Globalstar, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
GSAT$84.32+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001366868-25-000113
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001366868-26-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 114 current paragraphs.
48 unchanged; 42 reworded; 23 added; 17 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Pending Mergers with Amazon.com, Inc.
Current report
On April 13, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Amazon.com, Inc., a Delaware corporation (“Amazon”), Grapefruit Acquisition Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of Amazon (“Acquisition Sub I”), and Grapefruit Acquisition Sub II, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of Amazon (“Acquisition Sub II” and, together with Amazon and Acquisition Sub I, the “Buyer Parties”), pursuant to which and subject to the terms and conditions of the Merger Agreement, the Buyer Parties have agreed to acquire us (the "Mergers"). The Mergers are expected to close in 2027, subject to satisfaction of certain closing conditions in the Merger Agreement, including required regulatory approvals; however, no assurance can be given as to when, or if, the Mergers will occur. Refer to Note 14: Subsequent Events to our consolidated financial statements for further discussion on the Mergers.
Current report
Each of our gateways has multiple antennas that communicate with our satellites and pass communications seamlessly between antenna beams and satellites as the satellites traverse the gateways, thereby reflecting the signals from our users' terminals to our gateways. Once a satellite acquires a signal from an end-user, the Globalstar System authenticates the user and establishes the voice or data channel to complete the call to a device connected to the public switched telephone network ("PSTN"), a cellular or another wireless network or the internet for data communications including Commercial IoT communication services.
Current report
Our ground network includes our ground equipment, which uses technology permitting communication to multiple satellites. The architecture of the Globalstar System provides full frequency re-use. This maximizes satellite diversity (which maximizes quality) and network capacity as we can reuse the assigned spectrum in every satellite beam in every satellite. In addition, we have developed a proprietary technology for our SPOT and Commercial IoT communication services.
Current report
We believe our MSS spectrum position provides potential for harmonized terrestrial authority across many international regulatory domains and have received and continue to seek approvals in various international jurisdictions.
Current report
(1)The remaining 4% and 5% of our total revenue for the three months ended March 31, 2026 and 2025, respectively, is attributable to subscriber equipment sales from the sale of MSS devices that work over the Globalstar System.
Current report
Government and other services revenue increased 84% for the three months ended March 31, 2026, compared to the same period in 2025. Government and other services revenue includes fees earned from various governmental service contracts as well as services associated with XCOM RAN sales. We have a network services agreement with Parsons Corporation, a leading technology provider in the national security and global infrastructure markets, to utilize our satellite network for a mission critical service for government applications. Revenue associated with this agreement increased during the third quarter of 2025 as we moved from the proof of concept phase into the first year of services provided under the agreement. The increase in government and other services revenue during the first quarter of 2026 compared to the same period in 2025 was primarily due to revenue associated with the contract with Parsons.
Current report
Subscriber Equipment Sales
Current report
Revenue generated from subscriber equipment sales increased $0.4 million for the three months ended March 31, 2026, compared to the same period in 2025 due to increase in volume of both SPOT and Commercial IoT device sales.
Current report
Total operating expenses decreased to $61.9 million from $68.5 million for the three months ended March 31, 2026, compared to the same period in 2025. This decrease was primarily due to a noncash loss on disposal of assets recorded during the first quarter of 2025 that did not recur in 2026. The main contributors to the variances in operating expenses are explained in detail below.
Current report
Cost of services also increased during the first quarter of 2026 compared to the same period in 2025 due to nonrecurring Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") tax credit received in the prior year's first quarter totaling $1.4 million.
Current report
Cost of Subscriber Equipment Sales
Current report
Cost of subscriber equipment sales increased 21% for the three months ended March 31, 2026 compared to the same period in 2025. This increase is generally consistent with the increase in revenue generated from subscriber equipment sales during the period.
Current report
Marketing, general and administrative expenses increased $3.2 million for the three months ended March 31, 2026, compared to the same period in 2025. This increase was due to higher personnel costs as well as higher legal and professional fees. Personnel costs increased $1.2 million primarily due to additional fringe costs for employee taxes associated with nonrecurring equity vestings during the first quarter of 2026. Legal and professional fees increased $1.4 million during the three months ended March 31, 2026 compared to the same period in 2025 due primarily to transaction costs related to the Mergers, totaling $3.2 million; these costs were partially offset by nonrecurring costs associated with the Globalstar SPE that were incurred during the first quarter of 2025.
