Globalstar (GSAT) Q1 2025 earnings summary

Executive summary

• Revenue grew 6% year-over-year to $60 million in Q1 2025, led by wholesale capacity services and IoT subscriber growth, partially offset by declines in subscriber services revenue.

• Adjusted EBITDA increased to $30.4 million, up 3% year-over-year, with a margin of 51%, despite higher costs to support XCOM RAN development.

• Net loss attributable to common shareholders widened to $19.9 million, or $(0.16) per share, due to higher operating expenses and a $7.0 million satellite write-off.

• Strategic investments in new products, expanded partnerships, and leadership appointments are positioning the company for long-term growth.

• Launched a two-way satellite IoT solution and opened a new satellite operations control center to enhance fleet management and network performance.

Financial highlights

• Service revenue rose 7% year-over-year to $57.1 million, with wholesale capacity services up 18% and now representing 61% of total revenue.

• Adjusted free cash flow more than doubled year-over-year to $47.6 million, aided by accelerated service payments.

• Cash and cash equivalents at quarter-end were $241.4 million, down from $391.2 million at year-end, mainly due to capital expenditures.

• Principal debt outstanding was $408.8 million at March 31, 2025, down from $417.5 million at year-end 2024.

• Operating expenses increased to $68.5 million, mainly due to higher service costs, marketing, and a $7.0 million loss on satellite disposal.

Outlook and guidance

• Full-year 2025 revenue expected in the range of $260 million–$285 million, with an anticipated adjusted EBITDA margin of approximately 50%.

• Management expects continued revenue growth from expanded services under new agreements, with additional satellite launches and network upgrades planned for 2025.

• Commercial IoT activations are expected to increase following the launch of a new two-way reference design module in Q2 2025.

• Tariff and trade environment expected to have a relatively immaterial near-term impact.

• Liquidity from cash, operations, and customer prepayments is expected to be sufficient for near- and long-term obligations.