Globalstar Announces Second Quarter 2025 Financial Results

Reports revenue increase; reaffirms financial outlook

• Generated second quarter 2025 revenue of $67.1 million, an 11% increase over the prior-year period driven by higher wholesale capacity services and Commercial IoT revenue
• Entered into a launch services agreement with SpaceX for the launch of the second set of replacement satellites under construction by MDA Space pursuant to our 2022 satellite procurement agreement
• Announced that the Federal Communications Commission (FCC) Space Bureau accepted for filing Globalstar’s C-3 petition to advance our mobile satellite services (MSS) network expansion

Globalstar, Inc. (Nasdaq: GSAT) (“Globalstar” or the “Company”) today announced its financial results for the second quarter ended June 30, 2025.

"Our second quarter results were strong with revenue increasing 11% to $67.1 million. Net income for the quarter was $19.2 million, while Adjusted EBITDA* was $35.8 million for the quarter, up from $32.6 million in the second quarter 2024 and reflecting a margin of 53%. Looking to the back half of the year, we are reiterating our previously-issued financial guidance for the year, with full year revenue expected to be in the range of $260 million to $285 million, and Adjusted EBITDA margin expected to be approximately 50%," commented Rebecca Clary, Chief Financial Officer.

Dr. Paul E. Jacobs, Chief Executive Officer, commented, “I am pleased with the execution on our infrastructure expansion plan to support the launch and operation of our third-generation C-3 satellite system. With the first C-3 antenna now live in Texas and construction underway at critical sites across North America, Asia and Europe, we are laying the groundwork for resilient, global connectivity that meets the demands of our partners and customers. Our new launch services agreement with SpaceX to support the upgrade of our current system, along with our growing collaboration with partners operating in the government sector, underscores the strength of our technology and its relevance across commercial, industrial, and government applications. These milestones reflect meaningful progress toward unlocking the full potential of our assets.”

RECENT OPERATIONAL HIGHLIGHTS

• Parsons and Globalstar Complete Successful Proof of Concept and Execute Commercial Agreement: Parsons Corporation, a global leader in national security and critical infrastructure solutions, recently completed a successful proof of concept, which validated performance and operational readiness for real-world deployment. Following this milestone, the parties executed a commercial access agreement advancing the strategic partnership into the commercial phase of a joint solution integrating Globalstar’s satellite capabilities with Parsons’ advanced software-defined communication technologies.

• Expanded Ground Infrastructure in Multiple Countries to Support C-3 Constellation: Globalstar completed installation of the first 6-meter tracking antenna dedicated to its third-generation C-3 satellite system at its flagship ground station in Texas. Globalstar also announced that it had commenced construction of new gateway infrastructure at ground stations in Japan and Canada, and signed an agreement to double its teleport footprint in Spain. This significant international expansion is expected to include approximately 90 additional antennas installed at 35 ground stations in 25 countries around the world, which together with the addition of 48 operational C-3 satellites, is designed to significantly enhance the Company’s satellite network capacity, resilience, and global reach.

• Launch Services Agreement Signed with SpaceX: Globalstar entered into an additional launch services agreement with SpaceX for a Falcon 9 mission to deploy the final set of nine replacement satellites currently under construction by MDA Space. Following the expected first launch in 2025, the second launch is projected to occur in 2026 and will complement Globalstar’s existing second-generation constellation to ensure continuous service delivery.

• U.S. Army Collaboration to Advance Covert Sensing Capabilities: Globalstar signed a Cooperative Research and Development Agreement (CRADA) with the U.S. Army to evaluate the performance of its edge-processing satellite solutions in defense applications. The agreement underscores the utility of Globalstar’s low size, weight and power devices in enabling secure, autonomous communications in challenging environments.

SECOND QUARTER FINANCIAL REVIEW

Revenue

Total revenue for the second quarter of 2025 was $67.1 million, which was comprised of $63.2 million of service revenue and $3.9 million of revenue generated from subscriber equipment sales. Total revenue increased 11% from the prior year's second quarter due primarily to an increase in wholesale capacity services revenue and higher Commercial IoT subscribers and device sales.

Service revenue increased $5.6 million, or 10%, compared to the prior year's second quarter due primarily to revenue generated from wholesale capacity services, which increased $8.3 million during the period. The majority of the increase during the second quarter of 2025 related to the timing of service fees associated with the reimbursement of network-related costs.

For subscriber driven service revenue, Commercial IoT service revenue increased 5% from the prior year's second quarter due to an increase in the average number of subscribers. Gross subscriber activations have increased on a consecutive quarter basis as well as on a last twelve month basis, reaching the highest gross activations over this period in the Company's history. The growth in our IoT subscriber base evidences the continued customer interest in our Commercial IoT devices and service offerings. We also expect activations to increase following sales of our two-way reference design module. Offsetting the increase in Commercial IoT service revenue was a decrease in Duplex and SPOT service revenue due to subscriber churn over the last twelve months.

We also experienced an increase in revenue from subscriber equipment sales from a higher volume of both Commercial IoT and SPOT device sales during the second quarter of 2025 compared to the prior year's second quarter.