Current report
Marketing, general and administrative expenses also increased during the first quarter of 2026 compared to the same period in 2025 due to nonrecurring CARES Act tax credit received in the prior year totaling $0.6 million.
Current report
Depreciation, amortization and accretion
Current report
Depreciation, amortization and accretion expense decreased $3.9 million for the three months ended March 31, 2026, compared to the same period in 2025. During the years 2010 through 2013, we launched our second-generation satellites. The estimated useful lives of these satellites is 15 years; accordingly, during the past twelve months, several of these satellites were fully depreciated, resulting in a decrease in depreciation expense during the first quarter of 2026.
Current report
Interest income and expense, net, increased $11.9 million during the three months ended March 31, 2026, compared to the same period in 2025.
Current report
Interest costs associated with the Infrastructure Prepayment increased $14.5 million, representing a non-cash significant financing component in accordance with ASC 606. Capitalized interest costs were higher by $1.9 million due in part to the fluctuation in interest costs eligible for capitalization, which decreased "interest income and expense, net". Other smaller items contributed to the remaining variance for the period.
Current report
Derivative Gain (Loss) and Other Income (Expense)
Current report
During the first quarter of 2026, derivative gain (loss) and other income (expense) fluctuated by $2.1 million to a loss of $2.6 million 2026 from a loss of $0.4 million for the same period in 2025. Derivative gains and losses primarily include the mark-to-market adjustments associated with the embedded derivative within the 2024 Debt Repayment. The fluctuation in the value of this embedded derivative is due to certain significant inputs used in the fair value measurement, specifically the discount yield and the estimated achievement of project milestones (as amended in April 2026). As the discount yield used in the valuation process increases, the fair value of the embedded derivative decreases. Similarly, as the length of time between the reporting date and the start date of the interest payments decreases, the present value of the projected interest savings increases, resulting in a higher derivative asset value. Also, as the probability of reaching the relevant milestones increases, the fair value of the embedded derivative also increases.
Current report
Income tax expense decreased $3.0 million during the three months ended March 31, 2026, compared to the same periods in 2025. In both periods, tax expense is being driven by state current tax on forecasted taxable income and the state tax impacts of uncertain tax positions in the United States. The decrease in tax expense is primarily attributable to a lower estimated annual effective tax rate in the current year, which reduces the proportional impact of state current tax expense and uncertain tax position expense relative to the prior year period.
Current report
Refer to Note 14: Subsequent Events to our consolidated financial statements for discussion of the Mergers and (i) the related amendment to the 2024 Prepayment Agreement, (ii) related amendments to the warrants issued to the Customer and to Thermo to provide for the automatic cashless exercise of any vested and unexercised warrants immediately prior to the consummation of the Mergers, and (iii) the proposed cancellation of the Series A Preferred Stock in exchange for the liquidation preference upon consummation of the Mergers.
Removed paragraphs (17)
Previous report
Reverse Stock Split and Nasdaq Listing
Previous report
Effective following the close of trading on February 10, 2025, we voluntarily withdrew the listing of our common stock from the NYSE American, effected a reverse stock split at a ratio of 1 to 15 shares of our common stock and amended our certificate of incorporation to reduce the number of authorized shares of our common stock that we may issue from 2,150,000,000 shares to 143,333,334 shares of common stock. Effective at the start of trading on February 11, 2025, our common stock began trading on a post-split basis under the symbol “GSAT” on the Nasdaq Stock Market LLC.
Previous report
For additional information regarding the reverse stock split and Nasdaq listing, see Note 1: Basis of Presentation—Reverse Stock Split and Note 13: Common Stock to our consolidated financial statements.
Previous report
Recent Regulatory Change
Previous report
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 report
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 report
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 report
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 report
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 report
Interest expense, net, increased $8.2 million and $16.1 million, respectively, during the three and nine months ended September 30, 2025, compared to the same periods in 2024.
