[Cautionary Statement About Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20About%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially - The report contains forward-looking statements that are subject to risks and uncertainties, which may cause actual results to differ materially from those anticipated, expected, projected, or assumed[10](index=10&type=chunk) - Important factors that could cause material differences include the ability to meet obligations under Updated Services Agreements, satellite operational performance, commercial acceptance of products/services, technological innovation, competition, geopolitical and economic conditions, capital raising, cost management, spectrum rights, regulatory compliance, financing arrangements, cyberattacks, and tax changes[11](index=11&type=chunk) - The company does not undertake any obligation to update forward-looking statements after the report date[11](index=11&type=chunk) [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements.](index=4&type=section&id=Item%201.%20Financial%20Statements%2E) This section presents Globalstar, Inc.'s unaudited condensed consolidated financial statements for Q1 2025 and 2024, including statements of operations, balance sheets, stockholders' equity, and cash flows, prepared in accordance with U.S. GAAP, along with detailed 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%28LOSS%29) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Q1 2025 vs. Q1 2024) | Metric (in thousands, except per share) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (%) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :--------- | | Total Revenue | $60,032 | $56,480 | 6.3% | | Service Revenue | $57,067 | $53,465 | 6.7% | | Subscriber Equipment Sales | $2,965 | $3,015 | -1.7% | | Total Operating Expenses | $68,533 | $61,192 | 11.9% | | Loss from Operations | $(8,501) | $(4,712) | 80.4% | | Net Loss | $(17,331) | $(13,196) | 31.3% | | Basic Net Loss Per Common Share | $(0.16) | $(0.13) | 23.1% | | Diluted Net Loss Per Common Share | $(0.16) | $(0.13) | 23.1% | | Weighted-Average Shares Outstanding | 126,476 | 125,507 | 0.8% | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheets (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | Change (%) | | :------------------------------------ | :------------- | :---------------- | :--------- | | Cash and Cash Equivalents | $241,411 | $391,164 | -38.3% | | Total Current Assets | $292,466 | $447,571 | -34.7% | | Property and Equipment, net | $774,206 | $673,632 | 14.9% | | Total Assets | $1,729,151 | $1,710,237 | 1.1% | | Total Current Liabilities | $129,054 | $141,485 | -8.8% | | Total Liabilities | $1,384,807 | $1,351,354 | 2.5% | | Total Stockholders' Equity | $344,344 | $358,883 | -4.0% | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%20%27%20EQUITY) Condensed Consolidated Statements of Stockholders' Equity (Q1 2025) | Metric (in thousands) | Balances – January 1, 2025 | Balances – March 31, 2025 | | :------------------------------------ | :------------------------- | :------------------------ | | Total Stockholders' Equity | $358,883 | $344,344 | | Net issuance of restricted stock awards and employee stock options and recognition of stock based compensation | N/A | $8,220 | | Series A Preferred Stock Dividends | N/A | $(2,615) | | Other comprehensive loss | N/A | $(2,845) | | Net loss | N/A | $(17,331) | - Total stockholders' equity decreased by **$14.539 million** from January 1, 2025, to March 31, 2025, primarily due to the net loss and other comprehensive loss, partially offset by stock-based compensation[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Condensed Consolidated Statements of Cash Flows (Q1 2025 vs. Q1 2024) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $51,864 | $29,818 | | Net cash used in investing activities | $(190,582) | $(54,249) | | Net cash (used in) provided by financing activities | $(11,406) | $27,106 | | Net (decrease) increase in cash and cash equivalents | $(149,753) | $2,538 | | Cash and cash equivalents, end of period | $241,411 | $59,282 | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=8&type=section&id=NOTES%20TO%20UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [1. Basis of Presentation](index=8&type=section&id=1.%20BASIS%20OF%20PRESENTATION) Globalstar, Inc. provides Mobile Satellite Services (MSS) through its global satellite network, with Thermo Companies as the principal owner; the financial statements are unaudited, prepared under U.S. GAAP, and include consolidated accounts, with a 1-for-15 reverse stock split effective February 10, 2025, and recent ASU adoptions - Globalstar provides Mobile Satellite Services (MSS) including wholesale capacity and voice/data communications services through its global satellite network[26](index=26&type=chunk) - The company's financial statements are prepared in accordance with U.S. GAAP and consolidate Globalstar and its subsidiaries, including the Globalstar SPE, of which Globalstar is the primary beneficiary[27](index=27&type=chunk)[29](index=29&type=chunk) - A **1-for-15 reverse stock split** was effectuated on February 10, 2025, with all historical share and per share amounts retroactively adjusted[30](index=30&type=chunk) - Globalstar adopted ASU 2023-09 (Income Taxes) on January 1, 2025, expecting increased tax disclosures, and plans to adopt ASU 2024-03 (Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures) on January 1, 2027[31](index=31&type=chunk)[32](index=32&type=chunk) [2. Special Purpose Entity](index=9&type=section&id=2.%20SPECIAL%20PURPOSE%20ENTITY) Globalstar operates satellite-enabled services for Apple Inc. under Updated Services Agreements, including the development of an Extended MSS Network owned by the Globalstar SPE, a variable interest entity consolidated by Globalstar, which has received significant prepayments from Apple for infrastructure and debt repayment - Globalstar provides services to Apple Inc. (the "Customer") under Updated Services Agreements for Phase 1, Phase 2, and the Extended MSS Network[33](index=33&type=chunk)[35](index=35&type=chunk) - The Extended MSS Network is owned by Globalstar Licensee, LLC (Globalstar SPE), a variable interest entity, which Globalstar consolidates due to its **80% equity ownership** and primary beneficiary status[34](index=34&type=chunk)[38](index=38&type=chunk) - The Customer purchased **400,000 Class B Units** in Globalstar SPE for **$400 million**, representing a **20% equity interest**[37](index=37&type=chunk) - The Customer made significant prepayments: an Infrastructure Prepayment of up to **$1.1 billion** (with **$278 million** received in 2024) for network construction, and a **$235 million** 2024 Debt Repayment to retire outstanding 2023 13% Notes[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Incremental service fees from the Customer include costs tied to the Extended MSS Network, additional related services, incurred expenses, and performance bonuses, with annual service fees of **$30 million** accelerated starting Q1 2025[42](index=42&type=chunk) [3. Revenue](index=11&type=section&id=3.%20REVENUE) Total revenue for Q1 2025 increased by 6% year-over-year to **$60.032 million**, primarily driven by an 18% increase in wholesale capacity services revenue from Updated Services Agreements with Apple, partially offset by declines in SPOT and Duplex subscriber services revenue, with Apple accounting for 61% of total revenue Revenue Disaggregation (Q1 2025 vs. Q1 2024) | Revenue Type (in thousands) | March 31, 2025 | % of Total Revenue | March 31, 2024 | % of Total Revenue | YoY Change (%) | | :-------------------------- | :------------- | :----------------- | :------------- | :----------------- | :------------- | | Wholesale capacity services | $36,709 | 61% | $31,212 | 55% | 17.6% | | Commercial IoT | $6,580 | 11% | $6,437 | 11% | 2.2% | | SPOT | $9,371 | 16% | $10,243 | 18% | -8.4% | | Duplex | $3,452 | 6% | $4,755 | 8% | -27.4% | | Government and other services | $955 | 1% | $818 | 1% | 16.7% | | Total service revenue | $57,067 | 95% | $53,465 | 93% | 6.7% | | Total subscriber equipment sales | $2,965 | 5% | $3,015 | 7% | -1.7% | | Total revenue | $60,032 | 100% | $56,480 | 100% | 6.3% | - Wholesale capacity services revenue increased **18%** due to fees related to expanded services and higher network costs under the Updated Services Agreements[133](index=133&type=chunk) - The Customer under the Updated Services Agreements was responsible for **61% of total revenue** in Q1 2025, up from **55%** in Q1 2024[117](index=117&type=chunk) Average Subscribers and ARPU (Q1 2025 vs. Q1 2024) | Subscriber Type | Average Subscribers (2025) | Average Subscribers (2024) | YoY Change (%) | Monthly ARPU (2025) | Monthly ARPU (2024) | | :-------------- | :------------------------- | :------------------------- | :------------- | :------------------ | :------------------ | | Commercial IoT | 523,349 | 502,915 | 4.1% | $4.19 | $4.27 | | SPOT | 229,512 | 249,640 | -8.1% | $13.61 | $13.68 | | Duplex | 23,189 | 29,257 | -20.8% | $49.62 | $54.18 | | Total | 776,299 | 782,126 | -0.7% | N/A | N/A | - Total contract liabilities increased to **$380.117 million** as of March 31, 2025, from **$349.372 million** as of December 31, 2024, primarily due to advanced payments under the Infrastructure Prepayment and other Updated Services Agreements[48](index=48&type=chunk)[51](index=51&type=chunk) [4. Property and Equipment](index=13&type=section&id=4.