

Key Players & Entities

FAQ

What were Globalstar's total revenues for the nine months ended September 30, 2025?

Globalstar's total revenues for the nine months ended September 30, 2025, were $201.0 million, an increase from $189.2 million for the same period in 2024.

Did Globalstar achieve net income or a net loss for the nine months ended September 30, 2025?

Globalstar achieved a net income of $3.0 million for the nine months ended September 30, 2025, a significant improvement from a net loss of $12.9 million in the prior year period.

What was the impact of foreign currency fluctuations on Globalstar's results?

Foreign currency fluctuations resulted in a gain of $15.5 million for the nine months ended September 30, 2025, which significantly contributed to the company's net income, contrasting with a $3.4 million loss in the prior year.

How much did Globalstar invest in network upgrades for the Extended MSS Network?

Globalstar invested $383.4 million in network upgrades to support the Extended MSS Network during the nine months ended September 30, 2025.

What was Globalstar's cash and cash equivalents balance at September 30, 2025?

As of September 30, 2025, Globalstar's cash and cash equivalents stood at $346.3 million, a decrease of $44.9 million from the beginning of the period.

What was the effect of the reverse stock split on Globalstar's shares?

Globalstar effectuated a 1-for-15 reverse stock split on February 10, 2025. All historical share and per share amounts in the report have been retroactively adjusted to reflect this change.

What are the primary risks Globalstar faces according to the filing?

Key risks include the ability to meet obligations under Updated Services Agreements, operational performance of satellites, commercial acceptance of products, ability to maintain sufficient satellite capacity, and compliance with complex regulations.

Who is the principal owner of Globalstar, Inc.?

Thermo Companies, through commonly controlled affiliates, is the principal owner and largest stockholder of Globalstar, Inc. The Executive Chairman of Globalstar's Board of Directors controls Thermo.

How did Globalstar's interest expense change year-over-year?

Globalstar's net interest expense significantly increased to $26.4 million for the nine months ended September 30, 2025, compared to $10.3 million for the same period in 2024.

What is Globalstar's main business segment?

Globalstar's only reportable segment is its Mobile Satellite Services (MSS) business, which provides voice and data communications services to retail, business, and governmental customers, as well as wholesale capacity services.

Risk Factors

Industry Context

Globalstar operates in the satellite communications sector, facing competition from established players and emerging LEO constellations. The industry is characterized by high capital intensity for network deployment and significant regulatory oversight regarding spectrum usage. Trends include the increasing demand for IoT connectivity and the integration of satellite services with terrestrial networks.

Regulatory Implications

Globalstar's operations are subject to FCC regulations and international telecommunications standards. Maintaining necessary licenses for spectrum usage is critical. Any changes in regulatory policy, particularly concerning spectrum allocation or satellite operations, could materially impact the company's business model and competitive position.

What Investors Should Do

  1. Monitor the ROI of significant network investments.
  2. Analyze the sustainability of net income improvement.
  3. Evaluate the impact of rising interest expenses.
  4. Assess the cash burn rate and liquidity position.

Key Dates

Glossary

Extended MSS Network
A specific network infrastructure project undertaken by Globalstar, likely involving upgrades or expansions to its Mobile Satellite Service (MSS) capabilities. (Represents a major capital expenditure of $383.4 million, indicating a significant investment in future network capacity and services.)
Foreign currency (loss) gain
The net impact on the company's financial results due to fluctuations in exchange rates between different currencies. (A gain of $15.5 million significantly boosted net income for the nine months ended September 30, 2025, highlighting its material impact on profitability.)
Derivative and other
Refers to gains or losses arising from financial instruments like options or futures contracts, and other miscellaneous income or expense items not classified elsewhere. (Contributed $9.9 million in income for the nine months ended September 30, 2025, positively impacting the overall financial results.)
Interest income and expense, net
The difference between the interest earned on the company's investments and the interest paid on its borrowings. (Increased to a net expense of $26.4 million for the nine months ended September 30, 2025, from $10.3 million, indicating higher debt servicing costs or lower interest earned.)
Stock-based compensation
Non-cash compensation expense recognized for equity awards granted to employees and directors, such as stock options or restricted stock units. (Decreased to $17.8 million for the nine months ended September 30, 2025, from $26.6 million in the prior year, reducing an operating expense line item.)
Reverse Stock Split
A corporate action where a company reduces the total number of its outstanding shares by consolidating existing shares into fewer, proportionally more valuable shares. (A 1:15 reverse stock split was effectuated on February 10, 2025, requiring restatement of historical per share data and potentially affecting market perception.)
Property and equipment, net
The book value of the company's tangible assets used in operations, such as buildings, machinery, and network infrastructure, after deducting accumulated depreciation. (Increased substantially to $1.21 billion from $673.6 million at year-end 2024, reflecting significant investments in network upgrades.)
Comprehensive income (loss)
Includes net income or loss plus other comprehensive income or loss items, such as foreign currency translation adjustments, which are not recognized in net income until realized. (The company reported a comprehensive loss of $6.4 million for the nine months ended September 30, 2025, primarily due to foreign currency translation adjustments.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Globalstar reported a 6.2% increase in total revenue to $201.0 million, compared to $189.2 million in the prior year, with service revenue growing 5.5%. A significant turnaround in net income occurred, swinging from a $12.9 million loss in 2024 to a $3.0 million profit, largely due to a substantial $15.5 million foreign currency gain. However, net interest expense more than doubled to $26.4 million, and property and equipment saw a significant increase to $1.21 billion due to network investments, leading to a $44.9 million decrease in cash and cash equivalents.