Previous report
The items increasing interest expense are discussed below:
Previous report
•2024 Prepayment Agreement: For the three and nine months ended, interest costs increased by $16.0 million and $39.6 million, respectively, which were inclusive of 1) a non-cash significant financing component ($12.5 million and $29.1 million, respectively) in accordance with ASC 606 and 2) accrued fees ($7.6 million and $22.5 million, respectively); these items were offset partially by debt premium amortization ($4.0 million and $12.0 million, respectively).
Previous report
•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 report
The items partially offsetting the increase in interest expense are discussed below:
Previous report
•2023 13% Notes: For the three and nine months ended, interest costs decreased by $7.5 million and $22.4 million, respectively, following the retirement of these notes in November 2024.
Previous report
•Interest Income: For the three and nine months ended, interest income increased by $1.7 million and $5.9 million, respectively, due to a higher cash balance.
Previous report
Income tax expense decreased $0.6 million and increased $2.0 million, respectively, during the three and nine months ended September 30, 2025, compared to the same periods in 2024. The income tax expense for the three and nine months ended September 30, 2025 is due to state current tax expense as a result of increased forecasted taxable income and state tax impacts of a new uncertain tax position in the United States. For the three and nine months ended September 30, 2024, tax expense was primarily driven by uncertain tax positions related to our Canadian audit; the expense associated with this matter during the nine months ended September 30, 2025 was not significant.
Reworded paragraphs (42)
Previous wording
Through its global satellite network, Globalstar, Inc. ("we", "us" or the "Company") provides Mobile Satellite Services (“MSS”), including voice and data communications services to retail, business and governmental customers as well as wholesale capacity services. We offer these services over our network of in-orbit satellites and ground stations (“gateways”), pursuant to our spectrum licenses, which we refer to collectively as the Globalstar System. In addition to supporting Internet of Things ("IoT") data transmissions in a variety of applications, we provide reliable connectivity in areas not served or underserved by terrestrial wireless and wireline networks and in circumstances where terrestrial networks are not operational due to natural or man-made disasters. By providing global mobile satellite communications services, we aim to meet our customers' increasing desire for connectivity.
Current wording
Through its global satellite network, Globalstar, Inc. ("we", "us" or the "Company") provides Mobile Satellite Services ("MSS"), including voice and data communications services to retail, business and governmental customers as well as wholesale satellite capacity services. We offer these services over our network of in-orbit satellites and ground stations ("gateways") pursuant to our spectrum licenses, which we refer to collectively as the Globalstar System. In addition to supporting Internet of Things ("IoT") data transmissions in a variety of applications, we provide reliable connectivity in areas not served or underserved by terrestrial wireless and wireline networks and in circumstances where terrestrial networks are not operational due to natural or man-made disasters. By providing global mobile satellite communications services, we aim to meet our customers' increasing desire for connectivity.
Previous wording
Our competitive advantages are leveraged through our ability to deliver wholesale satellite capacity services, communications products and services, government services, and terrestrial spectrum and network solutions. These core competencies are outlined below.
Current wording
Our competitive advantages are leveraged through our ability to deliver communications products and services, wholesale satellite capacity services, government services, and terrestrial spectrum and network solutions. These core competencies are outlined below.
Previous wording
In October 2024, we agreed to make certain amendments to the then-existing service agreements and entered into other related agreements with the Customer (as amended, collectively, the "Updated Services Agreements") to deliver expanded services over a new MSS network, including a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing (collectively the "Extended MSS Network"). As consideration for the additional services, payments to us will include incremental service fees tied to the cost of the Extended MSS Network, fees for providing additional related services, fees tied to expenses incurred for the provision of such services, and performance bonuses (if earned). For additional information about the Updated Services Agreements, see Note 2: Special Purpose Entity to our condensed consolidated financial statements.
