Globalstar, Inc.

Previous wording

Our satellites communicate with a global network of gateways, each of which serves an area of up to 1,000,000 square miles. A gateway must be within line-of-sight of a satellite and the satellite must be within line-of-sight of the subscriber to provide services. We locate our gateways to maximize coverage over most of the Earth's land and human population and provide redundancy in the unlikely event that a tracking antenna or gateway is offline for any reason. We constantly evaluate and, as deemed necessary, expand our global network of gateways to meet market demand and optimize coverage and service quality. We have announced plans to expand various ground networks to support the Extended MSS Network with construction underway at critical sites in North America, Asia and Europe. This global expansion initiative is expected to include approximately 90 new antennas across 35 ground stations in 25 countries.

Current wording

Our satellites communicate with a global network of gateways, each of which serves an area of up to 1,000,000 square miles. A Globalstar gateway consists of multiple 6-meter tracking antennas, spaced at least 50 meters apart with associated electronics and other infrastructure. A gateway must be within line-of-sight of a satellite and the satellite must be within line-of-sight of the subscriber to provide services. We locate our gateways to maximize coverage over most of the Earth's land and human population and provide redundancy in the unlikely event that a tracking antenna or gateway is offline for any reason. We constantly evaluate and, as deemed necessary, expand our global network of gateways to meet market demand and optimize coverage and service quality. We have announced plans to expand various ground networks to support the Extended MSS Network with construction underway at critical sites around the globe. This global expansion initiative is expected to include approximately 90 new antennas across 35 ground stations in 25 countries.

Previous wording

We believe that the design of the Globalstar System enables faster and more cost-effective system maintenance and upgrades because the software and much of the hardware are located on the ground. Our multiple gateways allow us to reconfigure the Globalstar System quickly to extend another gateway's coverage to make up for lost coverage from a disabled gateway or to increase capacity resulting from surges in demand.

Current wording

The Globalstar System's design enables faster and more cost-effective maintenance and upgrades because the software and much of the hardware are located on the ground and thus readily accessible. Our multiple gateways allow us to reconfigure the Globalstar System quickly to extend another gateway's coverage to make up for lost coverage from a disabled gateway or to increase capacity resulting from surges in demand.

Previous wording

In 2022, we entered into a satellite procurement agreement with Macdonald, Dettwiler and Associates Corporation ("MDA") pursuant to which we expect to acquire 17 satellites with an option to procure an additional nine satellites to replace our HIBLEO-4 U.S.-licensed system. In August 2024, the Federal Communications Commission (the "FCC") Space Bureau granted our application to replace our HIBLEO-4 U.S.-licensed system with up to 26 satellites and operate them under a renewed 15-year license term to provide long-term continuity of our MSS. The technical specifications and design of these replacement satellites are similar to our current satellites. The satellite procurement agreement requires delivery of the 17 HIBLEO-4 replacement satellites by 2025. These replacement satellites are expected to complement our existing second-generation constellation to ensure continuous service delivery. In February 2025, we entered into another agreement with MDA pursuant to which we expect to acquire more than 50 satellites related to the Extended MSS Network.

Current wording

In 2022, we entered into a satellite procurement agreement with Macdonald, Dettwiler and Associates Corporation ("MDA Space") pursuant to which we expect to acquire 17 satellites with an option to procure an additional nine satellites to replace our HIBLEO-4 U.S.-licensed system. In August 2024, the Federal Communications Commission (the "FCC") Space Bureau granted our application to replace our HIBLEO-4 U.S.-licensed system with up to 26 satellites and operate them under a renewed 15-year license term to provide long-term continuity of our MSS. The technical specifications and design of these replacement satellites are similar to our current satellites. We currently expect delivery of the 17 replacement satellites in early 2026. These replacement satellites are expected to complement our existing second-generation constellation to ensure continuous service delivery. For information on the delayed delivery and related launch timing of the replacement satellites, see Note 9: Commitments and Contingencies to our consolidated financial statements. In February 2025, we entered into another agreement with MDA Space pursuant to which we expect to acquire more than 50 third-generation satellites related to the Extended MSS Network.