%20PROPERTY%20AND%20EQUIPMENT) Net property and equipment increased to **$774.206 million** as of March 31, 2025, from **$673.632 million** at December 31, 2024, driven by significant investments in construction in progress for space and ground components, including new satellites for the HIBLEO-4 replacement and the Extended MSS Network, with a **$7.0 million** loss on disposal recorded due to an inoperable satellite Property and Equipment, Net (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :------------------------ | :------------- | :---------------- | | Total property and equipment, net | $774,206 | $673,632 | | Construction in progress: | | | | Space component | $479,690 | $357,825 | | Ground component | $25,931 | $20,545 | - The company has agreements with MDA for the purchase of at least **17 HIBLEO-4 replacement satellites** (**$329.3 million**) and over **50 satellites** for the Extended MSS Network (**$775.0 million**)[80](index=80&type=chunk)[81](index=81&type=chunk) - Launch services agreements are in place with SpaceX for both sets of new satellites[82](index=82&type=chunk)[83](index=83&type=chunk) - A **$7.0 million loss on disposal of assets** was recorded in Q1 2025 due to an inoperable second-generation satellite[53](index=53&type=chunk)[144](index=144&type=chunk) [5. Long-Term Debt and Other Financing Arrangements](index=14&type=section&id=5.%20LONG-TERM%20DEBT%20AND%20OTHER%20FINANCING%20ARRANGEMENTS) Globalstar's total debt principal decreased to **$408.825 million** as of March 31, 2025, from **$417.475 million** at December 31, 2024, primarily due to scheduled recoupments under the 2021 Funding Agreement, with key financing including the 2024 Debt Repayment, 2023 Funding Agreement, and 2021 Funding Agreement, alongside Series A Preferred Stock with a 7.0% cumulative cash dividend Long-Term Debt (in thousands) | Debt Instrument | Principal Amount (March 31, 2025) | Carrying Value (March 31, 2025) | Principal Amount (December 31, 2024) | Carrying Value (December 31, 2024) | | :--------------------- | :-------------------------------- | :------------------------------ | :----------------------------------- | :----------------------------------- | | 2024 Debt Repayment | $221,625 | $327,241 | $221,625 | $328,801 | | 2023 Funding Agreement | $155,000 | $144,751 | $155,000 | $143,969 | | 2021 Funding Agreement | $32,200 | $30,757 | $40,850 | $38,652 | | Total Debt | $408,825 | $502,749 | $417,475 | $511,422 | - The **2024 Debt Repayment** (**$221.6 million** outstanding) was funded by the Customer to retire 2023 13% Notes and is repaid quarterly via service fee offsets, with fees reduced by meeting Extended MSS Network milestones[59](index=59&type=chunk) - The **2023 Funding Agreement** (**$155.0 million** outstanding) is used for satellite construction and launch costs, with repayments by customer offsets starting Q3 2026, subject to financial covenants[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - The **2021 Funding Agreement** (**$32.2 million** outstanding) is repaid by service offsets, with **$8.7 million** recouped in Q1 2025 and the last recoupment expected in Q1 2026[65](index=65&type=chunk) - The company has **149,425 shares of 7.0% Series A Preferred Stock** outstanding, with **$2.6 million** in cumulative cash dividends paid in Q1 2025[66](index=66&type=chunk)[67](index=67&type=chunk) [6. Derivatives](index=15&type=section&id=6.%20DERIVATIVES) Globalstar recognizes an embedded derivative on its balance sheet, stemming from an interest reduction mechanism within the 2024 Debt Repayment, which is marked-to-market each reporting period, with changes in fair value reported in the consolidated statements of operations as a non-cash operating activity - An embedded derivative, arising from an interest reduction mechanism in the 2024 Debt Repayment, is recorded as a derivative asset on the balance sheet[68](index=68&type=chunk)[70](index=70&type=chunk) - The fair value of the embedded derivative was **$110.9 million** as of March 31, 2025, and **$108.8 million** as of December 31, 2024[71](index=71&type=chunk) - Changes in the fair value of the derivative are reported in the consolidated statements of operations as a non-cash operating activity[68](index=68&type=chunk)[71](index=71&type=chunk) [7. Fair Value Measurements](index=16&type=section&id=7.%20FAIR%20VALUE%20MEASUREMENTS) The company categorizes assets and liabilities measured at fair value into three levels based on input observability, with the embedded derivative within the 2024 Debt Repayment classified as a Level 3 asset, valued using a discounted cash flow model with significant unobservable inputs related to project milestone completion - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (significant unobservable inputs)[72](index=72&type=chunk)[73](index=73&type=chunk) - The embedded derivative within the 2024 Debt Repayment is a **Level 3 asset**, valued using a discounted cash flow model[75](index=75&type=chunk) - Significant inputs include the discount yield (**7.95%** at March 31, 2025) and estimated timing of project milestones for the interest fee reduction mechanism[75](index=75&type=chunk)[76](index=76&type=chunk) Rollforward of Recurring Level 3 Assets (in thousands) | Metric | Three Months Ended March 31, 2025 | Twelve Months Ended December 31, 2024 | | :-------------------- | :-------------------------------- | :------------------------------------ | | Balance at beginning of period | $108,799 | $1,295 | | Issuance of embedded derivative within the 2024 Debt Repayment | $2,480 | $109,601 | | Unrealized loss, included in other | $(427) | $(2,097) | | Balance at end of period | $110,852 | $108,799 | [8. Commitments and Contingencies](index=17&type=section&id=8.%20COMMITMENTS%20AND%20CONTINGENCIES) Globalstar has significant commitments under its Updated Services Agreements with Apple, including the construction of the Extended MSS Network, involving satellite procurement agreements with MDA for over **67 new satellites** totaling over **$1.1 billion** and launch services agreements with SpaceX, with the Customer providing prepayments for these capital expenditures, and outstanding purchase orders for the Extended MSS Network totaling **$744.0 million** as of March 31, 2025 - The Updated Services Agreements have an indefinite term but are terminable by the Customer or either party upon certain events[79](index=79&type=chunk) - Satellite procurement agreements with MDA include acquiring at least **17 satellites** for HIBLEO-4 replacement (**$329.3 million**) and over **50 satellites** for the Extended MSS Network (**$775.0 million**)[80](index=80&type=chunk)[81](index=81&type=chunk) - Launch services agreements are in place with SpaceX for both the HIBLEO-4 replacement and Extended MSS Network satellites[82](index=82&type=chunk)[83](index=83&type=chunk) - The Customer is expected to provide payments for **95%** of approved capital expenditures for Phase 2 Service Period assets and prepayments for Extended MSS Network assets[84](index=84&type=chunk)[85](index=85&type=chunk) - As of March 31, 2025, outstanding purchase orders for the Extended MSS Network totaled **$744.0 million**, expected to be paid with Customer funds[86](index=86&type=chunk) [9. Related Party Transactions](index=18&type=section&id=9.%20RELATED%20PARTY%20TRANSACTIONS) Thermo Companies, controlled by Globalstar's Executive Chairman, is the principal owner and largest stockholder, with transactions including lease agreements, ownership of Series A Preferred Stock, and a guarantee for certain obligations, while Globalstar also has agreements with XCOM Labs, Inc., whose Executive Chairman is also Globalstar's CEO, for intellectual property licensing and support services - Thermo Companies, controlled by Globalstar's Executive Chairman, is the principal owner and largest stockholder[87](index=87&type=chunk) - Payables to Thermo were **$0.2 million** as of March 31, 2025, and the company has a lease agreement with Thermo Covington, LLC for its headquarters (**$1.7 million** in 2025 payments)[87](index=87&type=chunk)[89](index=89&type=chunk) - Thermo owns **$136.7 million of Series A Preferred Stock** and received **$2.4 million** in dividends in Q1 2025[90](index=90&type=chunk) - Thermo guaranteed certain obligations under the 2023 Funding Agreement and Service Agreements, receiving a warrant to purchase **666,668 shares of common stock**[92](index=92&type=chunk) - Globalstar's CEO, Dr. Paul E. Jacobs, is also the Executive Chairman and controlling stockholder of XCOM Labs, Inc. (Virewirx, Inc.)[95](index=95&type=chunk) - Globalstar issued **4.0 million shares of common stock** (approx. **$68.7 million**) to XCOM for an exclusive intellectual property license, including **1.1 million shares** to Dr. Jacobs[95](index=95&type=chunk) - A Support Services Agreement (SSA) with XCOM requires XCOM to provide services, with fees based on costs plus a **15% margin** for Q1 2025[96](index=96&type=chunk) [10. Net Income (Loss) Per Share](index=19&type=section&id=10.%20NET%20INCOME%20%28LOSS%29%20PER%20SHARE) Globalstar reported a basic and diluted net loss per common share of **$(0.16)** for Q1 2025, an increase from **$(0.13)** in the prior year, with 1.4 million potential common shares excluded due to their anti-dilutive effect Net Loss Per Common Share (Q1 2025 vs. Q1 2024) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----- | :-------------------------------- | :-------------------------------- | | Basic | $(0.16) | $(0.13) | | Diluted | $(0.16) | $(0.13) | - Net loss attributable to common shareholders was **$(19.946) million** for Q1 2025, compared to **$(15.840) million** for Q1 2024[98](index=98&type=chunk) - **1.4 million shares** of potential common stock, including warrants issued to the Customer and Thermo, were excluded from diluted EPS calculations due to their anti-dilutive effect[98](index=98&type=chunk) [11. Segment Reporting](index=20&type=section&id=11.