Current wording
We provide certain services to Apple Inc. (the "Customer") pursuant to a service agreement and certain related ancillary agreements (collectively, the "Service Agreements"). In October 2024, we agreed to make certain amendments to the Service Agreements and entered into other related agreements with the Customer (the Service Agreements, as amended, collectively, the "Updated Services Agreements") to deliver expanded services over a new MSS network, including a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing (collectively the "Extended MSS Network"). The Updated Services Agreements generally require us to allocate network capacity to support the services we provide to the Customer and for the Customer to enable Band 53/n53 for use in cellular-enabled devices designated by the Customer for use with our services. For additional information about the Updated Services Agreements, including the recent SOW Amendment, see Note 2: Special Purpose Entity and Note 14: Subsequent Events to our condensed consolidated financial statements.
Previous wording
Wholesale satellite capacity services include satellite network access and related services over the Globalstar System. We provide certain services to Apple Inc. (the "Customer") pursuant to the Updated Services Agreements (as defined below). The Updated Services Agreements generally require us to allocate network capacity to support the services provided to the Customer and for the Customer to enable Band 53/n53 for use in cellular-enabled devices designated by the Customer for use with the services. As consideration for the services provided by us, payments to us include a fixed service fee, fees relating to certain service-related operating expenses and capital expenditures, additional fees related to expanded services, and potential bonus payments subject to satisfaction of certain licensing, service and related criteria.
Current wording
As consideration for the services provided by us to the Customer under the Updated Services Agreements, payments to us include a fixed service fee, fees relating to certain service-related operating expenses and capital expenditures, additional fees related to expanded services, and potential bonus payments subject to satisfaction of certain licensing, service and related criteria.
Previous wording
We retain 15% of our current and future network capacity to support our other customers, including our existing and future Commercial IoT, SPOT and Duplex subscribers. This capacity can support a substantial increase in our own subscriber base. This retained satellite capacity can be used by us directly or through additional wholesale customer opportunities.
Current wording
We retain 15% of our current and future network capacity to support our other customers, including our existing and future Commercial IoT, SPOT and Duplex subscribers. We believe that this capacity can support a substantial increase in our own subscriber base. This retained satellite capacity can be used by us directly or through additional wholesale customer opportunities.
Previous 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.
Current wording
For the three months ended March 31, 2026 and 2025, the Customer under the Updated Services Agreements was responsible for 66% and 61%, 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 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.
Current wording
As of March 31, 2026, we had approximately 797,000 MSS subscribers worldwide. Our subscriber count only includes our MSS subscribers who have an active Globalstar contract. 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. 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.
Current wording
We compete aggressively on price and strive to differentiate the products and 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 are authorized to provide terrestrial broadband services over 11.5 MHz of our licensed MSS spectrum at 2483.5 to 2495 MHz throughout the United States of America and its territories. The Third Generation Partnership Project (“3GPP”), an organization that produces technical specifications and reports for 3GPP technologies, has designated the 11.5 MHz terrestrial band as Band 53 with 5G variant of our Band 53, known as n53 (collectively "Band 53/n53").
Current wording
We are authorized to provide terrestrial broadband services over 11.5 MHz of our licensed MSS spectrum at 2483.5 to 2495 MHz (S-Band) throughout the United States and its territories. The Third Generation Partnership Project ("3GPP"), an organization that produces technical specifications and reports for 3GPP technologies, has designated the 11.5 MHz terrestrial band as Band 53 with the 5G variant of our Band 53, known as n53 (collectively "Band 53/n53").
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 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.
Current wording
We have terrestrial licenses in 12 countries, resulting in approximately 12.0 billion MHz-POPs (megahertz of our terrestrial spectrum authority in each country multiplied by a total population of approximately 967 million over the covered area) as of March 31, 2026. 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 portfolio of terrestrial spectrum represents a substantial opportunity for us. The Updated Services Agreements significantly enhanced the device ecosystem for Band 53/n53 by enabling access to our terrestrial spectrum band in certain of the Customer's devices.
