Summary
Globalstar, Inc. reported significant revenue growth in its 2024 fiscal year, driven primarily by its wholesale capacity services, which saw a 33% increase. This growth was largely attributable to expanded services provided under the Updated Services Agreements, which now represent 58% of total revenue. The company continues to invest heavily in its satellite network, including the procurement of over 50 new satellites for the Extended MSS Network and significant capital expenditures on network upgrades, funded in part by substantial prepayments from its key customer. Despite the top-line growth, Globalstar recorded a net loss of $63.2 million for the year. This was influenced by a $27.4 million loss on extinguishment of debt and increased operating expenses, particularly in cost of services due to network expansion, and higher stock-based compensation. The company also experienced a significant foreign currency loss of $16.6 million. Globalstar's liquidity position improved considerably, with cash and cash equivalents increasing to $391.2 million from $56.7 million, largely due to customer prepayments. The company successfully refinanced its 2023 13% Notes and remains focused on executing its long-term network development strategy.
Financial Highlights
46 data points| Revenue | $250.35M |
| R&D Expenses | $6.50M |
| SG&A Expenses | $43.43M |
| Operating Expenses | $251.30M |
| Operating Income | -$949K |
| Net Income | -$63.16M |
| EPS (Basic) | $-0.59 |
| EPS (Diluted) | $-0.59 |
| Shares Outstanding (Basic) | 125.88M |
| Shares Outstanding (Diluted) | 125.88M |
Key Highlights
- 1Total revenue increased by 12% to $250.3 million in 2024, driven by a 33% rise in wholesale capacity services revenue.
- 2Revenue from the primary customer under the Updated Services Agreements accounted for 58% of total revenue in 2024, up from 49% in 2023.
- 3The company recorded a net loss of $63.2 million for the year, compared to a net loss of $24.7 million in 2023.
- 4Cash and cash equivalents increased significantly to $391.2 million as of December 31, 2024, primarily due to customer prepayments for the Extended MSS Network.
- 5Operating expenses rose by 12% to $251.3 million, mainly due to increased cost of services for network expansion and higher stock-based compensation.
- 6Globalstar continues to invest in its future by procuring over 50 new satellites for the Extended MSS Network and expanding ground infrastructure.
- 7The company experienced a $16.6 million foreign currency loss in 2024, impacting overall profitability.