Globalstar, Inc. (GSAT) | Investment Case

1. Company Snapshot

1.a. Company Description

Globalstar, 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.

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1.b. Last Insights on GSAT

Globalstar's recent performance was driven by strong Q2 and Q3 results, fueled by growth in Wholesale Capacity Services, Commercial IoT, and Subscriber Equipment sales. The company's XCON RAN launch and government contracts, including a $60 million deal with the U.S. Army, have bolstered its position. Additionally, infrastructure upgrades, new platforms, and partnerships with Parsons have enhanced its IoT and MSS offerings. With over $1 billion invested in its global satellite network, Globalstar is nearing its $2 billion ITU pledge, driving connectivity expansion. B. Riley raised its price target, citing growth potential.

1.c. Company Highlights

Last Price	68.48
Change Percentage	0.28%
Open	68.5
Previous Close	68.29
Market Cap ( Millions)	8686
Volume	1017857
Year High	70.83
Year Low	17.24
M A 50	50.07
M A 200	30.28

FCF Yield	8.62%
Dividend Yield	0.00%
ROE	-13.98%
Debt / Equity	154.80%
Net Debt / EBIDTA	224.95%
Price To Book	23.78
Price Earnings Ratio	-173.77
Price To FCF	11.6
Price To sales	33.13
EV / EBITDA	91.69

2. Globalstar's Q3 2025 Earnings: A Strong Performance

Globalstar's total revenue reached a record $73.8 million in Q3 2025, driven by wholesale capacity services and Commercial IoT. The company's revenue growth was fueled by a 6% increase in average subscribers to 543,000 compared to the prior year's third quarter. Equipment revenue from Commercial IoT device sales was up 60% compared to the prior year's third quarter. Income from operations was $10.2 million, up from $9.4 million in the prior year's third quarter. The company's adjusted EBITDA for Q3 was 51% of revenue. Notably, the actual EPS came out at '-0.01', beating estimates at '-0.03'. Year-to-date revenue was $201 million, representing 6% growth compared to the same period last year.

Publication Date: Nov -29

                                    📋 Highlights
                                    Record Revenue::
                                                Q3 2025 revenue hit $73.8M, driven by wholesale capacity services and Commercial IoT growth.
Commercial IoT Expansion::
                                                Subscribers reached 543,000 (+6% YoY), with equipment sales up 60% YoY.
Adjusted EBITDA Strength::
                                                Q3 adjusted EBITDA margin at 51%, year-to-date revenue $201M (+6% YoY).
Liquidity Position::
                                                Generated $445.8M operating cash flow, $346.3M cash and equivalents as of Q3 end.
Future Outlook::
                                                Maintains 2025 guidance: $260M–$285M revenue with ~50% adjusted EBITDA margin target.

                                

Business Growth Drivers

The company is experiencing growth driven by new applications, increased demand for two-way systems, and a growing number of enabled devices. The recently introduced two-way system is expected to drive growth and gain market share, although current growth is primarily driven by existing one-way systems. The XCOM RAN business is in the early stages of commercial adoption, with good margins expected as it grows. As the company's CFO mentioned, the return profile and profitability of this business are expected to improve over the next few years.

Wholesale and IoT Growth

Wholesale growth is strong, driven by an increasing number of devices with satellite modem and radio capabilities. The company has 0.5 billion devices with this capability, and this number is growing rapidly. The Commercial IoT service revenue grew on the back of subscriber growth, and equipment revenue from Commercial IoT device sales was up 60% compared to the prior year's third quarter.

Valuation and Outlook

With a P/S Ratio of 29.39 and EV/EBITDA of 81.59, the market seems to be pricing in a high growth trajectory for Globalstar. Analysts estimate next year's revenue growth at 10.1%. The company reiterated its full-year 2025 outlook, expecting revenue in the range of $260 million to $285 million and an adjusted EBITDA margin of approximately 50%. The company's strong position in the market, with a globally harmonized spectrum, provides a competitive advantage. The company's plan to offer Network as a Service is expected to provide annuity revenue with solid gross margins.

