Globalstar Earnings Call: Record Revenue, Investment Risks

Globalstar Inc ((GSAT)) has held its Q4 earnings call. Read on for the main highlights of the call.

Globalstar’s latest earnings call struck a notably upbeat tone, as management highlighted another year of record revenue, record adjusted EBITDA with a 50% margin, and improving operating income. Executives balanced this optimism with caution around higher operating expenses, persistent GAAP net losses, heavy capital spending, and the early-stage nature of key growth bets like two-way IoT and XCOM RAN.

Record Full-Year Revenue Momentum

Globalstar reported full-year 2025 revenue of $273 million, a 9% increase from the prior year and its fourth straight annual record. Management framed this streak as evidence that its satellite services are scaling steadily, even as the company invests heavily in upgrading its network and broadening its product suite.

Service and Equipment Lines Both Deliver Growth

Service revenue rose 8% year over year to $257.3 million, confirming the strength of recurring revenue from satellite connectivity. Subscriber equipment revenue jumped an even faster 24% to $15.7 million, reflecting healthy hardware demand that supports ongoing service usage and broadens the installed base.

Profitability Improves With Record EBITDA

Adjusted EBITDA climbed to a record $136.1 million, maintaining a 50% margin that met guidance and underscored solid underlying economics. Income from operations swung to a $7.4 million profit from a $0.9 million loss in 2024, signaling that scale and cost controls are starting to offset rising investment spend.

Q4 Delivers Strong Top-Line and EBITDA Gains

In the fourth quarter, total revenue reached $72 million, with service revenue of $67.4 million and equipment revenue of $4.6 million. Q4 service revenue grew 17% and equipment sales 31% from a year earlier, while adjusted EBITDA rose 7% to $32.4 million, reinforcing the company’s full-year momentum.

Robust Cash Position and Operating Cash Flow

Globalstar ended 2025 with $447.5 million of cash and equivalents, up roughly 14% from $391.2 million a year earlier. Operating cash flow totaled $621.7 million, including a sizable $430.6 million infrastructure prepayment, giving the firm meaningful liquidity to fund its capital program and strategic initiatives.

Adjusted Free Cash Flow on the Rise

Adjusted free cash flow increased to $171.5 million from $131.9 million in 2024, a gain of about 30%. Management presented this as proof that, despite heavy capital outlays, the business is generating cash that can support debt service, network investment, and potential future growth projects.

Two-Way IoT Rollout Expands Addressable Market

The company highlighted the commercial rollout of its RM-200MS two-way satellite IoT module and broader two-way IoT capabilities. These products are designed to unlock higher-value applications and expand the addressable market beyond one-way tracking, positioning Globalstar to capture more complex and data-rich use cases over time.

Defense, Partnerships, and XCOM RAN Progress

Management pointed to several strategic milestones, including a Parsons proof-of-concept and trials, and a Boingo proof-of-concept for XCOM RAN. Fireworks’ SBIR Phase II award, which selected Globalstar as a technology partner, and completion of half of the company’s ITU financial commitments, signal growing traction in defense and advanced wireless solutions.

GAAP Net Loss Narrows but Persists

Despite operational gains, Globalstar still posted a net loss of $7.6 million for 2025, though this was a sharp improvement from a $63.2 million loss in 2024. The fourth quarter showed a net loss of $10.6 million, underscoring that significant depreciation, interest, and investment costs continue to weigh on bottom-line profitability.

Operating Expenses Climb With Growth Investments

Operating expenses rose as the company added personnel to support next-generation network buildout and invested in XCOM RAN development. Higher legal and professional fees also contributed, partially offsetting revenue gains and reminding investors that Globalstar’s growth strategy carries a near-term cost burden.

XCOM RAN Spend Comes Ahead of Revenue

Management emphasized that XCOM RAN costs are being incurred well before meaningful revenue is realized, as the company focuses on commercial hardening and development. This timing gap is putting pressure on margins today, but leadership argued it lays the groundwork for future high-value spectrum and network monetization.

Tariff Charge Weighs on Q4 Equipment Costs

Fourth-quarter cost of subscriber equipment included a $1.1 million charge tied to tariffs on equipment that was imported and then re-exported. The company no longer views prior duty drawback claims as likely to be recovered, creating a one-time headwind that dampened Q4 equipment profitability.

Churn and Lower XCOM RAN Sales Temper Q4 Upside

Globalstar noted that Duplex and SPOT subscriber churn, along with lower XCOM RAN sales, constrained quarter-over-quarter growth. While not derailing the broader trajectory, these dynamics highlighted the competitive pressures in legacy services and the lumpiness of early-stage XCOM-related revenues.

Heavy Capex and ITU Obligations Elevate Risk

Capital expenditures reached $550.4 million in 2025, largely for replacement satellites, extended MSS network buildout, and ground infrastructure. The company also faces a $2.0 billion ITU commitment, half of which is complete, representing substantial future cash requirements and execution risk for investors to watch.

Two-Way IoT Still Early in Revenue Contribution

Although the new two-way IoT module is in commercial production, management said customers are still integrating it and completing end-to-end validation. As a result, revenue from two-way IoT is not yet material, making this a promising but still unproven growth leg in the near term.

Guidance Points to Steady Growth and Stable Margins

Looking to 2026, Globalstar guided for total revenue between $280 million and $305 million, implying modest growth from 2025’s $273 million. The company expects to maintain an adjusted EBITDA margin around 50%, signaling confidence that its next-generation infrastructure, IoT hardware expansion, and subscriber base can scale while absorbing continued capex and development spending.

Globalstar’s call painted the picture of a satellite operator transitioning from stabilization to growth, with record revenue and cash flow supporting an ambitious technical roadmap. Investors are being asked to balance attractive EBITDA margins and strategic wins in IoT and defense against ongoing losses, elevated capex, and execution risks around new platforms like XCOM RAN.