Previous wording
We have an Intellectual Property License Agreement (the “License Agreement”) with XCOM Labs, Inc. (now known as Virewirx, Inc.) (“Licensor” or “XCOM”). Under the License Agreement, we purchased an exclusive right and license (the “License”) as well as certain intellectual property assets relating to the development and commercialization of XCOM’s key novel technologies for wireless spectrum innovations, including XCOM RAN systems, which is XCOM’s commercially available coordinated multi-point radio system. XCOM RAN systems deliver substantial capacity gains in dense, complex, challenging wireless environments in sub 7 GHz spectrum. We also gained exclusive access to XCOM’s peer-to-peer connectivity technologies that could have applications across cellular and satellite devices. As part of the License Agreement, certain XCOM employees, including engineering, test, product and R&D professionals, who helped develop the licensed technologies, have continued to further commercialize the technology on behalf of Globalstar as either employees or contractors. We believe bringing together Globalstar’s terrestrial spectrum and relationships with leading partners around the world with XCOM’s differentiated technology creates a significant opportunity to deliver private networks for mission-critical needs of customers.
Current wording
In January 2026, we exercised our right under the Intellectual Property License Agreement (the "License Agreement") with XCOM Labs, Inc. (now known as Virewirx, Inc.) ("XCOM") to purchase intellectual property assets relating to the development and commercialization of XCOM’s technologies for wireless spectrum innovations, including XCOM RAN systems, which is XCOM’s commercially available coordinated multi-point radio system. XCOM RAN systems deliver substantial capacity gains in dense, complex, challenging wireless environments in sub 7 GHz spectrum. We also now own XCOM’s peer-to-peer connectivity technologies that could have applications across cellular and satellite devices. Certain former XCOM employees, who developed these technologies are employed by Globalstar and continuing to further commercialize the technology. We believe bringing together Globalstar’s terrestrial spectrum and relationships with leading partners around the world with XCOM’s differentiated technology creates a significant opportunity to deliver private networks for mission-critical needs of customers.
Previous wording
Our goal is to provide service levels and call or message success rates equal to or better than our MSS competitors so our products and services are attractive to potential customers.
Current wording
Our constellation of Low Earth Orbit ("LEO") satellites is designed to maximize the probability that at least one satellite is visible from any point on the Earth's surface between the latitudes 70° north and 70° south. Our goal is to provide service levels and call or message success rates equal to or better than our MSS competitors, so our products and services are attractive to potential customers.
Previous 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.
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 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 first set of replacement satellites was delivered in April 2026 and we currently expect the second set to be delivered in mid-2026. 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 Space pursuant to which we expect to acquire more than 50 third-generation C-3 System (defined below) 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 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.
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 launch of the first set of replacement satellites scheduled for May 2026 and the launch of the second set of replacement satellites expected to occur during the second half of 2026. In October 2024, we entered into agreements with SpaceX for the launch of the new C-3 System third-generation satellites to support the Extended MSS Network.
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 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.
Current wording
Our satellites communicate with our global network of gateways, each of which serves an area of up to 1,000,000 square miles. Each 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 continue to 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 our ground networks to support the Extended MSS Network with construction underway at critical sites around the globe. We continue to progress our infrastructure expansion with construction underway at most sites around the globe, including certain sites in North America, Asia and Europe where construction is complete. This global expansion initiative is expected to include approximately 90 new antennas across 35 ground stations in 25 countries.
Previous 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.
Current wording
We believe that the design of the Globalstar System 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
We benefit from a worldwide allocation of radio frequency spectrum in the international radio frequency tables administered by the International Telecommunications Union ("ITU"). Access to this globally harmonized spectrum enables us to design satellites, networks and terrestrial infrastructure enhancements more cost effectively because the products and services can be deployed and sold worldwide. In addition, this broad spectrum allocation enhances our ability to capitalize on existing and emerging wireless and broadband applications.
Current wording
We benefit from a worldwide allocation of radio frequency spectrum in the international radio frequency tables administered by the International Telecommunications Union ("ITU"). Access to this globally harmonized spectrum enables us to design satellites, networks and terrestrial infrastructure enhancements more cost effectively because the products and services supported by the ITU can be deployed and sold worldwide. In addition, this broad spectrum allocation enhances our ability to capitalize on existing and emerging wireless and broadband applications.
Previous 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.
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 (as defined herein) provided over the Extended MSS Network. We have applied to 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 for the C-3 System. The FCC Space Bureau has accepted our petition for filing and published it for public comment.
