Globalstar(US:GSAT)2025-11-06 22:27Revenue Performance - Total revenue for Q3 2025 increased by 2% to $73.8 million compared to $72.3 million in Q3 2024, while total revenue for the nine months ended September 30, 2025 rose by 6% to $201.0 million from $189.2 million in the same period of 2024[137]. - The customer under the Updated Services Agreements accounted for 63% of total revenue in the nine months ended September 30, 2025, up from 58% in the same period of 2024[126]. - Wholesale capacity services revenue increased by 8% and 16% for the three and nine months ended September 30, 2025, compared to the same periods in 2024, reaching $47,346 thousand and $126,440 thousand respectively[141]. - Commercial IoT service revenue grew by 3% and 4% for the three and nine months ended September 30, 2025, with average subscribers increasing by 6% and 5% respectively, totaling 542,715 for the three months[142]. - SPOT service revenue decreased by $1.0 million and $3.0 million for the three and nine months ended September 30, 2025, primarily due to a decline in average subscribers[143]. - Duplex service revenue fell by $1.2 million and $3.8 million for the three and nine months ended September 30, 2025, attributed to fewer average subscribers following the discontinuation of Duplex device sales[144]. Subscriber and Market Expansion - As of September 30, 2025, the company had approximately 783,000 subscribers worldwide, reflecting the demand for MSS services in remote areas[127]. - The company plans to expand its global network with approximately 90 new antennas across 35 ground stations in 25 countries to enhance service coverage and quality[116]. - The company retains 15% of its current and future network capacity to support other customers, indicating potential for subscriber base growth[125]. Satellite and Technology Development - The company expects to acquire 17 replacement satellites by early 2026, with an option for an additional nine satellites, to ensure continuous service delivery[118]. - The company entered into Launch Services Agreements with SpaceX for two launches of the replacement satellites, anticipated to be completed in 2026[119]. - The company released the RM200M two-way module in October 2025, aimed at integrating into IoT and industrial solutions, reflecting ongoing product development efforts[128]. Financial Position and Cash Flow - Total operating expenses rose to $63.7 million and $193.2 million for the three and nine months ended September 30, 2025, compared to $62.9 million and $185.9 million in 2024[145]. - Cash and cash equivalents decreased to $346.3 million as of September 30, 2025, down from $391.2 million at December 31, 2024, primarily due to capital expenditures[158]. - The principal amount of debt outstanding was $418.7 million at September 30, 2025, an increase from $417.5 million at December 31, 2024, due to new debt issuance[159]. - Net cash provided by operating activities was $445,762 thousand for the nine months ended September 30, 2025, compared to $98,535 thousand in 2024[160]. - Net cash used in investing activities was $485.9 million for the nine months ended September 30, 2025, compared to $107.7 million for the same period in 2024, primarily due to milestone payments totaling $334.8 million to MDA Space and SpaceX[163]. - Net cash used in financing activities was $6.1 million during the nine months ended September 30, 2025, compared to net cash provided of $4.9 million in the same period of 2024[164]. - Deferred revenue, net, as of September 30, 2025, totaled $734.4 million, with the majority expected to be earned over a period exceeding five years[165]. Risk and Compliance - There were no material changes to market risk during the quarter ended September 30, 2025[170]. - No material off-balance sheet transactions were reported[167]. Tax and Currency Impact - The company recorded foreign currency losses of $0.6 million and gains of $15.5 million for the three and nine months ended September 30, 2025, compared to gains and losses in the same periods of 2024[155]. - Income tax expense decreased by $0.6 million and increased by $2.0 million for the three and nine months ended September 30, 2025, compared to the same periods in 2024[156].