UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33117 GLOBALSTAR, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 41-2116508 (State or Other Jurisdicti ...

Globalst GLOBALSTAR ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS Covington, LA, November 7, 2024 -- Globalstar, Inc. (NYSE American: GSAT) ("Globalstar" or the "Company") today announced its financial results for the third quarter ended September 30, 2024. "Globalstar reported strong third quarter results highlighted by a 25% increase in total revenue. Net income and Adjusted EBITDA both benefited significantly from the increase in high-margin revenue with a favorable fluctuation in net income of $16 mill ...

Globalstar's (NYSE: GSAT ) share price has bounced significantly higher in recent days after the company announced a significant expansion of its relationship with Apple ( AAPL ). While this is a positive, I continue to think that Globalstar's future willRichard Durant is the leader of Narweena, an asset manager focused on finding market dislocations that are the result of a poor understanding of a businesses long-term prospects. Narweena believes that excess risk adjusted returns can be achieved by identif ...

Globalstar (GSAT) came out with a quarterly loss of $0.01 per share in line with the Zacks Consensus Estimate. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this satellite communications company would post a loss of $0.01 per share when it actually produced a loss of $0.01, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Globalstar, which ...

Revenue Growth - Total revenue increased 10% to $60.4 million in Q2 2024 compared to Q2 2023, driven by an 18% increase in service revenue to $9.0 million, primarily from wholesale capacity services[2] - Total revenue for Q2 2024 increased to $60.385 million, up from $55.072 million in Q2 2023, representing a 9.6% growth[20] - Total revenue for Q2 2024 reached $60.385 million, a 9.6% increase from $55.072 million in Q2 2023[30] Service Revenue - Service revenue for Q2 2024 rose to $57.635 million, an 18.5% increase compared to $48.648 million in Q2 2023[20] - Total service revenue for Q2 2024 increased to $57.635 million, up from $48.648 million in Q2 2023, reflecting an 18.5% growth[30] - Wholesale capacity services revenue surged to $34.7 million in Q2 2024, a 36.2% increase compared to $25.478 million in Q2 2023[30] - Commercial IoT revenue grew by 25.4% to $6.716 million in Q2 2024 from $5.356 million in Q2 2023[30] - SPOT service revenue slightly declined to $10.379 million in Q2 2024 from $11.039 million in Q2 2023, a 6% decrease[30] - Engineering and other services revenue more than doubled to $875,000 in Q2 2024 from $416,000 in Q2 2023, a 110.3% increase[30] Commercial IoT Performance - Commercial IoT service revenue reached a record high of $6.7 million in Q2 2024, a 25% increase from the prior year, driven by subscriber growth and higher ARPU[3] - Commercial IoT gross subscriber activations increased 20% from Q1 2024 to Q2 2024, expected to contribute to future service revenue growth[3] - Average subscribers for Commercial IoT increased to 508,518 in Q2 2024, up 9% from 466,609 in Q2 2023[31] - ARPU for Commercial IoT rose to $4.40 in Q2 2024, a 14.9% increase from $3.83 in Q2 2023[31] Subscriber Growth - Gross SPOT subscriber activations increased nearly 40% from Q1 2024 to Q2 2024, more than double the activity from the same periods in the prior year[4] - Total average subscribers increased to 782,895 in Q2 2024, up 2.5% from 763,702 in Q2 2023[31] Financial Performance - Adjusted EBITDA increased 20% to $32.6 million in Q2 2024 compared to $27.0 million in Q2 2023, driven by high-margin service revenue[7] - Adjusted EBITDA for Q2 2024 was $32.561 million, up from $27.042 million in Q2 2023, reflecting a 20.4% increase[26] - Net loss was $9.7 million in Q2 2024 compared to net income of less than $0.1 million in Q2 2023, primarily due to higher operating expenses and unfavorable foreign currency fluctuations[7] - Net loss for Q2 2024 was $9.683 million, compared to a net income of $9 thousand in Q2 2023[20] Cash and Liquidity - Cash and cash equivalents increased to $64.3 million as of June 30, 2024, compared to $56.7 million as of December 31, 2023[11] - Cash and cash equivalents as of June 30, 2024, stood at $64.334 million, compared to $56.744 million at the end of 2023[22] - Total current assets as of June 30, 2024, were $144.010 million, slightly up from $142.653 million at the end of 2023[22] Debt and Equity - Long-term debt increased to $358.525 million as of June 30, 2024, from $325.700 million at the end of 2023[23] - Total stockholders' equity as of June 30, 2024, was $382.975 million, compared to $378.979 million at the end of 2023[24] Expenses - Stock-based compensation expense for Q2 2024 was $9.164 million, significantly higher than $2.532 million in Q2 2023[20] - Depreciation, amortization, and accretion expenses for Q2 2024 were $22.110 million, slightly up from $21.890 million in Q2 2023[20] Subscriber Equipment Sales - Revenue from subscriber equipment sales decreased $3.7 million in Q2 2024 compared to Q2 2023, primarily due to timing of Commercial IoT and SPOT device sales[4] - Subscriber equipment sales dropped to $2.75 million in Q2 2024, a 57.2% decrease from $6.424 million in Q2 2023[30] Guidance and Future Outlook - The company raised its 2024 revenue guidance to $235 million to $250 million, up from the prior range of $225 million to $250 million, and projected Adjusted EBITDA margin to 53% from 50%[1][16] - The company is progressing with the proof of concept for government services and validating XCOM RAN in customer Micro Fulfillment Centers, demonstrating its ability to support mission-critical requirements[1]

Commission file number 001-33117 GLOBALSTAR, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Exact Name of Registrant as Specified in Its Charter) Incorporation or Organization) Delaware 41-2116508 (State or ...