%20SEGMENT%20REPORTING) Globalstar operates as a single reportable segment, its Mobile Satellite Services (MSS) business, with CEO Dr. Paul E. Jacobs serving as the Chief Operating Decision Maker (CODM) who assesses performance and allocates resources based on net income (loss) and disaggregated revenue and operating expenses - Globalstar's only reportable segment is its Mobile Satellite Services (MSS) business[99](index=99&type=chunk) - Dr. Paul E. Jacobs, CEO, is the Chief Operating Decision Maker (CODM), who manages the consolidated entity and uses net income (loss) to assess performance and allocate resources[99](index=99&type=chunk) - The CODM reviews revenue at a disaggregated level and expenses by nature (Cost of Services, Marketing, General and Administrative, Cost of Subscriber Equipment Sales)[99](index=99&type=chunk) [12. Common Stock](index=20&type=section&id=12.%20COMMON%20STOCK) Effective February 10, 2025, Globalstar completed a **1-for-15 reverse stock split**, reducing outstanding common shares from **1.897 billion** to **126.443 million** and authorized shares from **2.150 billion** to **143.333 million**, concurrently moving its common stock listing from NYSE American to Nasdaq Stock Market LLC under the symbol "GSAT", with fractional shares rounded up except for awards - A **1-for-15 reverse stock split** was effectuated on February 10, 2025[100](index=100&type=chunk) - Outstanding common stock reduced from **1,896,635,805** to **126,442,583 shares**, and authorized shares reduced from **2,150,000,000** to **143,333,334 shares**[100](index=100&type=chunk) - The company's common stock began trading on Nasdaq Stock Market LLC under the symbol "GSAT" on February 11, 2025, after voluntarily withdrawing its listing from NYSE American[100](index=100&type=chunk) - Fractional shares resulting from the reverse stock split were rounded up, except for outstanding awards which were rounded down[101](index=101&type=chunk) [13. Income Taxes](index=20&type=section&id=13.%20INCOME%20TAXES) Income tax expense increased by **$4.6 million** in Q1 2025 compared to Q1 2024, primarily due to higher current state tax expense resulting from increased forecasted taxable income, net operating loss utilization, and an increased provision for uncertain tax positions, with the company maintaining a valuation allowance on most of its U.S. federal, state, and foreign deferred tax assets - Income tax expense increased by **$4.6 million** in Q1 2025 compared to Q1 2024[102](index=102&type=chunk)[148](index=148&type=chunk) - The increase was driven by current state tax expense due to increased forecasted taxable income, net operating loss utilization in various states, and an increased provision for uncertain tax positions[102](index=102&type=chunk)[148](index=148&type=chunk) - The company maintains a valuation allowance on the majority of its U.S. federal, state, and foreign deferred tax assets[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%2E) This section provides management's perspective on Globalstar's financial condition and results of operations for the three months ended March 31, 2025, compared to the same period in 2024, covering the company's MSS business, strategic initiatives, performance indicators, and detailed analysis of revenue, operating expenses, other income/expense, and liquidity [Overview](index=21&type=section&id=Overview) [Mobile Satellite Services Business](index=21&type=section&id=Mobile%20Satellite%20Services%20Business) Globalstar provides Mobile Satellite Services (MSS), including wholesale capacity and voice/data communications, through its global satellite network, offering reliable connectivity in unserved areas and supporting IoT data transmissions - Globalstar provides Mobile Satellite Services (MSS), including wholesale capacity and voice/data communications, through its global satellite network[105](index=105&type=chunk) - Services are offered over a network of in-orbit satellites and ground stations (gateways) under spectrum licenses, collectively known as the Globalstar System[105](index=105&type=chunk) - The company provides reliable connectivity in areas unserved by terrestrial networks and supports Internet of Things (IoT) data transmissions[105](index=105&type=chunk) [Globalstar System](index=21&type=section&id=Globalstar%20System) The Globalstar System utilizes a constellation of Low Earth Orbit (LEO) satellites for global coverage, designed for faster and more cost-effective maintenance and upgrades, with agreements in place for new satellites and launch services with MDA and SpaceX - The Globalstar System utilizes a constellation of Low Earth Orbit (LEO) satellites for global coverage between **70° north and 70° south latitudes**[106](index=106&type=chunk) - The system's design allows for faster and more cost-effective maintenance and upgrades, with multiple gateways enabling quick reconfiguration for coverage or capacity needs[108](index=108&type=chunk) - Agreements are in place with MDA for at least **17 HIBLEO-4 replacement satellites** and over **50 satellites** for the Extended MSS Network, with SpaceX providing launch services[109](index=109&type=chunk)[110](index=110&type=chunk) [Spectrum and Regulatory Structure](index=21&type=section&id=Spectrum%20and%20Regulatory%20Structure) Globalstar benefits from a worldwide allocation of radio frequency spectrum by the ITU, enabling cost-effective global deployment of products and services, and is authorized to provide terrestrial broadband services over **11.5 MHz** of its licensed MSS spectrum (Band 53/n53) in the U.S., holding terrestrial licenses in **12 countries** representing approximately **11.9 billion MHz-POPs** - Globalstar benefits from a worldwide allocation of radio frequency spectrum by the ITU, enabling cost-effective global deployment of products and services[111](index=111&type=chunk) - The company is authorized to provide terrestrial broadband services over **11.5 MHz** of its licensed MSS spectrum (**2483.5 to 2495 MHz**) in the U.S., designated as Band 53/n53[122](index=122&type=chunk) - Globalstar holds terrestrial licenses in **12 countries**, representing approximately **11.9 billion MHz-POPs**, enhancing its ability to capitalize on wireless and broadband applications[111](index=111&type=chunk)[123](index=123&type=chunk) [Business Strategy](index=21&type=section&id=Business%20Strategy) [Wholesale Satellite Capacity](index=22&type=section&id=Wholesale%20Satellite%20Capacity) Globalstar provides wholesale satellite capacity services primarily to Apple Inc. under Updated Services Agreements, which involve allocating network capacity and enabling Band 53/n53 in cellular devices, with payments including fixed service fees, reimbursements, additional fees, and potential performance bonuses, while retaining **15%** of its network capacity for other customers and wholesale opportunities - Globalstar provides wholesale satellite capacity services, primarily to Apple Inc. (the "Customer") under Updated Services Agreements, which involve allocating network capacity and enabling Band 53/n53 in cellular devices[114](index=114&type=chunk) - Payments from the Customer include fixed service fees, reimbursements for operating expenses and capital expenditures, additional fees for expanded services, and potential performance bonuses[114](index=114&type=chunk)[115](index=115&type=chunk) - The company retains **15%** of its current and future network capacity to support other customers (Commercial IoT, SPOT, Duplex) and additional wholesale opportunities[116](index=116&type=chunk) [Communications Products and Services](index=22&type=section&id=Communications%20Products%20and%20Services) As of March 31, 2025, Globalstar had approximately **778,000 MSS subscribers** worldwide, offering Commercial IoT, SPOT, and Duplex services, with a focus on developing new two-way Commercial IoT-enabled devices to meet customer needs and enhance competitiveness - As of March 31, 2025, Globalstar had approximately **778,000 MSS subscribers** worldwide[118](index=118&type=chunk) - Service offerings include Commercial IoT (data transmissions), SPOT (messages and location), and Duplex (voice and data communications)[121](index=121&type=chunk) - The company focuses on developing new products, particularly two-way Commercial IoT-enabled devices, to meet customer needs and compete effectively[119](index=119&type=chunk) [Terrestrial Spectrum and Network Solutions](index=22&type=section&id=Terrestrial%20Spectrum%20and%20Network%20Solutions) Globalstar is authorized to provide terrestrial broadband services over **11.5 MHz** of its licensed MSS spectrum (Band 53/n53) in the U.S. and holds terrestrial licenses in **12 countries**, with Updated Services Agreements enhancing the device ecosystem for Band 53/n53 and an Intellectual Property License Agreement with XCOM Labs providing exclusive rights to wireless spectrum innovations for private networks - Globalstar is authorized to provide terrestrial broadband services over **11.5 MHz** of its licensed MSS spectrum (Band 53/n53) in the U.S. and holds terrestrial licenses in **12 countries**[122](index=122&type=chunk)[123](index=123&type=chunk) - The Updated Services Agreements enhance the device ecosystem for Band 53/n53 by enabling access in certain Customer devices[123](index=123&type=chunk) - Through an Intellectual Property License Agreement with XCOM Labs, Globalstar acquired exclusive rights to XCOM's wireless spectrum innovations, including XCOM RAN systems and peer-to-peer connectivity technologies, aiming to deliver private networks for mission-critical customer needs[124](index=124&type=chunk) [Reverse Stock Split and Nasdaq