3. NewsRoom

Globalstar Reaches Key Milestone in $2 Billion ITU Pledge, Completing Over Half of Its Commitment to Advance Global Connectivity

Nov -18

Source: businesswire.com

Globalstar: When The Stars Align After Years Of Capital Deployment

Nov -12

Source: seekingalpha.com

Overlooked Stock: GSAT 11-Year High

Nov -10

Source: youtube.com

Essex Investment Buys $7.1 Million Globalstar Stake as Revenue Hits Record High

Nov -09

Source: fool.com

Globalstar, Inc. (GSAT) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Globalstar (GSAT) Reports Q3 Loss, Tops Revenue Estimates

Nov -07

Source: zacks.com

Globalstar Announces Third Quarter 2025 Financial Results

Nov -06

Source: businesswire.com

Globalstar to Report Q3 Earnings: How to Approach the Stock Now?

Nov -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.86%)

6. Segments

Service - Wholesale Capacity

Expected Growth: 5.5%

Globalstar's Wholesale Capacity service growth is driven by increasing demand for IoT and M2M connectivity, expansion into new markets, and strategic partnerships. The 5.5% growth rate is also fueled by the company's investment in satellite technology and network infrastructure, enabling reliable and secure data transmission for customers.

Service - SPOT

Expected Growth: 6.2%

Globalstar's SPOT service growth of 6.2% is driven by increasing adoption in IoT and M2M applications, expansion in emerging markets, and rising demand for satellite-based remote asset tracking and monitoring solutions. Additionally, the company's strategic partnerships and investments in network infrastructure have improved service reliability and expanded coverage, further fueling growth.

Service - Duplex

Expected Growth: 5.8%

Globalstar's Duplex service growth is driven by increasing demand for IoT and M2M applications, expansion in emerging markets, and strategic partnerships. The 5.8% growth rate is also attributed to the service's unique features, such as low latency and high reliability, which cater to critical communication needs in industries like oil and gas, transportation, and government.

Service - Commercial Internet of Things

Expected Growth: 6.5%

Globalstar's Commercial IoT service growth is driven by increasing demand for remote monitoring and automation in industries such as oil and gas, transportation, and agriculture. The need for low-power, low-cost, and reliable connectivity solutions also fuels growth. Additionally, the rising adoption of IoT devices and the increasing importance of real-time data analytics contribute to the 6.5% growth rate.

Subscriber Equipment - Commercial Internet of Things

Expected Growth: 6.8%

Globalstar's Subscriber Equipment - Commercial Internet of Things (IoT) growth is driven by increasing demand for low-power wide-area networks, expanding industrial IoT applications, and rising adoption of satellite-based IoT solutions. Additionally, the growing need for remote monitoring, tracking, and automation in industries such as oil and gas, transportation, and agriculture is fueling growth.

Subscriber Equipment - SPOT

Expected Growth: 6.0%

Globalstar's SPOT subscriber equipment growth is driven by increasing demand for satellite-based IoT and M2M solutions, expansion into new markets, and rising adoption in outdoor recreation and industrial sectors. The 6.0% growth rate is also fueled by the company's strategic partnerships and investments in product development, enhancing the device's functionality and user experience.

Service - Engineering and Other

Expected Growth: 5.2%

Globalstar's Engineering and Other service segment growth of 5.2% is driven by increasing demand for satellite-based IoT solutions, expansion of existing customer relationships, and growing adoption of remote monitoring and tracking services across various industries, including oil and gas, transportation, and government.

Subscriber Equipment - Other

Expected Growth: 5.0%

Globalstar's Subscriber Equipment - Other segment growth of 5.0% is driven by increasing demand for IoT devices, expansion of satellite-based services, and growing adoption of remote monitoring and tracking solutions. Additionally, the company's strategic partnerships and investments in technology advancements are contributing to the segment's growth.