Previous wording
Comparison of the Results of Operations for the three and nine months ended September 30, 2025 and 2024
Current wording
Comparison of the Results of Operations for the three months ended March 31, 2026 and 2025
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 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.
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 March 31, 2026, total revenue increased 17% to $70.1 million from $60.0 million for the same period in 2025. The increase in revenue for the three months ended March 31, 2026 resulted primarily from higher wholesale capacity services. See below for a discussion of the main fluctuations in revenue.
Previous wording
The following table sets forth amounts and percentages of our revenue by type of service (dollars in thousands):
Current wording
The following table sets forth amounts and percentages of our revenue by type of service for customers using the Globalstar System (in thousands):
Previous wording
We count "subscribers" based on the number of devices that are subject to agreements that entitle them to use our voice or data communications services rather than the number of persons or entities who own or lease those devices. Other providers of comparable services may count their subscribers differently.
Current wording
We count "subscribers" based on the number of devices that are subject to agreements that entitle them to use our data or voice communications services rather than the number of persons or entities who own or lease those devices. Other providers of comparable services may count their subscribers differently.
Previous wording
Wholesale capacity services revenue includes revenue generated from providing satellite network access and related services, including revenue from the Customer under the Updated Services Agreement. Government and other services revenue includes revenue generated primarily from terrestrial spectrum and network solutions as well as governmental and engineering service contracts. None of these service revenue items are subscriber driven. Accordingly, we do not present ARPU for wholesale capacity services revenue or government and other services revenue in the table above.
Current wording
Wholesale capacity services revenue reflects revenue from providing satellite network access and related services to the Customer under the Updated Services Agreement. Government and other services revenue includes revenue generated primarily from terrestrial spectrum and network solutions as well as governmental and engineering service contracts. None of these service revenue items are subscriber driven. Accordingly, we do not present ARPU for wholesale capacity services revenue or government and other services revenue in the table above.
Previous 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.
Current wording
Wholesale capacity services revenue increased 26% for the three months ended March 31, 2026, compared to the same period in 2025. Wholesale capacity services revenue reflects revenue from the Customer under the Updated Services Agreements. The majority of the increase during the first quarter of 2026 related to the timing and amount of service fees associated with the reimbursement of network-related costs.
Previous 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.
Current wording
Commercial IoT service revenue increased 13% for the three months ended March 31, 2026, compared to the same period in 2025. Average subscribers increased 8% for the three months ended March 31, 2026, compared to the same period in 2025, due to higher subscriber activations on a last twelve month basis. We also expect activations to continue to increase in 2026 due to commercial sales of our recently-launched two-way reference design module.
Previous 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.
Current wording
SPOT service revenue decreased $0.7 million for the three months ended March 31, 2026, compared to the same period in 2025, due 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 $1.2 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.
Current wording
Duplex service revenue decreased $0.9 million for the three months ended March 31, 2026, compared to the same period in 2025 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
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.
Current wording
Cost of services increased $4.8 million for the three months ended March 31, 2026 compared to the same period in 2025. 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 months ended March 31, 2026, personnel costs that support the Globalstar System increased $1.7 million. Ground network costs, such as occupancy and maintenance charges increased $1.2 million for the three months ended March 31, 2026 compared to the same period in 2025.
Previous 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.
Current wording
Stock-based compensation expense decreased $4.3 million for the three months ended March 31, 2026, compared to the same period in 2025. The decrease was due primarily to restricted stock units ("RSUs") granted to certain executives in connection with the License Agreement in 2023. During 2023, we granted 3.0 million RSUs, which are earned over a four-year performance period and vest upon Globalstar common stock trading at various price levels throughout the performance period. The total fair value of the RSUs was $39.5 million and is being recognized over the derived service period of 2.6 years; with 17%, 59%, 23% and 1% of the compensation cost for these RSUs being recognized during 2023, 2024, 2025 and 2026, respectively. This award will be fully recognized by the end of the second quarter of 2026.
Previous 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.