Listing](index=23&type=section&id=Reverse%20Stock%20Split%20and%20Nasdaq%20Listing) A **1-for-15 reverse stock split** was effective February 10, 2025, reducing outstanding common shares and authorized shares, followed by the company's common stock beginning trading on Nasdaq Stock Market LLC under the symbol "GSAT" on February 11, 2025 - A **1-for-15 reverse stock split** was effective February 10, 2025, reducing outstanding common shares and authorized shares[125](index=125&type=chunk) - The company's common stock began trading on Nasdaq Stock Market LLC under the symbol "GSAT" on February 11, 2025, following delisting from NYSE American[125](index=125&type=chunk) [Performance Indicators](index=23&type=section&id=Performance%20Indicators) Management reviews key performance indicators including total revenue, subscriber growth and churn rate, average monthly revenue per user (ARPU) for Commercial IoT, SPOT, and Duplex services, operating income, adjusted EBITDA, and capital expenditures - Management reviews key performance indicators including total revenue, subscriber growth and churn rate, average monthly revenue per user (ARPU) for Commercial IoT, SPOT, and Duplex services, operating income, adjusted EBITDA, and capital expenditures[128](index=128&type=chunk) [Comparison of the Results of Operations for the three months ended March 31, 2025 and 2024](index=23&type=section&id=Comparison%20of%20the%20Results%20of%20Operations%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) [Revenue](index=23&type=section&id=Revenue) [Service Revenue](index=24&type=section&id=Service%20Revenue) Total revenue increased **6%** to **$60.0 million** in Q1 2025, driven by an **18%** rise in wholesale capacity services revenue from expanded services and higher network costs under Updated Services Agreements, partially offset by a **9%** decline in SPOT service revenue and a **27%** decrease in Duplex service revenue due to fewer subscribers and lower ARPU, while Commercial IoT service revenue increased **2%** and Government and other services revenue rose **17%** - Total revenue increased **6%** to **$60.0 million** in Q1 2025, driven by higher wholesale capacity services revenue, partially offset by a decline in subscriber services revenue[127](index=127&type=chunk) - Wholesale capacity services revenue increased **18%** due to fees related to expanded services and higher network costs under the Updated Services Agreements[133](index=133&type=chunk) - Commercial IoT service revenue increased **2%** with average subscribers up **4%**, while SPOT service revenue decreased **9%** due to fewer subscribers and competitive pressure[134](index=134&type=chunk)[135](index=135&type=chunk) - Duplex service revenue decreased **27%** due to fewer subscribers (strategic decision to discontinue device manufacturing) and lower ARPU from foreign exchange rate changes[136](index=136&type=chunk) - Government and other services revenue increased **17%** from governmental service contracts and XCOM RAN sales[137](index=137&type=chunk) [Operating Expenses](index=25&type=section&id=Operating%20Expenses) [Cost of Services](index=25&type=section&id=Cost%20of%20Services) Cost of services increased **$1.9 million** (**11%**) in Q1 2025, primarily due to **$1.7 million** in expenses for the Support Services Agreement (SSA) with XCOM and other ancillary costs for XCOM technology development and new MSS product development, alongside a **$0.8 million** increase in personnel costs, partially offset by a **$1.4 million** reduction from an employee retention credit - Cost of services increased **$1.9 million** (**11%**) in Q1 2025, primarily due to **$1.7 million** in expenses for the Support Services Agreement (SSA) with XCOM and other ancillary costs for XCOM technology development, as well as new MSS product development[139](index=139&type=chunk) - Personnel costs supporting the Globalstar System increased **$0.8 million**, including **$0.3 million** related to annual cash bonuses[140](index=140&type=chunk) - Operating expenses were reduced by **$1.4 million** from an employee retention credit received in Q1 2025[141](index=141&type=chunk) [Marketing, General and Administrative](index=25&type=section&id=Marketing%2C%20General%20and%20Administrative) Marketing, general and administrative costs increased **$0.9 million** (**9%**) in Q1 2025, mainly due to higher professional fees (**$0.6 million**) for accounting, tax, and legal services related to the Globalstar SPE, with other contributing factors including personnel costs, XCOM support costs, and occupancy/tax expense, partially offset by a portion of the employee retention credit - Marketing, general and administrative costs increased **$0.9 million** (**9%**) in Q1 2025, mainly due to higher professional fees (**$0.6 million**) for accounting, tax, and legal services related to the Globalstar SPE[142](index=142&type=chunk) - Other contributing factors included personnel costs, XCOM support costs, and occupancy/tax expense, partially offset by a portion of the employee retention credit[142](index=142&type=chunk) [Stock-Based Compensation](index=25&type=section&id=Stock-Based%20Compensation) Stock-based compensation expense decreased **$2.3 million** in Q1 2025, primarily because the majority of costs for restricted stock units (RSUs) granted in August 2023 were recognized in 2024 - Stock-based compensation expense decreased **$2.3 million** in Q1 2025, primarily because the majority of costs for restricted stock units (RSUs) granted in August 2023 were recognized in 2024[143](index=143&type=chunk) [Reduction in Value and Loss on Disposal of Assets](index=26&type=section&id=Reduction%20in%20Value%20and%20Loss%20on%20Disposal%20of%20Assets) A **$7.0 million loss on disposal of assets** was recorded in Q1 2025, representing the net book value of a second-generation satellite rendered inoperable due to a power control anomaly - A **$7.0 million loss on disposal of assets** was recorded in Q1 2025, representing the net book value of a second-generation satellite rendered inoperable due to a power control anomaly[144](index=144&type=chunk) [Other (Expense) Income](index=26&type=section&id=Other%20%28Expense%29%20Income) [Interest Income and Expense](index=26&type=section&id=Interest%20Income%20and%20Expense) Net interest income and expense increased **$4.2 million** in Q1 2025, primarily due to higher interest costs associated with the 2024 Prepayment Agreement (**$11.5 million**), partially offset by a **$7.3 million** reduction in interest expense from paying down the 2023 13% Notes and a **$2.7 million** increase in interest income due to a higher cash balance, with capitalized interest also decreasing by **$3.4 million** - Net interest income and expense increased **$4.2 million** in Q1 2025, primarily due to higher interest costs associated with the 2024 Prepayment Agreement (**$11.5 million**, including a non-cash significant financing component and accrued fees)[145](index=145&type=chunk) - This increase was partially offset by a **$7.3 million** reduction in interest expense from paying down the 2023 13% Notes and a **$2.7 million** increase in interest income due to a higher cash balance[145](index=145&type=chunk) - Capitalized interest decreased **$3.4 million**, further impacting net interest expense[145](index=145&type=chunk) [Foreign Currency Gain (Loss)](index=26&type=section&id=Foreign%20Currency%20Gain%20%28Loss%29) Globalstar recorded a foreign currency gain of **$4.1 million** in Q1 2025, a significant improvement from a **$3.8 million** loss in Q1 2024, attributed to the remeasurement of USD-denominated intercompany payable balances in foreign subsidiaries where other currencies strengthened relative to the U.S. dollar - Globalstar recorded a foreign currency gain of **$4.1 million** in Q1 2025, a significant improvement from a **$3.8 million** loss in Q1 2024[147](index=147&type=chunk) - This change is attributed to the remeasurement of USD-denominated intercompany payable balances in foreign subsidiaries, where other currencies strengthened relative to the U.S. dollar[147](index=147&type=chunk) [Income Tax Expense](index=26&type=section&id=Income%20Tax%20Expense) Income tax expense increased **$4.6 million** in Q1 2025 compared to Q1 2024, driven by current state tax expense due to increased forecasted taxable income, net operating loss utilization, and a higher provision for uncertain tax positions - Income tax expense increased **$4.6 million** in Q1 2025 compared to Q1 2024[148](index=148&type=chunk) - The increase was driven by current state tax expense due to increased forecasted taxable income, net operating loss utilization, and a higher provision for uncertain tax positions[148](index=148&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) [Overview](index=26&type=section&id=Overview) Globalstar's principal liquidity sources include cash on hand, cash flows from operations, and proceeds from the 2023 Funding Agreement and Infrastructure Prepayment, with cash and cash equivalents decreasing to **$241.4 million** at March 31, 2025, from **$391.2 million** at December 31, 2024, primarily due to capital expenditures, and total debt principal outstanding at **$408.8 million** - Principal liquidity sources include cash on hand, cash flows from operations, and proceeds from the 2023 Funding Agreement and Infrastructure Prepayment[149](index=149&type=chunk) - Cash and cash equivalents decreased to **$241.4 million** at March 31, 2025, from **$391.2 million** at December 31, 2024, primarily due to capital expenditures for the Updated Services Agreements[150](index=150&type=chunk) - The principal amount of debt outstanding was **$408.8 million** at March 31, 2025, down from **$417.5 million** at December 