Globalstar Reports Third Quarter 2025 Financial Results and Highlights Continued Strategic and Operational Momentum
Globalstar, Inc. (Nasdaq: GSAT) (“Globalstar” or the “Company”) announced its financial results for the third quarter ended September 30, 2025, reaffirming its full-year financial guidance. The Company expects total revenue for 2025 to remain in the previously announced range of $260 million to $285 million, with an Adjusted EBITDA margin of approximately 50%. The quarter reflected continued revenue growth, strategic execution in satellite infrastructure, global expansion of commercial IoT solutions, and progress in commercialization of the Company’s advanced XCOM RAN technology.
Globalstar CEO, Dr. Paul E. Jacobs, emphasized the Company’s forward momentum, stating that the third quarter demonstrated meaningful progress across both operational and strategic priorities. “Our strong financial results reflect the successful execution of our business plan and product roadmap,” said Dr. Jacobs. “From expanding our global ground infrastructure and advancing our next-generation C-3 satellite system to accelerating the rollout of our two-way Commercial IoT device worldwide, the strength of our platform continues to resonate with partners and customers across industries. These milestones highlight the growing demand for Globalstar’s satellite and terrestrial connectivity solutions.”
Dr. Jacobs added that broader market dynamics and innovation across the telecommunications and satellite ecosystem continue to work in the Company’s favor. “This is an exciting time in the satellite connectivity industry. Our globally harmonized spectrum offers powerful strategic value. Recent industry asset sales have shown strong valuations for networks with far less reach than ours. As the market evolves, our portfolio of spectrum and space-based assets uniquely positions Globalstar to support transformative service models that benefit enterprise, government, and industrial customers around the world.”
Operational Highlights for the Quarter
1. Advancement of the C-3 Satellite Constellation and Global Ground Network
During the quarter, Globalstar continued to expand and modernize its global ground infrastructure in support of its upcoming C-3 constellation. These efforts include construction, upgrades, and facility enhancements across North America, Europe, and Asia. The expanded infrastructure strengthens capacity, resilience, and network redundancy, helping position the Company for the next era of satellite-enabled communications and data services.
2. XCOM RAN Progress and Initial Commercial Order
Globalstar continued to advance commercialization of XCOM RAN, a technology platform designed to enhance private network performance, reliability, and efficiency. The Company executed a new supply agreement and secured an initial order from a new warehouse automation customer, marking a key milestone in the transition of XCOM RAN from development and testing phases into commercial deployment. This also expands the Company’s footprint beyond telecommunications and emergency communications into industrial automation and smart logistics.
3. Global Availability of the RM200M Two-Way IoT Module
The RM200M, a two-way global IoT communications module designed for integration into connected devices and industrial equipment, is now generally available worldwide. The module has received multiple regulatory certifications and has already seen strong demand in critical sectors including emergency services, asset tracking, energy, utilities, and remote workforce mobility. Device sales associated with Commercial IoT applications remained strong through the quarter, reflecting growing adoption across both public and private-sector users.
4. HIBLEO-XL-1 Filing to Support Future Network Expansion
Globalstar also moved forward with bringing its HIBLEO-XL-1 satellite system filing into operational use. This filing lays the groundwork for deploying next-generation satellite architectures that will expand bandwidth, add orbital shells, and introduce additional frequency capabilities. The system will support advanced connectivity use cases including real-time mobile satellite services, machine-to-machine communications, and next-generation IoT and industrial automation solutions.
Third Quarter 2025 Financial Review
Revenue
Total revenue for the third quarter was $73.8 million, consisting of:
- $69.6 million in service revenue, and
- $4.2 million in subscriber equipment sales.
Service revenue increased compared to the same period last year, driven primarily by higher wholesale capacity services, including reimbursements for network-related operational costs. Commercial IoT service revenue also increased, supported by growth in subscribers. These gains were partially offset by declines in SPOT and Duplex service revenue due to customer churn.
Commercial IoT device sales rose meaningfully, with a 60% year-over-year increase in equipment revenue, reflecting increased global deployment of IoT hardware and higher demand for connected monitoring and asset-tracking solutions.
Income from Operations
Income from operations was $10.2 million, compared to $9.4 million in the prior year’s third quarter. Operating expenses rose due to higher personnel costs, increased network operating expenses associated with ground infrastructure expansion, and investment in XCOM RAN development. These increases were partially offset by lower stock-based compensation expense.
Net Income
Net income for the quarter was $1.1 million, compared to $9.9 million in the prior-year quarter. The decline was largely due to non-cash items, including higher imputed interest expense associated with the 2024 Prepayment Agreement and foreign currency remeasurement losses. These impacts were partially offset by a mark-to-market gain on the Company’s derivative asset.
Adjusted EBITDA
Adjusted EBITDA for the quarter was $37.6 million, compared to $42.8 million in the prior-year period. While revenue increased, Adjusted EBITDA was impacted by higher operating costs tied to strategic investment, especially in commercializing XCOM RAN and product development for future growth opportunities.
Year-to-Date 2025 Financial Review
For the first nine months of 2025:
- Total revenue was $201.0 million, representing a 6% increase year-over-year.
- Service revenue increased 6%, driven again by wholesale capacity services and Commercial IoT growth.
- Income from operations rose to $7.8 million, compared to $3.3 million last year.
- Net income was $3.0 million, a significant improvement from a $12.9 million net loss in the prior year.
- Adjusted EBITDA totaled $103.7 million.
Operating expenses reflected continued investment in future revenue-generating initiatives, including satellite modernization, product development, and commercialization of emerging network technologies.
Liquidity and Capital Structure
As of September 30, 2025:
- Cash and cash equivalents were $346.3 million.
- Capital expenditures totaled $485.9 million, primarily related to satellite and ground infrastructure upgrades.
- The principal amount of outstanding debt was $418.7 million.
Adjusted free cash flow improved to $133.3 million, compared to $74.5 million in the same period of 2024, supported by higher service payments and accelerated contractual receipts.
Source link: https://www.businesswire.com
