10-K: Globalstar Reports Strong Revenue Growth, Reduced Loss in 2025

Globalstar, Inc. announced a 9% revenue increase and a significant reduction in net loss for 2025, driven by wholesale capacity services and strategic investments in its next-generation satellite network.

Summary

• Total revenue increased 9% to $273.0 million in 2025, up from $250.3 million in 2024.
• Wholesale capacity services revenue grew 19% to $172.7 million in 2025, representing 63% of total revenue, primarily due to the Updated Services Agreements with Apple Inc.
• Operating income turned positive at $7.4 million in 2025, compared to an operating loss of $0.9 million in 2024.
• Net loss significantly reduced to $8.7 million in 2025 from $63.2 million in 2024.
• Cash and cash equivalents increased to $447.5 million as of December 31, 2025, from $391.2 million in 2024.
• Net cash provided by operating activities surged to $621.7 million in 2025, up from $439.2 million in 2024, largely due to Infrastructure Prepayment receipts.
• The company is investing heavily in its Extended MSS Network, with property and equipment (net) increasing to $1.31 billion in 2025 from $673.6 million in 2024.
• Acquired intellectual property assets from XCOM Labs, Inc. (now Virewirx, Inc.) in January 2026, enhancing wireless spectrum innovations.
• Released the RM200M two-way module in October 2025 and is developing new two-way Commercial IoT and SPOT products.
• Experienced a $7.0 million loss in Q1 2025 due to one second-generation satellite becoming inoperable.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, reflecting strong revenue growth, a return to operating profitability, and significant strategic investments. However, substantial capital expenditures, reliance on a single major customer, and satellite operational risks temper the overall sentiment.

Positives

• Significant 9% increase in total revenue, reaching $273.0 million in 2025.
• Wholesale capacity services revenue, primarily from Apple, grew 19% to $172.7 million, demonstrating strong demand from a key partner.
• Achieved positive income from operations of $7.4 million in 2025, a notable improvement from losses in prior years.
• Net loss substantially reduced to $8.7 million in 2025 from $63.2 million in 2024.
• Strong cash position with cash and cash equivalents increasing to $447.5 million.
• Net cash provided by operating activities saw a substantial increase to $621.7 million, indicating improved operational cash generation.
• Successful acquisition of XCOM Labs' intellectual property assets, including XCOM RAN systems and peer-to-peer connectivity technologies, enhancing terrestrial spectrum solutions.
• Launched the RM200M two-way module in October 2025, expanding Commercial IoT product offerings.
• FCC granted a renewed 15-year license term for the HIBLEO-4 U.S.-licensed system in August 2024, ensuring long-term service continuity.
• Gross Commercial IoT subscriber activations increased over 50% year-over-year, reaching a record high.

Negatives

• One second-generation satellite became inoperable in Q1 2025, resulting in a $7.0 million loss on disposal of assets.
• SPOT service revenue decreased by $3.8 million in 2025 due to fewer subscribers and competitive pressure.
• Duplex service revenue decreased by $4.9 million in 2025 due to a strategic decision to discontinue manufacturing and selling Duplex devices.
• Cost of subscriber equipment sales increased 39% in 2025, partly due to $1.1 million in tariffs on imported equipment.
• Significant reliance on a single customer (Apple Inc.), which accounted for 63% of total revenue in 2025, posing a concentration risk.
• Delivery delays for replacement satellites to support the Phase 2 Service Period, impacting launch schedules.
• Increased operating expenses, including higher network operating costs and XCOM technology development expenses.
• The company does not insure its second-generation satellites against in-orbit failures after an initial six-month period, exposing it to potential uninsured losses.
• No product recall insurance, which could lead to significant financial impact if a recall is necessary.