31, 2024[151](index=151&type=chunk) [Cash Flows for the three months ended March 31, 2025 and 2024](index=27&type=section&id=Cash%20Flows%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) [Cash Flows Provided by Operating Activities](index=27&type=section&id=Cash%20Flows%20Provided%20by%20Operating%20Activities) Net cash provided by operating activities increased to **$51.9 million** in Q1 2025 from **$29.8 million** in Q1 2024, primarily driven by favorable working capital changes, including **$22.5 million** in accelerated service fees from the Updated Services Agreements - Net cash provided by operating activities increased to **$51.9 million** in Q1 2025 from **$29.8 million** in Q1 2024[154](index=154&type=chunk) - This improvement was primarily driven by favorable working capital changes, including **$22.5 million** in accelerated service fees from the Updated Services Agreements[154](index=154&type=chunk) [Cash Flows Used in Investing Activities](index=27&type=section&id=Cash%20Flows%20Used%20in%20Investing%20Activities) Net cash used in investing activities increased substantially to **$190.6 million** in Q1 2025 from **$54.2 million** in Q1 2024, primarily due to **$143.6 million** in milestone payments to MDA for network upgrades related to the Extended MSS Network - Net cash used in investing activities increased substantially to **$190.6 million** in Q1 2025 from **$54.2 million** in Q1 2024[155](index=155&type=chunk) - The increase was primarily due to **$143.6 million** in milestone payments to MDA for network upgrades related to the Extended MSS Network[155](index=155&type=chunk) [Cash Flows (Used in) Provided by Financing Activities](index=27&type=section&id=Cash%20Flows%20%28Used%20in%29%20Provided%20by%20Financing%20Activities) Net cash used in financing activities was **$11.4 million** in Q1 2025, a shift from **$27.1 million** provided in Q1 2024, mainly due to the absence of **$37.7 million** proceeds from the 2023 Funding Agreement received in Q1 2024 - Net cash used in financing activities was **$11.4 million** in Q1 2025, a shift from **$27.1 million** provided in Q1 2024[156](index=156&type=chunk) - This change was mainly due to the absence of **$37.7 million** proceeds from the 2023 Funding Agreement received in Q1 2024[156](index=156&type=chunk) [Indebtedness and Other Financing Arrangements](index=27&type=section&id=Indebtedness%20and%20Other%20Financing%20Arrangements) As of March 31, 2025, total debt principal was **$408.8 million**, with fees accruing at a weighted average stated rate up to **9%**, and deferred revenue, net, totaled **$380.1 million**, with the majority expected to be earned over five years from services supporting the Updated Services Agreements, while the company paid **$2.6 million** in dividends on its **7.0% Series A Preferred Stock** in Q1 2025 - As of March 31, 2025, total debt principal was **$408.8 million**, with fees accruing at a weighted average stated rate up to **9%**[157](index=157&type=chunk) - Deferred revenue, net, totaled **$380.1 million**, with the majority expected to be earned over five years from services supporting the Updated Services Agreements[157](index=157&type=chunk) - The company paid **$2.6 million** in dividends on its **7.0% Series A Preferred Stock** in Q1 2025[158](index=158&type=chunk) [Off-Balance Sheet Transactions](index=28&type=section&id=Off-Balance%20Sheet%20Transactions) Globalstar reported no material off-balance sheet transactions for the period - Globalstar reported no material off-balance sheet transactions for the period[160](index=160&type=chunk) [Recently Issued Accounting Pronouncements](index=28&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Discussion of recently issued accounting guidance and its expected impact is referenced in Note 1: Basis of Presentation - Discussion of recently issued accounting guidance and its expected impact is referenced in Note 1: Basis of Presentation[161](index=161&type=chunk) [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There have been no material changes to Globalstar's critical accounting policies and estimates from those disclosed in its 2024 Annual Report - There have been no material changes to Globalstar's critical accounting policies and estimates from those disclosed in its 2024 Annual Report[162](index=162&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk%2E) Globalstar reported no material changes to its market risk exposure during the quarter ended March 31, 2025, referring to its 2024 Annual Report for a detailed discussion - No material changes to market risk occurred during the quarter ended March 31, 2025[163](index=163&type=chunk) - For a discussion of market risk exposure, refer to Part II, Item 7A of the 2024 Annual Report[163](index=163&type=chunk) [Item 4. Controls and Procedures.](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures%2E) Globalstar's management concluded that disclosure controls and procedures were effective as of March 31, 2025, providing reasonable assurance for timely and accurate reporting, with no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2025, providing reasonable assurance for timely and accurate reporting[165](index=165&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that materially affected or are reasonably likely to materially affect it[167](index=167&type=chunk) [PART II - OTHER INFORMATION](index=29&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings.](index=29&type=section&id=Item%201.%20Legal%20Proceedings%2E) Globalstar reported no legal proceedings for the period - No legal proceedings were reported[168](index=168&type=chunk) [Item 1A. Risk Factors.](index=29&type=section&id=Item%201A.%20Risk%20Factors%2E) Globalstar reported no material changes to its risk factors disclosed in its 2024 Annual Report - There have been no material changes to the risk factors disclosed in Part I, Item 1A of the 2024 Annual Report[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%2E) Globalstar reported no unregistered sales of equity securities or use of proceeds for the period - No unregistered sales of equity securities or use of proceeds were reported[170](index=170&type=chunk) [Item 3. Defaults Upon Senior Securities.](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities%2E) Globalstar reported no defaults upon senior securities for the period - No defaults upon senior securities were reported[171](index=171&type=chunk) [Item 4. Mine Safety Disclosures.](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures%2E) This item is not applicable to Globalstar - Item 4, Mine Safety Disclosures, is not applicable to Globalstar[172](index=172&type=chunk) [Item 5. Other Information.](index=29&type=section&id=Item%205.%20Other%20Information%2E) This section details other information, including the absence of Rule 10b5-1 trading plans by directors or executive officers during the quarter and the Board's adoption of the Sixth Amended and Restated Bylaws, which were amended to clarify stockholder proposal and director nomination requirements, align with Delaware General Corporation Law, and modify provisions related to corporate governance and stock administration [Rule 10b5-1 Trading Plans](index=29&type=section&id=Rule%2010b5-1%20Trading%20Plans) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the fiscal quarter ended March 31, 2025 - No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the fiscal quarter ended March 31, 2025[173](index=173&type=chunk) [Sixth Amended and Restated Bylaws](index=29&type=section&id=Sixth%20Amended%20and%20Restated%20Bylaws) Effective May 6, 2025, the Board amended and restated the Company's Fifth Amended and Restated Bylaws to clarify procedural and disclosure requirements for stockholder proposals and director nominations, align with the Delaware General Corporation Law, and modify provisions related to corporate governance and stock administration - Effective May 6, 2025, the Board amended and restated the Company's Fifth Amended and Restated Bylaws[174](index=174&type=chunk) - Amendments primarily clarify procedural and disclosure requirements for stockholder proposals and director nominations, align with the Delaware General Corporation Law (DGCL), and modify provisions related to corporate governance and stock administration[175](index=175&type=chunk)[176](index=176&type=chunk) [Item 6. Exhibits.](index=30&type=section&id=Item%206.%20Exhibits%2E) This section lists the exhibits filed with the Form 10-Q, including the Composite Certificate of Incorporation, Sixth Amended and Restated Bylaws, Section 302 and 906 Certifications, and Inline XBRL financial statements - Exhibits filed include the Composite Certificate of Incorporation, Sixth Amended and Restated Bylaws, Section 302 and 906 Certifications, and Inline XBRL formatted financial statements[177](index=177&type=chunk) [Signatures](index=31&type=section&id=Signatures) The report was signed on May 8, 2025, by Dr. Paul E. Jacobs (Chief Executive Officer) and Rebecca S. Clary (Chief Financial Officer) - The report was signed on May 8, 2025, by Dr. Paul E. Jacobs (Chief Executive Officer) and Rebecca S. Clary (Chief Financial Officer)[182](index=182&type=chunk)

GLOBALSTAR ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS • Successfully launched a two-way satellite IoT solution via Globalstar's LEO constellation. This technology marks a significant expansion beyond traditional one-way tracking to meet rising global demand for reliable, low-power, low-latency command and control across critical applications such as fleet tracking, asset monitoring, and precision agriculture. This milestone reflects the success of Globalstar's refocused product development team under ne ...