Previous wording

In each of August 2023 and June 2025, we entered into a Launch Services Agreement with Space Exploration Technologies Corp. (“SpaceX”) and certain related ancillary agreements (collectively, the “Launch Services Agreements”), providing for the launch of the first set of 8 replacement satellites expected in the fourth quarter of 2025 and second set of 9 replacement satellites expected in 2026, respectively, that the Company is acquiring pursuant to the 2022 satellite procurement agreement with MDA. In October 2024, we entered into additional agreements with SpaceX for the launch of the new C-3 System (defined below) satellites to support the Extended MSS Network.

Current wording

In each of August 2023 and June 2025, we entered into a Launch Services Agreement with Space Exploration Technologies Corp. (“SpaceX”) and certain related ancillary agreements (collectively, the “Launch Services Agreements”), providing for two launches of the replacement satellites that we are acquiring pursuant to the 2022 satellite procurement agreement with MDA Space. We currently expect to complete both launches during 2026 with the first launch, consisting of eight replacement satellites, anticipated during the first half of 2026. In October 2024, we entered into additional agreements with SpaceX for the launch of the new C-3 System (defined below) third-generation satellites to support the Extended MSS Network.

Previous wording

In June 2025, the FCC Space Bureau accepted our third-generation C-3 satellite system (the "C-3 System") petition for filing and published it for comment. The C-3 System is expected to support the Extended MSS Network.

Current wording

We have acquired the operational rights to the AST-NG-C-3 system filing made by the Republic of France with the ITU. This filing will enable us to commercialize our third-generation MSS network (the "C-3 System") to support the Services provided over the Extended MSS Network. We are actively working with the French government to secure the necessary authorizations to launch and operate the C-3 System. We are also pursuing market access approvals from multiple countries, including the United States. In February 2025, we filed a petition with the FCC requesting U.S. market access. The FCC Space Bureau has accepted our petition for filing and published it for public comment.

Previous wording

For the six months ended June 30, 2025 and 2024, the Customer, under the Updated Services Agreements, was responsible for 62% and 56%, respectively, of our total revenue. No other customer was responsible for more than 10% of our revenue. The loss of the Customer would likely have a material adverse impact on our financial condition, results of operations and cash flows.

Current wording

For the nine months ended September 30, 2025 and 2024, the Customer under the Updated Services Agreements was responsible for 63% and 58%, respectively, of our total revenue. No other customer was responsible for more than 10% of our revenue. The loss of the Customer may have an adverse impact on our financial condition, results of operations and cash flows.

Previous wording

As of June 30, 2025, we had approximately 784,000 subscribers worldwide. Our subscriber count only includes our MSS subscribers using devices sold and manufactured by Globalstar. For our subscriber driven revenue, the specialized needs of our global customers span many industries. The Globalstar System is able to offer our customers cost-effective communications solutions completely independent of cellular coverage. Although traditional users of wireless telephone and broadband data services have access to such services in developed locations, our MSS customers often operate, travel and/or live in remote regions or regions with under-developed telecommunications infrastructure where such services are not readily available or are not provided on a reliable basis.

Current wording

As of September 30, 2025, we had approximately 783,000 subscribers worldwide. Our subscriber count only includes our MSS subscribers using devices sold and manufactured by Globalstar. For our subscriber driven revenue, the specialized needs of our global customers span many industries. The Globalstar System is able to offer our customers cost-effective communications solutions completely independent of cellular coverage. Although traditional users of wireless telephone and broadband data services have access to such services in developed locations, our MSS customers often operate, travel and/or live in remote regions or regions with under-developed telecommunications infrastructure where such services are not readily available or are not provided on a reliable basis.

Previous wording

We compete aggressively on price and strive to differentiate the solutions that we offer to our customers. As technological advancements are made, we continue to explore opportunities to develop new products and provide new services over the Globalstar System to meet the needs of our existing and prospective customers. Our current initiatives are focused in part on further investment and development of Commercial IoT-enabled devices, including a two-way reference design module and finished products.

