Globalstar Announces First Quarter 2025 Financial Results

Globalstar, Inc.  announced its financial results for the first quarter ended March 31, 2025.

"Our first quarter results are in-line with our expectations with revenue increasing 6% to $60.0 million. Net loss for the quarter was $17.3 million, driven predominantly by non-cash items. Adjusted EBITDA* was $30.4 million for the quarter, up from $29.6 million in the first quarter 2024 and reflecting a margin of 51%. We are reiterating our previously-issued financial guidance for the year, with revenue expected to be in the range of $260 million to $285 million, and Adjusted EBITDA margin expected to be approximately 50%," commented Rebecca Clary, Chief Financial Officer.

Dr. Paul E. Jacobs, Chief Executive Officer, said, “I am pleased with the progress we made to begin 2025, as we continue to advance our strategy and deepen our presence across key markets. The successful launch of our two-way satellite IoT solution highlights Globalstar’s ability to meet customer needs and penetrate high-growth markets through product development. At the same time, we remain focused on positioning Globalstar for growth, including the addition of proven leaders to our management team who bring exceptional experience in scaling businesses and driving innovation.”

Dr. Jacobs continued, “The global trade environment remains highly dynamic, and we are actively monitoring and assessing the potential impact of tariffs on Globalstar. Fortunately, any direct exposure is relatively limited to sales of our SPOT and Commercial IoT subscriber devices. In addition, we have several levers available to help mitigate potential long-term impacts, including supply chain diversification, re-shoring, pricing and materials management.”

* Adjusted EBITDA is a non-GAAP financial measure.  For more information, refer to “Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA

RECENT OPERATIONAL HIGHLIGHTS

Successfully launched a two-way satellite IoT solution via Globalstar’s LEO constellation. This technology marks a significant expansion beyond traditional one-way tracking to meet rising global demand for reliable, low-power, low-latency command and control across critical applications such as fleet tracking, asset monitoring, and precision agriculture. This milestone reflects the success of Globalstar’s refocused product development team under new leadership, which streamlined priorities and accelerated innovation, while leveraging the Company’s existing network infrastructure, low-cost platform, and new state-of-the-art downlink to deliver competitive, scalable commercial IoT solutions to the market quickly.

Appointed two seasoned leaders to drive growth in key business segments:

Dr. Tamer Kadous named VP & GM of Terrestrial Spectrum and Network Solutions, to lead private wireless network initiatives that leverage Globalstar’s XCOM RAN and Band n53 assets. Kadous brings over two decades of experience in wireless communications, having previously served as Vice President of Wireless Engineering at XCOM Labs and Senior Director of Engineering at Qualcomm.

Daaman Hejmadi named VP & GM of Wholesale Satellite Capacity, with a focus on expanding access to Globalstar’s satellite solutions through strategic wholesale partnerships. Prior to joining Globalstar, Hejmadi held various executive positions, including Vice President of Engineering at Qualcomm, where he revolutionized Qualcomm’s development landscape by transforming the Bangalore design center into an engineering powerhouse, contributing roughly $12 billion of revenue. He also served as a corporate vice president at Intel, where he managed 10,000 engineers who created a development platform for their customers, contributing roughly $10 billion of revenue.

Opened a new state-of-the-art Satellite Operations Control Center (SOCC) at Globalstar’s Covington, Louisiana headquarters, significantly enhancing satellite fleet management, network performance, and readiness for next-generation constellation deployments. The grand opening event, held on March 17, was attended by the U.S. House Majority Leader Steve Scalise and FCC Chairman Brendan Carr, underscoring the facility’s strategic importance to both the Company, the region and the industry. This investment reinforces Globalstar’s leadership in global satellite communications and its commitment to local economic growth. ​

FIRST QUARTER FINANCIAL REVIEW 

Revenue

Total revenue for the first quarter of 2025 was $60.0 million, which was comprised of $57.1 million of service revenue and $3.0 million of revenue generated from subscriber equipment sales. Total revenue increased 6% from the prior year's first quarter due primarily to higher service revenue.

Higher service revenue of $3.6 million, or 7%, compared to the prior year's first quarter was due primarily to revenue generated from wholesale capacity services. This increase was due to a full quarter of revenue recognition associated with fees earned related to certain expanded services that began in March 2024, as well as revenue associated with higher network costs, which is a driver of the revenue earned under these agreements. These fees are expected to continue as we provide services under the Updated Services Agreements. 

For subscriber driven service revenue, Commercial IoT service revenue increased 2% from the prior year's first quarter due primarily to a 4% increase in the average number of subscribers. We continue to see customer interest in our Commercial IoT devices and service offerings, evidenced by an increase in subscriber activations. We also expect activations to increase following commercial sales of our two-way reference design module during the second quarter of 2025. Offsetting the increase in Commercial IoT service revenue this quarter was a decrease in Duplex and SPOT service revenue due to subscriber churn. 

Loss from Operations 

Loss from operations was $8.5 million during the first quarter of 2025, compared to $4.7 million during the prior year's first quarter. Higher revenue (as discussed above) was offset by higher operating expenses.

Increased operating expenses for the first quarter of 2025 compared to the prior year’s first quarter were related to higher cost of services and marketing, general and administrative ("MG&A") expenses, offset partially by lower stock-based compensation. Higher operating expenses were also impacted by a loss on disposal of assets.

Higher cost of services resulted primarily from the Support Services Agreement (the “SSA”) with XCOM Labs, Inc. (now known as Virewirx, Inc.) as well as other ancillary costs associated with XCOM technology development. Additionally, product development costs increased in line with progress made on our two-way Commercial IoT module and next-generation SPOT device. Network operating costs to support our new and upgraded global ground infrastructure also contributed to the increase in cost of services during the quarter; a significant portion of these costs are reimbursed to us, and this consideration is recognized as revenue. 

MG&A expense was higher during the first quarter of 2025 due primarily to professional and legal fees to support the Globalstar SPE; we do not expect these costs to recur at this level in the future.

Operating expenses were favorably impacted by our February 2025 receipt of an employee retention credit as a result of our eligibility under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") for the second quarter of 2021. The total refund of $2.0 million reduced operating expenses during the first quarter of 2025, of which $1.4 million was allocated to Cost of Services and $0.6 million was allocated to MG&A expense, based on the employee costs incurred during the eligible period.