Income (Loss) from Operations

Income from operations was $6.1 million during the second quarter of 2025, compared to a loss from operations of $1.4 million during the prior year's second quarter. This improvement was due to higher revenue (as discussed above) and lower operating expenses.

Lower operating expenses for the second quarter of 2025 compared to the prior year’s second quarter were related to lower stock-based compensation and marketing, general and administrative ("MG&A") expenses. These decreases were offset partially by higher cost of services and cost of subscriber equipment sales (consistent with the increase in equipment sales revenue).

Operating expenses for the quarter were favorably impacted by our receipt of an employee retention credit in May 2025 as a result of our eligibility under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The total refund of $1.9 million reduced operating expenses during the second quarter of 2025.

Higher cost of services compared to the prior year’s second quarter resulted primarily from network operating costs to support our new and upgraded global ground infrastructure. A significant portion of these costs are reimbursed to us over time, and this consideration is recognized as revenue. Additionally, higher personnel costs to support product development and other growth opportunities also contributed to the increase in cost of services during the second quarter.

MG&A expense was lower than the prior year's second quarter due to the CARES Act credit received during the second quarter of 2025.

Net Income (Loss)

Net income was $19.2 million for the second quarter of 2025, compared to net loss of $9.7 million for the prior year's second quarter. This improvement was due primarily to higher revenue (discussed above), lower operating expenses (discussed above), a non-cash gain on the quarterly mark-to-market adjustment of our derivative asset as well as favorable fluctuations in foreign currency gains and losses due to the remeasurement of intercompany balances. Higher interest expense resulting from non-cash imputed interest on the 2024 prepayment agreement partially offset these favorable items.

Adjusted EBITDA

Adjusted EBITDA was $35.8 million during the second quarter of 2025 compared to $32.6 million during the prior year's second quarter. Higher revenue was offset partially by an increase in operating expenses (excluding adjustments for non-cash or non-recurring items).

While we continue to enhance and develop our XCOM RAN product and service offerings, we incur costs, primarily for personnel, in advance of significant revenue. Comparing the second quarter of 2025 to the prior year's second quarter, Adjusted EBITDA was unfavorably impacted by these costs (net of revenue) by $1.9 million. Adjusted EBITDA is a non-GAAP financial measure. For more information, refer to “Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA."

YEAR TO DATE FINANCIAL REVIEW

Revenue

During the first six months of 2025, total revenue of $127.2 million was comprised of $120.3 million in service revenue and $6.9 million in revenue from subscriber equipment sales. This 9% increase in total revenue compared to the same period in 2024 was due primarily to an increase in wholesale capacity services revenue and higher Commercial IoT subscribers and device sales.

Consistent with the quarterly increase discussed above, service revenue for the first six months of 2025 increased $9.2 million, or 8%, due primarily to higher wholesale capacity services, which have expanded over this period.

Higher Commercial IoT subscribers also contributed to the increase in service revenue for the first half of 2025, generating a 4% increase in Commercial IoT service revenue. Fewer SPOT and Duplex subscribers partially offset the increase in service revenue.

A higher volume of Commercial IoT device sales increased revenue generated by subscriber equipment sales by 39% compared to the same period in 2024, reflecting strong sales of our one-way modules to date in 2025.

Loss from Operations

Loss from operations was $2.4 million for the first six months of 2025 compared to a loss of $6.1 million for the same period in 2024. This improvement was due to higher revenue (as discussed above) offset partially by higher operating expenses.

The increase in operating expenses compared to the same period in 2024 were driven by higher cost of services and cost of subscriber equipment sales (consistent with the increase in equipment sales revenue), as well as a loss on disposal of assets during the first quarter of 2025. These items were offset partially by lower stock-based compensation.

Higher cost of services for the first six months of 2025 compared to the same period in 2024 resulted primarily from costs incurred to enhance and develop our XCOM RAN product and service offerings as well as other ancillary costs associated with XCOM technology development, including certain non-cash amortized costs beginning in May 2024. Additionally, subscriber product development costs increased in line with progress made on our two-way Commercial IoT module and next-generation SPOT device. Cost of services was also impacted by higher network operating costs to support our new and upgraded global ground infrastructure.

Operating expenses were favorably impacted by employee retention credits received in 2025 as a result of our eligibility under the provisions of the CARES Act for 2021. The total credits of $3.9 million reduced operating expenses during the first six months of 2025, of which $2.7 million was allocated to cost of services and $1.2 million was allocated to MG&A expense, based on the employee costs incurred during the eligible period.

Net Income (Loss)

Net income was $1.9 million for the first six months of 2025, compared to a net loss of $22.9 million for the same period in 2024. This improvement was due primarily to higher revenue (discussed above), a non-cash gain on the quarterly mark-to-market adjustment of our derivative asset as well as favorable fluctuations in foreign currency gains and losses due to the remeasurement of intercompany balances. These favorable items were offset partially by higher operating expenses (discussed above) as well as higher interest expense resulting from non-cash imputed interest on the 2024 prepayment agreement.