7. Detailed Products

Satellite Phones

Globalstar offers a range of satellite phones that provide voice and data communication services in remote areas where traditional cellular networks are unavailable.

Satellite Data Modems

Globalstar's satellite data modems enable machine-to-machine (M2M) and IoT applications, such as remote monitoring, tracking, and data transmission.

Satellite Asset Tracking

Globalstar's satellite asset tracking solutions provide real-time location and status information for remote assets, such as vehicles, containers, and equipment.

Satellite IoT Devices

Globalstar's satellite IoT devices enable low-power, low-cost IoT applications, such as smart metering, industrial automation, and environmental monitoring.

Satellite-Based Augmentation Systems (SBAS)

Globalstar's SBAS solutions provide augmentation signals to GPS, GLONASS, and Galileo satellite systems, enhancing accuracy and reliability.

8. Globalstar, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Globalstar's satellite-based services face moderate threat from substitutes, such as cellular networks and other satellite operators.

Bargaining Power Of Customers

Globalstar's customers, including government agencies and enterprises, have limited bargaining power due to the company's specialized services and limited competition.

Bargaining Power Of Suppliers

Globalstar relies on a few key suppliers for its satellite manufacturing and launch services, giving them moderate bargaining power.

Threat Of New Entrants

The high barriers to entry in the satellite industry, including significant capital requirements and regulatory hurdles, make it difficult for new entrants to challenge Globalstar.

Intensity Of Rivalry

Globalstar operates in a highly competitive industry with several established players, including Iridium Communications and Inmarsat, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	48.94%
Debt Cost	8.20%
Equity Weight	51.06%
Equity Cost	8.20%
WACC	8.20%
Leverage	95.86%

11. Quality Control: Globalstar, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ooma

A-Score: 4.5/10

Value: 4.9

Growth: 5.9

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

Ribbon Communications

A-Score: 4.3/10

Value: 7.0

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

1-Year Total Return ->

Globalstar

A-Score: 4.3/10

Value: 3.1

Growth: 7.3

Quality: 3.4

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

Anterix

A-Score: 4.3/10

Value: 6.2

Growth: 4.9

Quality: 8.8

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

Consolidated Communications Holdings

A-Score: 3.2/10

Value: 7.2

Growth: 0.7

Quality: 1.1

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

Gogo

A-Score: 2.9/10

Value: 2.0

Growth: 3.0

Quality: 4.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.84%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.20%

Globalstar, Inc. - US3789734080

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GSAT

1.c. Company Highlights

Lower Quality

Expensive

Average Growth

Revenues Beats

Earnings Miss

Fairly Valued

Medium Volatility

Weak Momentum

Earnings Beats

Average Quality

More Volatile

Higher Growth

Stable Momentum

Revenues Miss

Strong Momentum

2. Globalstar's Q3 2025 Earnings: A Strong Performance

Business Growth Drivers

Wholesale and IoT Growth

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.86%)

6. Segments

Service - Wholesale Capacity

Expected Growth: 5.5%

Service - SPOT

Expected Growth: 6.2%

Service - Duplex

Expected Growth: 5.8%

Service - Commercial Internet of Things

Expected Growth: 6.5%

Subscriber Equipment - Commercial Internet of Things

Expected Growth: 6.8%

Subscriber Equipment - SPOT

Expected Growth: 6.0%

Service - Engineering and Other

Expected Growth: 5.2%

Subscriber Equipment - Other

Expected Growth: 5.0%

7. Detailed Products

Satellite Phones

Satellite Data Modems

Satellite Asset Tracking

Satellite IoT Devices

Satellite-Based Augmentation Systems (SBAS)

8. Globalstar, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Globalstar, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

12.e Scoring ^Insights

12.f DCF ^BETA