[Globalstar First Quarter 2024 Financial Results](index=1&type=section&id=Globalstar%20First%20Quarter%202024%20Financial%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Globalstar exceeded Q1 2024 financial expectations with sequential and prior-year revenue growth, reaffirmed full-year guidance, and advanced new government contracts and XCOM RAN product shipments - CFO Rebecca Clary noted that Q1 financial results generally **exceeded expectations**, with revenue **higher sequentially** and versus the prior year's quarterly average, and the company **reiterated its full-year 2024 guidance**[3](index=3&type=chunk) - CEO Dr. Paul E. Jacobs highlighted **significant progress** in new initiatives expected to drive future growth, including a **new government contract**, testing new technology on the satellite constellation, and commencing **commercial shipments of XCOM RAN products**[3](index=3&type=chunk) Q1 2024 Key Financial Metrics vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $56.5 million | $58.6 million | -3.7% | | Net Loss | ($13.2 million) | ($3.5 million) | +277.6% | | Adjusted EBITDA | $29.6 million | $32.6 million | -9.2% | | EPS (Diluted) | ($0.01) | ($0.00) | - | [Operational Review](index=1&type=section&id=Operational%20Review) Globalstar advanced key operational initiatives, including a new government contract POC, securing a major XCOM RAN customer, demonstrating significant performance gains, and progressing FCC approval for a replacement satellite constellation and Band n53 spectrum business - Initiated a **proof-of-concept (POC) phase** for a government services contract, which, if successful, will become a **five-year agreement** with minimum revenue commitments escalating to **$20 million** in the fifth year, plus a revenue share[5](index=5&type=chunk)[7](index=7&type=chunk) - Secured a **customer win** with one of the world's largest retailers for its **XCOM RAN product** to be deployed in Micro Fulfillment Centers (MFCs), with **commercial deliveries began in April 2024**[5](index=5&type=chunk) - Conducted over-the-air testing for XCOM RAN, demonstrating **capacity gains of 4x to 5x** compared to traditional small cell implementations[5](index=5&type=chunk) - The company's application with the FCC for a replacement satellite constellation has completed its public comment cycle, and **authorization is expected soon**, with the FCC **reaffirming Globalstar's exclusive license** in its portion of the Big LEO band[12](index=12&type=chunk) - Globalstar aims to generate **recurring revenue** from its **Band n53 terrestrial spectrum**, which it believes is a **unique offering** with a thriving ecosystem supported by Qualcomm chipsets[12](index=12&type=chunk) [Financial Review](index=2&type=section&id=Financial%20Review) Q1 2024 saw total revenue decrease to **$56.5 million** due to lower equipment sales, resulting in an operating loss of **$4.7 million**, a widened net loss of **$13.2 million**, and a decline in Adjusted EBITDA to **$29.6 million**, while cash remained stable at **$59.3 million** [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenue for Q1 2024 decreased to **$56.5 million** from **$58.6 million** in Q1 2023, as growth in service revenue, particularly Commercial IoT, was offset by a significant decline in subscriber equipment sales Q1 Revenue Breakdown (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Service Revenue | $53,465 | $52,954 | +1.0% | | Subscriber Equipment Sales | $3,015 | $5,690 | -47.0% | | **Total Revenue** | **$56,480** | **$58,644** | **-3.7%** | - Excluding a nonrecurring revenue item in Q1 2023, service revenue increased by **$3.7 million**, or **7%**, year-over-year[6](index=6&type=chunk) - Commercial IoT service revenue increased **24%** from Q1 2023, driven by growth in both ARPU and the subscriber base[8](index=8&type=chunk) - Subscriber equipment sales were down **$2.7 million** YoY, as the prior-year quarter was a record high for SPOT and Commercial IoT sales due to inventory replenishment following supply chain disruptions[10](index=10&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q1 2024 saw a shift to an operating loss of **$4.7 million** from a **$7.2 million** income, with net loss widening to **$13.2 million** and Adjusted EBITDA declining to **$29.6 million**, primarily due to lower equipment revenue and increased operating expenses Q1 Profitability