Adjusted EBITDA

Adjusted EBITDA was $66.1 million during the first six months of 2025, compared to $62.2 million during the same period in 2024. Higher revenue was offset partially by an increase in operating expenses (excluding adjustments for non-cash or non-recurring items).

As discussed above, comparing the first six months of 2025 to the same period in 2024, Adjusted EBITDA was unfavorably impacted by the costs (net of revenue) associated with the development of XCOM RAN product and service offerings by $3.2 million.

Liquidity

As of June 30, 2025, we held cash and cash equivalents of $308.2 million, compared to $391.2 million as of December 31, 2024. During the first six months of 2025, net cash flows generated from operations were $209.7 million, capital expenditures were $271.8 million and net cash flows used in financing activities were $22.0 million. Cash and cash equivalents were also positively impacted by a $1.1 million effect of exchange rate changes. The net decrease in cash and cash equivalents during the first six months of 2025 was due primarily to capital expenditures associated with our commitments under the Updated Services Agreements, offset partially by funding of $124.7 million received in connection with the Infrastructure Prepayment (as described further in our periodic reports).

Operating cash flows include cash receipts from our customers for the performance of wholesale capacity services and the sale of satellite voice and data equipment and services. We use cash in operating activities primarily for network operating costs, personnel costs, inventory purchases and other general corporate expenditures. Investing outflows largely relate to network expansion and upgrades, including satellite construction and launch costs. Financing activities relate primarily to recoupment of the 2021 Funding Agreement by our largest customer and preferred stock dividend payments.

Adjusted free cash flow during the first six months of 2025 was $77.9 million compared to $51.9 million during the same period in 2024. This increase includes $30.0 million in accelerated service payments received during the first six months of 2025 pursuant to the Updated Services Agreements. Refer to "Reconciliation of Non-GAAP Adjusted Free Cash Flow" for further details on the calculation of this metric.

The principal amount of our debt outstanding was $400.2 million at June 30, 2025, compared to $417.5 million at December 31, 2024. This decrease was due to our scheduled recoupments of $17.3 million under the 2021 Funding Agreement.

FINANCIAL OUTLOOK

We reiterate our financial outlook for 2025, as follows:

• Total revenue between $260 million and $285 million
• Adjusted EBITDA margin of approximately 50%

This guidance reflects our current expectations that the potential impacts from tariffs will be minimal.

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss its second quarter 2025 results at 5:00 p.m. Eastern Time (ET) on Thursday, August 7, 2025. Details are as follows:

About Globalstar, Inc.

Globalstar empowers its customers to connect, transmit, and communicate smarter – easily, quickly, securely, and affordably – offering reliable satellite and terrestrial connectivity services as an international telecom infrastructure provider. The Company’s low Earth orbit ("LEO") satellite constellation ensures secure data transmission for connecting and protecting assets, transmitting critical operational data, and saving lives for consumers, businesses, and government agencies across the globe. Globalstar’s Band 53, and its 5G variant, n53, terrestrial spectrum offer carriers, cable companies, and system integrators a versatile, fully licensed channel for private networks with a growing ecosystem to improve customer wireless connectivity, while Globalstar’s XCOM RAN product offers significant capacity gains in dense wireless deployments. In addition to SPOT GPS messengers, Globalstar offers next-generation Internet of Things ("IoT") hardware and software products for efficiently tracking and monitoring assets, processing smart data at the edge, and managing analytics with cloud-based telematics solutions to drive safety, productivity, and profitability.

Note that all SPOT products described in this press release are the products of SPOT LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.

For more information, visit www.globalstar.com.

Cautionary Statement About Forward-Looking Statements

Certain statements contained in this press release other than purely historical information, including, but not limited to, expectations regarding future revenue, financial performance, financial condition, liquidity, adjusted free cash flow, projections, estimates and guidance, statements relating to our business plans, objectives and expected operating results, our anticipated financial resources, our expectations about the future operational performance of our satellites (including their projected operational lives) and the completion and launch of new satellites, our expectations regarding the outcomes of regulatory and licensing proceedings, the expected growth prospects of our existing customers and the markets that we serve, our expectations relating to the impact of trade policies (including tariffs), our expectations about our ability to integrate the licensed technology into our current line of business, the expected benefits of the updated services agreements, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” "might," "could," “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Risks and uncertainties that could cause or contribute to such differences include, without limitation, those described under Item 1A. Risk Factors of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in the Company’s other filings with the SEC. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release to reflect actual results, future events or circumstances or changes in our assumptions, business plans or other changes.

This press release contains measures such as EBITDA, Adjusted EBITDA, and Adjusted free cash flow, which are not recognized under U.S. generally accepted accounting principles (GAAP). Reconciliations of these non-GAAP measures to amounts reported in the Company’s consolidated financial statements are provided in this press release. For forward-looking Adjusted EBITDA margin, the Company is unable to provide a reconciliation to the most comparable GAAP measure without unreasonable effort because estimating such GAAP measures and providing a meaningful reconciliation is extremely difficult and requires a level of precision that is unavailable for these future periods and the information needed to reconcile these measures is dependent upon future events, many of which are outside of our control as described above. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.

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