Current wording

We compete aggressively on price and strive to differentiate the solutions that we offer to our customers. As technological advancements are made, we continue to explore opportunities to develop new products and provide new services over the Globalstar System to meet the needs of our existing and prospective customers. In October 2025, we released the RM200M two-way module, designed to integrate into IoT and industrial solutions. Our current initiatives are focused in part on further investment and development of Commercial IoT-enabled devices, including a two-way reference design module and finished products with satellite only and multimode capabilities.

Previous wording

We have terrestrial licenses in 12 countries, resulting in approximately 12.0 billion MHz-POPs (megahertz of our spectrum authority in each country multiplied by a total population of approximately 961 million over the covered area) as of June 30, 2025. Prospective spectrum partners, including cable companies, wireless carriers, system integrators, utilities and other infrastructure operators, are able to benefit from access to uniform and increasingly “borderless” spectrum working across geographies. We believe our expanding portfolio of terrestrial spectrum represents a substantial opportunity for us. The Updated Services Agreements significantly enhance the device ecosystem for Band 53/n53 by enabling access to our terrestrial spectrum band in certain of the Customer's devices.

Current wording

We have terrestrial licenses in 12 countries, resulting in approximately 12.0 billion MHz-POPs (megahertz of our spectrum authority in each country multiplied by a total population of approximately 963 million over the covered area) as of September 30, 2025. Prospective spectrum partners, including cable companies, wireless carriers, system integrators, utilities and other infrastructure operators, are able to benefit from access to uniform and increasingly “borderless” spectrum working across geographies. We believe our expanding portfolio of terrestrial spectrum represents a substantial opportunity for us. The Updated Services Agreements significantly enhance the device ecosystem for Band 53/n53 by enabling access to our terrestrial spectrum band in certain of the Customer's devices.

Previous wording

See Note 15: Subsequent Events for more information regarding the One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025. The Company is reviewing the impact of the OBBBA, but does not expect it to have a material impact on the Company’s 2025 results.

Current wording

See Note 14: Income Taxes for more information regarding the One Big Beautiful Bill Act (“OBBBA”) which was enacted on July 4, 2025. The Company has reviewed the impact of the OBBBA and does not expect a material impact on the Company’s 2025 results.

Previous wording

Comparison of the Results of Operations for the three and six months ended June 30, 2025 and 2024

Current wording

Comparison of the Results of Operations for the three and nine months ended September 30, 2025 and 2024

Previous wording

Our revenue is categorized as service revenue and subscriber equipment sales. Service revenue is generated by the MSS services we provide to customers using the Globalstar System. Subscriber equipment sales are generated from the sale of MSS devices that work over the Globalstar System. We also generate service and equipment revenue from the sale of XCOM RAN systems and associated services that support such systems. For the three months ended June 30, 2025, total revenue increased 11% to $67.1 million from $60.4 million for the same period in 2024. For the six months ended June 30, 2025, total revenue increased 9% to $127.2 million from $116.9 million for the same period in 2024. The increases in revenue for both the three and six month periods ended June 30, 2025 resulted primarily from higher wholesale capacity services. See below for a discussion of the main fluctuations in revenue.

Current wording

Our revenue is categorized as service revenue and subscriber equipment sales. Service revenue is generated by the MSS services we provide to customers using the Globalstar System. Subscriber equipment sales are generated from the sale of MSS devices that work over the Globalstar System. We also generate service and equipment revenue from the sale of XCOM RAN systems and associated services that support such systems. For the three months ended September 30, 2025, total revenue increased 2% to $73.8 million from $72.3 million for the same period in 2024. For the nine months ended September 30, 2025, total revenue increased 6% to $201.0 million from $189.2 million for the same period in 2024. The increases in revenue for both the three and nine month periods ended September 30, 2025 resulted primarily from higher wholesale capacity services and higher volume of Commercial IoT devices. See below for a discussion of the main fluctuations in revenue.

Previous wording

Wholesale capacity services revenue increased 24% and 21%, respectively, for the three and six months ended June 30, 2025, compared to the same periods in 2024. This type of service includes revenue from the Customer under the Updated Services Agreements. 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. Additionally, for the six months ended June 30, 2025, revenue increased for fees related to certain expanded services that began in March 2024 as well as revenue associated with higher network costs, which is a driver of the revenue earned under the Updated Services Agreements.