Metrics (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | (Loss) Income from Operations | ($4,712) | $7,191 | | Net Loss | ($13,196) | ($3,480) | | Adjusted EBITDA | $29,634 | $32,574 | - The shift to an operating loss was driven by **higher operating expenses** and **lower equipment revenue**[11](index=11&type=chunk) - Operating expenses increased due to **higher stock-based compensation**, **gateway operating costs** (maintenance, security, IT), and **increased legal and professional fees**[11](index=11&type=chunk)[13](index=13&type=chunk) [Liquidity and Cash Flow](index=3&type=section&id=Liquidity%20and%20Cash%20Flow) As of March 31, 2024, Globalstar maintained **$59.3 million** in cash, with **$29.8 million** net cash from operations and **$27.1 million** from financing activities primarily funding **$54.2 million** in capital expenditures for network upgrades and satellite procurement Key Liquidity and Cash Flow Data (Q1 2024) | Metric | Amount (in millions) | | :--- | :--- | | Cash and Cash Equivalents (End of Period) | $59.3 | | Net Cash from Operations | $29.8 | | Capital Expenditures | $54.2 | - Investing outflows were largely for **network upgrades**, including milestone work for **new satellites** with MDA and **launch services** with SpaceX[17](index=17&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Globalstar reiterated its full-year 2024 financial guidance, projecting total revenue between **$225 million** and **$250 million** with an Adjusted EBITDA margin of approximately **50%** Full Year 2024 Financial Outlook | Metric | Guidance | | :--- | :--- | | Total Revenue | $225 million to $250 million | | Adjusted EBITDA Margin | Approximately 50% | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, including the Statement of Operations, Balance Sheet, Adjusted EBITDA reconciliation, and selected operating metrics [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (In thousands, except per share data) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | **Revenue:** | | | | Service revenue | $53,465 | $52,954 | | Subscriber equipment sales | $3,015 | $5,690 | | **Total revenue** | **$56,480** | **$58,644** | | **Total operating expenses** | **$61,192** | **$51,453** | | **(Loss) income from operations** | **($4,712)** | **$7,191** | | Total other expenses | ($8,476) | ($10,627) | | **Net loss** | **($13,196)** | **($3,480)** | | **Net loss per common share (Basic & Diluted)** | **($0.01)** | **($0.00)** | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (In thousands) | | **March 31, 2024** | **December 31, 2023** | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $59,282 | $56,744 | | Total current assets | $135,977 | $142,653 | | **Total assets** | **$917,006** | **$924,309** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $135,682 | $175,908 | | Long-term debt | $364,123 | $325,700 | | **Total liabilities** | **$539,952** | **$545,330** | | **Total stockholders' equity** | **$377,054** | **$378,979** | [Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Non-GAAP%20Adjusted%20EBITDA) Reconciliation to Adjusted EBITDA (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | Net loss | ($13,196) | ($3,480) | | Interest income and expense, net | $3,785 | $2,032 | | Depreciation, amortization, and accretion | $22,097 | $21,933 | | EBITDA | $13,647 | $20,529 | | Non-cash compensation | $9,227 | $3,760 | | Loss on extinguishment of debt | $0 | $10,403 | | **Adjusted EBITDA** | **$29,634** | **$32,574** | [Schedule of Selected Operating Metrics](index=9&type=section&id=Schedule%20of%20Selected%20Operating%20Metrics) Q1 2024 vs Q1 2023 Operating Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Average Subscribers** | | | | Duplex | 29,257 | 36,616 | | SPOT | 249,640 | 266,067 | | Commercial IoT | 502,915 | 462,077 | | **Total Subscribers** | **782,126** | **765,160** | | **ARPU** | | | | Duplex | $54.18 | $52.35 | | SPOT | $13.68 | $14.17 | | Commercial IoT | $4.27 | $3.74 |

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K 1351 Holiday Square Blvd. Covington, Louisiana 70433 (Address of Principal Executive Offices) Registrant's Telephone Number, Including Area Code (985) 335-1500 Securities registered pursuant to section 12(b) of the Act: Title of each class Trading Symbol Common Stock, par value $0.0001 per share GSAT NYSE American ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Y ...