Filing Stats: 4,651 words · 19 min read · ~16 pages · Grade level 18.3 · Accepted 2025-11-06 17:27:05

Key Financial Figures

Filing Documents

- F INANCIAL INFORMATION

PART I - F INANCIAL INFORMATION Cautionary Statement About Forward-Looking Statements 3

Financial Statements

Item 1. Financial Statements. 4

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 34

Controls and Procedures

Item 4. Controls and Procedures. 34

- O THER INFORMATION

PART II - O THER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 35

Risk Factors

Item 1A. Risk Factors. 35

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 35

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 35

Other Information

Item 5. Other Information. 35

Exhibits

Item 6. Exhibits. 35

Signatures

Signatures 36 2 CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS Certain statements contained in or incorporated by reference into this Quarterly Report on Form 10-Q (this "Report"), other than purely historical information, including, but not limited to, estimates, projections, statements relating to our business plans, objectives and expected operating results, our anticipated financial resources, our expectations about the future operational performance of our satellites (including their projected operational lives) and the completion and launch of new satellites, our expectations regarding the outcomes of regulatory and licensing proceedings, the expected growth prospects of our existing customers and the markets that we serve, and the assumptions upon which those statements are based, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words "believe," "might," "could," "project," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that may cause our actual results to differ materially from those anticipated in forward-looking statements, include, but are not limited to, our ability to meet our obligations and attain anticipated benefits under the Updated Services Agreements (as define

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. GLOBALSTAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenue: Service revenue $ 69,635 $ 68,908 $ 189,918 $ 180,008 Subscriber equipment sales 4,210 3,399 11,107 9,164 Total revenue 73,845 72,307 201,025 189,172 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 22,206 19,185 60,310 54,058 Cost of subscriber equipment sales 3,422 2,515 8,350 6,739 Marketing, general and administrative 11,347 10,439 32,619 31,438 Stock-based compensation 4,906 8,254 17,812 26,645 Reduction in the value and disposal of long-lived assets 115 231 7,153 536 Depreciation, amortization and accretion 21,693 22,249 66,980 66,456 Total operating expenses 63,689 62,873 193,224 185,872 Income from operations 10,156 9,434 7,801 3,300 Other income (expense): Interest income and expense, net of amounts capitalized ( 11,029 ) ( 2,872 ) ( 26,402 ) ( 10,301 ) Foreign currency (loss) gain ( 588 ) 4,918 15,484 ( 3,417 ) Derivative and other 3,651 186 9,935 ( 605 ) Total other (expense) income ( 7,966 ) 2,232 ( 983 ) ( 14,323 ) Income (loss) before income taxes 2,190 11,666 6,818 ( 11,023 ) Income tax expense 1,100 1,732 3,851 1,922 Net income (loss) $ 1,090 $ 9,934 $ 2,967 $ ( 12,945 ) Other comprehensive income (loss): Foreign currency translation adjustments 1,009 ( 3,775 ) ( 9,413 ) 482 Comprehensive income (loss) $ 2,099 $ 6,159 $ ( 6,446 ) $ ( 12,463 ) Net (loss) income attributable to common shareholders (Note 11) ( 1,583 ) 7,261 ( 4,965 ) ( 20,906 ) Net (loss) income per common share: Basic (1) $ ( 0.01 ) $ 0.06 $ ( 0.04 ) $ ( 0.17 ) Diluted (1) ( 0.01 ) 0.06 ( 0.04 ) ( 0.17 ) Weighted-average shares outstanding: Basic (1) 126,688 126,150 126,593 125,7

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing