Globalstar's Q4 2024: Key Contradictions in Satellite Launches, IoT Timelines, and Network Expansion

These are the key contradictions discussed in Globalstar's latest 2024Q4 earnings call, specifically including: Satellite Launch Timelines, 2-Way IoT Deployment Timeline, XCOM RAN Timing and Progress, and the Timeline for the Extended MSS Network:



Revenue and Service Growth:
- Globalstar reported a 17% increase in total revenue to $61.2 million for the fourth quarter of 2024 compared to the previous year, with commercial IoT increasing 8% during the quarter.
- The growth was driven by a rise in wholesale capacity revenue, primarily due to a significant new contract, and increased adoption of IoT services.

Adjusted EBITDA and Margin Improvement:
- Adjusted EBITDA increased 21% to $30.4 million compared to the prior year period, with a margin increase due to higher revenue.
- This improvement was despite an increase in operating expenses, indicating effective cost management and strategic revenue growth.

Strategic Uplisting and Reverse Stock Split:
- Globalstar successfully completed its uplisting to the NASDAQ Global Select Market and implemented a 1 for 15 reverse stock split.
- These actions were aimed at enhancing stock liquidity, marketability, and meeting institutional minimum stock price requirements to broaden the investor base.

Capital Investment and Infrastructure Development:
- The company received $913 million in investment from its customer, including cash payments and in-kind asset contributions, to fund infrastructure for an extended MSS network.
- This capital infusion supports the construction and launch of a new network, which is expected to significantly expand connectivity services.