Education
About Us
Working with TipRanks
Follow Us
Globalstar Inc (GSAT)
NASDAQ:GSAT
Top Page
Globalstar
(NASDAQ:GSAT)
Select Model
Select Model
Rating:58Neutral
Price Target:
$59.00
▼(-3.04% Downside)
Globalstar's stock score is primarily influenced by its strong technical momentum and positive earnings call highlights, such as record revenue and strategic investments. However, financial performance issues, including profitability challenges and high leverage, along with a poor valuation due to negative earnings, weigh down the overall score.
Positive Factors
Revenue Growth
Record revenue growth indicates strong demand for Globalstar's services and products, suggesting a robust market position and potential for continued expansion.
Cash Generation
Strong cash flow generation enhances financial flexibility, allowing Globalstar to invest in growth opportunities and manage debt effectively.
Strategic Investments
Strategic investments in technology and partnerships position Globalstar to capitalize on future growth opportunities and maintain competitive advantages.
Negative Factors
Profitability Challenges
Ongoing profitability issues may hinder long-term financial health, limiting the company's ability to reinvest in its business and reward shareholders.
High Capital Expenditures
High capital expenditures may strain financial resources and impact short-term liquidity, posing risks if expected returns on investments are delayed.
Rising Debt Levels
Increasing debt levels can limit financial flexibility and increase vulnerability to economic downturns, affecting long-term sustainability.
Globalstar (GSAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.13B
Dividend YieldN/A
Average Volume (3M)678.69K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth8.54%
EPS Growth-59.63%
CountryUS
Employees389
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)<0.01
Shares Outstanding126,838,420
10 Day Avg. Volume484,151
30 Day Avg. Volume678,689
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)10.89
Price to Sales (P/S)15.61
P/FCF Ratio12.20
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue18.44
Enterprise Value/Gross Profit32.27
Enterprise Value/Ebitda46.87
Forecast
1Y Price Target
$67.00Price Target Upside10.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$301.45M
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 through multiple streams, primarily from subscription services, device sales, and value-added services. The company charges customers monthly fees for satellite phone and data services, which provide ongoing recurring income. Device sales contribute to revenue as well, with customers purchasing satellite phones and data modems. Additionally, Globalstar offers value-added services, such as tracking and monitoring solutions for enterprises, which further enhance its revenue potential. Strategic partnerships with various industries, including maritime and logistics, are crucial for expanding its customer base and creating tailored solutions that meet specific market needs. Moreover, Globalstar's focus on enhancing its network capacity and introducing new technologies, such as the integration of IoT applications, positions the company to capitalize on emerging trends in satellite communication.
Globalstar Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with record revenue and growth in key areas like Commercial IoT, supported by a solid cash position and strategic investments. However, challenges such as lower net income due to noncash items, high capital expenditures, and uncertainties around satellite launch timing were noted. The company is optimistic about future prospects, especially with ongoing investments in XCOM RAN and government sector engagement.Q3-2025 Updates
Positive Updates
Record Quarterly Revenue
Total revenue for the third quarter was $73.8 million, representing growth over the prior year's third quarter and reaching a record quarterly amount.
Growth in Commercial IoT
Commercial IoT service revenue increased due to subscriber growth with average subscribers reaching 543,000, a 6% increase from the prior year's third quarter. Equipment revenue from Commercial IoT device sales was up 60% compared to the prior year's third quarter.
Strong Cash Position
Generated operating cash flow of $445.8 million during the first 9 months of 2025, ending the third quarter with cash and cash equivalents of $346.3 million.
Strategic Investments and Solid EBITDA Margins
Maintained adjusted EBITDA margins of 51% in the third quarter and 52% year-to-date, while making substantial investments in XCOM and next-generation products.
Expansion in Government and Commercial IoT Markets
Strong traction in government sector with Parsons Corporation partnership and Commercial IoT subscriber growth. Gross activations up 40% over the same quarter last year, with total units up 100% compared to the prior year.
Negative Updates
Lower Net Income
Net income was lower than the prior year's third quarter, driven primarily by noncash items, including higher interest expense from noncash imputed interest related to the 2024 prepayment agreement and net foreign currency losses.
High Capital Expenditures
Capital expenditures were $485.9 million during the first 9 months of 2025, reflecting commitments under Updated Services Agreements for network expansion and upgrades.
Uncertainty in Satellite Launch Timing
No new indications on when the launches for the replacement satellites will occur, with updates on timing expected in the first half of 2026.
Delay in Revenue from XCOM RAN
Limited revenue expected from XCOM RAN in the current fiscal year, with growth anticipated in the following year.
