Globalstar's Defense Tech Collaborations: A Strategic Play in Secure Satellite Communications

The U.S. Army's recent Cooperative Research and Development Agreement (CRADA) with Globalstar (NASDAQ: GSAT) marks a pivotal moment in the convergence of satellite technology and defense innovation. By focusing on Low Probability of Intercept/Detect (LPI/LPD) solutions and ultra-low SWaP-C (size, weight, power, cost) devices, Globalstar is positioning itself to dominate a niche yet rapidly growing market: secure, autonomous IoT systems for contested environments. This strategic move, combined with its upcoming satellite launches and partnerships, signals undervalued growth potential for investors.

The Strategic Edge: LPI/LPD and SWaP-C

Globalstar's CRADA with the U.S. Army centers on evaluating its satellite solutions for covert defense IoT applications—such as asset tracking, unmanned systems, and emergency response. The key advantage lies in its LPI/LPD capabilities, which minimize the risk of detection in contested environments. This is achieved through dynamic over-the-air messaging structures and a multipath LEO satellite constellation, which inherently obscure signals from adversaries.

Equally critical is Globalstar's SWaP-C optimization. Its small, low-power devices require zero maintenance in austere environments, making them ideal for long-duration field deployments. These attributes align perfectly with the Pentagon's push for edge-computing IoT systems that operate autonomously, even without cellular backhaul. As defense budgets shift toward AI-driven logistics and autonomous warfare, Globalstar's tech stack is ideally suited to capitalize on this shift.

Market Catalysts: Launches, Partnerships, and Regulatory Wins

The coming quarters will see three key catalysts for Globalstar:

1. Satellite Launch Milestones: By mid-2025, Globalstar plans to deploy its first eight satellites via SpaceX's Falcon 9, with additional launches through 2026. These satellites, part of the HIBLEO-4 constellation, will bolster its LEO network, enabling global coverage and 5G-like latency for defense IoT applications. A highlights Globalstar's accelerated timeline compared to peers.

2. Strategic Partnerships: Collaborations like its 2024 deal with Parsons Corporation (PAR) aim to integrate Globalstar's satellite infrastructure into defense software ecosystems. For example, Parsons' “Realm Enablement Suite” leverages Globalstar's LEO connectivity to enable AI-driven asset tracking and emergency response systems. This synergy underscores Globalstar's role as a mission-critical enabler for U.S. military modernization.

3. Regulatory Certainty: The Federal Communications Commission's 15-year license extension for Globalstar's HIBLEO-4 constellation, granted in August 2024, removes a key risk. This authorization ensures uninterrupted service for defense IoT deployments, while its exclusive Band 53 spectrum rights provide a shield against competitive encroachment.

Why Investors Should Take Note: Undervalued Growth Potential

Globalstar's current valuation—$1.5 billion market cap—seems disconnected from its strategic assets. Consider: - Revenue Growth: IoT and defense contracts could push its 2025 revenue beyond $400 million (up from $286 million in 2023). - Competitive Moat: Its LEO constellation and SWaP-C devices lack direct peers. Companies like SpaceX (SPACE) focus on broadband, while traditional satellite players (e.g., Iridium) lack the low-cost IoT edge.- Margin Upside: Once satellites are deployed, operating leverage should boost margins, as fixed costs are absorbed by scalable IoT services.

Risks and Considerations

• Regulatory Battles: SpaceX's challenge to Globalstar's FCC license could delay satellite launches, though the current timeline remains intact.
• Execution Risk: Scaling IoT partnerships and CRADA outcomes will require flawless execution. A missed milestone could spook investors.

Investment Thesis: Buy the Dip, Target $10+ by 2026

Globalstar's stock has underperformed in 2025—trading near $6.50—despite its near-term catalysts. Investors should view this as an entry point. Assuming:- 20% revenue growth in 2025 (to $343 million) - 15% EBITDA margins by 2026 - A 20x EV/EBITDA multiple (below peers like SpaceX's 25x),

A $10+ price target by mid-2026 seems achievable. With the Army's CRADA results and satellite launches imminent, the stock could re-rate as a defense tech leader.

Final Take: A Satellite Play with Strategic Legs

Globalstar's pivot to defense IoT and secure satellite communications isn't just a tactical move—it's a structural play on the $40 billion military IoT market. With its SWaP-C edge, LPI/LPD tech, and federal partnerships, Globalstar is poised to outpace peers in a sector where security and autonomy are non-negotiable. For investors, this is a rare opportunity to buy a growth story at a value price. The question isn't whether defense tech will matter—it's how soon the market realizes Globalstar is already there.