Financial Data and Key Metrics - Total revenue for 2023 was $224 million, a 51% increase YoY, driven by higher wholesale capacity service revenue [51] - Adjusted EBITDA for 2023 was $117 million, a 100%+ increase YoY, with a margin of 52%, up from 39% in 2022 [17] - Cash at year-end 2023 was $56.7 million, a 77% YoY increase, with net leverage under 3x [18] - 2024 revenue guidance is between $225 million and $250 million, with an adjusted EBITDA margin of approximately 50% [53] Business Line Data and Key Metrics - Wholesale satellite business saw significant growth, with new partnerships and a $20 million annual revenue commitment from a government services company [11][27] - Commercial IoT revenue grew 17% in 2023, with gross subscriber activations up 8% and ARPU increasing due to higher usage and unlimited plans [78][79] - Terrestrial spectrum initiatives, including a $1.5 million order from a major U.S. retailer, are expected to drive future growth [15][55] Market Data and Key Metrics - The total addressable market (TAM) for LEO capacity is increasing, driven by demand for new consumer capabilities and IoT applications [9] - The IoT B2B TAM is expected to grow to $10.4 billion annually by 2035, presenting a significant opportunity for the company [78] Company Strategy and Industry Competition - The company is leveraging its bent-pipe architecture to upgrade technologies on the ground without significant CapEx, providing flexibility to respond to market changes [12] - Strategic focus on four pillars: wholesale satellite, legacy products, IoT, and terrestrial spectrum, with a strong emphasis on innovation and differentiation [26][27][29] - Partnerships with Nokia and XCOM Labs are driving new opportunities in terrestrial spectrum and 5G technology [14][32] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about 2024 and beyond, with new satellites under construction to enhance the constellation and drive capacity growth [9][70] - The company is investing in new initiatives, including IoT and terrestrial spectrum, to create a virtuous cycle of innovation and differentiation [25][37] - The company expects to continue growing its wholesale business and expanding its IoT capabilities, supported by a strong financial position [16][18] Other Important Information - The company has a new government services partnership with a minimum revenue commitment of $20 million annually over a 5-year term [11] - The first commercial order for XCOM RAN systems from a major U.S. retailer is expected to be fulfilled in 2024, with potential for material commercial scale [15] Q&A Session Summary Question: Initial deployment for a major U.S.-based retailer and Band 53 spectrum [38] - The company is working on multi-band radio units to support Band 53, which will be a competitive differentiator for private network customers [55] - The value of the spectrum will be demonstrated through its integration with XCOM RAN technology, creating significant opportunities [57] Question: Terrestrial spectrum lease and Nokia radios [44] - The Nokia deployment is mission-critical, with a focus on reliability in complex environments, and future potential for increased throughput [45] - No incremental CapEx is required for the network services agreement, as the existing satellite constellation can support the growth [64] Question: Future weighting of the four pillars of value [48] - Management is particularly excited about the terrestrial and IoT opportunities, with the potential to scale significantly in the IoT space [66][67] Question: FCC's initial proposal on satellite-to-ground spectrum [49] - The company is monitoring the FCC's proposal and sees potential for new services, leveraging its global spectrum and relationships with cellular operators [69] Question: Reporting of spectrum lease revenue and stock compensation [58] - Spectrum lease revenue will initially be reported in other service revenues and broken out if it becomes material [58] - Stock compensation is elevated in 2023 and will remain so for the next two years due to performance-based restricted stock units [43]

[Overall Performance & Outlook](index=1&type=section&id=Overall%20Performance%20%26%20Outlook) [2023 Performance Overview](index=1&type=section&id=2023%20Performance%20Overview) Globalstar achieved a record year in 2023 with total revenue exceeding $224 million, a 50%+ increase from 2022, driven by wholesale capacity services and Commercial IoT. Operating income and Adjusted EBITDA also significantly improved, enabling funding for growth initiatives and key operational achievements - Globalstar achieved a record year in 2023, with total revenue of **$224 million**, an increase of over **50% from 2022**[3](index=3&type=chunk)[6](index=6&type=chunk) - Revenue growth was primarily driven by increases in wholesale capacity services and Commercial IoT[3](index=3&type=chunk) - Operational achievements include receiving an order for multiple XCOM RAN systems, generating revenue from a Band 53 deployment, executing a new government services contract, and remaining on track for new satellite launches in 2025[6](index=6&type=chunk) [2024 