Current wording

Wholesale capacity services revenue increased 8% and 16%, respectively, for the three and nine months ended September 30, 2025, compared to the same periods in 2024. Wholesale capacity services revenue includes revenue from the Customer under the Updated Services Agreements. The majority of the increase during the third quarter of 2025 related to the timing of service fees associated with the reimbursement of network-related costs offset by the payment of earned bonuses associated with our performance under the Service Agreements during the third quarter of 2024. Additionally, for the nine months ended September 30, 2025, service revenue increased for fees related to certain expanded services that began in March 2024 as well as the items previously discussed for the three month period.

Previous wording

Commercial IoT service revenue increased 5% and 4%, respectively, for the three and six months ended June 30, 2025, compared to the same periods in 2024. Average subscribers increased 5% and 4% respectively, for the three and six months ended June 30, 2025, compared to the same periods in 2024, due to higher subscriber activations on a last twelve month basis. We also expect activations to increase following commercial sales of our two-way reference design module now expected later this year.

Current wording

Commercial IoT service revenue increased 3% and 4%, respectively, for the three and nine months ended September 30, 2025, compared to the same periods in 2024. Average subscribers increased 6% and 5% respectively, for the three and nine months ended September 30, 2025, compared to the same periods in 2024, due to higher subscriber activations on a last twelve month basis. We also expect activations to increase following commercial sales of our two-way reference design module during the fourth quarter of 2025.

Previous wording

SPOT service revenue decreased $1.2 million and $2.0 million, respectively, for the three and six months ended June 30, 2025, compared to the same periods in 2024, due principally to fewer subscribers. The decline in average subscribers is due to continued competitive pressure; however, product engineering efforts continue to be underway to develop a new consumer SPOT device, which we believe could stabilize or even increase demand for such services from our subscribers.

Current wording

SPOT service revenue decreased $1.0 million and $3.0 million, respectively, for the three and nine months ended September 30, 2025, compared to the same periods in 2024, due principally to fewer subscribers. The decline in average subscribers is due to continued competitive pressure; however, product engineering efforts are underway to develop a new consumer SPOT device, which we believe could potentially increase demand for such services from our subscribers.

Previous wording

Duplex service revenue decreased $1.3 million and $2.6 million, respectively, for the three and six months ended June 30, 2025, compared to the same periods in 2024, due to fewer average subscribers resulting from our decision to discontinue the manufacture and sale of Duplex devices to increase our focus on maximizing other sources of revenue.

Current wording

Duplex service revenue decreased $1.2 million and $3.8 million, respectively, for the three and nine months ended September 30, 2025, compared to the same periods in 2024, due to fewer average subscribers resulting from our decision to discontinue the manufacture and sale of Duplex devices to increase our focus on maximizing other sources of revenue.

Previous wording

Total operating expenses decreased to $61.0 million from $61.8 million and increased to $129.5 million from $123.0 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. In both periods, stock-based compensation was lower and costs to support XCOM were higher. Additionally, for the six months ended June 30, 2025, operating expenses were also impacted by a loss on disposal of assets. The main contributors to the variances in operating expenses are explained in detail below.

Current wording

Total operating expenses increased to $63.7 million from $62.9 million and increased to $193.2 million from $185.9 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. In both periods, higher cost of services and marketing, general and administrative expenses were offset partially by lower stock-based compensation. Additionally, for the nine months ended September 30, 2025, operating expenses were also impacted by a loss on disposal of assets. The main contributors to the variances in operating expenses are explained in detail below.

Previous wording

In February 2025 and May 2025, we received employee retention credits as a result of our eligibility under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") for the second and third quarters of 2021. During the first and second quarters of 2025, the refunds of $2.0 million and $1.9 million, respectively, reduced operating expenses. Based on the employee costs incurred during the eligible periods, for the first and second quarters of 2025, $1.4 million and $1.3 million, respectively, was allocated to cost of services and $0.6 million for each period was allocated to marketing, general and administrative expense.

