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 the successful launch of XCON RAN, government contracts, and infrastructure expansion. The company's Q3 2025 results showed growth in Wholesale Capacity Services, Commercial IoT, and Subscriber Equipment sales. B. Riley raised its price target, citing future margin expansion and revenue growth. The company's expanding IoT ecosystem, network upgrades, and strategic partnerships position it for long-term value. Insider sales by CFO Rebecca Clary and General Counsel L Barbee Iv Ponder totaled $52,928.40.

1.c. Company Highlights

Last Price	58.73
Change Percentage	-4.55%
Open	61.72
Previous Close	61.53
Market Cap ( Millions)	7550
Volume	1305265
Year High	74.88
Year Low	17.24
M A 50	60.46
M A 200	45.26

FCF Yield	-1.71%
Dividend Yield	0.00%
ROE	-3.18%
Debt / Equity	151.33%
Net Debt / EBIDTA	82.43%
Price To Book	21.01
Price Earnings Ratio	-659.92
Price To FCF	-58.42
Price To sales	27.66
EV / EBITDA	69.32

2. Globalstar's 2025 Earnings: A Year of Record Revenue and Progress

Globalstar, Inc. reported a record full-year revenue of $273 million in 2025, a 9% increase from 2024, with service revenue up 8% to $257.3 million. The company's income from operations improved to $7.4 million from a loss of $900,000 in 2024, driven by higher revenue and lower operating expenses. Adjusted EBITDA reached a record $136.1 million, representing a 50% margin. The company's net loss narrowed to $7.6 million from $63.2 million in 2024. Earnings per share (EPS) came out at -$0.07, missing estimates of $0.01.

Publication Date: Mar -07

                                    📋 Highlights
                                    2025 Revenue Growth::
                                                Achieved record $273 million in revenue, a 9% increase from 2024, with service revenue up 8% to $257.3 million and equipment revenue up 24% to $15.7 million.
Adjusted EBITDA Margin::
                                                Hit a record $136.1 million in adjusted EBITDA, reflecting a 50% margin driven by higher revenue and operational efficiency.
Q4 Performance::
                                                Q4 revenue reached $72 million, with service revenue up 17% and equipment revenue surging 31%, though net loss widened to $10.6 million from $50.2 million in prior-year Q4.
Liquidity and Capital Expenditures::
                                                Ended 2025 with $447.5 million in cash (up from $391.2 million) and $621.7 million in operating cash flows, including $430.6 million from infrastructure prepayment, while spending $550.4 million on satellite and ground infrastructure.

                                

Revenue Growth and Segment Performance

The company's revenue growth was driven by a 24% increase in subscriber equipment revenue to $15.7 million, driven by higher commercial IoT device sales. In Q4, total revenue was $72 million, with service revenue up 17% and equipment revenue up 31%. The company's commercial IoT business continues to gain traction, with the launch of two-way satellite IoT capabilities and the completion of the commercial rollout of its RM-200MS module.

Cash Flow and Balance Sheet

Globalstar ended 2025 with $447.5 million in cash and cash equivalents, up from $391.2 million at the end of 2024. Operating cash flows were $621.7 million, including $430.6 million from infrastructure prepayment. Capital expenditures were $550.4 million, primarily related to the deployment of replacement satellites and expanded ground infrastructure. The company's cash position and operating cash flows provide a solid foundation for its continued growth plans.

Outlook and Valuation

For 2026, Globalstar expects total revenue between $280 million and $305 million, with an adjusted EBITDA margin of approximately 50%. Analysts estimate next year's revenue growth at 15.9%. The company's valuation metrics, including a P/S Ratio of 26.58 and EV/EBITDA of 66.65, suggest that the market is pricing in significant growth expectations. As Paul E. Jacobs noted during the earnings call, "we are confident in our continued growth trajectory, driven by the scaling of our next-generation infrastructure and expansion of commercial opportunities."

Key Drivers and Risks

3. NewsRoom

Is Globalstar Stock a Buy After Greenhouse Funds Added Over 75,000 Shares to Its Position?

Mar -14

Source: fool.com

What the CEOs of AST SpaceMobile and Globalstar are saying about the satellite industry today

Mar -11

Source: 247wallst.com

Globalstar Draws Investor Interest as Satellite Networks Extend Connectivity Beyond Cellular Coverage

Mar -09

Source: fool.com

Globalstar, Inc. (GSAT) Q4 2025 Earnings Call Transcript

Feb -27

Source: seekingalpha.com

Globalstar (GSAT) Reports Q4 Loss, Tops Revenue Estimates

Feb -27

Source: zacks.com

Globalstar Announces Fourth Quarter and Full Year 2025 Results

Feb -27

Source: businesswire.com

First Look: Paramount tops WBD, Block cuts staff, Nvidia ripples

Feb -27

Source: gurufocus.com

Virewirx Awarded $1.9M Small Business Innovation Research (SBIR) Contract from Office of the Under Secretary of War (OUSW)

Feb -24

Source: businesswire.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

Globalstar

A-Score: 4.3/10

Value: 3.4

Growth: 7.3

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

Anterix

A-Score: 4.1/10

Value: 6.0

Growth: 4.9

Quality: 8.8

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Ooma

A-Score: 3.7/10

Value: 2.7

Growth: 5.9

Quality: 5.6

Yield: 0.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

Ribbon Communications

A-Score: 3.6/10

Value: 7.6

Growth: 3.8

Quality: 4.3

Yield: 0.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

Consolidated Communications Holdings

A-Score: 2.8/10

Value: 6.5

Growth: 0.7

Quality: 1.2

Yield: 0.0

Momentum: 6.5

Volatility: 1.7

1-Year Total Return ->

Gogo

A-Score: 2.7/10

Value: 3.4

Growth: 2.9

Quality: 4.0

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

65.41%

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 2025 Earnings: A Year of Record Revenue and Progress

Revenue Growth and Segment Performance

Cash Flow and Balance Sheet

Outlook and Valuation

Key Drivers and Risks

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

12.e Scoring ^Insights

12.f DCF ^BETA