Risks

• Inability to meet obligations or attain anticipated benefits under the Updated Services Agreements, which constitute a majority of current revenue.
• Disruptions to ground facilities due to unanticipated events like natural disasters or equipment failure.
• Actual orbital lives of satellites may be shorter than anticipated, requiring capacity reduction or accelerating capital expenditures.
• Damage to or failure of satellites from space debris, collisions with other LEO satellites, or extreme space weather events.
• Failure to successfully or timely launch new satellites, including due to construction and delivery delays, impacting future operations and financial results.
• Lack of demand for wireless communications services via satellite and terrestrial mobile broadband networks.
• Inadequate satellite network capacity to meet current and increased demand.
• Inability to service, upgrade, and replace equipment for rapid technological changes in the satellite communications industry.
• Intense competition from other global MSS providers (Viasat, Iridium, ORBCOMM) and new direct-to-cellular entrants (SpaceX's Starlink, Amazon Leo, AST SpaceMobile).
• Uncertain global macro-economic and political conditions, including inflation, interest rates, tariffs, and supply chain disruptions.
• Reliance on a limited number of key suppliers and vendors for satellite construction, launch, and equipment.
• Inability to raise adequate capital on reasonable terms to finance capital-intensive business strategies.
• Failure to develop, acquire, maintain, and protect proprietary information and intellectual property rights.
• Operational risks in international and developing markets, including currency fluctuations and expropriation risks.
• Less flexibility due to restrictive covenants in financing arrangements, limiting ability to incur additional indebtedness or pursue strategic opportunities.
• Vulnerability to cyber-attacks and other security breaches, potentially leading to theft of intellectual property, service interruptions, or compromise of customer data.
• Inability to obtain and maintain adequate insurance coverages, leading to material uninsured or under-insured losses.
• Volatility of spectrum values, which could affect the value realized from strategic partnerships.
• Changes in tax rates or adverse results of tax examinations, such as the ongoing Canada Revenue Agency audits.
• Exposure to trade credit risk from customers' nonperformance of obligations.
• Litigation and investigations, including those related to alleged health and safety risks from wireless devices' radio frequency emissions.
• Compliance with extensive and evolving government regulatory frameworks across jurisdictions.
• Potential reduction of existing spectrum allocation or imposition of additional spectrum sharing agreements, including harmful interference from competing systems (e.g., Chinese system over Asia).
• Revocation, modification, or non-renewal of licenses by regulatory authorities (FCC, French regulators).
• Changes in international trade regulations and other risks associated with foreign trade, such as increased tariffs.
• Emerging and unsettled data privacy laws exposing the company to substantial risks and compliance costs.
• Restrictions on the ability to pay dividends on common stock due to financing arrangements.
• Limited trading market and market price volatility for common stock, including potential impact from short selling.
• Future dilution through issuances of additional shares of common stock or other equity securities.
• Future issuances of preferred stock or debt securities with rights superior to common stock.
• Interests of the controlling stockholder (Thermo) may conflict with those of other stockholders.
• Impact of anti-takeover provisions in charter documents and under Delaware law.

Future Outlook

Globalstar anticipates continued growth in Commercial IoT activations in 2026, driven by new two-way module sales. The company expects to launch the first set of eight replacement satellites in the first half of 2026, followed by the second set in the second half of 2026, and is developing a new two-way SPOT product for a late 2026 launch. Ground network expansion for the Extended MSS Network is ongoing, and the company is pursuing market access approvals for its third-generation C-3 System globally.

Management Comments

• We believe that this capacity can support a substantial increase in our own subscriber base.
• We believe bringing together Globalstar's terrestrial spectrum and relationships with leading partners around the world with XCOM's differentiated technology creates a significant opportunity to deliver private networks for mission-critical needs of customers.
• Our goal is to provide service levels and call or message success rates equal to or better than our MSS competitors, so our products and services are attractive to potential customers.
• We expect activations to continue to increase in 2026 due to commercial sales of our recently-launched two-way reference design module.
• Product engineering efforts are underway to develop a new consumer SPOT device, which we believe could potentially increase demand for such services from our subscribers.

Industry Context

StockSavvy.ai notes that Globalstar's strategic focus on direct-to-cellular connectivity and the expansion of its LEO satellite constellation aligns with broader industry trends seeing increased competition from new entrants like SpaceX's Starlink and Amazon Leo. The company's emphasis on terrestrial spectrum monetization and IoT solutions positions it within a growing market, though it faces established competitors such as Viasat (Inmarsat), Iridium, and ORBCOMM in the MSS sector, and Anterix in terrestrial spectrum.

Comparison to Industry Standards

• Globalstar's direct-to-cellular service is positioned as "currently the most robust service providing direct-to-cellular satellite capabilities across multiple regions," directly competing with offerings from SpaceX's Starlink and other new market entrants.
• The company's LEO satellite system is highlighted for its advantages in reducing transmission delay and being less prone to signal blockage compared to geostationary systems operated by competitors like Viasat (Inmarsat) and Thuraya.
• In the terrestrial spectrum market, Globalstar competes with licensed holders such as Anterix and Nextwave, as well as lightly licensed CBRS spectrum, with recent transactions by EchoStar and AT&T indicating an intensifying competitive landscape.
• The company's Commercial IoT products compete directly with ORBCOMM's asset tracking and monitoring solutions.