Current wording

In February and May 2025, we received employee retention credits as a result of our eligibility under the provisions of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") for the second and third quarters of 2021. The refunds of $2.0 million and $1.9 million, respectively, reduced operating expenses in 2025 compared to 2024. Based on the employee costs incurred during the eligible periods, for the first and second quarters of 2025, $1.4 million and $1.3 million, respectively, was allocated to cost of services and $0.6 million for each period was allocated to marketing, general and administrative expense.

Previous wording

Cost of services increased $1.4 million and $3.2 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. We continue to incur higher network operating costs relating to our new and upgraded global ground infrastructure. In connection with services provided under the Updated Services Agreements, a substantial portion of these costs are reimbursed thereunder and this consideration is recognized as revenue in accordance with the terms of the Updated Services Agreements. For the three and six months ended June 30, 2025, personnel costs that support the Globalstar System increased $1.0 million and $1.8 million, respectively. Ground network costs, such as occupancy and maintenance charges, increased $0.4 million for both the three and six months ended June 30, 2025 compared to the same periods in 2024.

Current wording

Cost of services increased $3.0 million and $6.3 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. We continue to incur higher network operating costs relating to our new and upgraded global ground infrastructure and network-related personnel. In connection with services provided under the Updated Services Agreements, a substantial portion of these costs are reimbursed thereunder and this consideration is recognized as revenue in accordance with the terms of the Updated Services Agreements. For the three and nine months ended September 30, 2025, personnel costs that support the Globalstar System increased $2.6 million and $3.9 million, respectively. Ground network costs, such as occupancy and maintenance charges, increased $0.9 million and $1.3 million, respectively, for the three and nine months ended September 30, 2025 compared to the same periods in 2024.

Previous wording

For the six months ended June 30, 2025, higher cost of services was also due to expenses totaling $2.0 million for the Support Services Agreement (the “SSA”) (terminated in the second quarter of 2025) as well as other ancillary costs to support XCOM technology development, some of which are due to the timing of the incurrence of certain amortized non-cash costs beginning in May 2024. Costs to support new MSS product development also contributed to the increase in operating expenses during the six months ended June 30, 2025.

Current wording

During 2025, the increase in cost of services was also due to expenses to support XCOM technology development, including the amortization of certain non-cash costs beginning in May 2024. XCOM-related costs increased $0.5 million and $2.5 million, respectively, for the three and nine months ended September 30, 2025 compared to the same periods in 2024. Costs to support new MSS product development also contributed to the increase in operating expenses during the nine months ended September 30, 2025.

Previous wording

Marketing, general and administrative expenses decreased $0.7 million and increased $0.3 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. For both periods, the portion of the employee retention credits received during the first and second quarters of 2025 (as discussed above) offset expenses. For the six month period ended June 30, 2025, as expected, certain costs, including higher professional fees associated with the Globalstar SPE exceeded such offset of expenses; however, these costs decreased during the second quarter of 2025 and are not expected to recur at the higher level over the second half of 2025.

Current wording

Marketing, general and administrative expenses increased $0.9 million and $1.2 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. For both periods, higher personnel costs and franchise taxes associated with the Globalstar SPE increased operating expenses. These increases were offset partially by substantial professional fees associated with the Globalstar SPE during 2024 that did not reoccur in 2025 as well as the portion of the employee retention credits received during the first and second quarters of 2025 (as discussed above).

Previous wording

Stock-based compensation expense decreased $3.2 million and $5.5 million, respectively, for the three and six months ended June 30, 2025, compared to the same periods in 2024. The decrease was due primarily to restricted stock units ("RSUs") granted to certain executives in connection with the License Agreement in August 2023, the majority of the cost of which was recognized in 2024.

Current wording

Stock-based compensation expense decreased $3.3 million and $8.8 million, respectively, for the three and nine months ended September 30, 2025, compared to the same periods in 2024. The decrease was due primarily to restricted stock units ("RSUs") granted to certain executives in connection with the License Agreement in August 2023, the majority of the cost of which was recognized in 2024.