Financial Outlook](index=1&type=section&id=2024%20Financial%20Outlook) Globalstar projects continued revenue growth for 2024, with total revenue expected to be between $225 million and $250 million, and an Adjusted EBITDA margin of approximately 50% 2024 Financial Outlook | Metric | 2024 Guidance | | :------------------ | :------------------- | | Total revenue | $225 million - $250 million | | Adjusted EBITDA margin | Approximately 50% | [Operational Highlights](index=1&type=section&id=OPERATIONAL%20HIGHLIGHTS) [Terrestrial Spectrum Agreement](index=1&type=section&id=Terrestrial%20Spectrum%20Agreement) In 2023, Globalstar supported a Band 53 spectrum deployment with Nokia, securing an annual reservation fee from an end-user prior to build-out, which is expected to convert into a long-term lease arrangement - Supported a Band 53 spectrum deployment opportunity with Nokia in 2023[4](index=4&type=chunk) - The end user is paying to reserve the spectrum prior to planned build-out, with the agreement expected to convert into a long-term lease[4](index=4&type=chunk) - **$0.6 million** recognized in Q4 2023 as an annual reservation fee associated with this spectrum manager lease agreement[10](index=10&type=chunk) [Network Services Agreement](index=1&type=section&id=Network%20Services%20Agreement) Globalstar executed a five-year agreement with a government services company for mission-critical satellite network services, following a one-year $2.5 million proof of concept. The agreement includes escalating annual minimum revenue commitments up to $20 million by the fifth year, with potential for significant upside - Executed a five-year agreement with a government services company to utilize Globalstar's satellite network for a mission-critical service[5](index=5&type=chunk) - The agreement includes a one-year **$2.5 million** proof of concept phase, which commenced in February 2024[5](index=5&type=chunk) - If implemented, the agreement contains annual minimum revenue commitments escalating to **$20 million** during the fifth year, with potential for significant upside through a revenue share arrangement[5](index=5&type=chunk) [XCOM RAN System Deployment](index=1&type=section&id=XCOM%20RAN%20System%20Deployment) Globalstar received its first commercial order for multiple XCOM RAN systems from a major U.S. retailer for warehouse automation, validating the technology's importance in demanding environments. This initial $1.5 million order has potential for material commercial scale - Received the first customer order for delivery of multiple XCOM RAN systems to support warehouse automation for a major U.S. retailer[6](index=6&type=chunk) - The initial customer order is valued at **$1.5 million** and has the potential for material commercial scale[6](index=6&type=chunk) - The XCOM technology, licensed by Globalstar in 2023, enhances wireless performance, including spectral efficiency, and expands the ability to develop commercial applications utilizing Band 53[7](index=7&type=chunk) [Fourth Quarter 2023 Financial Review](index=2&type=section&id=FOURTH%20QUARTER%20FINANCIAL%20REVIEW) [Total Revenue (Q4)](index=2&type=section&id=Total%20Revenue%20(Q4)) Total revenue for Q4 2023 increased by $11.1 million, or 27%, to $52.4 million compared to Q4 2022, primarily driven by higher service revenue Q4 Total Revenue | Metric | Q4 2023 (in millions) | Q4 2022 (in millions) | Change ($) | Change (%) | | :----------- | :-------------------- | :-------------------- | :--------- | :--------- | | Total Revenue | $52.4 | $41.3 | +$11.1 | +27% | [Service Revenue (Q4)](index=2&type=section&id=Service%20Revenue%20(Q4)) Service revenue grew by $12.6 million, or 35%, in Q4 2023, mainly due to a significant increase in wholesale capacity service revenue, alongside growth in Commercial IoT, while legacy services declined Q4 Service Revenue Breakdown | Metric | Q4 2023 (in millions) | Q4 2022 (in millions) | Change ($) | Change (%) | | :---------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Service Revenue | $49.0 | $36.4 | +$12.6 | +35% | | Wholesale capacity | $25.7 | $12.3 | +$13.4 | >100% | | Commercial IoT | $6.0 | $5.1 | +$0.9 | +17% | | Legacy services | N/A | N/A | N/A | -11% | - Commercial IoT service revenue increased **17%** due to growth in both subscribers and ARPU, with gross subscriber activations up **8%** over the last twelve months[11](index=11&type=chunk) - Service revenue associated with legacy services was down **11%** due to fewer subscribers, although SPOT gross activations were up nearly **18%** in Q4 2023[12](index=12&type=chunk) [Subscriber Equipment Sales (Q4)](index=2&type=section&id=Subscriber%20Equipment%20Sales%20(Q4)) Revenue from subscriber equipment sales decreased by 30% in Q4 2023 due to lower Commercial IoT equipment volume compared to a prior-year backlog fulfillment, though SPOT equipment sales volume saw a substantial increase Q4 Subscriber Equipment Sales | Metric | Q4 2023 (in millions) | Q4 2022 (in millions) | Change (%) | | :-------------------------- | :-------------------- | :-------------------- | :--------- | | Subscriber Equipment