10-QPeriod: Q3 FY2025

Globalstar, Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 6, 2025For Securities:GSAT

Summary

Globalstar, Inc. reported increased total revenue of $73.8 million for the three months ended September 30, 2025, a 2% rise year-over-year, and $201.0 million for the nine months ended September 30, 2025, a 6% increase. This growth was primarily driven by higher wholesale capacity services and increased sales of Commercial IoT devices. The company's operational expenses also saw a modest increase, but income from operations improved significantly to $10.2 million and $7.8 million for the three and nine months, respectively, compared to prior periods. However, a substantial increase in interest expense and other income/expense items led to a net income of $1.1 million for the quarter and $3.0 million for the nine months. Significant capital expenditures related to the Extended MSS Network were a major outflow in investing activities. The company ended the period with $346.3 million in cash and cash equivalents, a decrease from the prior year, primarily due to these investments.

Financial Highlights

39 data points
Beta

Revenue

$73.84M

Net Income

$1.09M

1.5% Net Margin

EPS (Diluted)

$-0.01

Total Assets

$2.16B

Cash & Equivalents

$346.29M

Free Cash Flow

$236.02M

Financial Statements
Beta
Revenue$73.84M
SG&A Expenses$11.35M
Operating Expenses$63.69M
Operating Income$10.16M
Net Income$1.09M
EPS (Basic)$-0.01
EPS (Diluted)$-0.01
Shares Outstanding (Basic)126.69M
Shares Outstanding (Diluted)126.69M

Key Highlights

  • 1Total revenue increased by 2% for the three months ended September 30, 2025, to $73.8 million, and by 6% for the nine months ended September 30, 2025, to $201.0 million, driven by wholesale capacity services and Commercial IoT.
  • 2Income from operations significantly improved, reaching $10.2 million for the three-month period and $7.8 million for the nine-month period, reflecting better operational efficiency.
  • 3Net income for the three months ended September 30, 2025, was $1.1 million, and $3.0 million for the nine months, a notable recovery from the net loss reported in the prior year's nine-month period.
  • 4Cash used in investing activities increased substantially to $485.9 million for the nine months ended September 30, 2025, primarily due to significant capital expenditures for network upgrades related to the Extended MSS Network.
  • 5Deferred revenue increased significantly to $734.4 million as of September 30, 2025, largely due to prepayments received for future services under the Updated Services Agreements.
  • 6The company completed a 1-for-15 reverse stock split on February 10, 2025, and its common stock began trading on the Nasdaq Stock Market.
  • 7Long-term debt remained relatively stable, with a principal amount of $418.7 million at September 30, 2025.

Frequently Asked Questions

Globalstar's revenue growth is primarily driven by an increase in wholesale capacity services, including revenue from the significant Updated Services Agreements with a major customer, and higher sales of Commercial IoT devices. The company also noted increased activity in government services and terrestrial spectrum and network solutions.

The company is funding its capital expenditures for the Extended MSS Network through a combination of cash flows from operations and substantial prepayments received from its key customer under the Updated Services Agreements, which are recognized as deferred revenue. The company also utilized proceeds from the 2023 Funding Agreement and Infrastructure Prepayment.

The partnership with Apple, formalized under the Updated Services Agreements, is a significant revenue driver, accounting for 63% of total revenue for the nine months ended September 30, 2025. The agreement involves Globalstar providing network capacity and infrastructure for Apple's services, with substantial prepayments contributing to Globalstar's deferred revenue and future revenue streams.

The Extended MSS Network is a strategic initiative involving a new satellite constellation and expanded ground infrastructure. The substantial investments in this network are crucial for Globalstar to deliver expanded services to its key customer and to secure future revenue streams. The company expects these investments to underpin its long-term growth strategy.