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    GSAT
    Earnings call· Dec 2025(Q4 FY25)

    Globalstar Q4 FY25 earnings call GSAT

    Feb 27, 2026 Source

    Executive summary

    Globalstar Q4 FY25 — Record Revenue and Adjusted EBITDA

    Globalstar closed FY25 with record revenue and adjusted EBITDA, driven by strong execution and strategic advancements in two-way satellite IoT and infrastructure expansion. The company is focused on scaling its next-generation network and commercial opportunities, including government and defense applications, while managing increased operating expenses related to growth investments.

    Highlights

    5

    • Full year 2025 total revenue reached a record $273 million, a 9% increase over 2024.

    • Adjusted EBITDA reached a record $136.1 million, representing a 50% margin.

    • Net loss improved significantly to $7.6 million in FY25 from $63.2 million in FY24.

    • Operating cash flows during 2025 were $621.7 million, including $430.6 million from infrastructure prepayment.

    • Average commercial IoT subscribers increased 6% year-over-year, and IoT hardware sales revenue grew 50% year-over-year.

    Concerns

    3

    • Q4 loss from operations was $0.4 million, and full year income from operations of $7.4 million was partially offset by increased operating expenses, including personnel costs, XCOM RAN development, and legal/professional fees.

    • A $1.1 million charge related to tariffs on reexported equipment impacted cost of subscriber equipment sales in Q4.

    • Q4 revenue was partially offset by Duplex and SPOT subscriber churn and lower XCOM RAN sales.

    Guidance & targets

    2
    CategoryTargetConfidence
    Total Revenue
    $280 million to $305 million
    high materiality
    High
    Adjusted EBITDA Margin
    approximately 50%
    high materiality
    High

    Operational metrics

    20
    Total Revenue
    $273 million9% increase over 2024
    FY25

    Record full year revenue.

    Service Revenue
    $257.3 million8% increase
    FY25

    Driven primarily by increased wholesale capacity services.

    Subscriber Equipment Revenue
    $15.7 million24% increase
    FY25

    Reflecting a higher volume of commercial IoT device sales.

    Income from Operations
    $7.4 millioncompared to a loss of $0.9 million in 2024
    FY25

    Improvement due to higher revenue, partially offset by increased operating expenses.

    Operating Expenses Benefit
    $3.9 million
    FY25

    Received in employee retention credits under the CARES Act, allocated between cost of services and MG&A.

    Net Loss
    $7.6 millionimproved from $63.2 million in 2024
    FY25

    Improvement due primarily to the prior year reflecting a nonrecurring, noncash loss on extinguishment of debt, favorable foreign currency remeasurement, and noncash gains on derivative asset.

    Adjusted EBITDA
    $136.1 millionin line with guidance
    FY25

    Record adjusted EBITDA, reflecting higher revenue partially offset by higher operating expenses due to investment and growth opportunities.

    Capital Expenditures
    $550.4 million
    FY25

    Primarily related to commitments under the updated services agreement for the deployment of replacement satellites and the extended MSS network.

    Principal Debt Balance
    $410 milliondown modestly from $417.5 million at end of 2024
    year-end 2025

    Reflects scheduled recoupments of $34.6 million under the 2021 funding agreement, partially offset by $27.1 million in new issuance under the 2023 funding agreement.

    Cash and Cash Equivalents
    $447.5 millionup from $391.2 million at year-end 2024
    year-end 2025
    Average Commercial IoT Subscribers Growth
    6%YoY
    FY25
    IoT Hardware Sales Revenue Growth
    50%YoY
    FY25
    ITU Financial Commitments Progress
    50%
    FY25

    Of the $2 billion pledged for extending the network, including satellite investments.

    Total Revenue
    $72 million
    Q4 FY25
    Service Revenue Growth
    17%compared to Q4 2024
    Q4 FY25

    Driven primarily by wholesale capacity services, performance bonuses, and network cost reimbursement.

    Equipment Sales Revenue Growth
    31%compared to Q4 2024
    Q4 FY25
    Loss from Operations
    $0.4 millionimprovement from $4.2 million loss in Q4 2024
    Q4 FY25
    Cost of Subscriber Equipment Sales Charge
    $1.1 million
    Q4 FY25

    Related to tariffs on equipment imported and then reexported to foreign subsidiaries, where previously recorded duty drawbacks are no longer deemed probable of recovery.

    Net Loss
    $10.6 millioncompared to $50.2 million in prior year
    Q4 FY25

    Improvement largely attributable to the same noncash activity that impacted the full year period.

    Adjusted EBITDA Growth
    7%from prior year's quarter
    Q4 FY25

    Product announcements

    1
    ProductTypeDetails
    Two-way satellite IoT capabilities (RM200M module)launch

    Deals & partnerships

    3
    ParsonsCollaboration for government and defense sector solutions.

    Completed a successful proof of concept, began customer trials, and are expanding the relationship to include private 5G solutions for the federal market.