Sales | $3.5 | $4.9 | -30% | - Decrease was due to a lower volume of Commercial IoT equipment, as Q4 2022 included a large backlog of orders fulfilled[13](index=13&type=chunk) - SPOT equipment sales volume increased over **90%** from Q4 2022[14](index=14&type=chunk) [Loss from Operations (Q4)](index=2&type=section&id=Loss%20from%20Operations%20(Q4)) Loss from operations increased by 29%, or $2.7 million, in Q4 2023, primarily due to higher operating expenses, including stock-based compensation, cost of services, and MG&A, partially offset by increased revenue Q4 Loss from Operations | Metric | Q4 2023 (in millions) | Q4 2022 (in millions) | Change ($) | Change (%) | | :------------------ | :-------------------- | :-------------------- | :--------- | :--------- | | Loss from Operations | $(12.0) | $(9.3) | $(2.7) | +29% | - Higher operating expenses were driven by increased stock-based compensation (XCOM License Agreement), cost of services (gateway operating costs, non-cash SSA costs), and MG&A (SSA, legal/professional fees, XCOM executive hires)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Net Loss (Q4)](index=4&type=section&id=Net%20Loss%20(Q4)) Net loss for Q4 2023 was $15.1 million, an increase from $5.3 million in Q4 2022, influenced by higher operating losses, the absence of a prior-year debt extinguishment gain, and other non-operating factors Q4 Net Loss | Metric | Q4 2023 (in millions) | Q4 2022 (in millions) | | :------- | :-------------------- | :-------------------- | | Net Loss | $(15.1) | $(5.3) | - Impacted by increased operating losses, the absence of a prior-year gain on extinguishment of debt, higher income tax expense, unfavorable changes in exchange rates, and a loss on equity issuance, partially offset by lower interest expense[19](index=19&type=chunk) [Adjusted EBITDA (Q4)](index=4&type=section&id=Adjusted%20EBITDA%20(Q4)) Adjusted EBITDA increased by 37% to $25.1 million for Q4 2023, driven by higher revenue partially offset by an increase in operating expenses (excluding non-cash or non-recurring items) Q4 Adjusted EBITDA | Metric | Q4 2023 (in millions) | Q4 2022 (in millions) | Change ($) | Change (%) | | :-------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Adjusted EBITDA | $25.1 | $18.3 | +$6.8 | +37% | [Full Year 2023 Financial Review](index=4&type=section&id=ANNUAL%20FINANCIAL%20REVIEW) [Total Revenue (FY)](index=4&type=section&id=Total%20Revenue%20(FY)) Total revenue for FY 2023 increased by $75.3 million, or 51%, to $223.8 million, primarily driven by significant growth in service revenue and, to a lesser extent, subscriber equipment sales FY Total Revenue | Metric | FY 2023 (in millions) | FY 2022 (in millions) | Change ($) | Change (%) | | :----------- | :-------------------- | :-------------------- | :--------- | :--------- | | Total Revenue | $223.8 | $148.5 | +$75.3 | +51% | - The increase was driven by higher service revenue (**+$72.1 million**) and higher revenue from subscriber equipment sales (**+$3.2 million**)[21](index=21&type=chunk) [Service Revenue (FY)](index=4&type=section&id=Service%20Revenue%20(FY)) Service revenue significantly improved in FY 2023, increasing by $74.2 million year-over-year, mainly due to the strong performance of wholesale capacity services and continued growth in Commercial IoT FY Service Revenue | Metric | FY 2023 (in millions) | FY 2022 (in millions) | Change ($) | | :-------------- | :-------------------- | :-------------------- | :--------- | | Service Revenue | $204.2 | $132.1 | +$72.1 | - Wholesale capacity services increased **$74.2 million** year over year, following the launch of services in November 2022, including **$6.5 million** in nonrecurring revenue[22](index=22&type=chunk) - Commercial IoT service revenue increased **$3.4 million**, or **17%**, due to increases in average subscribers and ARPU[23](index=23&type=chunk) [Subscriber Equipment Sales (FY)](index=4&type=section&id=Subscriber%20Equipment%20Sales%20(FY)) Revenue from subscriber equipment sales increased by 19% in FY 2023, driven by higher sales volumes of both Commercial IoT (17%) and SPOT products (77%) FY Subscriber Equipment Sales | Metric | FY 2023 (in millions) | FY 2022 (in millions) | Change (%) | | :-------------------------- | :-------------------- | :-------------------- | :--------- | | Subscriber Equipment Sales | $19.6 | $16.4 | +19% | - Sales volume of Commercial IoT products increased **17%** and SPOT products increased **77%**[24](index=24&type=chunk) [Loss from Operations (FY)](index=4&type=section&id=Loss%20from%20Operations%20(FY)) Loss from operations substantially improved to $0.2 million in FY 2023 from $221.0 million in FY 2022, primarily due to the absence of large non-cash impairment charges recorded in the prior year FY Loss from Operations | Metric | FY 2023 (in millions) | FY 2022 (in millions) | | :------------------ | :-------------------- | :-------------------- | | Loss from Operations | $(0.2) | $(221.0) | - Improvement was due to non-cash impairment charges recorded in 2022 that did not recur in 2023 (e.g., **$166.5 million** reduction in value of long-lived assets in 