Core Insights - Globalstar, Inc. (GSAT) stock has increased by 37.3% over the past three months, but this is significantly lower than the Satellite and Communication Industry's growth of 141.8% [1][8] - The company reported second-quarter revenues of $67.1 million, an 11% year-over-year increase, driven by growth in wholesale capacity services and commercial IoT [5][8] - Globalstar is advancing innovative platforms like the RM200 two-way module and XCOM RAN, which are expected to enhance revenue streams [6][7] Price Performance - GSAT's stock closed at $30.29, down 2.7%, and is below its 52-week high of $41.10, raising questions about the sustainability of its momentum [4] - The stock is trading at a forward 12-month price/sales ratio of 12.78X, significantly higher than the industry average of 1.37X [16] Revenue Growth - The increase in second-quarter revenues was largely attributed to a 10% rise in service revenues, with wholesale capacity services being a key contributor [5][8] - Globalstar's revenue outlook for 2025 is projected to be between $260 million and $285 million, with expected adjusted EBITDA margins around 50% [15] Strategic Developments - The company is undergoing a comprehensive infrastructure upgrade, including the addition of approximately 90 antennas across 35 ground stations in 25 countries [9] - Globalstar signed a launch services agreement with SpaceX to deploy nine new satellites, scheduled for launch in late 2025 and 2026 [11] Client Expansion - GSAT is expanding its client base, particularly in the government sector, including partnerships with U.S. federal agencies and defense markets [12] - The company has completed a proof of concept with Parsons, moving into the commercial phase of collaboration [13] Competitive Landscape - Globalstar's proprietary spectrum is highlighted as a key competitive advantage in the satellite communications space [14] - The company faces competition from EchoStar, Iridium Communications, and Gilat Satellite Networks, with EchoStar recently selling spectrum licenses for approximately $17 billion [14] Valuation and Estimates - Analysts have raised earnings estimates for GSAT significantly, reflecting confidence in the company's long-term growth potential [18] - In comparison to peers, GSAT's stock has shown a notable performance, with Iridium declining by 35.8% while GILT and SATS have seen increases of 37.3% and 357.5%, respectively [19]

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Globalstar, Inc. (NASDAQ: GSAT ) is making strides in becoming a prominent communications satellite operator, expanding its Low Earth Orbit [LEO] constellation to enhance its service offerings for government & defense utilization, IoT, and MSS. With a new contract with an estimated valueMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professio ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Globalstar (GSAT) - Globalstar currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, GSAT shares have increased by 12.1%, significantly outperforming the Zacks Satellite and Communication industry, which rose by 0.73% [5] - In a longer timeframe, GSAT's monthly price change is 29.29%, compared to the industry's 14.42% [5] - Over the last three months, GSAT shares have risen by 50.4%, and over the past year, they have increased by 59.71%, while the S&P 500 has only moved 9.68% and 16.9%, respectively [6] Trading Volume - GSAT's average 20-day trading volume is 754,674 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for GSAT has increased, while none have decreased, leading to a consensus estimate improvement from -$0.35 to -$0.08 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, GSAT is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 1 (Strong Buy) [11]

Stock Picks - Global Star (GSAT) is a Zacks Rank 1 (Strong Buy) with an A for growth and an F for value, indicating a divergence that aggressive growth investors may find appealing [1][2] - Vimeo (VME) is also a Zacks Rank 1 (Strong Buy) with a B for both growth and value, potentially attracting value-conscious investors [10] Global Star (GSAT) Analysis - The company's revenue is expected to grow by 6% this year and triple to 18% next year, reaching $315 million [6] - Price to book is at nine times, while trading at 13 times sales, with margins improving from -14% and -13% to approximately 1% in the last two quarters, suggesting a potential profitability turnaround [7] - Earnings estimates have significantly improved, with next year's estimates moving from negative to positive by one penny, potentially driving investor interest [5] Vimeo (VME) Analysis - The company's earnings estimates are trending positively, but revenue growth is slow at 15% this year, with an expected acceleration to 5% next year [13] - The stock has a high forward earnings multiple of 66 times, but low price-to-book and price-to-sales ratios, which may interest value investors [14] - Margins are declining, from 6% to 4% and then to 3%, indicating a need for improved operational efficiency and bottom-line performance [15]

