01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Globalstar, Inc. reported a total revenue of $70.1 milliona for the three months ended March 31, 2026, an increase of 17% from the prior year's $60.0 million.
This growth was primarily driven by a 26% increase in wholesale capacity services, largely due to updated service agreements with their primary customer, Apple Inc. Despite revenue growth, the company reported a net loss of $17.4 millionb for the quarter, a slight increase from the $17.3 million net loss in the same period of 2025. The company's cash position decreased to $358.4 million from $447.5 million, reflecting significant investments in network upgrades and expansion, including for the Extended MSS Network. A significant development disclosed is the pending acquisition of Globalstar by Amazon.com, Inc., announced on April 13, 2026.
The transaction is subject to regulatory approvals and other closing conditions, with an expected closing in 2027. This acquisition introduces considerable uncertainty and potential benefits, with stockholders having the option to receive either cash or Amazon stock, subject to proration and potential adjustments based on operational milestones. The company's financial position remains impacted by substantial capital expenditures for network development, which are crucial for fulfilling its contractual obligations with its key customer and for future growth.
The company's balance sheet shows total assets of $2.38 billionc and total liabilities of $2.03 billion as of March 31, 2026. Key assets include property and equipment, with significant ongoing investments in network infrastructure.
Long-term debt stands at $432.2 milliond. While the company is investing heavily in its future network capabilities, the ongoing net losses and the pending acquisition by Amazon are critical factors for investors to consider.
02—Key points
Key Highlights
- Total revenue increased 17% year-over-year to $70.1 million for Q1 2026, driven by wholesale capacity services.
- Net loss remained consistent at $17.4 million for Q1 2026, compared to $17.3 million in Q1 2025.
- Cash and cash equivalents decreased to $358.4 million as of March 31, 2026, from $447.5 million at year-end 2025, due to capital expenditures.
- The company announced a definitive agreement to be acquired by Amazon.com, Inc. for an expected closing in 2027.
- Significant investments are being made in network upgrades and expansion, particularly for the Extended MSS Network.
- Wholesale capacity services, largely from Apple Inc., accounted for 66% of total revenue in Q1 2026.
- The company continues to manage substantial long-term debt, totaling $432.2 million as of March 31, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $70.06M$60.03M | +16.7% |
| SG&A Expenses | $14.83M$11.59M | +27.9% |
| Operating Expenses | $61.89M$68.53M | −9.7% |
| Operating Income | $8.17M-$8.50M | +196.1% |
| Net Income | -$17.42M-$17.33M | −0.5% |
| EPS (Basic) | $-0.16$-0.16 | 0.0% |
| EPS (Diluted) | $-0.16$-0.16 | 0.0% |
| Shares Outstanding (Basic) | 128.42M126.48M | +1.5% |
| Shares Outstanding (Diluted) | 128.42M126.48M | +1.5% |
05—Questions
Frequently Asked Questions
What is the most significant event impacting Globalstar's future according to this filing?
The most significant event is the announced definitive agreement for Amazon.com, Inc. to acquire Globalstar, Inc., which was entered into on April 13, 2026. The transaction is expected to close in 2027, subject to regulatory approvals and other customary closing conditions. This acquisition will fundamentally change Globalstar's ownership structure and operations.
How is Globalstar's revenue performing, and what is driving the changes?
Globalstar's total revenue increased by 17% to $70.1 million in the first quarter of 2026 compared to the same period in 2025. This growth was primarily driven by a 26% increase in wholesale capacity services, which represented 66% of total revenue and is largely attributable to updated service agreements with its major customer (Apple Inc.). Commercial IoT revenue also saw a 13% increase.
What is Globalstar's current financial health and cash position?
Globalstar reported a net loss of $17.4 million for the quarter ended March 31, 2026, which is similar to the prior year's loss. While the company generated positive cash flow from operations ($35.2 million for the quarter), its cash and cash equivalents decreased to $358.4 million from $447.5 million due to substantial investments in network upgrades and expansion. The company has total assets of $2.38 billion and total liabilities of $2.03 billion, including $432.2 million in long-term debt.
What is the nature of the company's relationship with Apple Inc. (referred to as 'the Customer')?
Globalstar has a significant strategic relationship with Apple Inc. ('the Customer') through updated service agreements related to an Extended MSS Network. Apple is Globalstar's largest customer, accounting for 66% of revenue in Q1 2026. Apple has prepaid and is required to continue prepaying for services, and has also made substantial prepayments for capital expenditures related to the Extended MSS Network. This relationship is crucial to Globalstar's current and future business.
06—Continue