2022)[25](index=25&type=chunk)[41](index=41&type=chunk) - Excluding non-cash charges, loss from operations improved due to higher revenue partially offset by higher operating expenses (cost of services, stock-based compensation, MG&A, cost of subscriber equipment)[25](index=25&type=chunk)[26](index=26&type=chunk) [Net Loss (FY)](index=5&type=section&id=Net%20Loss%20(FY)) Net loss significantly decreased to $24.7 million in FY 2023 from $256.9 million in FY 2022, mainly due to the improved operating loss, lower interest expense, and favorable foreign currency fluctuations FY Net Loss | Metric | FY 2023 (in millions) | FY 2022 (in millions) | | :------- | :-------------------- | :-------------------- | | Net Loss | $(24.7) | $(256.9) | - Variance primarily due to improvement in loss from operations, lower interest expense (payoff of 2019 Facility Agreement, higher capitalized interest), and favorable foreign currency fluctuations[27](index=27&type=chunk) - Offsetting factors included a loss on extinguishment of debt and a loss on equity issuance[27](index=27&type=chunk) [Adjusted EBITDA (FY)](index=5&type=section&id=Adjusted%20EBITDA%20(FY)) Adjusted EBITDA more than doubled in FY 2023, increasing by $59.3 million, or 103%, to $116.7 million, primarily driven by the substantial increase in total revenue FY Adjusted EBITDA | Metric | FY 2023 (in millions) | FY 2022 (in millions) | Change ($) | Change (%) | | :-------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Adjusted EBITDA | $116.7 | $57.4 | +$59.3 | +103% | [Liquidity and Capital Structure](index=5&type=section&id=Liquidity%20and%20Capital%20Structure) [Liquidity Overview](index=5&type=section&id=Liquidity%20Overview) Globalstar's cash and cash equivalents increased to $56.7 million at year-end 2023, with operating and financing cash flows funding significant capital expenditures for network upgrades and new satellites Cash and Cash Equivalents | Metric | Dec 31, 2023 (in millions) | Dec 31, 2022 (in millions) | | :------------------------ | :------------------------- | :------------------------- | | Cash and cash equivalents | $56.7 | $32.1 | - Net cash flows generated from operations were **$74.3 million** in 2023, and net cash flows from financing activities were **$125.8 million**[29](index=29&type=chunk) - Capital expenditures totaled **$175.6 million** in 2023, primarily for network upgrades and new satellites[29](index=29&type=chunk)[30](index=30&type=chunk) [Debt Structure](index=5&type=section&id=Debt%20Structure) Total principal debt increased to $398.7 million at year-end 2023, reflecting strategic changes in capital structure including new funding agreements and note issuances, partially offset by debt payoffs Total Principal Debt | Metric | Dec 31, 2023 (in millions) | Dec 31, 2022 (in millions) | | :-------------------- | :------------------------- | :------------------------- | | Total principal debt | $398.7 | $202.8 | - Increase due to proceeds under the 2023 Funding Agreement, changes in the classification of the 2021 Funding Agreement, and issuance of 13% Notes[32](index=32&type=chunk) - Offset by the payoff of the 2019 Facility Agreement and vendor financing amounts[32](index=32&type=chunk) [Company Information & Disclosures](index=6&type=section&id=Company%20Information%20%26%20Disclosures) [About Globalstar, Inc.](index=7&type=section&id=About%20Globalstar%2C%20Inc.) Globalstar is an international telecom infrastructure provider offering reliable satellite and terrestrial connectivity services, leveraging its LEO satellite constellation, Band 53/n53 terrestrial spectrum, and XCOM RAN products for various applications including secure data transmission, private networks, and IoT solutions - Globalstar is an international telecom infrastructure provider offering reliable satellite and terrestrial connectivity services[35](index=35&type=chunk) - Key assets include its LEO satellite constellation for secure data transmission and its Band 53/n53 terrestrial spectrum for private networks[35](index=35&type=chunk) - Offers XCOM RAN products for significant capacity gains in dense wireless deployments and next-generation IoT hardware and software products[35](index=35&type=chunk) [Conference Call Details](index=6&type=section&id=CONFERENCE%20CALL%20INFORMATION) Globalstar will host a conference call on February 28, 2024, at 9:00 a.m. ET to discuss its results, with webcast and teleconference options available via registration - Conference call to discuss results will be held on Wednesday, February 28, 2024, at **9:00 a.m. Eastern Time (ET)**[34](index=34&type=chunk) - Available via webcast and teleconference, with registration required for live Q&A participation[34](index=34&type=chunk) [Safe Harbor Statement](index=7&type=section&id=Safe%20Harbor%20Language%20for%20Globalstar%20Releases) The press release contains forward-looking statements subject to inherent risks and uncertainties that may cause actual results to differ materially, and Globalstar disclaims any obligation to update these statements, advising readers to consult SEC filings for additional risk factors - The press release