Core Insights - Globalstar, Inc. has commenced construction to expand its Singapore ground station, adding two 6-meter tracking antennas to support its third-generation C-3 mobile satellite system [1][11] - This expansion strengthens Globalstar's presence in Southeast Asia and aligns with its global efforts to enhance satellite coverage and network capacity [2] - The Singapore project is part of a broader C-3 expansion plan that includes approximately 90 new tracking antennas worldwide, aiming to meet the growing demand for mobile satellite communications [3] Financial Performance - In the last reported quarter, Globalstar achieved revenues of $67.1 million, reflecting an 11% year-over-year increase, driven by growth in wholesale capacity services and Commercial IoT [4] - The company reaffirmed its 2025 financial outlook, projecting total revenues between $260 million and $285 million, with an adjusted EBITDA margin of around 50% [7] Strategic Partnerships and Agreements - Globalstar signed a launch services agreement with SpaceX for its second set of replacement satellites and received FCC Space Bureau acceptance for its C-3 petition [4] - The company entered into a Cooperative Research and Development Agreement (CRADA) with the U.S. Army to test its edge-processing satellite solutions for defense applications [5] - In July, Globalstar announced agreements with Telecom Castilla-La Mancha, S.A. to expand its Alcazar Teleport facility in Spain, enhancing its capabilities in Europe [6] Stock Performance - Globalstar currently holds a Zacks Rank of 1 (Strong Buy), with its shares gaining 53.4% over the past year, compared to the Zacks Satellite and Communication industry's growth of 67.5% [8]

Group 1: Earnings Performance - Globalstar reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 per share, and improved from a loss of $0.15 per share a year ago, representing an earnings surprise of +244.44% [1] - The company posted revenues of $67.15 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.15% and increasing from $60.38 million year-over-year [2] Group 2: Stock Performance and Outlook - Globalstar shares have declined approximately 15.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $68.23 million, and for the current fiscal year, it is -$0.35 on revenues of $261.71 million [7] Group 3: Industry Context - The Satellite and Communication industry, to which Globalstar belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Total revenue increased by 11% to $67.1 million for Q2 2025 compared to $60.4 million in the prior year period [5] - Service revenue rose by 10%, primarily driven by wholesale capacity services and an increase in the average number of subscribers in commercial IoT [5] - Adjusted EBITDA increased to $35.8 million from $32.6 million in the prior year's second quarter, despite certain cost increases impacting adjusted EBITDA margin by 300 basis points [5][6] - Adjusted free cash flow for the six months ended June 30, 2025, was $77.9 million compared to $51.9 million in the prior year period [6] Business Line Data and Key Metrics Changes - Growth in commercial IoT was highlighted by a record number of growth activations over the last twelve months [5] - The XCOM RAN development incurred higher cash costs, negatively impacting adjusted EBITDA by approximately $1.9 million [6] Market Data and Key Metrics Changes - The company is well-positioned to manage potential financial impacts from evolving tariff environments due to its global manufacturing and logistics footprint [7] - The company anticipates a relatively immaterial impact from tariffs in the near term [7] Company Strategy and Development Direction - The company is focused on executing a clearly defined strategy to capture opportunities in government and commercial sectors, including investments in core infrastructure and strategic partnerships [11][12] - A global infrastructure program has been initiated to prepare for the next generation extended MSS network, with significant upgrades planned across multiple ground stations [12] - The company is expanding its presence in defense and government markets, with new agreements expected to contribute significantly to revenue [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term profitability and strategic importance of the XCOM RAN product offering despite upfront investments [6] - The company reiterated its full-year 2025 revenue outlook in the range of $260 million to $285 million, with an anticipated adjusted EBITDA margin of approximately 50% [7] Other Important Information - The company signed a launch services agreement with SpaceX for the deployment of additional satellites, expected to enhance service continuity [13][18] - The company is actively advancing its XCOM RAN platform, which is seen as a critical entry point into terrestrial wireless markets [16][17] Q&A Session Summary Question: Any updates on the international retail opportunity for terrestrial? - Management indicated progress in enterprise sales cycles and opportunities for expansion in the business [21][22] Question: Are there any other engagements in different verticals? - Management confirmed ongoing discussions with companies in high-demand network rollouts and positive developments in government projects [26][27] Question: Any updates on XCOM RAN as a potentially licensable technology? - Management noted challenges in licensing but emphasized strong technical validation and interest in their product [28][29] Question: Updates on international licenses and authorizations? - Management reported recent success in obtaining licenses in Mexico and ongoing efforts to secure higher power system authorizations [31][32] Question: Feasibility of spectrum sharing? - Management addressed misinformation about spectrum utilization and expressed confidence in their regulatory relationships [36][39]

[**PART I - FINANCIAL INFORMATION**](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Cautionary Statement About Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20About%20Forward-Looking%20Statements) This section outlines the nature of forward-looking statements, identifying key terms and factors that could cause actual results to differ from projections - **Forward-looking statements** include estimates, projections, business plans, expected operating results, anticipated financial resources, satellite performance, regulatory outcomes, and growth prospects[10](index=10&type=chunk) - **Important factors** that may cause actual results to differ materially include the ability to meet obligations under Updated Services Agreements, satellite operational performance, commercial acceptance of products, capacity needs, technological innovation, competition, geopolitical conditions, capital raising, cost management, spectrum rights, regulatory compliance, financing arrangements, cyber attacks, insurance, tax changes, litigation, strategic transactions, and business interruptions[11](index=11&type=chunk) [Item 1. Financial Statements.](index=4&type=section&id=Item%201.%20Financial%20Statements.) This section presents Globalstar, Inc.'s unaudited interim condensed consolidated financial statements, including statements of operations, balance sheets, stockholders' equity, and cash flows, with explanatory notes [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) - Net income significantly **improved** from a **loss of $(9,683) thousand** in Q2 2024 to a **profit of $19,208 thousand** in Q2 2025, and from a **loss of $(22,879) thousand** in H1 2024 to a **profit of $1,877 thousand** in H1 2025[15](index=15&type=chunk) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $67,148 | $60,385 | $127,180 | $116,865 | | Income (loss) from operations | $6,146 | $(1,422) | $(2,355) | $(6,134) | | Net income (loss) | $19,208 | $(9,683) | $1,877 | $(22,879) | | Net income (loss) per common share: Basic | $0.13 | $(0.10) | $(0.03) | $(0.22) | | Net income (loss) per common share: Diluted | $0.13 | $(0.10) | $(0.03) | $(0.22) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) - **Total assets increased** by approximately **$198.9 million** from December 31, 2024, to June 30, 2025, primarily driven by **increases** in property and equipment, and prepaid network costs[18](index=18&type=chunk) Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total assets | $1,909,149 | $1,710,237 | | Total liabilities | $1,548,269 | $1,351,354 | | Total stockholders' equity | $360,880 | $358,883 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - **Total stockholders' equity** saw a **slight increase of $1,997 thousand** in the first six months of 2025, primarily due to net income, partially offset by other comprehensive loss and preferred stock dividends[22](index=22&type=chunk) Changes in Total Stockholders' Equity (in thousands) | Period | Balances – January 1, 2025 | Balances – June 30, 2025 | Balances – January 1, 2024 | Balances – June 30, 2024 | | :----- | :------------------------- | :----------------------- | :------------------------- | :----------------------- | | Total Stockholders' Equity | $358,883 | $360,880 | $378,979 | $382,975 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) - **Operating cash flow significantly increased** in H1 2025 to **$209.7 million**, but this was more than offset by a **substantial increase** in cash used for investing activities, leading to a **net decrease** in cash and cash equivalents of **$82.9 million**[27](index=27&type=chunk) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $209,741 | $66,486 | | Net cash used in investing activities | $(271,788) | $(74,458) | | Net cash (used in) provided by financing activities | $(22,024) | $16,244 | | Net (decrease) increase in cash and cash equivalents | $(82,938) | $7,590 | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanatory