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Globalstar (GSAT)
NASDAQ:GSAT
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Globalstar (GSAT) AI Stock Analysis

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GSAT

Globalstar

(NASDAQ:GSAT)

Rating:49Neutral
Price Target:
$27.00
▼(-4.26% Downside)
Globalstar's overall stock score is primarily influenced by its financial performance and earnings call highlights. While revenue growth and cash flow improvements are positive, high debt levels and negative profitability weigh heavily. The lack of technical data and poor valuation metrics further contribute to a lower score. However, strategic partnerships and infrastructure progress provide some optimism.
Positive Factors
Earnings
The company delivered solid results and a reiteration of its outlook.
Partnerships
Management professed great enthusiasm for the combination of satellite and terrestrial services it is building, supported by tremendous partnerships, clean spectrum, architectural advantages and unique technology.
Revenue Growth
Revenue of $61.2M in the quarter was up 17% year over year driven by increased Wholesale revenue, which notably was up 34% on a year-over-year basis.
Negative Factors
Competitive Threats
Some investors have expressed concerns over recent reports that Apple has been working with SpaceX to enable Starlink service on iPhones.

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 sale of satellite communications services, which includes subscription fees for voice and data plans, hardware sales (such as satellite phones and IoT devices), and usage-based charges for satellite airtime. Key revenue streams include monthly service subscriptions for both individual users and enterprises, one-time sales of satellite equipment, and additional charges for data usage beyond standard limits. The company has established significant partnerships with various industries, including maritime and energy sectors, enhancing its customer base and service offerings. Additionally, Globalstar benefits from agreements with other telecommunications companies that allow them to extend their services through roaming agreements, further diversifying their revenue sources.

Globalstar Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including strong financial performance, growth in the IoT sector, successful partnerships, and engagement with government entities. Despite these positive aspects, there were concerns regarding cost increases in XCOM RAN development and challenges related to spectrum sharing. However, the overall sentiment remains optimistic due to strategic investments and partnerships.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Total revenue increased by 11% to $67.1 million for the second quarter compared to the prior year period. Adjusted EBITDA rose to $35.8 million compared to $32.6 million in the prior year second quarter.
Growth in Commercial IoT
Continued growth in the average number of subscribers in the Commercial IoT sector, propelled by a record number of gross activations over the last 12 months.
Successful Partnership with Parsons
Completed proof of concept with Parsons, integrating satellite network with their communications platform, leading to a commercial phase capacity access agreement.
Government Sector Engagement
Entered a cooperative research and development agreement with the U.S. Army to evaluate satellite-enabled edge processing solutions.
Infrastructure and Network Expansion
Global ground infrastructure program initiated, including installation of a new 6-meter tracking antenna in Texas, and a launch services agreement with SpaceX for satellite deployment.
Negative Updates
Cost Increases in XCOM RAN Development
Higher cash costs to support XCOM negatively impacted adjusted EBITDA by approximately $1.9 million and reduced adjusted EBITDA margin by 300 basis points compared to the prior year.
Challenges in Spectrum Sharing
Ongoing challenges and misinformation about spectrum sharing and dual licenses around spectrum, emphasizing technical and regulatory complexities.
Company Guidance
During the Globalstar Second Quarter 2025 Earnings Conference Call, CFO Rebecca Clary provided guidance on several financial metrics. She reported an 11% increase in total revenue to $67.1 million compared to the previous year's $60.4 million, largely driven by a 10% rise in service revenue. The adjusted EBITDA for the quarter was $35.8 million, up from $32.6 million in the prior year, although it was impacted by $1.9 million in higher cash costs related to the development of XCOM RAN. The company ended the quarter with $308.2 million in cash on hand and reported adjusted free cash flow of $77.9 million for the first half of 2025, up from $51.9 million in the same period last year. Globalstar reiterated its full-year 2025 guidance, expecting revenue between $260 million and $285 million and an adjusted EBITDA margin of approximately 50%. The company's strategic investments and operational milestones, including satellite launches and network expansions, are expected to support long-term growth and profitability.

Globalstar Financial Statement Overview

Summary
Globalstar shows promising revenue growth and strong cash flow generation, yet faces profitability challenges with consistent net losses. The balance sheet reflects high leverage, which could pose risks if revenue growth does not translate into eventual profitability. Overall, the company demonstrates potential in cash flow management while needing to improve profitability and manage debt levels.
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 Revenue260.66M250.35M223.81M148.50M124.30M128.49M
Gross Profit150.94M167.57M154.34M83.48M72.33M79.81M
EBITDA118.85M88.59M88.39M37.58M30.98M38.15M
Net Income-38.41M-63.16M-24.72M-256.92M-112.63M-109.64M
Balance Sheet
Total Assets1.91B1.71B924.31M833.39M814.11M888.09M
Cash, Cash Equivalents and Short-Term Investments308.23M391.16M56.74M32.08M14.30M13.33M
Total Debt542.91M541.93M392.55M222.07M269.67M400.47M
Total Liabilities1.55B1.35B545.33M518.62M448.68M465.03M
Stockholders Equity360.88M358.88M378.98M314.77M365.43M423.06M
Cash Flow
Free Cash Flow367.94M320.29M-101.27M23.85M86.34M15.00M
Operating Cash Flow586.40M439.19M74.34M63.80M131.88M22.21M
Investing Cash Flow-461.85M-260.57M-175.61M-39.95M-45.19M-14.54M
Financing Cash Flow118.91M157.18M125.79M-6.05M-140.28M1.16M

Globalstar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.20
Price Trends
50DMA
25.65
Positive
100DMA
22.59
Positive
200DMA
24.29
Positive
Market Momentum
MACD
0.54
Negative
RSI
62.03
Neutral
STOCH
73.95
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 28.2 is above the 20-day moving average (MA) of 26.25, above the 50-day MA of 25.65, and above the 200-day MA of 24.29, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.95 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$3.90B3.9789.94%8.66%
67
Neutral
$2.62B24.8017.96%2.28%7.56%38.78%
60
Neutral
$44.05B4.50-12.81%4.08%1.86%-43.08%
56
Neutral
$3.82B22.47-0.27%2.29%3.89%-107.44%
55
Neutral
$4.23B-0.81%0.40%-5.62%80.09%
49
Neutral
$3.54B-10.33%14.85%6.91%
46
Neutral
$1.84B102.75-93.59%10.65%-6.64%-569.94%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GSAT
Globalstar
28.74
9.09
46.26%
CCOI
Cogent Comms
37.79
-27.24
-41.89%
IRDM
Iridium Communications
24.61
-0.78
-3.07%
TEO
Telecom Argentina
8.91
2.08
30.45%
TDS
Telephone & Data Systems
40.27
16.88
72.17%
VEON
VEON
60.69
34.02
127.56%

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: Aug 14, 2025