Corporate Governance

Legal Proceedings

• Management believes there is no pending litigation, dispute, or claim that would likely have a material adverse effect on the company's financial condition, results of operations, or liquidity.
• The Canada Revenue Agency (CRA) is conducting audits of the Canadian subsidiary for several tax years (2016-2018 completed and appealed; 2019-2022 remain under examination), with potential additional tax liabilities, penalties, and interest.

Related Party Transactions

• Thermo Capital Partners, L.L.C. (Thermo), the principal owner and largest stockholder (approximately 58% of common stock), has significant influence, with the Executive Chairman of the Board controlling Thermo and two other board members having affiliations.
• The company incurred $1.6 million in lease expense in 2025 for its headquarters office from Thermo Covington, LLC, an affiliate of Thermo.
• Thermo owns $136.7 million of Series A Preferred Stock and received $9.7 million in dividends in 2025.
• Thermo guaranteed certain obligations under the 2023 Funding Agreement and Service Agreements (Amended Thermo Guaranty) and received a warrant to purchase 666,668 common shares, with 333,334 shares vesting immediately and the remainder vesting upon Thermo advancing $25.0 million or more.
• The company's CEO, Dr. Paul E. Jacobs, is also the Executive Chairman and controlling stockholder of XCOM Labs, Inc. (now Virewirx, Inc.), from which Globalstar acquired intellectual property assets in January 2026.
• Globalstar issued 4.0 million shares of common stock to XCOM and 1.1 million shares to Dr. Jacobs in connection with the former Intellectual Property License Agreement.
• XCOM sold 0.3 million shares (June 2024) and 0.2 million shares (March 2025) of Globalstar common stock to an affiliate of Thermo.

Stakeholder Impact

• Shareholders: Common shareholders face potential dilution from future stock issuances and warrants, and the market price may be volatile. The absence of common stock dividends and the controlling interest of Thermo Capital Partners, L.L.C. may limit influence and returns.
• Customers: Customers, particularly Apple Inc., benefit from expanded services and network capacity, while other MSS subscribers will see continued service delivery and new product development.
• Employees: The company maintains competitive compensation and benefits, training programs, and flexible work arrangements, fostering a good relationship with its diverse workforce.
• Creditors: Debt obligations are secured by company assets, and restrictive covenants in financing arrangements may impact operational and financial flexibility.
• Suppliers: Key suppliers like MDA Space and SpaceX are critical for satellite procurement and launch, with ongoing commitments and potential for liquidated damages due to delays.

Next Steps

• Launch the first set of eight replacement satellites during the first half of 2026.
• Launch the second set of replacement satellites during the second half of 2026.
• Continue expanding the global ground network to support the Extended MSS Network.
• Increase Commercial IoT activations in 2026 through commercial sales of the recently-launched two-way reference design module.
• Launch a new two-way SPOT product in late 2026.
• Pursue market access approvals from multiple countries for the C-3 System.
• Evaluate the impact of new accounting standards ASU 2024-03 and ASU 2025-07 for future financial statements.

Key Dates

Recommendation

Globalstar's 2025 results show significant progress with strong revenue growth, a shift to operating profitability, and a reduced net loss, largely driven by the strategic partnership with Apple and substantial investments in next-generation infrastructure. The acquisition of XCOM's IP further strengthens its terrestrial spectrum capabilities. However, the company faces considerable execution risks related to satellite launches and network build-out, intense competition, and a high reliance on a single customer. While the long-term potential is evident, the substantial capital requirements and operational challenges warrant a 'hold' recommendation, advising investors to monitor execution and risk mitigation closely before considering further investment.

Keywords

Globalstar, GSAT, Satellite Communications, MSS, Mobile Satellite Services, IoT, Internet of Things, SPOT devices, LEO satellites, Terrestrial Spectrum, Band 53/n53, Apple partnership, SEC filing, 10-K, Financial Report, Satellite Network, XCOM Labs, Virewirx, Wireless Spectrum, Corporate Governance, Risk Factors, Financial Performance, Revenue Growth, Net Loss Reduction, Capital Expenditures, Satellite Launch, Ground Infrastructure, Regulatory Approvals, Cybersecurity, Related Party Transactions