notes on Globalstar's accounting policies, significant transactions, and financial instrument specifics, supporting the interim condensed consolidated financial statements [1. Basis of Presentation](index=9&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note outlines the basis for preparing the interim condensed consolidated financial statements, confirming adherence to U.S. GAAP, detailing consolidation principles, and explaining retroactive adjustments - Globalstar, Inc. provides Mobile Satellite Services (MSS) through its global satellite network, with Thermo Companies as the principal owner and largest stockholder[29](index=29&type=chunk) - A **1-for-15 reverse stock split** was effectuated on **February 10, 2025**, retroactively adjusting all historical share and per share amounts in the report[33](index=33&type=chunk) - The company adopted **ASU 2023-09** (Income Taxes) effective **January 1, 2025**, and plans to adopt **ASU 2024-03** (Expense Disaggregation Disclosures) on **January 1, 2027**[34](index=34&type=chunk)[35](index=35&type=chunk) [2. Special Purpose Entity](index=10&type=section&id=2.%20SPECIAL%20PURPOSE%20ENTITY) This note details the Globalstar SPE, a variable interest entity established to manage the Extended MSS Network, primarily funded by Apple Inc. through prepayments and an equity interest - Globalstar provides wholesale capacity services to Apple Inc. ('Customer') under Updated Services Agreements, including for the new Extended MSS Network[36](index=36&type=chunk)[37](index=37&type=chunk) - The Globalstar SPE, a variable interest entity, owns the Extended MSS Network assets; the Customer holds a **20% equity interest** (**400,000 Class B Units for $400 million**), and Globalstar holds an **80% equity ownership**, consolidating the SPE into its financial statements[40](index=40&type=chunk)[41](index=41&type=chunk) - The Customer made an Infrastructure Prepayment of **up to $1.1 billion** and a **$235 million 2024 Debt Repayment** to fund the Extended MSS Network and retire existing debt[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) [3. Revenue](index=12&type=section&id=3.%20REVENUE) This note disaggregates revenue by product and service, showing an increase in wholesale capacity and subscriber equipment sales, alongside declines in SPOT and Duplex services - **Wholesale capacity services revenue increased** by **24%** for the three months ended June 30, 2025, and **21%** for the six months ended June 30, 2025, compared to the same periods in 2024, primarily due to the Updated Services Agreements[48](index=48&type=chunk)[148](index=148&type=chunk) - **Total contract liabilities** (deferred revenue) **increased** from **$349.4 million** at December 31, 2024, to **$524.5 million** at June 30, 2025, largely driven by advanced payments under the Infrastructure Prepayment[52](index=52&type=chunk)[55](index=55&type=chunk) Revenue Disaggregation (in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Wholesale capacity services | $42,385 | $34,075 | $79,094 | $65,287 | | Commercial IoT | $7,051 | $6,716 | $13,631 | $13,

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides an overview of Globalstar's Q2 2025 performance, strategic developments, and financial outlook [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Globalstar reported strong financial results for Q2 2025, with an 11% increase in revenue to $67.1 million and a significant improvement in net income to $19.2 million from a prior-year loss. Adjusted EBITDA also grew to $35.8 million, reflecting a 53% margin Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | | :----------------- | :-------- | :-------- | | Revenue | $67.1 million | $60.385 million | | Net Income (Loss) | $19.2 million | $(9.7) million | | Adjusted EBITDA | $35.8 million | $32.6 million | | Adjusted EBITDA Margin | 53% | - | - Revenue increase driven by higher wholesale capacity services and Commercial IoT revenue[5](index=5&type=chunk) [Strategic Developments & Infrastructure Expansion](index=1&type=section&id=Strategic%20Developments%20%26%20Infrastructure%20Expansion) The company made significant progress on its infrastructure expansion plan for the third-generation C-3 satellite system, including the first C-3 antenna live in Texas and construction underway globally. Key agreements include a launch services agreement with SpaceX and a collaboration with the government sector - First C-3 antenna now live in Texas, with construction underway at critical sites across North America, Asia, and Europe[3](index=3&type=chunk)[6](index=6&type=chunk) - Entered into a launch services agreement with SpaceX for the second set of replacement satellites and an additional agreement for the final set of nine replacement satellites[3](index=3&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - Growing collaboration with partners in the government sector, underscoring technology relevance across commercial, industrial, and