Satellite communications provider Globalstar (NASDAQ: GSAT) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 2.1% year on year to $73.85 million. The company’s full-year revenue guidance of $272.5 million at the midpoint came in 2.9% above analysts’ estimates. Its GAAP loss of $0.01 per share was $0.02 above analysts’ consensus estimates.

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StockStory’s Take

Globalstar’s third quarter reflected continued momentum in satellite communications, with market reaction notably positive following the earnings announcement. Management credited the quarter’s outperformance to robust growth in wholesale capacity services and accelerating adoption of Commercial IoT (Internet of Things) devices. CFO Rebecca Clary highlighted that equipment revenue from IoT device sales rose sharply, supported by a surge in gross activations and subscriber growth. CEO Paul Jacobs pointed to the company’s progress in expanding its global ground infrastructure and the commercial availability of its two-way IoT module as key enablers of this growth. Additionally, improvements in operational efficiency and deliberate investments in business development contributed to overall financial stability, even as noncash items impacted net income.

Looking ahead, Globalstar’s full-year guidance is underpinned by ongoing investment in next-generation products and network expansion, with management expecting revenue growth from both established and emerging segments. CEO Paul Jacobs emphasized the company’s strategy to leverage its globally harmonized spectrum and its expanding C-3 satellite constellation to address broader market opportunities, particularly in government and enterprise. Management is prioritizing execution on infrastructure milestones, scaling enterprise and government deployments, and driving adoption of new technologies like XCOM RAN and the two-way IoT module. Clary reiterated that maintaining high adjusted EBITDA margins remains a focus, even as strategic investments continue, stating, “We are executing on our infrastructure commitments to support our wholesale services agreement.”

Key Insights from Management’s Remarks

Management identified infrastructure expansion, IoT device adoption, and new technology launches as key factors influencing both the quarter’s performance and future outlook.

• Wholesale capacity strength: Growth in wholesale capacity services was fueled by the timing of service fees and expanded network reimbursement agreements, as Globalstar continued to upgrade its global ground infrastructure across multiple continents.
• Commercial IoT momentum: IoT service revenue increased due to a 6% rise in average subscribers, with gross activations at a record high. Equipment revenue from Commercial IoT device sales was up 60% year over year, driven by strong demand in safety, logistics, and infrastructure markets.
• Launch of two-way IoT module: The new RM200M module, offering two-way connectivity, became commercially available and received certifications in key regions. Management expects this product to open new markets and accelerate adoption among customers requiring more advanced solutions.
• XCOM RAN technology progress: Investment in XCOM RAN (a private wireless network technology designed for mission-critical and large-area applications) continued, with the first commercial order secured. Management believes XCOM RAN’s differentiated performance and economics compared to industrial Wi-Fi will support future growth.
• Government sector traction: Recent wins and partnerships, notably with Parsons Corporation, are transitioning from proof of concept to commercial engagement. Management expects government-related revenues to become a more significant part of the business in the coming years.

Drivers of Future Performance

Globalstar’s outlook is shaped by continued investments in spectrum, infrastructure expansion, and adoption of next-generation connectivity solutions.

• Infrastructure and satellite roadmap: Ongoing build-out of the C-3 satellite constellation and ground network, including nearly 90 new tracking antennas, is designed to enhance service reliability and expand capacity. Management believes these upgrades will enable greater throughput and position the company for long-term relevance.
• Commercial adoption of new technologies: The rollout of the two-way IoT module and XCOM RAN are expected to unlock new customer segments and drive higher recurring revenues, especially as enterprise and government clients increase adoption. Management highlighted early customer interest and anticipates these products will contribute more meaningfully in the next year.
• Strategic positioning and industry convergence: Management views Globalstar’s globally harmonized spectrum and operational expertise as unique assets amid a converging satellite and terrestrial communications market. The company is actively monitoring potential new spectrum opportunities and regulatory developments that could impact industry dynamics.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will monitor (1) the pace of deployment for the new C-3 satellite infrastructure and associated ground network expansion, (2) customer adoption rates and revenue contribution from the two-way IoT module and XCOM RAN technologies, and (3) progress in securing and scaling government and enterprise contracts. We will also watch for developments in regulatory approvals and potential strategic transactions.

Globalstar currently trades at $50.76, up from $48.20 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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