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Globalstar (GSAT)
NASDAQ:GSAT

Globalstar (GSAT) AI Stock Analysis

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Globalstar

(NASDAQ:GSAT)

Rating:64Neutral
Price Target:
$23.50
▲(0.38%Upside)
Globalstar's overall score is driven by strong financial performance in terms of revenue growth and cash flow generation. However, profitability challenges, high leverage, and an overvalued stock price weigh on the score. Technical indicators suggest positive momentum but caution due to overbought signals. Positive earnings call sentiment boosts the outlook slightly.
Positive Factors
Financial Performance
The company delivered solid results and a reiteration of its outlook.
Partnerships
The recent announcements of partnerships with Parsons, Peiker Holding and Liquid Intelligent Technologies all attack very different markets.
Technological Innovation
The announcement of a new two-way IoT device will grow use cases materially from its historic one-way limitation.
Negative Factors
Competitive Concerns
Some investors have expressed concerns over recent reports that Apple has been working with SpaceX to enable Starlink service on iPhones.
Stock Performance
The stock fell 31% in a quick reaction to the news, recovering some of the move but remains down 21% from prior to the announcement.

Globalstar (GSAT) vs. SPDR S&P 500 ETF (SPY)

Globalstar Business Overview & Revenue Model

Company DescriptionGlobalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment. It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device. In addition, the company offers commercial Internet of Things one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets. Further, it sells wholesale minutes to independent gateway operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. The company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGOs, and sales force and e-commerce Website. As of December 31, 2020, it had approximately 745,000 subscribers. The company primarily serves recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, and forestry markets. Globalstar, Inc. has a strategic alliance with XCOM Labs to jointly commercialize XCOM's capacity-multiplying technology with Globalstar's Band n53 for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is headquartered in Covington, Louisiana.
How the Company Makes MoneyGlobalstar generates revenue primarily through the provision of satellite communication services. The company's key revenue streams include service fees from voice and data communications, sales of satellite phones and related communication devices, and asset tracking solutions. Additionally, Globalstar earns income from licensing agreements and partnerships, which allow third-party companies to utilize its satellite spectrum and infrastructure. Significant contributors to its earnings also include government contracts and agreements with enterprise customers who require reliable connectivity in remote areas. By leveraging its satellite constellation and ground infrastructure, Globalstar caters to a wide range of industries, including maritime, aviation, and emergency services, which require dependable and global coverage.

Globalstar Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 15.95%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The call highlighted strong revenue growth, significant advancements in satellite and IoT solutions, strategic leadership appointments, and promising partnerships. However, these positives were offset by increased costs impacting EBITDA and a prolonged sales cycle for a major customer. Despite these challenges, the company remains optimistic about its long-term growth prospects.
Q1-2025 Updates
Positive Updates
Revenue Growth
Total revenue increased by 6% to $60 million compared to the prior year period of $56.5 million. Service revenue increased by 7%, driven primarily by wholesale capacity services.
Increase in Adjusted Free Cash Flow
Adjusted free cash flow rose significantly to $47.6 million compared to $19.9 million in the prior year's first quarter.
Successful Launch of Two-Way Satellite IoT Solution
Globalstar launched a two-way satellite IoT solution via its low earth orbiting satellite constellation, marking a significant expansion beyond traditional one-way tracking capabilities.
New State-of-the-Art Satellite Operations Control Center
Opened a new satellite operations control center in Covington, Louisiana, enhancing satellite fleet management capabilities and improving network performance.
Strategic Leadership Appointments
Appointed Dr. Tamer Kadous as Vice President and General Manager of Terrestrial Network Business, and Daaman Hejmadi as Vice President and General Manager of Wholesale Consumer Business, strengthening the leadership team.
Technological Breakthrough at Mobile World Congress
Demonstrated XCOM RAN technology using n53 spectrum, achieving speeds of 400 megabits per second and showcasing advancements in robotics, autonomous vehicles, and augmented reality.
Partnership with MDA Space
Signed a C$1.1 billion contract with MDA Space to build more than 50 satellites for Globalstar's next-generation LEO constellation, marking a significant milestone for the company's extended MSS network plans.
Negative Updates
Higher Costs Impacting EBITDA
Higher cash costs to support XCOM RAN negatively impacted adjusted EBITDA by $1.3 million and adjusted EBITDA margin by approximately 200 basis points compared to the prior year.
Long Sales Cycle for Major Customer
Sales cycle with a primary initial customer, a large retailer, remains long, delaying potential revenue generation from the XCOM RAN business.
Company Guidance
During the Globalstar First Quarter 2025 Earnings Conference Call, the company provided several financial metrics and guidance. Total revenue increased by 6% to $60 million compared to the prior year, while service revenue rose by 7%, largely due to wholesale capacity services. Adjusted EBITDA grew by 3% to $30.4 million despite higher cash costs, including a $1.3 million increase to support the XCOM RAN product. The adjusted EBITDA margin was adversely impacted by approximately 200 basis points. Globalstar ended the fiscal period with $241.4 million in cash, while net cash flows from operations were $51.9 million, and adjusted free cash flow was $47.6 million, a significant improvement from the previous year. The company reiterated its full-year 2025 revenue guidance of $260 million to $285 million, with an anticipated adjusted EBITDA margin of around 50%.