Current wording
We recorded foreign currency losses of $1.6 million during the three months ended March 31, 2026, compared to foreign currency gains of $4.1 million and during the three months ended March 31, 2025. 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
Our principal sources of liquidity include cash on hand, cash flows from operations and proceeds from the 2023 Funding Agreement and Infrastructure Prepayment (each term defined below). We expect these liquidity sources to meet our short-term and long-term liquidity needs for funding our operating costs, capital expenditures, including related to the Extended MSS Network and other growth opportunities, and financing obligations, including scheduled recoupments under the 2021 and 2023 Funding Agreements and 2024 Prepayment Agreement as well as dividends on our Series A Preferred Stock. In addition, we have issued warrants to the Customer that are exercisable in accordance with the Updated Services Agreements and to Thermo in connection with its guarantee of the 2023 Funding Agreement. These warrants would become a source of liquidity if exercised.
Current wording
Our principal sources of liquidity include cash on hand, cash flows from operations and proceeds from the 2023 Funding Agreement and Infrastructure Prepayment. We expect these liquidity sources to meet our short-term and long-term liquidity needs for funding our operating costs, capital expenditures, including related to the Extended MSS Network and other growth opportunities, and financing obligations, including scheduled recoupments under the 2023 Funding Agreement and 2024 Debt Repayment as well as dividends on our Series A Preferred Stock. In addition, we have issued warrants to the Customer that are exercisable in accordance with the Updated Services Agreements and to Thermo in connection with its guarantee of the 2023 Funding Agreement. These warrants would become a source of liquidity if exercised.
Previous 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.
Current wording
As of March 31, 2026 and December 31, 2025, we held cash and cash equivalents of $358.4 million and $447.5 million, respectively. The decrease in cash and cash equivalents during the first quarter of 2026 was due primarily to capital expenditures associated with our commitments under the Updated Services Agreements, including network expansion and upgrades, and the timing of proceeds under the Infrastructure Prepayment and the 2023 Funding Agreement. No funds were received under these agreements during the first quarter of 2026.
Previous 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.
Current wording
The principal amount of our debt outstanding was $403.8 million at March 31, 2026, compared to $410.0 million at December 31, 2025. This decrease was due to the final scheduled recoupment of $6.3 million under the 2021 Funding Agreement.
Previous wording
Cash Flows for the nine months ended September 30, 2025 and 2024
Current wording
Cash Flows for the three months ended March 31, 2026 and 2025
Previous 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.
Current wording
Net cash provided by operating activities during the three months ended March 31, 2026 was $35.2 million, compared to net cash provided by operating activities of $51.9 million during the same period in 2025. Unfavorable working capital changes, specifically resulting from the timing of cash receipts pursuant to the Updated Services Agreements, contributed to the decrease in cash flows provided by operating activities. During the first quarter of 2026, $7.5 million in accelerated fees were paid to us pursuant to the Updated Services Agreement compared to $22.5 million paid during the first quarter of 2025. Other unfavorable working capital changes were generally offset by higher net income, after adjusting for noncash items.
Previous 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.
Current wording
Net cash used in investing activities was $116.4 million for the three months ended March 31, 2026, compared to $190.6 million for the same period in 2025. Net cash used in investing activities during both periods included primarily network upgrades associated with the Updated Services Agreements. The decrease during the first quarter of 2026 was due primarily to the timing of milestone payments made to MDA Space and SpaceX.
Previous wording
Cash Flows (Used in) Provided by Financing Activities
Current wording
Cash Flows Used in Financing Activities
Previous 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.
Current wording
Net cash used in financing activities was $8.0 million during the three month period ended March 31, 2026, compared to $11.4 million for the same period in 2025. During both periods, we made payments for the scheduled recoupments pursuant to the terms of the 2021 Funding Agreement and paid cash dividends to holders of the Series A Preferred Stock. The final scheduled recoupment pursuant to the terms of the 2021 Funding Agreement was made in March 2026.
Previous 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%.
Current wording
At March 31, 2026, the principal amount of our debt totaled $403.8 million, which accrues fees at a weighted average stated rate up to 9%.
Previous 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.
Current wording
At March 31, 2026, our deferred revenue, net, totaled $891.7 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.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Wholesale satellite capacity services include satellite network access and related services over the Globalstar System.