Globalstar Inc ((GSAT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Globalstar Inc’s recent earnings call painted a picture of robust growth and strategic advancements, despite some challenges. The company reported significant revenue growth and successful partnerships, particularly in the infrastructure and government sectors. However, the positive developments were somewhat offset by increased costs associated with XCOM, which impacted the EBITDA margin. Overall, the sentiment was optimistic, with the positives outweighing the negatives.
Revenue Growth
Globalstar Inc reported an 11% increase in total revenue, reaching $67.1 million compared to $60.4 million in the same period last year. This growth was primarily driven by a 10% rise in service revenue, fueled by wholesale capacity services.
Net Income and EBITDA Increase
The company achieved net income during the second quarter, with adjusted EBITDA rising to $35.8 million from $32.6 million in the previous year’s second quarter. This improvement highlights the company’s effective cost management and operational efficiency.
Cash Flow Improvements
Globalstar’s adjusted free cash flow for the first half of 2025 was $77.9 million, a significant increase from $51.9 million in the prior year period. This improvement underscores the company’s strong cash generation capabilities.
Globalstar-Parsons Partnership
A key highlight was the successful completion of a proof of concept with Parsons, integrating Globalstar’s satellite network with their software-defined communications platform. This partnership is now advancing into the commercial phase, promising future revenue streams.
U.S. Army Agreement
Globalstar entered into a cooperative research and development agreement with the U.S. Army to evaluate satellite-enabled edge processing solutions. This agreement expands Globalstar’s presence in the defense and government markets, opening new opportunities.
Infrastructure Progress
The company officially launched its global ground infrastructure program, starting with the installation of a new 6-meter tracking antenna in Texas. This is part of a broader upgrade plan to add approximately 90 antennas across 35 ground stations in 25 countries.
SpaceX Launch Agreement
Globalstar signed a launch services agreement with SpaceX for deploying the second batch of 9 satellites. This deployment is expected to replenish the existing second-generation constellation, enhancing service capabilities.
Cost Increases
Higher cash costs to support XCOM negatively impacted adjusted EBITDA by approximately $1.9 million and reduced the adjusted EBITDA margin by 300 basis points compared to the previous year’s quarter. This highlights the cost challenges the company faces in its expansion efforts.
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 expressed confidence in its ability to mitigate the impact of evolving tariffs, thanks to its global manufacturing and logistics capabilities.
In conclusion, Globalstar Inc’s earnings call reflected a positive trajectory with significant revenue growth and strategic partnerships. Despite the challenges posed by increased costs, the company’s forward-looking guidance remains optimistic, promising continued growth and expansion in the coming quarters.