Globalstar Financial Statement Overview

Summary
Globalstar displays promising revenue growth and strong cash flow generation, but faces profitability challenges with consistent net losses. High leverage on the balance sheet poses a risk if revenue growth does not translate into eventual profitability.
Income Statement
65
Positive
Globalstar's revenue has shown a consistent growth trend with a notable increase of 13.58% from 2023 to the TTM period. However, the company continues to report net losses, which negatively impacts its net profit margin. The gross profit margin remains healthy at 65.55% in the TTM, although EBIT and net income remain negative, indicating ongoing profitability challenges.
Balance Sheet
58
Neutral
The debt-to-equity ratio is relatively high at 1.56, indicating a significant leverage position. The equity ratio is moderate at 19.91%, suggesting a stable but not overly strong equity base. Return on equity is negative due to recurring net losses, pointing to challenges in generating returns for shareholders.
Cash Flow
72
Positive
Operating cash flow has been robust, with a significant increase in free cash flow growth. The operating cash flow to net income ratio is strong, indicating good cash generation despite accounting losses. The free cash flow to net income ratio is also positive, reflecting efficient cash management even in light of negative earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue253.90M250.35M223.81M148.50M124.30M128.49M
Gross Profit166.45M167.57M154.34M83.48M72.33M79.81M
EBITDA91.72M88.59M88.39M37.58M30.98M38.15M
Net Income-67.30M-63.16M-24.72M-256.92M-112.63M-109.64M
Balance Sheet
Total Assets1.73B1.71B924.31M833.39M814.11M888.09M
Cash, Cash Equivalents and Short-Term Investments241.41M391.16M56.74M32.08M14.30M13.33M
Total Debt536.96M541.93M392.55M162.50M269.67M400.47M
Total Liabilities1.38B1.35B545.33M518.62M448.68M465.03M
Stockholders Equity344.34M358.88M378.98M314.77M365.43M423.06M
Cash Flow
Free Cash Flow432.94M320.29M-101.27M23.85M86.34M15.00M
Operating Cash Flow465.19M439.19M74.34M63.80M131.88M22.21M
Investing Cash Flow-400.86M-260.57M-175.61M-39.95M-45.19M-14.54M
Financing Cash Flow118.67M157.18M125.79M-6.05M-140.28M1.16M

Globalstar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.41
Price Trends
50DMA
20.14
Positive
100DMA
20.87
Positive
200DMA
22.64
Positive
Market Momentum
MACD
1.14
Negative
RSI
67.29
Neutral
STOCH
63.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSAT, the sentiment is Positive. The current price of 23.41 is above the 20-day moving average (MA) of 21.56, above the 50-day MA of 20.14, and above the 200-day MA of 22.64, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 67.29 is Neutral, neither overbought nor oversold. The STOCH value of 63.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSAT.

Globalstar Risk Analysis

Globalstar disclosed 40 risk factors in its most recent earnings report. Globalstar reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Globalstar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.12B27.1718.01%1.93%6.64%403.10%
75
Outperform
$1.92B76.11-6.47%41.51%-103.22%
66
Neutral
¥363.30B13.782.32%2.55%5.41%-18.17%
64
Neutral
$2.94B-18.66%14.55%-81.21%
59
Neutral
$939.22M6.9334.07%7.30%11.62%
54
Neutral
$1.16B-57.56%-1.56%-10914.21%
41
Neutral
$977.55M21.93%-3.68%-2563.04%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GSAT
Globalstar
23.21
6.41
38.15%
IRDM
Iridium Communications
29.51
3.41
13.07%
SBGI
Sinclair Broadcast
13.72
1.25
10.02%
GOGO
Gogo
14.48
4.86
50.52%
LILAK
Liberty LiLAC Group
6.01
-3.61
-37.53%
ATUS
Altice Usa
2.09
0.05
2.45%

Globalstar Corporate Events

Executive/Board ChangesShareholder MeetingsRegulatory Filings and Compliance
Globalstar Approves Key Amendments at Annual Meeting
Neutral
May 21, 2025

On May 20, 2025, Globalstar, Inc. held its annual stockholders’ meeting where several key decisions were made. The stockholders approved an amendment to the company’s Certificate of Incorporation to allow for officer exculpation under Delaware law, elected three Class A directors, ratified Ernst & Young LLP as the independent auditor for 2025, and approved an amendment to the Thermo guaranty agreement. These decisions are expected to impact the company’s governance and operational framework, potentially enhancing its strategic positioning and compliance with regulatory standards.

The most recent analyst rating on (GSAT) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Globalstar stock, see the GSAT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 12, 2025