Previous wording

Interest expense, net, increased $3.8 million and $7.9 million, respectively, during the three and six months ended June 30, 2025, compared to the same periods in 2024, due to: (1) higher interest costs associated with the 2024 Prepayment Agreement of $12.1 million and $23.6 million, respectively, which were inclusive of a non-cash significant financing component ($8.6 million and $16.6 million, respectively) in accordance with ASC 606 and accrued fees ($7.5 million and $15.0 million, respectively) offset by debt premium amortization ($4.0 million and $8.0 million, respectively), and (2) lower capitalized interest of $1.6 million and $4.9 million, respectively (due in part to the decrease in interest costs eligible for capitalization), which increased "interest income and expense, net" during 2025, offset by: (i) lower interest costs of $7.5 million and $14.8 million, respectively, following the retirement of our 2023 13% Notes in November 2024, and (ii) an increase in interest income of $1.5 million and $4.2 million, respectively, due to a higher cash balance.

Current wording

•Capitalized Interest: For the three and nine months ended, capitalized interest costs were lower by $2.3 million and $7.3 million, respectively, due in part to the decrease in interest costs eligible for capitalization, which increased "interest income and expense, net" during 2025.

Previous wording

We recorded foreign currency gains of $12.0 million and $16.1 million, respectively, during the three and six months ended June 30, 2025, compared to foreign currency losses of $4.5 million and $8.3 million during the three and six months ended June 30, 2024. Many of our foreign subsidiaries have USD-denominated intercompany payable balances, which impact the foreign currency gains and losses recorded each reporting period. In these instances, foreign currency gains result from other currencies strengthening relative to the U.S. dollar; inversely, foreign currency losses result from the U.S. dollar strengthening relative to other currencies.

Current wording

We recorded foreign currency losses of $0.6 million and gains of $15.5 million, respectively, during the three and nine months ended September 30, 2025, compared to foreign currency gains of $4.9 million and losses of $3.4 million during the three and nine months ended September 30, 2024. Many of our foreign subsidiaries have USD-denominated intercompany payable balances, which impact the foreign currency gains and losses recorded each reporting period. In these instances, foreign currency gains result from other currencies strengthening relative to the U.S. dollar; inversely, foreign currency losses result from the U.S. dollar strengthening relative to other currencies.

Previous wording

As of June 30, 2025 and December 31, 2024, we held cash and cash equivalents of $308.2 million and $391.2 million, respectively. The decrease in cash and cash equivalents during 2025 was due primarily to capital expenditures associated with our commitments under the Updated Services Agreements, including network expansion and upgrades, offset partially by $124.7 million in cash received pursuant to the Infrastructure Prepayment.

Current wording

As of September 30, 2025 and December 31, 2024, we held cash and cash equivalents of $346.3 million and $391.2 million, respectively. The decrease in cash and cash equivalents during 2025 was due primarily to capital expenditures associated with our commitments under the Updated Services Agreements, including network expansion and upgrades, offset partially by cash received pursuant to the Infrastructure Prepayment of $299.6 million (of which $175 million was received in the third quarter) and pursuant to the 2023 Funding Agreement of $27.1 million.

Previous wording

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 recoupment of $17.3 million under the 2021 Funding Agreement (more detailed discussion and defined terms below).

Current wording

The principal amount of our debt outstanding was $418.7 million at September 30, 2025, compared to $417.5 million at December 31, 2024. This increase was due to the issuance of debt under the 2023 Funding Agreement totaling $27.1 million during the third quarter 2025, offset partially by scheduled recoupments of $26.0 million under the 2021 Funding Agreement.

Previous wording

Cash Flows for the six months ended June 30, 2025 and 2024

Current wording

Cash Flows for the nine months ended September 30, 2025 and 2024

Previous wording

Net cash provided by operating activities during the six months ended June 30, 2025 was $209.7 million, compared to net cash provided by operating activities of $66.5 million during the same period in 2024. This improvement was due primarily to favorable working capital changes, specifically resulting from the receipt of $124.7 million during the second quarter of 2025 pursuant to the Infrastructure Prepayment, which was recorded as deferred revenue and will be used to fund capital expenditure purchases in the near future. During 2025, $30.0 million in accelerated fees were paid to us pursuant to the Updated Services Agreements, which also increased deferred revenue. Other smaller items, such as higher net income, after adjusting for noncash items, was offset by other unfavorable working capital changes during the period.