Company Guidance
During the Globalstar Third Quarter 2025 Earnings Conference Call, the company reported a record total revenue of $73.8 million, marking a significant increase driven by growth in wholesale capacity services and Commercial IoT. The latter saw a 6% increase in average subscribers, reaching 543,000, alongside a 60% year-over-year rise in equipment sales. Income from operations stood at $10.2 million, up from $9.4 million the previous year, despite higher operating expenses. Adjusted EBITDA margins were maintained at 51% for the quarter and 52% year-to-date, reflecting strategic investments in growth opportunities like XCOM. Year-to-date, total revenue was $201 million, a 6% increase, with service and equipment revenue rising by 6% and 21%, respectively. The company ended the quarter with $346.3 million in cash and cash equivalents, while capital expenditures during the first nine months totaled $485.9 million. Globalstar reaffirmed its full-year 2025 outlook, expecting revenue between $260 million and $285 million and an adjusted EBITDA margin of approximately 50%.Globalstar Financial Statement Overview
Summary
Globalstar is experiencing revenue growth, but profitability remains a challenge with consistent net losses. The balance sheet shows increasing leverage, which could pose financial risks if not managed properly. Cash flow generation is a positive aspect, although the company needs to improve its conversion of earnings into free cash flow. Overall, while there are growth opportunities, financial stability and profitability need to be addressed.Income Statement
Globalstar's revenue has shown a positive growth trend, particularly with a significant increase in the TTM period. However, the company is struggling with profitability, as evidenced by negative net profit margins and fluctuating EBIT margins. The gross profit margin has decreased over time, indicating potential cost management issues.Balance Sheet
The company has a high debt-to-equity ratio, which has increased over time, indicating rising leverage and potential financial risk. Return on equity is negative, reflecting ongoing losses. The equity ratio suggests a moderate level of equity financing, but the increasing debt levels are concerning.Cash Flow
Operating cash flow has improved significantly in the TTM period, showing strong cash generation capability. However, free cash flow growth is negative, and the free cash flow to net income ratio indicates that the company is not converting its earnings into free cash flow efficiently. The operating cash flow to net income ratio is strong, suggesting good cash flow management despite net losses.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 262.20M | 250.35M | 223.81M | 148.50M | 124.30M | 128.49M |
| Gross Profit | 149.87M | 167.57M | 154.34M | 83.48M | 72.33M | 79.81M |
| EBITDA | 103.18M | 88.59M | 88.39M | 37.58M | 30.98M | 38.07M |
| Net Income | -49.92M | -63.16M | -24.72M | -256.92M | -112.63M | -109.64M |
Balance Sheet | ||||||
| Total Assets | 2.16B | 1.71B | 924.31M | 833.39M | 814.11M | 888.09M |
| Cash, Cash Equivalents and Short-Term Investments | 346.29M | 391.16M | 56.74M | 32.08M | 14.30M | 13.33M |
| Total Debt | 572.29M | 541.93M | 392.55M | 222.07M | 269.67M | 400.47M |
| Total Liabilities | 1.80B | 1.35B | 545.33M | 518.62M | 448.68M | 465.03M |
| Stockholders Equity | 364.82M | 358.88M | 378.98M | 314.77M | 365.43M | 423.06M |
Cash Flow | ||||||
| Free Cash Flow | 266.04M | 320.29M | -92.46M | 23.85M | 86.34M | 15.00M |
| Operating Cash Flow | 786.42M | 439.19M | 74.34M | 63.80M | 131.88M | 22.21M |
| Investing Cash Flow | -638.74M | -260.57M | -175.61M | -39.95M | -45.19M | -14.54M |
| Financing Cash Flow | 146.18M | 157.18M | 125.79M | -6.05M | -140.28M | 1.16M |
Globalstar Technical Analysis
Positive
60.85
Price Trends
60.07
Positive
47.93
Positive
35.04
Positive
Market Momentum
0.62
Positive
47.31
Neutral
60.86
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 60.85 is below the 20-day moving average (MA) of 64.56, above the 50-day MA of 60.07, and above the 200-day MA of 35.04, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.86 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.66B | 5.62 | 53.38% | ― | 6.42% | ― | |
71 Outperform | $1.94B | 16.17 | 22.59% | 3.30% | 7.30% | 21.31% | |
61 Neutral | $5.32B | -32.53 | -2.95% | 0.40% | 15.38% | -292.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $8.13B | ― | -12.45% | ― | 8.54% | -59.63% | |
56 Neutral | $4.38B | -38.62 | 1.73% | 0.39% | -22.79% | 79.90% | |
44 Neutral | $1.02B | -5.41 | -136.94% | 13.93% | -6.48% | -588.01% |
* Communication Services Sector Average
GSAT
Globalstar
60.85
32.50
114.64%
CCOI
Cogent Comms
22.12
-45.08
-67.08%
IRDM
Iridium Communications
18.00
-10.29
-36.38%
TEO
Telecom Argentina
11.13
-2.23
-16.69%
TDS
Telephone & Data Systems
41.71
8.87
27.01%
VEON
VEON
52.40
7.32
16.24%
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.