Globalstar Q4 Earnings Call Highlights

Key Points

• Globalstar posted record 2025 revenue of $273 million (up 9%) and record Adjusted EBITDA of $136.1 million (50% margin), with net loss narrowed to $7.6 million, cash of $447.5 million, and $550.4 million in capital spending on replacement satellites and its extended MSS network.
• Management commercialized two-way satellite IoT and the RM200M module (now in mass production) and advanced XCOM RAN 5G work, while the C3 constellation cleared its Critical Design Review with the first launch expected in Q2 and a second launch later in the year.
• For 2026 Globalstar guided total revenue of $280–$305 million with an Adjusted EBITDA margin of ~50%, and reiterated its strategic focus on direct-to-device IoT rather than pursuing “data centers in space.”

Globalstar NYSEAMERICAN: GSAT reported fourth quarter and full-year 2025 results highlighted by record annual revenue, an improved operating result, and continued investment in next-generation satellite and terrestrial connectivity initiatives. Management emphasized progress in two-way satellite IoT capabilities, government and defense activity through partners, and ongoing infrastructure expansion tied to the company’s replacement satellites and extended mobile satellite services (MSS) network.

Full-year 2025 financial results

Chief Financial Officer Rebecca Clary said total revenue for 2025 reached a record $273 million, up 9% from 2024 and “in line with our guidance,” marking the company’s fourth consecutive year of record revenue. Service revenue rose to $257.3 million, up 8%, driven primarily by increased wholesale capacity services. Subscriber equipment revenue increased to $15.7 million, up 24%, which Clary attributed to a higher volume of commercial IoT device sales.

Globalstar generated income from operations of $7.4 million, compared with an operating loss of $0.9 million in 2024. Clary said the improvement reflected higher revenue, partially offset by higher operating expenses, including personnel costs tied to the next-generation infrastructure build-out, continued investment in XCOM RAN development, and increased legal and professional fees. Operating expenses also benefited from $3.9 million in employee retention credits under the CARES Act, allocated between cost of services and MG&A.

Net loss improved to $7.6 million from $63.2 million in 2024. Clary said the prior-year net loss reflected a non-recurring, non-cash loss on extinguishment of debt tied to the paydown of 2023 13% notes, while 2025 benefited from favorable foreign currency remeasurement on intercompany balances and non-cash gains from quarterly mark-to-market adjustments of a derivative asset. Those benefits were partially offset by higher non-cash imputed interest related to a 2024 prepayment agreement.

Adjusted EBITDA reached a record $136.1 million, representing a 50% margin in line with guidance. Management noted that ongoing work to enhance and develop XCOM RAN product and service offerings results in costs incurred ahead of revenue.

Fourth quarter: wholesale strength and mixed subscriber trends

For the fourth quarter, Globalstar reported total revenue of $72 million, including $67.4 million in service revenue and $4.6 million in equipment sales. Clary said service revenue increased 17% year-over-year, while equipment revenue increased 31%.

Management attributed the revenue increase primarily to wholesale capacity services, including performance bonuses earned during the quarter and additional service fees linked to network cost reimbursement. The quarter also included contributions from growth in commercial IoT subscribers and device sales, and revenue under the company’s agreement with Parsons. Those gains were partially offset by Duplex and SPOT subscriber churn and lower XCOM RAN sales.

Globalstar posted a fourth-quarter operating loss of $4.4 million, which Clary described as a meaningful improvement versus a $4.2 million operating loss in the year-ago period. She also noted that cost of subscriber equipment sales included a $1.1 million charge related to tariffs on equipment imported and then re-exported to foreign subsidiaries, where previously recorded duty drawbacks are no longer deemed probable of recovery.

Fourth-quarter net loss was $10.6 million, compared with $50.2 million in the prior-year quarter, with the improvement “largely attributable” to the same non-cash items discussed for the full year. Adjusted EBITDA was $32.4 million, up 7% year-over-year.

Liquidity, cash flow, and capital spending

Globalstar ended 2025 with $447.5 million in cash and cash equivalents, up from $391.2 million at the end of 2024. Operating cash flows were $621.7 million, including $430.6 million received in connection with an infrastructure prepayment.

Capital expenditures totaled $550.4 million, primarily related to commitments under updated services agreements for deploying replacement satellites and building out the extended MSS network, which management said includes a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing.

Adjusted free cash flow was $171.5 million, up from $131.9 million in 2024, benefiting from $45 million in accelerated service payments and higher ongoing service fees, partially offset by higher operating costs.

Principal debt ended the year at $410 million, down modestly from $417.5 million at the end of 2024. Clary said the change reflected scheduled recoupments of $34.6 million under the 2021 funding agreement, partially offset by $27.1 million in new issuance under the 2023 funding agreement.

2026 outlook and strategic priorities

Looking ahead, management guided for 2026 total revenue between $280 million and $305 million, with an Adjusted EBITDA margin of approximately 50%. Clary said the outlook reflects confidence in continued growth as the company scales next-generation infrastructure and expands commercial opportunities.

Chief Executive Officer Paul Jacobs described 2025 as a “transformational year” and highlighted several operational milestones:

• Launch of two-way satellite IoT capabilities and completion of the commercial rollout of the RM200M module, expanding the IoT portfolio beyond one-way monitoring to support command-and-control use cases.
• Expansion into additional verticals, including agriculture, wildfire response, industrial IoT, public safety, and early government and defense wins.
• Continued investment in XCOM RAN-based 5G research and private 5G opportunities, including work with Parsons and progress with go-to-market partners.
• Progress expanding the global ground net station network and advancing ITU financial commitments, with Jacobs noting the company has completed 50% of its pledged investment.

During Q&A, Jacobs said the company remains focused on direct-to-device and IoT rather than “data centers in space,” which he characterized as technically challenging and not a Globalstar focus area.

On the C3 constellation, Jacobs said the company completed the Critical Design Review and is continuing work across ground network build-out and regulatory efforts. Regarding replenishment satellites, management said it was not updating launch timing beyond expectations for the first launch in the second quarter and a second launch in the second half of the year.

On two-way IoT commercialization, Jacobs said customers are currently building and validating end-to-end solutions and that investors should not expect significant near-term revenue contribution from two-way IoT yet, with current subscriber growth “predominantly” tied to one-way systems. He added that the module is tested, “hardened,” and in mass production, with timing dependent on customers completing their applications.

Jacobs also discussed XCOM RAN progress, pointing to performance in dense environments and the ability to run over distributed antenna systems (DAS) while increasing capacity through processing at radio nodes. He said the company has demonstrated commercial readiness to customers and that the pipeline is growing, including warehouse automation and potential high-density venues and government/military use cases.

In closing remarks, Jacobs thanked partners, customers, and employees, and said the company would continue executing on its roadmap and provide future updates on progress and growth.

About Globalstar NYSEAMERICAN: GSAT

Globalstar, Inc is a leading provider of mobile satellite voice and data services, offering connectivity solutions when terrestrial networks are unavailable. The company operates a low Earth orbit (LEO) satellite constellation that supports both simplex and duplex satellite communications. Its network enables reliable voice calls, two-way data communication, and emergency messaging for a diverse range of commercial, industrial and consumer applications.

The company's product portfolio includes SPOT® satellite messengers and asset-tracking devices, which leverage its simplex data capabilities for GPS-based location reporting, customizable check-in messaging, and SOS emergency alerts.

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