Globalstar(US:GSAT)2025-11-06 21:16Financial Performance - Total revenue for Q3 2025 reached $73.8 million, a record high, with service revenue at $69.6 million and subscriber equipment sales at $4.2 million[7]. - Adjusted EBITDA for Q3 2025 was $37.6 million, down from $42.8 million in Q3 2024, due to increased operating expenses related to growth investments[13]. - Net income for Q3 2025 was $1.1 million, a decrease from $9.9 million in the same quarter last year, primarily due to higher interest expenses and foreign currency losses[12]. - For the first nine months of 2025, total revenue was $201.0 million, a 6% increase compared to the same period in 2024, attributed to higher wholesale capacity services and increased Commercial IoT subscribers[15]. - Adjusted free cash flow for the first nine months of 2025 was $133.3 million, up from $74.5 million in the same period in 2024, reflecting accelerated service payments[27]. - The company expects total revenue for 2025 to be between $260 million and $285 million, with an adjusted EBITDA margin of approximately 50%[29]. Revenue Breakdown - Service revenue for Q3 2025 was $69,635,000, an increase from $68,908,000 in Q3 2024, representing a growth of 1.1% year-over-year[41]. - Total revenue for the nine months ended September 30, 2025, reached $201,025,000, compared to $189,172,000 for the same period in 2024, marking an increase of 6.4%[41]. - Total service revenue for the three months ended September 30, 2025, was $68,908,000, an increase from $72,307,000 in the same period of 2024[50]. - The total revenue from wholesale capacity services was $43,861,000 for the three months ended September 30, 2025, compared to $126,440,000 in the same period of 2024[50]. - Subscriber equipment sales for the three months ended September 30, 2025, were $3,399,000, an increase from $11,107,000 in the same period of 2024[50]. Subscriber Metrics - Average subscribers for Commercial IoT reached 542,715, up from 512,260 in the previous year, indicating a growth of approximately 5.0%[50]. - The average number of total subscribers was 783,773 for the three months ended September 30, 2025, compared to 781,215 in the same period of 2024[50]. - The average revenue per user (ARPU) for Commercial IoT was $4.22 for the three months ended September 30, 2025, slightly down from $4.33 in the previous year[50]. Operating Expenses and Cash Flow - Adjusted EBITDA for Q3 2025 was $37,574,000, down from $42,805,000 in Q3 2024, reflecting a decrease of 12.9%[46]. - Operating expenses for Q3 2025 totaled $63,689,000, slightly higher than $62,873,000 in Q3 2024, reflecting an increase of 1.3%[41]. - The company reported net cash provided by operating activities of $445,762,000 for the nine months ended September 30, 2025, compared to $98,535,000 in the previous year[52]. - Cash and cash equivalents as of September 30, 2025, were $346.3 million, down from $391.2 million at the end of 2024, primarily due to capital expenditures[25]. - Cash and cash equivalents decreased to $346,293,000 from $391,164,000, a decline of 11.4%[43]. Debt and Assets - The current portion of long-term debt decreased to $23,503,000 from $34,600,000, a reduction of 32.1%[43]. - Total assets as of September 30, 2025, were $2,162,350,000, up from $1,710,237,000 at the end of 2024, showing an increase of 26.4%[43]. Strategic Initiatives - Globalstar is expanding its global ground infrastructure to support the next-generation C-3 satellite system, enhancing capacity and resilience[5]. - The company has made significant progress in its robotics partnership through XCOM RAN, transitioning technology into commercialization with new customer orders[5]. - The company anticipates continued growth in service revenue driven by expanding customer base and operational improvements[38].