Current wording

Net cash provided by operating activities during the nine months ended September 30, 2025 was $445.8 million, compared to net cash provided by operating activities of $98.5 million during the same period in 2024. This improvement was due primarily to favorable working capital changes, specifically resulting from the receipt of $299.6 million during 2025 pursuant to the Infrastructure Prepayment, which was recorded as deferred revenue and will be used to fund capital expenditure purchases in the near future. During 2025, $37.5 million in accelerated fees were paid to us pursuant to the Updated Services Agreements, which also increased deferred revenue. Other smaller items, such as higher net income, after adjusting for noncash items, was offset by other unfavorable working capital changes during the period.

Previous wording

Net cash used in investing activities was $271.8 million for the six months ended June 30, 2025, compared to $74.5 million for the same period in 2024. Net cash used in investing activities during both periods included primarily network upgrades associated with the Updated Services Agreements. The increase during 2025 was principally due to $203.1 million in milestone payments to MDA associated with the Extended MSS Network contract executed in February 2025.

Current wording

Net cash used in investing activities was $485.9 million for the nine months ended September 30, 2025, compared to $107.7 million for the same period in 2024. Net cash used in investing activities during both periods included primarily network upgrades associated with the Updated Services Agreements. The increase during 2025 was principally due to milestone payments made to MDA Space and SpaceX totaling $315.8 million and $19.0 million, respectively, associated with the Extended MSS Network.

Previous wording

Net cash used in financing activities was $22.0 million during the six month period ended June 30, 2025, compared to net cash provided by financing activities of $16.2 million for the same period in 2024. In February 2024, we received proceeds from the 2023 Funding Agreement totaling $37.7 million, which was used to pay amounts owed to MDA. During both 2025 and 2024, we made payments for the scheduled recoupments pursuant to the terms of the 2021 Funding Agreement and also paid cash dividends to our preferred equity holders.

Current wording

Net cash used in financing activities was $6.1 million during the nine month period ended September 30, 2025, compared to net cash provided by financing activities of $4.9 million for the same period in 2024. In February 2024 and August 2025, we received proceeds from the 2023 Funding Agreement totaling $37.7 million and $27.1 million, respectively, which was used to pay amounts owed to vendors for network purchases pursuant to the Updated Services Agreements. During 2025 and 2024, we made payments for the scheduled recoupments pursuant to the terms of the 2021 Funding Agreement and also paid cash dividends to holders of the Series A Preferred Stock.

Previous wording

At June 30, 2025, the principal amount of our debt totaled $400.2 million, which accrues fees at a weighted average stated rate up to 9%.

Current wording

At September 30, 2025, the principal amount of our debt totaled $418.7 million, which accrues fees at a weighted average stated rate up to 9%.

Previous wording

At June 30, 2025, our deferred revenue, net, totaled $524.5 million, of which the majority is expected to be earned over a period in excess of five years as we perform services under the Updated Services Agreements.

Current wording

At September 30, 2025, our deferred revenue, net, totaled $734.4 million, of which the majority is expected to be earned over a period in excess of five years as we perform services under the Updated Services Agreements.

Previous wording

For more information regarding our 2024 Debt Repayment, 2021 and 2023 Funding Agreements, Series A Preferred Stock and Infrastructure Payments, see Note 6: Long-Term Debt and Other Financing Arrangements and Note 2: Special Purpose Entity to our condensed consolidated financial statements.

Current wording

For more information regarding our 2024 Debt Repayment, 2021 and 2023 Funding Agreements, dividends paid to holders of the Series A Preferred Stock and Infrastructure Payments, see Note 6: Long-Term Debt and Other Financing Arrangements and Note 2: Special Purpose Entity to our condensed consolidated financial statements.