Globalstar's Strategic Momentum and Financial Turnaround: A Compelling Long-Term Play in the MSS Market

In the rapidly evolving mobile satellite services (MSS) market, Globalstar, Inc. (NASDAQ: GSAT) has emerged as a standout performer, combining a robust financial turnaround with strategic infrastructure and partnership advancements. The company's Q2 2025 results, coupled with its expanding satellite constellation and defense-sector collaborations, position it as a compelling long-term investment in a sector poised for exponential growth.

Financial Turnaround: A Foundation for Sustainable Growth

Globalstar's Q2 2025 financial performance underscores a dramatic reversal of fortune. Total revenue surged 11% year-over-year to $67.1 million, driven by strong growth in wholesale capacity services and Commercial IoT subscribers. Service revenue alone reached $63.2 million, while subscriber equipment sales contributed $3.9 million. Most notably, the company transitioned from a net loss of $9.7 million in Q2 2024 to a net income of $19.2 million in Q2 2025. This transformation was fueled by higher revenues, reduced operating expenses, and a $1.9 million employee retention credit under the CARES Act.

Adjusted EBITDA hit $35.8 million, with a margin of 53%, outpacing the $32.6 million reported in the same period of 2024. The company reaffirmed its full-year 2025 guidance, projecting revenue between $260 million and $285 million and maintaining an Adjusted EBITDA margin of approximately 50%. These metrics reflect not just short-term success but a disciplined approach to cost management and operational efficiency.

Strategic Partnerships: Fueling Network Resilience and Market Expansion

Globalstar's recent partnerships with SpaceX and the U.S. Army highlight its strategic momentum. The company secured a launch services agreement with SpaceX to deploy nine replacement satellites in 2026, following an initial launch of eight satellites in 2025. These satellites, built by MDA Space and Rocket Lab, will enhance Globalstar's LEO constellation, ensuring global coverage and 5G-like latency for defense and commercial IoT applications. Apple's financial backing—covering 95% of satellite costs and reserving 85% of network capacity for its satellite messaging service—further de-risks capital expenditures and guarantees a steady revenue stream.

The U.S. Army's Cooperative Research and Development Agreement (CRADA) with Globalstar is equally transformative. The collaboration focuses on evaluating the company's ultra-low SWaP-C (size, weight, power, and cost) devices for defense applications, including LPI/LPD (low probability of intercept/detection) communications. These devices, designed for austere environments, enable real-time alerting and autonomous decision-making, aligning with the military's need for secure, low-maintenance solutions. This partnership opens access to the $40 billion military IoT market, a sector with high-margin potential.

Infrastructure Expansion: Building a Global Connectivity Ecosystem

Globalstar's infrastructure investments are laying the groundwork for long-term scalability. The company has commenced construction on new gateway infrastructure in Japan and Canada, while its first C-3 antenna in Texas marks the beginning of a global rollout. Additionally, the expansion of the Alcazar Teleport in Spain—part of its third-generation C-3 System—enhances connectivity across Europe. These projects are supported by the FCC's 15-year license extension for the HIBLEO-4 constellation, which removes regulatory uncertainty and ensures uninterrupted service for defense and commercial clients.

The C-3 System, a next-generation MSS network, will integrate advanced IoT hardware and software, further solidifying Globalstar's role in the satellite communications value chain. With a projected 50% Adjusted EBITDA margin for 2025, the company is demonstrating that infrastructure spending is translating into profitability, not just growth.

Investment Thesis: A Long-Term Play in a High-Growth Sector

Globalstar's combination of financial discipline, strategic partnerships, and infrastructure expansion positions it as a prime beneficiary of the MSS market's expansion. The global satellite communications market, valued at $250 billion in 2025, is expected to grow at a 12% CAGR through 2030, driven by demand for IoT, defense, and remote connectivity solutions. Globalstar's partnerships with Apple and the U.S. Army, along with its cost-effective SpaceX launches, provide a unique value proposition: a scalable, low-cost network with access to both consumer and defense markets.

For investors, the key risks include regulatory shifts and competition from larger satellite providers. However, Globalstar's FCC-authorized HIBLEO-4 constellation, Apple's financial backing, and its first-mover advantage in defense IoT applications mitigate these concerns. Notably, historical backtesting of GSAT's performance around earnings releases from 2022 to the present shows a 50% win rate in the 3- and 10-day periods post-announcement, with a maximum return of 25.77% observed immediately after an earnings release. While the 30-day win rate was 100%, the stock did not show significant long-term gains beyond this period. The company's current valuation, with a forward P/E ratio of 12x and a PEG ratio of 0.8x, suggests it is undervalued relative to its growth prospects.

Conclusion: A Satellite Success Story

Globalstar's Q2 2025 results and strategic initiatives demonstrate a company in transition—from a struggling satellite provider to a resilient, high-margin player in the MSS market. With a clear path to profitability, a diversified revenue stream from Apple and defense contracts, and a robust infrastructure roadmap, Globalstar is well-positioned to capitalize on the next phase of satellite communications growth. For long-term investors seeking exposure to the space economy and IoT, Globalstar offers a compelling case: a turnaround story with the potential to deliver outsized returns in a sector defined by innovation and demand.

Now is the time to consider Globalstar not just as a satellite company, but as a cornerstone of the global connectivity revolution.