    Virewirx (formerly XCOM Labs)Technology partnership for advanced 5G system development for challenging RF environments.$1.9 million

    Virewirx was awarded a Phase II Small Business Innovation Research contract from the Office of the Under Secretary of War and selected Globalstar as a technology partner, leveraging its XCOM RAN Private 5G platform.

    BoingoCollaboration on XCOM RAN private 5G deployments.

    Boingo completed a proof-of-concept trial demonstrating XCOM RAN's ability to support next-generation private 5G deployments, including over Distributed Antenna Systems (DAS).

    Risks & headwinds

    4
    Increased Operating ExpensesFY25

    Partially offset higher revenue and improved income from operations.

    Mitigation: Management frames these as investments in growth opportunities, including personnel costs for next-gen infrastructure and XCOM RAN development.

    Tariff-Related ChargeQ4 2025

    $1.1 million

    Mitigation: Charge related to tariffs on equipment imported and reexported, where previously recorded duty drawbacks are no longer deemed probable of recovery.

    Duplex and SPOT Subscriber ChurnQ4 2025

    Partially offset Q4 revenue growth.

    Mitigation: Focus on new IoT and wholesale capacity services to drive growth.

    Lower XCOM RAN SalesQ4 2025

    Partially offset Q4 revenue growth.

    Mitigation: Continued investment in XCOM RAN development and ecosystem building through partnerships (e.g., Boingo, Virewirx).

    What to watch in Q1 FY26

    4

    First C-3 replenishment satellite launch

    Q2 2026
    CurrentCritical design review completed
    TargetSuccessful launch

    Why it matters

    This is a key milestone for the next-generation C-3 constellation, impacting future capacity and service offerings.

    We have -- we're not updating. We're saying second quarter this year for the first launch and the second half for the second launch.

    Q&A highlights

    5

    What are Globalstar's thoughts on the idea of data centers in space and potential ancillary opportunities?

    Paul Jacobs acknowledged the excitement around data centers in space due to demand for compute and AI, but highlighted significant technical challenges such as maintenance, upgrades, and cooling. He clarified that this is not Globalstar's focus, which remains direct-to-cell and IoT, but noted it could create demand for launch capacity.

    “I mean I think there's a lot of technical challenges to it. Obviously, maintenance is a lot harder. Upgrades a lot harder. Cooling and so forth are hard in space. So yes, but this is a great technical challenge for people and certainly an interesting thing.”

    asked by Xin Yu · answered by Paul Jacobs

    2 min read7 chapters

    Detailed Narrative

    01

    FY25 Financial Performance

    Globalstar achieved record full-year revenue of $273 million, a 9% increase over 2024, and record adjusted EBITDA of $136.1 million, representing a 50% margin. Service revenue grew 8% to $257.3 million, primarily from wholesale capacity, while subscriber equipment revenue increased 24% to $15.7 million due to higher commercial IoT device sales. The company significantly improved its net loss from $63.2 million in 2024 to $7.6 million in 2025, largely due to non-cash items and favorable currency remeasurement.

    02

    Strategic Expansion and Product Innovation

    The company made significant strides in product innovation with the launch of two-way satellite IoT capabilities and the commercial rollout of its RM200M module, expanding its addressable market beyond one-way monitoring to include command and control for enterprise, government, and industrial customers. This innovation is expected to enable higher-value use cases requiring resilience and reliability.

    03

    Government and Defense Sector Growth

    Globalstar expanded its footprint in the government and defense sector, securing early wins and expanding relationships, including with Parsons for private 5G solutions. A key validation came from Virewirx (formerly XCOM Labs) selecting Globalstar as a technology partner for a $1.9 million Phase II SBIR contract to develop advanced 5G systems for challenging RF environments, leveraging Globalstar's XCOM RAN Private 5G platform.

    04

    Infrastructure and Network Development

    Significant progress was made in expanding the global ground station network across multiple continents to strengthen capacity, improve redundancy, and enhance readiness for next-generation services, including the C-3 constellation. The company also advanced its ITU financial commitments, completing 50% of the pledged investment for network extension.

    05

    XCOM RAN Ecosystem Development

    The XCOM RAN ecosystem continued to advance, with Boingo completing a proof-of-concept trial demonstrating its ability to support next-generation private 5G deployments, particularly over distributed antenna systems (DAS) for increased capacity in dense environments. This integration highlights growing partner engagement and commercial relevance for XCOM RAN in areas like warehouse automation, airports, stadiums, and military bases.

    06

    IoT Business Momentum

    The IoT business demonstrated sustained demand, with average commercial IoT subscribers increasing 6% year-over-year and IoT hardware sales revenue growing 50% year-over-year. This growth reflects increasing adoption of higher-value solutions enabled by two-way connectivity, particularly in asset tracking, monitoring, and safety applications.

    07

    C-3 Constellation Milestones

    The company completed the critical design review for the C-3 constellation, a crucial step in ensuring the holistic system design. Ongoing work includes ground network build-out and regulatory advancements, with the first launch of replenishment satellites targeted for Q2 2026 and the second for H2 2026.

    AI-generated summary of the company’s earnings call. Not investment advice.