Globalstar (GSAT) Q1 2026 earnings summary

Executive summary

• Entered into a definitive merger agreement with Amazon on April 13, 2026, with closing expected in 2027, subject to regulatory approvals and milestone achievements; shareholders may elect cash or Amazon stock, with cash elections capped at 40% of shares.

• Q1 2026 revenue increased 17% year-over-year to $70.1 million, driven by higher wholesale capacity services.

• Advanced satellite constellation plans with two launches in 2026 and development of a third-generation network.

• Received FCC confirmation of exclusive MSS spectrum rights, strengthening regulatory position.

• Net loss attributable to common shareholders was $20.0 million, or $(0.16) per share, unchanged from Q1 2025; net loss reported elsewhere as $17.4 million due to increased interest expense and FX losses.

Financial highlights

• Service revenue rose to $66.7 million (up from $57.1 million in Q1 2025), with wholesale capacity services up 26% year-over-year.

• Income from operations was $8.2 million, reversing a $8.5 million loss in Q1 2025.

• Adjusted EBITDA grew to $33.5 million from $30.4 million year-over-year.

• Cash flow from operations was $35.2 million, down from $51.9 million in Q1 2025, reflecting timing of customer payments.

• Capital expenditures for network upgrades and satellite construction totaled $116.4 million in Q1 2026.

Outlook and guidance

• Merger with Amazon expected to close in 2027, pending regulatory and milestone conditions; forward-looking guidance and earnings calls suspended.

• Continued investment in satellite launches and ground infrastructure expansion to support extended MSS network.

• Anticipates further growth in Commercial IoT activations and new product launches in 2026.