01—Abstract
Summary
Summary of the 8-K filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Globalstar (GSAT) reported second quarter 2026 results showing revenue of $64.8 milliona, down from $67.1 million a year earlier, and a swing to an operating loss of $4.8 million versus $6.1 million of operating income in Q2 2025.
Net loss widened to $26.5 millionb from net income of $19.2 million, driven by higher interest expense (including non-cash imputed interest on the 2024 Prepayment Agreement), unfavorable foreign currency remeasurement, and higher MG&A, which rose to $23.0 million from $9.7 million largely on Amazon transaction-related legal and professional fees. Adjusted EBITDA fell to $26.0 million from $35.8 million, and the prior-year quarter was flattered by $6.6 million of out-of-period wholesale capacity revenue. Service revenue declined 5% year over year, though excluding that item it would have grown about $3.4 million, supported by Commercial IoT growth, offset by continued declines in Duplex and SPOT subscribers.
On the balance sheet, cash fell to $409.8 millionc from $447.5 million at year-end 2025, and capital expenditures of $208.3 million for the six months reflect the next-generation satellite and Extended MSS Network build-out. Total debt principal rose to $423.7 million, and stockholders' equity declined to $292.6 million. Deferred revenue grew substantially, reaching $1.03 billion in non-current liabilities, reflecting the Infrastructure Prepayment.
Adjusted free cash flow was $43.5 milliond for the first half versus $77.9 million a year earlier, mainly due to timing of Updated Services Agreement cash receipts. Strategically, the pending merger with Amazon is progressing: the HSR waiting period expired July 17, 2026, but the FCC and certain international approvals remain outstanding, and the company expects closing in 2027, contingent on HIBLEO-4 replacement satellite milestones.
The first replacement satellite launch was rescheduled to later in the month. Management also stated it will no longer hold earnings calls or provide forward guidance while the transaction is pending, which limits near-term visibility for investors.
02—Key points
Key Highlights
- Q2 2026 total revenue of $64.8M vs. $67.1M in Q2 2025; service revenue down 5% to $60.0M, partly due to $6.6M of out-of-period revenue in the prior-year quarter
- Operating loss of $4.8M vs. operating income of $6.1M a year earlier, driven by MG&A rising to $23.0M from $9.7M on Amazon transaction-related professional fees
- Net loss of $26.5M ($0.23 per share) vs. net income of $19.2M in Q2 2025, reflecting higher interest expense, FX losses, and a $4.2M non-cash contingent interest gain
- Adjusted EBITDA of $26.0M vs. $35.8M a year ago; first-half Adjusted EBITDA $59.4M vs. $66.1M
- Commercial IoT subscribers averaged 580,427 in Q2 (up 9% YoY), with record activations and over 20% growth in gross activations on a trailing twelve-month basis
- Cash of $409.8M at June 30, 2026 vs. $447.5M at year-end 2025; H1 capex of $208.3M for satellite replacement and Extended MSS Network build-out
- Amazon merger: HSR waiting period expired July 17, 2026; FCC and international approvals outstanding; closing expected in 2027, subject to HIBLEO-4 satellite milestones; company will no longer hold earnings calls or provide guidance
03—Questions
Frequently Asked Questions
Why did Globalstar swing from operating income to an operating loss in the second quarter?
Operating expenses rose about $8.5M year over year, mainly due to MG&A increasing to $23.0M from $9.7M on legal and professional fees tied to the Amazon transaction, plus higher cost of services for next-generation ground network build-out. Service revenue also declined by $3.2M, largely because the prior-year quarter included $6.6M of out-of-period wholesale capacity revenue. Lower stock-based compensation and depreciation partially offset these pressures.
Is the Amazon merger still on track, and when is it expected to close?
The HSR waiting period expired on July 17, 2026, removing one regulatory hurdle. Globalstar and Amazon are still working through approvals from the FCC and certain international merger control, foreign investment, and satellite authorities. The companies expect the transaction to close in 2027, and closing remains conditional on outstanding regulatory approvals and Globalstar achieving certain HIBLEO-4 replacement satellite milestones.
Are the subscriber trends healthy?
Mixed. Commercial IoT is growing, with average subscribers up about 9% year over year to 580,427 and record activations in the quarter. However, SPOT average subscribers fell about 8% and Duplex fell about 28%, which is pulling down subscriber service revenue. Wholesale capacity revenue, which is the largest revenue line at $40.1M, fell about 5% in the quarter, largely due to timing of network cost reimbursement fees.
How is Globalstar funding its satellite build-out, and is cash flow under pressure?
Operating cash flow was $159.7M in the first half, boosted by $104.8M from the Infrastructure Prepayment and $15.0M in accelerated service fees from the Customer. Capital expenditures of $208.3M were largely tied to satellite replacement and the Extended MSS Network. Adjusted free cash flow fell to $43.5M from $77.9M due to timing of customer receipts. Cash declined to $409.8M, and total debt principal rose to $423.7M, so liquidity is adequate but the company is relying on customer prepayments and funding agreements.
Will investors still get regular updates from management?
Not on the usual schedule. Because of the pending Amazon transaction, Globalstar does not intend to hold future earnings conference calls or update its forward-looking financial guidance. Investors will need to rely on SEC filings and press releases for information until the transaction closes or is otherwise resolved.
04—Continue