Globalstar, Inc.

What they do

Globalstar provides Mobile Satellite Services (MSS), including voice and data communications, over its network of in-orbit satellites and ground gateways. It offers wholesale satellite capacity, IoT data transmissions, SPOT and Duplex services, and is expanding terrestrial spectrum solutions. The company serves retail, business, and government customers, and generates revenue from service fees and equipment sales.

Revenue drivers

• Wholesale satellite capacity (Apple) — Under the Updated Services Agreements, Apple accounted for 64% of total revenue in the six months ended June 30, 2026. Revenue includes fixed service fees, reimbursements for operating expenses and capex, and potential bonus payments.
• Commercial IoT — Commercial IoT service revenue grew in Q2 2026 due to record-high subscriber activations and over 20% growth in gross activations on a last twelve-month basis. Device sales also increased 21% to $4.8 million.
• Legacy services (Duplex and SPOT) — Duplex and SPOT service revenue declined in Q2 2026 due to subscriber churn over the last twelve months, partially offsetting growth in other segments.

Recent performance

For Q2 2026, revenue was $64.8 million, down from $70.1 million in Q1 2026 and $73.8 million in Q3 2025. Service revenue fell 5% year-over-year due to timing of wholesale capacity fees, but excluding an out-of-period $6.6 million item, service revenue would have increased $3.4 million. The company reported a net loss of $8.7 million for fiscal 2025 on revenue of $273.0 million, and operating cash flow of $621.6 million for 2025. At June 30, 2026, cash and equivalents were $409.8 million, long-term debt was $307.4 million, and total liabilities were $2.15 billion.

Strategy

Globalstar is executing a next-generation satellite constellation program, including launching first replacement satellites (HIBLEO-4) and developing third-generation satellites and ground infrastructure. The company is expanding international ground stations across North and South America, Europe, and Asia. It retains 15% of network capacity for its own customers, including IoT and SPOT, and continues to pursue government and defense market opportunities. The pending merger with Amazon is a core strategic event, with integration planning underway.

Risks

• Customer concentration — Apple accounted for 64% of total revenue in H1 2026, and loss of this customer would have a material adverse impact on financial condition and results.
• Satellite launch and deployment failures — A loss of new satellites at launch or deployment could impair ability to provide service, cause significant delays, and result in uninsured economic losses.
• Delays and capital needs for satellite replacement — The replacement satellite delivery has been delayed, and significant capital expenditures are required, with no assurance of sufficient funding beyond current agreements.
• Technological change and competition — New satellite technology or improvements in terrestrial wireless could render the system obsolete or less competitive, and demand for satellite services may not grow as expected.

Outlook

Management expects the Amazon merger to close in 2027, subject to regulatory approvals and achievement of certain HIBLEO-4 satellite milestones; the HSR waiting period expired on July 17, 2026. The first set of replacement satellites is rescheduled for launch in August 2026, and third-generation satellite development is progressing. The company continues to expand capacity and international ground network to meet obligations under the Updated Services Agreements and support future growth.