contains "forward-looking statements" subject to risks and uncertainties that may cause actual results to differ materially[38](index=38&type=chunk) - Globalstar undertakes no obligation to update any such statements[38](index=38&type=chunk) - Additional information on factors that could influence financial results is included in SEC filings (Form 10-K, 10-Q, 8-K)[38](index=38&type=chunk) [Consolidated Financial Statements & Metrics](index=8&type=section&id=Consolidated%20Financial%20Statements%20%26%20Metrics) [Consolidated Statements of Operations](index=8&type=section&id=GLOBALSTAR%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section presents Globalstar's unaudited consolidated statements of operations for the three and twelve months ended December 31, 2023 and 2022, detailing key revenue, expense, and net loss figures - Unaudited consolidated statements of operations for the three and twelve months ended December 31, 2023 and 2022[40](index=40&type=chunk)[41](index=41&type=chunk) Consolidated Statements of Operations (Key Figures) | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | FY 2023 (in thousands) | FY 2022 (in thousands) | | :------------------------------------------------ | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Service revenue | $48,951 | $36,375 | $204,196 | $132,068 | | Subscriber equipment sales | $3,458 | $4,931 | $19,612 | $16,436 | | **Total revenue** | **$52,409** | **$41,306** | **$223,808** | **$148,504** | | Loss from operations | $(11,993) | $(9,320) | $(165) | $(221,029) | | Net loss | $(15,078) | $(5,335) | $(24,718) | $(256,915) | | Loss per common share (Basic) | $(0.01) | $0.00 | $(0.02) | $(0.14) | [Consolidated Balance Sheets](index=9&type=section&id=GLOBALSTAR%2C%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) This section provides Globalstar's unaudited consolidated balance sheets as of December 31, 2023 and 2022, outlining the company's assets, liabilities, and stockholders' equity - Unaudited consolidated balance sheets as of December 31, 2023 and 2022[42](index=42&type=chunk)[43](index=43&type=chunk) Consolidated Balance Sheets (Key Figures) | Metric | Dec 31, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :------------------------------------------------ | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $56,744 | $32,082 | | Total current assets | $142,653 | $81,244 | | Property and equipment, net | $624,002 | $560,371 | | Total assets | $924,309 | $738,469 | | Total current liabilities | $175,908 | $197,076 | | Long-term debt | $325,700 | $132,115 | | Total stockholders' equity | $378,979 | $314,771 | | Total liabilities and stockholders' equity | $924,309 | $738,469 | [Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA](index=10&type=section&id=GLOBALSTAR%2C%20INC.%20RECONCILIATION%20OF%20GAAP%20NET%20INCOME%20(LOSS)%20TO%20NON-GAAP%20ADJUSTED%20EBITDA) This section provides a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA for the three and twelve months ended December 31, 2023 and 2022, along with definitions and management's rationale for using this supplemental performance measure - Unaudited reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA for the three and twelve months ended December 31, 2023 and 2022[45](index=45&type=chunk)[46](index=46&type=chunk) - Adjusted EBITDA excludes non-cash compensation expense, reduction in the value of assets, foreign exchange (gains)/losses, and certain other non-cash or non-recurring charges[46](index=46&type=chunk) Adjusted EBITDA Reconciliation (Key Figures) | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | FY 2023 (in thousands) | FY 2022 (in thousands) | | :------------------------------------------------ | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net loss | $(15,078) | $(5,335) | $(24,718) | $(256,915) | | EBITDA | $10,580 | $22,027 | $77,617 | $(131,985) | | **Adjusted EBITDA** | **$25,095** | **$18,301** | **$116,717** | **$57,396** | [Schedule of Selected Operating Metrics](index=11&type=section&id=GLOBALSTAR%2C%20INC.%20SCHEDULE%20OF%20SELECTED%20OPERATING%20METRICS) This section presents selected unaudited operating metrics, including revenue by service type, average subscribers, and average monthly revenue per user (ARPU) for Duplex, SPOT, and Commercial IoT services for the three and twelve months ended December 31, 2023 and 2022 - Unaudited schedule of selected operating metrics for the three and twelve months ended December 31, 2023 and 2022[49](index=49&type=chunk)[50](index=50&type=chunk) Average Subscribers | Service | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :---------------- | :-------- | :-------- | :-------- | :-------- | | Duplex | 31,338 | 38,822 | 33,884 | 40,913 | | SPOT | 254,464 | 271,658 | 260,141 | 272,088 | | Commercial IoT | 492,143 | 454,805 | 481,859 | 442,060 | Average Monthly Revenue Per User (ARPU) | Service | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :---------------- | :------ | :------ | :------ | :------ | | Duplex | $62.16 | $61.13 | $63.78 | $59.52 | | SPOT | $13.73 | $13.65 | $14.15 | $13.99 | | Commercial IoT | $4.05 | $3.76 | $3.95 | $3.68 |