Core Insights - Globalstar is strategically positioned for growth through significant investments aimed at expanding its satellite constellations for mobile and MSS services, enhancing two-way communication, broadband, and voice capabilities across its networks [1] Investment Strategy - The company is focusing on large-scale investments to bolster its operational capabilities, which may lead to increased market competitiveness and service offerings [1]

Globalstar, Inc. (GSAT) officially inaugurated its cutting-edge Satellite Operations Control Center (“SOCC”) at its headquarters in Covington, LA, on March 17. This milestone represents a major enhancement of Globalstar’s operational capabilities, strengthening its strategic growth as it drives next-generation satellite and connectivity solutions.The SOCC is a crucial investment in Globalstar’s future, facilitating superior satellite fleet management, optimizing network performance and laying the groundwork ...

Core Viewpoint - Globalstar reported record revenue for 2024, but the stock price declined post-earnings announcement, indicating a lack of investor confidence despite strong financial results [1][2]. Financial Performance - Globalstar achieved a record revenue of $250.3 million in 2024, marking a 12% year-over-year increase, with Q4 revenue rising 18% year-over-year to $61.2 million [2]. - The company projected 2025 revenue between $260 million and $285 million, representing a potential increase of up to 13% from 2024 [2]. - Despite the revenue growth, Globalstar reported a net loss of $50.2 million for Q4 and $63.2 million for the year, primarily due to noncash losses related to debt extinguishment [3]. Cash Flow Analysis - Globalstar generated $185 million in positive free cash flow (FCF) in 2024, a significant improvement from a $100 million cash burn in 2023, marking the highest FCF in the company's history [4]. - Future FCF projections are uncertain, with analysts predicting a return to negative cash flow in 2025, followed by a modest recovery to $69 million in 2026 [8]. Market Valuation - The current market cap of Globalstar is $2.7 billion, but the volatility in FCF raises concerns about its valuation. A conservative estimate suggests a price-to-free-cash-flow ratio of 39 times based on projected future cash flows [9]. - The overall assessment indicates that while the recent quarter was strong, the sustainability of performance is questionable, leading to a recommendation against buying the stock [10].

Globalstar, Inc. (GSAT) has teamed up with GCT Semiconductor Holding Inc. (GCTS) to engineer two-way satellite messaging systems for its mobile devices and modules. The initiative integrates GCTS’ cutting-edge IoT and 4G/5G semiconductor technology into Globalstar’s next-generation product suite. The partnership was unveiled ahead of the Mobile World Congress (MWC) in Barcelona, where both companies will be showcasing their latest innovations from March 3-6.Following the collaboration announcement, GSAT’s s ...

Part I [Business Overview](index=4&type=section&id=Item%201.%20Business) Globalstar provides Mobile Satellite Services, including wholesale capacity to a major customer and voice/data services, while investing heavily in network expansion and facing intense competition [Business Strategy](index=4&type=section&id=Item%201.%20Business%23Business%20Strategy) Globalstar's strategy focuses on wholesale satellite capacity, terrestrial spectrum monetization, communication product sales, and government services - Globalstar's primary wholesale satellite capacity services are provided to Apple Inc. (the "Customer") under Updated Services Agreements, which involve delivering expanded services over a new MSS network, including a new satellite constellation and expanded ground infrastructure[22](index=22&type=chunk)[24](index=24&type=chunk) - The company retains **15% of its network capacity** to support its other customers, including Commercial IoT, SPOT, and Duplex subscribers, and for potential new wholesale opportunities[25](index=25&type=chunk) - Globalstar is leveraging its terrestrial spectrum licenses (Band 53/n53) and an exclusive license for XCOM's wireless technologies to develop private network solutions for mission-critical needs[26](index=26&type=chunk)[27](index=27&type=chunk) - The company provides engineering services and has a partnership with Parsons Corporation to offer innovative solutions for government customers[31](index=31&type=chunk) [Globalstar System](index=6&type=section&id=Item%201.%20Business%23Globalstar%20System) The Globalstar System, comprising LEO satellites and ground gateways, is undergoing significant upgrades with new satellite acquisitions and launch services contracted from MDA and SpaceX - The company has agreements with Macdonald, Dettwiler and Associates Corporation (MDA) to acquire at least **17 new satellites by 2025** and another agreement for **over 50 additional satellites** for the Extended MSS Network[33](index=33&type=chunk) - Launch services for both sets of new satellites have been contracted with Space Exploration Technologies Corp. (SpaceX)[34](index=34&type=chunk) - The system's design, with software and hardware located on the ground, is believed to enable faster and more cost-effective maintenance and upgrades[37](index=37&type=chunk) [Customers and Revenue Concentration](index=7&type=section&id=Item%201.%20Business%23Customers%20and%20Revenue%20Concentration) Globalstar serves a diverse customer base, but a single major customer (Apple Inc.) accounts for a significant and growing portion of its total revenue Revenue Concentration from Major Customer | Year | Percentage of Total Revenue | | :--- | :--- | | 2024 | 58% | | 2023 | 49% | | 2022 | 24% | - As of December 31, 2024, the company had approximately **774,000 MSS subscribers** worldwide, which includes users of Commercial IoT, SPOT, and Duplex devices[41](index=41&type=chunk) - The loss of the major customer under the Updated Services Agreements could have an adverse impact on the company's financial condition, results of operations, and cash flows[42](index=42&type=chunk) [Communications Products and Services](index=7&type=section&id=Item%201.%20Business%23Communications%20Products%20and%20Services) Globalstar offers Commercial IoT services for asset tracking, the SPOT family for personal safety and tracking, and Duplex services for two-way satellite voice and data - Commercial IoT services are used for asset tracking and monitoring in industries like government, transportation, and energy, with customers including FEMA, the U.S. Army, and BP[43](index=43&type=chunk) - The company is developing two-way Commercial IoT products, which would significantly expand market opportunities by adding command, control, and acknowledgment capabilities[50](index=50&type=chunk) - The SPOT product family (Gen4, X, Trace) provides personal tracking, messaging, and emergency services, and has been credited with initiating **thousands of rescues since 2007**[52](index=52&type=chunk)[54](index=54&type=chunk) [Competition](index=11&type=section&id=Item%201.%20Business%23Competition) Globalstar faces intense competition in the MSS market from established players and new direct-to-cellular entrants, as well as in terrestrial spectrum from licensed and unlicensed alternatives - Direct competition in the MSS business comes from global providers Viasat, Iridium, and ORBCOMM, competing on coverage, quality, and price[75](index=75&type=chunk) - In the direct-to-cellular market, the company faces competition from new providers, including SpaceX's Starlink, which has partnered with a major U.S. wireless operator[74](index=74&type=chunk)[117](index=117&type=chunk) - Terrestrial spectrum competition comes from other licensed holders like Anterix and Nextwave, as well as unlicensed spectrum (Wi-Fi) and lightly licensed bands (CBRS)[71](index=71&type=chunk)[82](index=82&type=chunk)[122](index=122&type=chunk) [Human Capital](index=13&type=section&id=Item%201.%20Business%23Human%20Capital) Globalstar employed **389 people** across fifteen countries as of December 31, 2024, focusing on talent retention through competitive compensation, development, and a diverse, inclusive culture - As of December 31, 2024, the company had **389 employees** in fifteen countries, with **23 employees in Brazil** covered by collective bargaining agreements[89](index=89&type=chunk) - Compensation packages are designed to be competitive and include base salary, long-term stock-based incentives, health insurance, a retirement plan, and an employee stock purchase plan[90](index=90&type=chunk) - The company fosters employee engagement through training programs, a wellness program, and surveys, with 'Diversity and Inclusion' being a highly-rated culture category[91](index=91&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) Globalstar faces significant risks related to its business operations, including heavy customer reliance and capital intensity, regulatory compliance, and common stock volatility due to majority shareholder control [Risks Related to Our Business](index=15&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20Our%20Business) Key business risks include heavy reliance on a single customer, operational disruptions, capital intensity, supplier dependence, intense competition, cybersecurity threats, and restrictive financing covenants - Revenue from the Updated Services Agreements with a single customer constituted approximately **58% of total revenue** for the year ended December 31, 2024 Failure to meet obligations or termination of these agreements would materially and adversely affect business and results[101](index=101&type=chunk) - The business is capital intensive and relies on funding arrangements to finance satellite construction and launch The company may require additional capital for other initiatives, and turmoil in capital markets could impact its ability to raise financing on favorable terms[127](index=127&type=chunk)[128](index=128&type=chunk) - The company faces intense competition from other MSS operators like Iridium and Viasat, and its direct-to-cellular service faces competition from providers like SpaceX's Starlink[116](index=116&type=chunk)[117](index=117&type=chunk) - The company's networks are vulnerable to cyber-attacks, which could lead to service interruptions, theft of confidential information, and an inability to meet service requirements under customer agreements, including the Updated Services Agreements[144](index=144&type=chunk) [Risks Related to Government Regulations](index=24&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20Government%20Regulations) Globalstar's operations are subject to complex government regulations, posing