government applications[3](index=3&type=chunk) [Financial Outlook 2025](index=1&type=section&id=Financial%20Outlook%202025) Globalstar reiterated its financial guidance for the full year 2025, expecting total revenue between $260 million and $285 million and an Adjusted EBITDA margin of approximately 50% Full Year 2025 Financial Outlook | Metric | Guidance | | :----------------- | :-------------------- | | Total Revenue | $260 million - $285 million | | Adjusted EBITDA Margin | Approximately 50% | [Recent Operational Highlights](index=1&type=section&id=RECENT%20OPERATIONAL%20HIGHLIGHTS) This section details Globalstar's recent advancements in infrastructure, satellite system development, and strategic partnerships [Infrastructure & Satellite System Development](index=1&type=section&id=Infrastructure%20%26%20Satellite%20System%20Development) Globalstar advanced its C-3 satellite system with the installation of the first 6-meter tracking antenna in Texas and commenced construction of new gateway infrastructure in Japan and Canada. The company also signed an agreement to double its teleport footprint in Spain, part of a significant international expansion to enhance network capacity and global reach - Completed installation of the first 6-meter tracking antenna for the C-3 satellite system at its flagship ground station in Texas[6](index=6&type=chunk) - Commenced construction of new gateway infrastructure at ground stations in Japan and Canada, and signed an agreement to double its teleport footprint in Spain[6](index=6&type=chunk) - Entered into launch services agreements with SpaceX for Falcon 9 missions to deploy replacement satellites, with expected launches in 2025 and 2026[5](index=5&type=chunk)[6](index=6&type=chunk) [Strategic Partnerships & Collaborations](index=1&type=section&id=Strategic%20Partnerships%20%26%20Collaborations) Globalstar executed a commercial access agreement with Parsons Corporation following a successful proof of concept, integrating satellite capabilities with Parsons' software-defined communication technologies. Additionally, a Cooperative Research and Development Agreement (CRADA) was signed with the U.S. Army to evaluate edge-processing satellite solutions for defense applications - Parsons Corporation completed a successful proof of concept and executed a commercial access agreement for a joint solution integrating Globalstar's satellite capabilities[6](index=6&type=chunk) - Signed a CRADA with the U.S. Army to evaluate edge-processing satellite solutions in defense applications, highlighting the utility of low size, weight, and power devices[7](index=7&type=chunk) - The FCC Space Bureau accepted Globalstar's C-3 petition to advance its mobile satellite services (MSS) network expansion[5](index=5&type=chunk) [Financial Review](index=2&type=section&id=SECOND%20QUARTER%20FINANCIAL%20REVIEW) This section presents a comprehensive review of Globalstar's financial performance for Q2 and year-to-date 2025, including liquidity and debt analysis [Second Quarter 2025 Financial Performance](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Globalstar's second quarter 2025 financial performance showed significant improvement, driven by increased revenue from wholesale capacity services and Commercial IoT, coupled with lower operating expenses due to reduced stock-based compensation and a CARES Act credit [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis_Q2) Analysis of Globalstar's Q2 2025 revenue performance by service category, highlighting key drivers and changes Q2 2025 Revenue Breakdown | Revenue Category | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :----------------------- | :--------------------- | :--------------------- | :--------- | | Total Revenue | $67,148 | $60,385 | +11% | | Service Revenue | $63,216 | $57,635 | +10% | | - Wholesale Capacity Services | $42,385 | $34,075 | +24.4% | | - Commercial IoT Service | $7,051 | $6,716 | +5% | | - SPOT Service | $9,224 | $10,379 | -11.2% | | - Duplex Service | $3,677 | $4,965 | -25.9% | | Subscriber Equipment Sales | $3,932 | $2,750 | +43% | - Commercial IoT service revenue increased **5%** due to an increase in the average number of subscribers, reaching the highest gross activations in company history[10](index=10&type=chunk) - Offsetting increases, Duplex and SPOT service revenue decreased due to subscriber churn[10](index=10&type=chunk) [Operating Income & Expenses](index=2&type=section&id=Operating%20Income%20%26%20Expenses_Q2) Overview of Globalstar's Q2 2025 operating income and expenses, detailing factors influencing changes Q2 2025 Operating Income (Loss) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :----------------------- | :--------------------- | :--------------------- | | Income (loss) from operations | $6,146 | $(1,422) | - Improvement in operating income was due to higher revenue and lower operating expenses, specifically lower stock-based compensation and MG&A