Globalstar Q2 Revenue Surges 11%

Globalstar has reported Q2 2025 revenue of $67.1m, up 11% YoY, beating EBITDA estimates. The company has also reiterated its earnings guidance for the year. Globalstar's shares have jumped following the strong Q2 results. The company is expanding its ground station infrastructure and has signed a launch services agreement with SpaceX.

Globalstar Inc. (NASDAQ: GSAT) has reported a robust second quarter (Q2) 2025, with total revenue of $67.1 million, marking an 11% year-over-year (YoY) increase. The company's adjusted EBITDA margin was 53%, exceeding analyst expectations. Globalstar's shares have surged following the announcement, reflecting investor confidence in the company's financial performance.

The revenue growth was primarily driven by an 11% increase in service revenue, which reached $63.2 million, and a 5% increase in Commercial IoT service revenue. The company attributed the growth to higher wholesale capacity services and increased IoT subscriber activations. Gross subscriber activations have been on a consecutive quarterly and annual basis, reaching the highest level in the company's history.

Globalstar also announced a launch services agreement with SpaceX for the launch of the final set of nine replacement satellites. This agreement complements the company's existing second-generation constellation and ensures continuous service delivery. Additionally, the company has signed a Cooperative Research and Development Agreement (CRADA) with the U.S. Army to evaluate its edge-processing satellite solutions in defense applications.

The company has expanded its ground station infrastructure, installing the first 6-meter tracking antenna dedicated to its third-generation C-3 satellite system at its flagship ground station in Texas. This infrastructure expansion is expected to significantly enhance the company's satellite network capacity, resilience, and global reach.

Despite the positive results, Globalstar faces challenges such as higher cash costs to support the ex-com RAN, which negatively impacted adjusted EBITDA by approximately $1.9 million. The company also faces long sales cycles in selling to enterprises, which can delay revenue realization. Additionally, ongoing challenges related to spectrum sharing and dual licenses persist, with misinformation affecting perceptions.

Globalstar has reiterated its annual guidance, expecting full-year revenue to be in the range of $260 million to $285 million and an adjusted EBITDA margin of approximately 50%. The company's CEO, Paul Jacobs, expressed optimism about the company's prospects, emphasizing the strength of its technology and its relevance across commercial, industrial, and government applications.

References:
[1] https://finance.yahoo.com/news/globalstar-inc-gsat-q2-2025-073937678.html
[2] https://investors.globalstar.com/news-releases/news-release-details/globalstar-announces-second-quarter-2025-financial-results