risks related to license acquisition and renewal, compliance with trade and export control laws, and potential adverse changes in spectrum allocation - The company's MSS system is subject to significant regulation by the FCC in the U.S., ARCEP/CNES/ANFR in France, and other foreign authorities These approvals require periodic renewal and are not guaranteed[157](index=157&type=chunk) - The company must obtain additional licenses and authorizations from multiple regulators to operate the new Extended MSS Network, and there is no assurance that all required authorizations will be obtained[159](index=159&type=chunk) - Global operations expose the company to trade sanctions, export control laws (e.g., FCPA, OFAC), and other restrictions Violations can lead to severe criminal or civil sanctions and damage to reputation[162](index=162&type=chunk)[163](index=163&type=chunk) - The business plan to use MSS spectrum for terrestrial services depends on maintaining and expanding terrestrial authority globally, which is not guaranteed[164](index=164&type=chunk) [Risks Related to Our Common Stock](index=27&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20Our%20Common%20Stock) Risks related to common stock include control by majority shareholder Thermo, stock price volatility, potential dilution from future issuances, and restrictions on common stock dividends due to financing arrangements - As of December 31, 2024, Thermo owned approximately **58% of outstanding common stock**, giving it control over shareholder votes, including the election of a majority of the board[189](index=189&type=chunk)[190](index=190&type=chunk) - The company completed a **1-for-15 reverse stock split** and transferred its listing to Nasdaq in February 2025 There is no assurance this will lead to a proportionate increase in stock price or long-term market capitalization[182](index=182&type=chunk)[183](index=183&type=chunk) - Financing arrangements restrict the ability to pay cash dividends on common stock, and the company does not expect to pay any in the foreseeable future[178](index=178&type=chunk) - Future issuance of authorized but unissued common stock (**9.6 million shares available as of Dec 31, 2024**) or preferred stock (**99.9 million shares available**) could cause dilution and adversely affect the stock price[186](index=186&type=chunk)[187](index=187&type=chunk) [Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) Globalstar manages cybersecurity risks through an enterprise-wide information security program aligned with the NIST framework, with oversight from executive management and the Board of Directors - The company has an enterprise-wide information security program based on the NIST Cybersecurity Framework, which is audited annually by independent third parties[198](index=198&type=chunk)[199](index=199&type=chunk) - Cybersecurity oversight is managed by the Data Protection Officer (VP of Network IT and Applications) and the executive team, with the Board of Directors receiving at least an annual presentation on the program[201](index=201&type=chunk) - As of the report date, the company is not aware of any material risks from cybersecurity threats that have materially affected or are likely to materially affect the company[202](index=202&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) Globalstar's principal headquarters is in Covington, Louisiana, with a global network of owned or leased facilities, including gateways and Network Operations Control Centers across multiple continents - The company's principal headquarters is located in Covington, Louisiana[203](index=203&type=chunk) - Globalstar operates a global network of gateways with locations in the Americas, Europe, Africa, Asia, and Australia to provide service coverage[203](index=203&type=chunk)[204](index=204&type=chunk) - Network Operations Control Centers, which monitor satellite and ground network operations, are located in the United States (California and Louisiana) and France[203](index=203&type=chunk)[204](index=204&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Globalstar's common stock trades on Nasdaq under "GSAT" following a 1-for-15 reverse stock split in February 2025, with no common stock dividends expected due to retained earnings and financing restrictions - The company's common stock trades on the Nasdaq Stock Market LLC under the symbol "GSAT"[206](index=206&type=chunk) - A **1-for-15 reverse stock split** of common stock was effectuated on February 10, 2025[206](index=206&type=chunk) - The company pays a **7.00% annual cash dividend** on its Series A Preferred Stock but has never paid a cash dividend on its common stock and does not expect to in the foreseeable future[207](index=207&type=chunk)[208](index=208&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Globalstar's 2024 revenue grew **12% to $250.3 million**, driven by wholesale capacity services, while operating expenses also rose **12% to $251.3 million**, resulting in a net loss of **$63.2 million**, with liquidity significantly enhanced by customer funding [Comparison of Results of Operations (2024 vs 2023)](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Comparison%20of%20Results%20of%20Operations%20%282024%20vs%202023%29) In 2024, total revenue increased **12% to $250.3 million**, driven by wholesale capacity services, while operating expenses rose **12% to $251.3 million**, leading to a net loss of **$63.2 million**, impacted by a **$27.4 million** loss on debt extinguishment Revenue by Type (in millions) | Revenue Type | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Wholesale capacity services | $145.3 | $109.1 | 33.2% | | Commercial IoT | $26.2 | $22.9 | 14.8% | | SPOT | $41.1 | $44.2 | -6.9% | | Duplex | $20.2 | $25.9 | -22.3% | | Government and other services | $4.8 | $2.1 | 125.9% | | **Total service revenue** | **$237.7** | **$204.2** | **16.4%** | | Subscriber equipment sales | $12.7 | $19.6 | -35.4% | | **Total revenue** | **$250.3** | **$223.8** | **11.9%** | - The increase in wholesale capacity service revenue was primarily due to fees for expanded services and performance bonuses under the Updated Services Agreements[222](index=222&type=chunk) - Total operating expenses increased by **12% to $251.3 million**, mainly from a **$19.7 million (37%) increase** in cost of services related to network expansion and a **$13.0 million increase** in stock-based compensation[228](index=228&type=chunk)[230](index=230&type=chunk)[234](index=234&type=chunk) - The company recorded a loss on extinguishment of debt of **$27.4 million** in 2024 from refinancing the 2023 13% Notes, compared to a **$10.4 million loss** in 2023[235](index=235&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%20and%20Capital%20Resources) Globalstar's liquidity significantly improved in 2024, with cash and cash equivalents rising to **$391.2 million**, driven by **$439.2 million** in operating cash flow, including a **$278 million** customer prepayment Cash and Cash Equivalents (in millions) | Date | Amount | | :--- | :--- | | Dec 31, 2024 | $391.2 | | Dec 31, 2023 | $56.7 | Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $439.2 | $74.3 | | Net cash used in investing activities | ($260.6) | ($175.6) | | Net cash provided by financing activities | $157.2 | $125.8 | - The increase in operating cash flow was primarily due to a **$278 million Infrastructure Prepayment** received from the Customer under the Updated Services Agreements[247](index=247&type=chunk) - As of Dec 31, 2024, the principal balance of debt was **$417.5 million**, consisting mainly of the Current Debt Repayment (**$222 million**), 2023 Funding Agreement (**$155 million**), and 2021 Funding Agreement (**$40.9 million**)[139](index=139&type=chunk)[245](index=245&type=chunk) [Contractual Obligations and Commitments](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Contractual%20Obligations%20and%20Commitments) Globalstar has significant contractual commitments for satellite network expansion, including agreements with MDA for **$329.3 million** and **$775.0 million** for new satellites, and Launch Services Agreements with SpaceX - The company has an agreement with MDA to acquire at least **17 satellites for $329.3 million**, expected for delivery in 2025[265](index=265&type=chunk) - A second agreement was made with MDA in February 2025 to acquire **over 50 additional satellites** for the Extended MSS Network at a total contract price of **$775.0 million**[267](index=267&type=chunk) - The company has multiple Launch Services Agreements with SpaceX to launch both sets of new satellites[268](index=268&type=chunk)[269](index=269&type=chunk) - As of December 31, 2024, the company had outstanding purchase orders of **$290 million** for the Extended MSS Network and **$4.7 million** in inventory purchase commitments[497](index=497&type=chunk)[498](index=498&type=chunk) [Financial Statements and Supplementary Data](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The 2024 consolidated financial statements, audited by Ernst & Young LLP with an unqualified opinion, reflect the company's financial position and operations, with critical audit matters including asset useful life and complex accounting for Updated Services Agreements [Financial Highlights](index=49&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Financial%20Highlights) In fiscal year 2024, Globalstar reported **$250.3 million** in revenue and a **$63.2 million** net loss, with total assets increasing to **$1.71 billion** and total liabilities to **$1.35 billion** due to new network arrangements Consolidated Statement of Operations Highlights (in millions) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total Revenue | $250.3 | $223.8 | $148.5 | | Loss from Operations | $(0.9) | $(0.2) | $(221.0) | | Net Loss | $(63.2) | $(24.7) | $(256.9) | | Net Loss per Share (Diluted) | $(0.59) | $(0.29) | $(2.15) | Consolidated Balance Sheet Highlights (in millions) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $391.2 | $56.7 | | Total Assets | $1,710.2 | $924.3 | | Long-term debt | $476.8 | $325.7 | | Total Liabilities | $1,351.4 | $545.3 | | Total Stockholders' Equity | $358.9 | $379.0 | [Note 2: Special Purpose Entity](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%202%3A%20Special%20Purpose%20Entity) Globalstar and Apple Inc. entered Updated Services Agreements in November 2024 for an Extended MSS Network, involving the customer's **20% equity interest** in a consolidated VIE for **$400 million**, an Infrastructure Prepayment of up to **$1.1 billion**, and a **$235 million** Current Debt Repayment - The Extended MSS Network will be owned by Globalstar SPE, a consolidated VIE in which the Customer holds a **20% passive equity interest** via