Globalstar Inc. Reports Record Revenue in Q3 Earnings Call

Globalstar Inc ((GSAT)) has held its Q3 earnings call. Read on for the main highlights of the call.

Globalstar Inc. recently held its third-quarter earnings call, revealing a strong performance characterized by record revenue and growth in key sectors such as Commercial IoT. The company reported a solid cash position and strategic investments, although challenges like lower net income due to noncash items, high capital expenditures, and uncertainties around satellite launch timing were acknowledged. Despite these hurdles, Globalstar expressed optimism about its future, particularly with ongoing investments in XCOM RAN and government sector engagement.

Record Quarterly Revenue

Globalstar Inc. achieved a record total revenue of $73.8 million for the third quarter, marking a significant increase over the previous year’s third quarter. This growth underscores the company’s robust performance and its ability to capitalize on market opportunities.

Growth in Commercial IoT

The company reported a notable increase in Commercial IoT service revenue, driven by a 6% rise in average subscribers, reaching 543,000. Additionally, equipment revenue from Commercial IoT device sales surged by 60% compared to the prior year’s third quarter, highlighting strong demand in this sector.

Strong Cash Position

Globalstar generated an impressive operating cash flow of $445.8 million during the first nine months of 2025, ending the third quarter with cash and cash equivalents totaling $346.3 million. This strong cash position provides the company with the flexibility to pursue strategic initiatives.

Strategic Investments and Solid EBITDA Margins

The company maintained adjusted EBITDA margins of 51% in the third quarter and 52% year-to-date, while making significant investments in XCOM and next-generation products. These strategic investments are expected to drive future growth and enhance the company’s competitive position.

Expansion in Government and Commercial IoT Markets

Globalstar is making strides in the government sector through its partnership with Parsons Corporation, alongside continued growth in Commercial IoT subscribers. Gross activations increased by 40% over the same quarter last year, with total units doubling compared to the prior year.

Lower Net Income

The company’s net income was lower than the previous year’s third quarter, primarily due to noncash items such as higher interest expense from noncash imputed interest related to the 2024 prepayment agreement and net foreign currency losses.

High Capital Expenditures

Capital expenditures amounted to $485.9 million during the first nine months of 2025, reflecting commitments under Updated Services Agreements for network expansion and upgrades. These investments are crucial for supporting the company’s long-term growth strategy.

Uncertainty in Satellite Launch Timing

Globalstar noted that there are no new indications regarding the timing of replacement satellite launches, with updates expected in the first half of 2026. This uncertainty poses a challenge for the company’s satellite operations.

Delay in Revenue from XCOM RAN

The company anticipates limited revenue from XCOM RAN in the current fiscal year, with growth expected in the following year. This delay highlights the challenges in realizing immediate returns from new investments.

Forward-Looking Guidance

Globalstar reaffirmed its full-year 2025 outlook, projecting revenue between $260 million and $285 million and an adjusted EBITDA margin of approximately 50%. The company is confident in its strategic investments and growth opportunities, particularly in the Commercial IoT and government sectors.

In conclusion, Globalstar Inc.’s third-quarter earnings call highlighted a strong performance with record revenue and significant growth in key areas. While challenges such as lower net income and high capital expenditures were noted, the company’s strategic investments and solid cash position provide a foundation for future growth. Globalstar remains optimistic about its prospects, with a focus on expanding its presence in the Commercial IoT and government markets.