expenses[12](index=12&type=chunk)[13](index=13&type=chunk) - Operating expenses were favorably impacted by a **$1.9 million** employee retention credit received in May 2025 under the CARES Act[14](index=14&type=chunk)[16](index=16&type=chunk) - Higher cost of services resulted from network operating costs for new/upgraded global ground infrastructure and increased personnel costs for product development[15](index=15&type=chunk) [Net Income & Adjusted EBITDA](index=2&type=section&id=Net%20Income%20%26%20Adjusted%20EBITDA_Q2) Analysis of Globalstar's Q2 2025 net income and Adjusted EBITDA, including factors contributing to their changes Q2 2025 Net Income and Adjusted EBITDA | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :----------------- | :--------------------- | :--------------------- | | Net income (loss) | $19,208 | $(9,683) | | Adjusted EBITDA | $35,788 | $32,561 | - Net income improvement was primarily due to higher revenue, lower operating expenses, a non-cash gain on derivative asset mark-to-market adjustment, and favorable foreign currency fluctuations[18](index=18&type=chunk) - Adjusted EBITDA increased despite being unfavorably impacted by **$1.9 million** in costs (net of revenue) associated with XCOM RAN product and service offerings development[19](index=19&type=chunk)[20](index=20&type=chunk) [Year-to-Date 2025 Financial Performance](index=3&type=section&id=Year-to-Date%202025%20Financial%20Performance) For the first six months of 2025, Globalstar saw a 9% increase in total revenue to $127.2 million, driven by wholesale capacity services and Commercial IoT. The company significantly reduced its net loss, achieving a net income of $1.9 million compared to a $22.9 million loss in the prior year, and improved its Adjusted EBITDA [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis_YTD) Analysis of Globalstar's year-to-date 2025 revenue performance by service category, highlighting key drivers and changes YTD 2025 Revenue Breakdown | Revenue Category | YTD 2025 (in thousands) | YTD 2024 (in thousands) | YoY Change | | :----------------------- | :---------------------- | :---------------------- | :--------- | | Total Revenue | $127,180 | $116,865 | +9% | | Service Revenue | $120,283 | $111,100 | +8% | | - Wholesale Capacity Services | $79,094 | $65,287 | +21.1% | | - Commercial IoT Service | $13,631 | $13,153 | +3.6% | | Subscriber Equipment Sales | $6,897 | $5,765 | +39% | - Higher Commercial IoT subscribers contributed to a **4%** increase in Commercial IoT service revenue, while a higher volume of Commercial IoT device sales increased subscriber equipment sales by **39%**[22](index=22&type=chunk)[23](index=23&type=chunk) [Operating Loss](index=3&type=section&id=Operating%20Loss_YTD) Overview of Globalstar's year-to-date 2025 operating loss, detailing factors influencing changes YTD 2025 Operating Loss | Metric | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :----------------------- | :---------------------- | :---------------------- | | Loss from operations | $(2,355) | $(6,134) | - Operating loss improved due to higher revenue, partially offset by increased operating expenses, including costs for XCOM RAN development and a loss on disposal of assets[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Operating expenses were favorably impacted by **$3.9 million** in employee retention credits received in 2025 under the CARES Act[27](index=27&type=chunk) [Net Income & Adjusted EBITDA](index=4&type=section&id=Net%20Income%20%26%20Adjusted%20EBITDA_YTD) Analysis of Globalstar's year-to-date 2025 net income and Adjusted EBITDA, including factors contributing to their changes YTD 2025 Net Income and Adjusted EBITDA | Metric | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :----------------- | :---------------------- | :---------------------- | | Net income (loss) | $1,877 | $(22,879) | | Adjusted EBITDA | $66,140 | $62,195 | - Net income improvement was driven by higher revenue, a non-cash gain on derivative asset mark-to-market adjustment, and favorable foreign currency gains, partially offset by higher operating and interest expenses[28](index=28&type=chunk) - Adjusted EBITDA increased, despite being unfavorably impacted by **$3.2 million** in costs (net of revenue) associated with XCOM RAN product and service offerings development[29](index=29&type=chunk)[30](index=30&type=chunk) [Liquidity & Debt](index=4&type=section&id=Liquidity%20%26%20Debt) As of June 30, 2025, Globalstar held $308.2 million in cash and cash equivalents. The company generated $209.7 million in net cash from operations, with capital expenditures of $271.8 million primarily for network expansion. Adjusted free cash flow significantly increased to $77.9 million, and total debt outstanding decreased to $400.2 million YTD 2025 Liquidity and Debt Highlights | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $308,226 | $391,164 | | Net cash from operating activities (YTD) | $209,741 | $66,486 | | Capital expenditures (YTD) | $271,800 | - | | Adjusted free cash flow (YTD) | $77,940 | $51,944 | | Principal amount of debt outstanding | $400,200 | $417,500 | - The net decrease in cash and cash equivalents was primarily due to capital expenditures for Updated Services Agreements, partially offset by **$124.7 million** funding from Infrastructure Prepayment[31](index=31&type=chunk) - Adjusted free cash flow increased due to **$30.0 million** in accelerated service payments received under the Updated Services Agreements[33](index=33&type=chunk) [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) This section provides details on Globalstar's conference call, company profile, and important disclosures regarding forward-looking statements and non-GAAP measures [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) Globalstar hosted a conference call on August 7, 2025, to discuss its second quarter 2025 results, with webcast and teleconference options available for participants - Conference call held on August 7, 2025, at 5:00 p.m. ET to discuss Q2 2025 results[37](index=37&type=chunk) [About Globalstar](index=6&type=section&id=About%20Globalstar) Globalstar is an international telecom infrastructure provider offering reliable satellite and terrestrial connectivity services. Its LEO satellite constellation provides secure data transmission, while its Band 53/n53 terrestrial spectrum and XCOM RAN product enhance wireless connectivity. The company also offers next-generation IoT hardware and software for asset tracking and data management - Provides reliable satellite and terrestrial connectivity services as an international telecom infrastructure provider[38](index=38&type=chunk) - Operates a low Earth orbit (LEO) satellite constellation for secure data transmission and offers Band 53/n53 terrestrial spectrum for private networks[38](index=38&type=chunk) - Offers XCOM RAN product for capacity gains in dense wireless deployments and next-generation IoT hardware and software for asset tracking and data analytics[38](index=38&type=chunk) [Forward-Looking Statements & Non-GAAP Measures](index=6&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Measures) The report includes forward-looking statements subject to risks and uncertainties, and utilizes non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Adjusted free cash flow, which are reconciled to GAAP measures where feasible - Statements regarding future revenue, financial performance, and business plans are forward-looking and subject to risks outlined in SEC filings[41](index=41&type=chunk) - Non-GAAP measures like EBITDA, Adjusted EBITDA, and Adjusted free cash flow are used, with reconciliations provided, but forward-looking Adjusted EBITDA margin cannot be reconciled to GAAP without unreasonable effort[42](index=42&type=chunk) [Financial Statements & Operating Metrics](index=7&type=section&id=Financial%20Statements%20%26%20Operating%20Metrics) This section includes Globalstar's condensed consolidated financial statements and key operating metrics for the periods presented [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations provide a detailed breakdown of Globalstar's revenues, operating expenses, and net income (loss) for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (Unaudited, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service revenue | $63,216 | $57,635 | $120,283 | $111,100 | | Subscriber equipment sales | 3,932 | 2,750 | 6,897 | 5,765 | | **Total revenue** | **67,148** | **60,385** | **127,180** | **116,865** | | Cost of services | 19,479 | 18,114 | 38,104 | 34,873 | | Cost of subscriber equipment sales | 2,881 | 2,066 | 4,928 | 4,224 | | Marketing, general and administrative | 9,683 | 10,353 | 21,272 | 20,999 | | Stock-based compensation | 5,949 | 9,164 | 12,906 | 18,391 | | Reduction in the value and disposal of long-lived assets | — | — | 7,038 | 305 | | Depreciation, amortization, and accretion | 23,010 | 22,110 | 45,287 | 44,207 | | **Total operating expenses** | **61,002** | **61,807** | **129,535** | **122,999** | | **Income (loss) from operations** | **6,146** | **(1,422)** | **(2,355)** | **(6,134)** | | Interest income and expense, net | (7,428) | (3,644) | (15,373) | (7,429) | | Foreign currency gain (loss) | 11,966 | (4,493) | 16,072 | (8,335) | | Derivative and other | 6,697 | 58 | 6,284 | (791) | | **Total other income (expense)** | **11,235** | **(8,079)** | **6,983** | **(16,555)** | | **Income (loss) before income taxes** | **17,381** | **(9,501)** | **4,628** | **(22,689)** | | Income tax (benefit) expense | (1,827) | 182 | 2,751 | 190 | | **Net income (loss)** | **$19,208** | **$(9,683)** | **$1,877** | **$(22,879)** | | Net income (loss) per common share: Basic | $0.13 | $(0.10) | $(0.03) | $(0.22) | | Net income (loss) per common share: Diluted | $0.13 | $(0.10) | $(0.03) | $(0.22) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present Globalstar's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets (Unaudited, in thousands) | ASSETS | June 30, 2025 | December 31, 2024 | | :---------------------------------------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $308,226 | $391,164 | | Accounts receivable, net | 24,775 | 26,952 | | Inventory | 11,485 | 10,741 | | Prepaid expenses and other current assets | 18,905 | 18,714 | | **Total current assets** | **363,391** | **447,571** | | Property and equipment, net | 900,842 | 673,632 | | Operating lease right of use assets, net | 60,483 | 31,835 | | Prepaid network costs | 324,139 | 312,342 | | Derivative asset | 117,184 | 108,799 | | Intangible and other assets, net | 143,110 | 136,058 | | **Total assets** | **$1,909,149** | **$1,710,237** | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Current portion of long-term debt | $22,708 | $34,600 | | Accounts payable and accrued expenses | 38,996 | 29,677 | | Accrued network construction costs | 15,989 | 15,613 | | Payables to affiliates | 315 | 394 | | Deferred revenue, net | 51,232 | 61,201 | | **Total current liabilities** | **129,240** | **141,485** | | Long-term debt | 468,799 | 476,822 | | Operating lease liabilities | 51,406 | 26,256 | | Deferred revenue, net | 473,306 | 288,171 | | Other non-current liabilities | 425,518 | 418,620 | | **Total non-current liabilities** | **1,419,029** | **1,209,869** | | **Total liabilities** | **1,548,269** | **1,351,354** | | Total stockholders' equity | 360,880 | 358,883 | | **Total liabilities and stockholders' equity** | **$1,909,149** | **$1,710,237** | [Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Non-GAAP%20Adjusted%20EBITDA) This section provides a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024, detailing adjustments for non-cash and non-recurring items Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA (Unaudited, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $19,208 | $(9,683) | $1,877 | $(22,879) | | Interest income and expense, net | 7,428 | 3,644 | 15,373 | 7,429 | | Derivative (gain) loss | (6,332) | 26 | (5,905) | 979 | | Income tax (benefit) expense | (1,827) | 182 | 2,751 | 190 | | Depreciation, amortization, and accretion | 23,010 | 22,110 | 45,287 | 44,207 | | **EBITDA** | **41,487** | **16,279** | **59,383** | **29,926** | | Non-cash compensation | 5,949 | 9,164 | 12,906 | 18,391 | | Foreign exchange gains and losses and other | (12,386) | 4,410 | (16,506) | 8,148 | | Reduction in the value and disposal of long-lived assets | — | — | 7,038 | 305 | | Non-cash expenses associated with the License Agreement | 738 | 2,178 | 2,617 | 3,570 | | Transaction costs in connection with the Updated Services Agreements | — | 530 | 702 | 1,855 | | **Adjusted EBITDA** | **$35,788** | **$32,561** | **$66,140** | **$62,195** | [Schedule of Selected Operating Metrics](index=10&type=section&id=Schedule%20of%20Selected%20Operating%20Metrics) This schedule provides key operating metrics, including service revenue breakdown by category, subscriber numbers, and Average Revenue Per User (ARPU) for Commercial IoT, SPOT, and Duplex services for the three and six months ended June 30, 2025, and 2024 Schedule of Selected Operating Metrics (Unaudited, in thousands, except subscriber and ARPU data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Service revenue:** | | | | | | Wholesale capacity services | $42,385 | $34,075 | $79,094 | $65,287 | | Commercial IoT | 7,051 | 6,716 | 13,631 | 13,153 | | SPOT | 9,224 | 10,379 | 18,595 | 20,622 | | Duplex | 3,677 | 4,965 | 7,129 | 9,720 | | Government and other services | 879 | 1,500 | 1,834 | 2,318 | | **Total service revenue** | **63,216** | **57,635** | **120,283** | **111,100** | | Subscriber equipment sales | 3,932 | 2,750 | 6,897 | 5,765 | | **Total revenue** | **$67,148** | **$60,385** | **$127,180** | **$116,865** | | **Average subscribers:** | | | | | | Commercial IoT | 534,505 | 508,518 | 528,869 | 506,793 | | SPOT | 224,885 | 246,182 | 227,546 | 248,329 | | Duplex | 21,841 | 27,893 | 22,638 | 28,715 | | Other | 239 | 302 | 248 | 306 | | **Total** | **781,470** | **782,895** | **779,301** | **784,143** | | **ARPU:** | | | | | | Commercial IoT | $4.40 | $4.40 | $4.30 | $4.33 | | SPOT | $13.67 | $14.05 | $13.62 | $13.84 | | Duplex | $56.12 | $59.33 | $52.49 | $56.42 | [Reconciliation of Non-GAAP Adjusted Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Adjusted%20Free%20Cash%20Flow) This section reconciles net cash provided by operating activities to non-GAAP Adjusted Free Cash Flow for the six months ended June 30, 2025, and 2024, adjusting for infrastructure prepayment and certain capital expenditures Reconciliation of Non-GAAP Adjusted Free Cash Flow (Unaudited, in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $209,741 | $66,486 | | Less: payments received pursuant to the Infrastructure Prepayment | (124,690) | — | | Less: capital expenditures, excluding reimbursable network purchases | (7,111) | (14,542) | | **Adjusted free cash flow** | **$77,940** | **$51,944** |