Customer Class B Units, purchased for **$400 million**[408](index=408&type=chunk)[412](index=412&type=chunk) - The Customer will provide an Infrastructure Prepayment of up to **$1.1 billion** to fund the construction of the new network[414](index=414&type=chunk) - The Customer funded a Current Debt Repayment of **$235 million**, which was used to fully retire the Company's 2023 13% Notes in November 2024[414](index=414&type=chunk)[417](index=417&type=chunk) [Note 7: Long-Term Debt and Other Financing Arrangements](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%207%3A%20Long-Term%20Debt%20and%20Other%20Financing%20Arrangements) As of December 31, 2024, Globalstar's total debt carrying value was **$511.4 million**, primarily from the Current Debt Repayment, 2023, and 2021 Funding Agreements, with financing secured by a first-priority lien on assets Debt Structure as of Dec 31, 2024 (in millions) | Debt Instrument | Principal Amount | Carrying Value | | :--- | :--- | :--- | | Current Debt Repayment | $221.6 | $328.8 | | 2023 Funding Agreement | $155.0 | $144.0 | | 2021 Funding Agreement | $40.9 | $38.7 | | **Total Debt** | **$417.5** | **$511.4** | - In November 2024, the company fully paid off its 2023 13% Notes using funds from the Current Debt Repayment provided by its major customer[463](index=463&type=chunk) - The company's obligations under the Funding Agreements are secured by a first-priority lien on substantially all of its assets[457](index=457&type=chunk)[461](index=461&type=chunk) [Note 13: Taxes](index=84&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%2013%3A%20Taxes) Globalstar recorded a **$2.1 million** income tax expense on a **$61.0 million** pre-tax loss in 2024, maintaining a full valuation allowance against **$1.8 billion** in NOL carryforwards, while facing audits from the Canada Revenue Agency - As of December 31, 2024, the company had cumulative U.S., state, and foreign net operating loss (NOL) carryforwards of approximately **$1.8 billion**[518](index=518&type=chunk) - A valuation allowance of **$421.9 million** is recorded against deferred tax assets, indicating it is more likely than not that these assets will not be realized[519](index=519&type=chunk) - The Canada Revenue Agency (CRA) is conducting audits of the Canadian subsidiary, resulting in the company recording unrecognized tax benefits and appealing certain assessments[527](index=527&type=chunk) [Note 17: Common Stock](index=89&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%2017%3A%20Common%20Stock) Effective February 10, 2025, Globalstar completed a **1-for-15 reverse stock split**, reducing authorized shares to **143.3 million** and transferring its listing to Nasdaq under "GSAT" - A **1-for-15 reverse stock split** was effected on February 10, 2025[547](index=547&type=chunk) - The number of authorized common shares was reduced to **143,333,334**[547](index=547&type=chunk) - The common stock listing was transferred to the Nasdaq Stock Market LLC, effective February 11, 2025[547](index=547&type=chunk)[548](index=548&type=chunk) [Controls and Procedures](index=91&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of December 31, 2024, management concluded that disclosure controls and internal control over financial reporting were effective, a conclusion affirmed by Ernst & Young LLP's unqualified opinion - Management concluded that as of December 31, 2024, the company's disclosure controls and procedures were effective at providing reasonable assurance[554](index=554&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2024, based on the COSO framework[558](index=558&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, also audited and expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting[559](index=559&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=92&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2025 Annual Meeting of Stockholders Proxy Statement - The information required by this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Stockholders[12](index=12&type=chunk)[563](index=563&type=chunk) [Executive Compensation](index=92&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's 2025 Annual Meeting of Stockholders Proxy Statement - The information required by this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Stockholders[12](index=12&type=chunk)[564](index=564&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=92&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of principal stockholders, management, and equity compensation plans is incorporated by reference from the company's 2025 Annual Meeting of Stockholders Proxy Statement - The information required by this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Stockholders[12](index=12&type=chunk)[565](index=565&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related person transactions and director independence is incorporated by reference from the company's 2025 Annual Meeting of Stockholders Proxy Statement - The information required by this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Stockholders[12](index=12&type=chunk)[566](index=566&type=chunk) [Principal Accountant Fees and Services](index=92&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees and services of the principal accountant is incorporated by reference from the company's 2025 Annual Meeting of Stockholders Proxy Statement - The information required by this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Stockholders[12](index=12&type=chunk)[567](index=567&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=93&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the audited consolidated financial statements and the independent auditor's report, with all financial statement schedules omitted as the information is included elsewhere - This section files the Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm[568](index=568&type=chunk) - All financial statement schedules are omitted because they are not applicable or the required information is already present in the financial statements or notes[569](index=569&type=chunk) [Form 10-K Summary](index=94&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K summary is provided in this report - No Form 10-K summary is provided[570](index=570&type=chunk)

Globalstar, Inc. (GSAT) reported fourth-quarter 2024 loss of 42 cents per share, wider than the loss of 14 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of 5 cents.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues of $61.2 million surpassed the Zacks Consensus Estimate by 2.1%. The top line rose 16.7% year over year. This revenue growth was driven by a solid increase in service revenues.Shares of GSAT declined approximately 12% in the pre-ma ...

Globalstar (GSAT) Q4 2024 Earnings Call February 28, 2025 07:53 PM ET Company Participants Rebecca Clary - VP & CFOPaul Jacobs - Director & CEOMike Crawford - SMD & Head of Discovery GroupSimon Flannery - Managing DirectorWalter Piecyk - General PartnerChris Quilty - Co-CEO & PresidentLyman Delano - PartnerGeorge Sutton - Partner- Co-Director of Research Operator Good day and thank you for standing by. Welcome to the Globalstar Fourth Quarter twenty twenty four Earnings Conference Call. At this time, all pa ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 17% to $61.2 million compared to $52.4 million in the prior year [8] - Service revenue rose by 18%, primarily driven by wholesale capacity revenue, while commercial IoT increased by 8% due to higher average subscribers and ARPU [8] - Adjusted EBITDA for Q4 2024 increased by 21% to $30.4 million, with an adjusted EBITDA margin of 54%, up 190 basis points from 52% in 2023 [9][11] Business Line Data and Key Metrics Changes - The Commercial IoT business achieved record annual service revenue in 2024, reflecting growth from existing and new customers [10] - The company expects revenue for 2025 to be between $260 million and $285 million, representing a 9% year-over-year growth at the midpoint [15] Market Data and Key Metrics Changes - The company ended 2024 with $391.2 million in cash, with significant cash inflows from updated service agreements totaling $913 million [12][13] - The company anticipates that the extended MSS network will double total revenue in its first full year of service, reaching $500 million [16] Company Strategy and Development Direction - The company successfully completed its uplisting to the NASDAQ Global Select Market and implemented a 1 for 15 reverse stock split to enhance stock liquidity [5][6] - The focus is on expanding product offerings, including the launch of a QA device and further development of the XCOM RAN terrestrial solution [11][16] - The company aims to maintain 100% of terrestrial, MSS, and other revenue while allocating 85% of network capacity for satellite services to its wholesale customer [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within satellite and terrestrial connectivity markets, highlighting significant growth opportunities [22] - The company is focused on balancing growth investments while maintaining healthy margins, with expectations for adjusted EBITDA margins to improve over time [19][58] Other Important Information - The company has achieved a major milestone in partnership with Parsons Corporation, demonstrating a software-defined communication solution using its lower orbit constellation [38] - The company completed the first 5G data call on its Band n53 spectrum, achieving download speeds of 100 megabits per second [39] Q&A Session Summary Question: Can you explain the capabilities of the Aurora satellites? - The Aurora satellites have beam forming capabilities, allowing for controlled power and signal direction [45] Question: What is the timeline for the launch of the new satellites? - No specific update on the launch timing was provided [47] Question: Can you provide updates on the XCOM RAN and customer progress? - The company is focused on cost reduction and is awaiting customer decisions on rollout [54] Question: What are the expectations for EBITDA margins? - EBITDA margins are expected to face short-term pressures but should improve over the next 12 to 18 months [58] Question: When will the 2-way IoT become material to the numbers? - The company expects to start seeing material contributions from the 2-way IoT in 2025, with a ramp-up beginning this year [70][73] Question: Can you provide more details on the new satellite constellation? - The new constellation will work in conjunction with existing satellites, providing optionality for future expansions [115] Question: What are the use cases for the 2-way communication? - Use cases include remote asset control and monitoring, enabling commands to be sent back to devices [120][122]