Globalstar Announces Third Quarter 2026 Financial Results

Successful satellite launch, key regulatory approvals, and strong Commercial IoT device sales highlight third-quarter achievements 

• Generated third quarter 2026 revenue of $70.9 million with another quarter of strong Commercial IoT subscriber activations.
• Successfully launched first set of HIBLEO-4 replacement satellites, marking a major milestone in supporting the continued reliability and performance of Globalstar's existing mobile satellite services network.
• Advanced next-generation C-3 constellation development through key regulatory authorizations in the U.S. and Germany, alongside continued expansion of ground station infrastructure, including construction completion in U.S., Canada and Greece.
• In October, FCC Space Bureau approved Amazon's application to acquire Globalstar's FCC licensing, a major step forward to complete our previously announced Merger Agreement. As previously disclosed, the pending transaction with Amazon is expected to close in 2027 and remains subject to the satisfaction of the remaining closing conditions, including, among others, receipt of outstanding regulatory approvals and Globalstar's achievement of certain HIBLEO-4 satellite milestones.

COVINGTON, La., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Globalstar, Inc. (Nasdaq: GSAT) ("Globalstar" or the "Company"), a next-generation telecommunications infrastructure and technology provider, today announced its financial results for the third quarter ended September 30, 2026. Capitalized terms not defined herein have the meaning given to such terms in our periodic reports.

"The Company made significant progress during the third quarter, highlighted by the successful launch of the first set of our replacement satellites and important regulatory and infrastructure milestones supporting our next-generation constellation," said Dr. Paul E. Jacobs, Chief Executive Officer of Globalstar. "These achievements are expected to strengthen the foundation of our satellite network as we prepare for the next era of connectivity."

THIRD QUARTER OPERATIONAL HIGHLIGHTS

• Successful HIBLEO-4 Satellite Launch: Globalstar successfully launched the first set of HIBLEO-4 replacement satellites, marking a significant milestone in maintaining the reliability and continuity of its existing MSS network. The launch supports Globalstar's ongoing commitment to delivering dependable satellite connectivity while advancing its next-generation constellation initiatives.
• Advancing Next-Generation C-3 Infrastructure: Globalstar achieved a significant milestone in the development of its third-generation C-3 satellite constellation, receiving a key regulatory authorization from the U.S. Federal Communications Commission ("FCC"). This approval supports Globalstar’s plans to deploy its next-generation network, designed to deliver greater capacity, improved performance, and expanded direct-to-device connectivity capabilities. Globalstar also completed a major expansion of its ground station in Greece, a key achievement in its ongoing global infrastructure modernization efforts to support the C-3 constellation. This milestone marks progress on our initiative which began in late 2025 to update ground station infrastructure across approximately 35 ground stations in 25 countries and territories. 
  

THIRD QUARTER FINANCIAL REVIEW

Revenue

Total revenue for the third quarter of 2026 was $70.9 million, including $65.4 million of service revenue and $5.5 million of revenue generated from subscriber equipment sales.

Service revenue decreased $4.2 million during the third quarter of 2026 compared to the prior year's third quarter, primarily due to a decrease in wholesale capacity service revenue resulting from the timing of incurring network-related costs and receipt of the associated service fees for the reimbursement of such costs. Declines in Duplex and SPOT service revenue, primarily due to subscriber churn over the last twelve months, also contributed to the decrease in service revenue. Partially offsetting these decreases was an increase in Commercial IoT service revenue due to growth in the subscriber base during the third quarter of 2026. We achieved record high Commercial IoT subscriber activations on a last twelve-months basis, resulting in a 25% increase in gross activations over the same period.

Revenue from subscriber equipment sales increased 31% compared to the prior year's third quarter primarily due to a higher volume of Commercial IoT device sales.

Income from Operations

Income from operations was $7.6 million during the third quarter of 2026, compared to $10.2 million during the prior year's third quarter, primarily reflecting the decrease in revenue discussed above, partially offset by lower operating expenses.

The decrease in operating expenses was due to lower depreciation expense as well as lower stock-based compensation expense. These decreases were partially offset by higher marketing, general and administrative ("MG&A") expenses and cost of services. MG&A expenses were higher than the prior year's third quarter due primarily to increased legal and other professional fees related to the pending Amazon transaction. Consistent with previous quarters, higher cost of services resulted primarily from network operating costs to support the build out of our next-generation ground network infrastructure, a significant portion of which are reimbursed to us and recognized as revenue. Costs to support XCOM technology development also increased during the third quarter of 2026 compared to the same period in 2025.

Net (Loss) Income

Net loss was $15.7 million for the third quarter of 2026, compared to net income of $1.1 million for the prior year's third quarter. Net loss was impacted primarily by higher interest expense resulting from our recognition of non-cash imputed interest related to the 2024 Prepayment Agreement. Net loss was also impacted by unfavorable changes in income from operations (discussed above) during the quarter.

Adjusted EBITDA

Adjusted EBITDA was $30.3 million during the third quarter of 2026 compared to $37.6 million during the prior year's third quarter. This decrease was due to higher operating expenses (excluding adjustments for non-cash or non-recurring items) and lower revenue.

Adjusted EBITDA is a non-GAAP financial measure. For more information, refer to "Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA."

YEAR TO DATE FINANCIAL REVIEW

Revenue

Total revenue for the first nine months of 2026 was $205.7 million, including $192.1 million of service revenue and $13.6 million of revenue generated from subscriber equipment sales, compared to total revenue of $201.0 million for the first nine months of 2025.

Service revenue increased $2.2 million during the first nine months of 2026, compared to the same period in 2025, primarily due to higher wholesale capacity services resulting from additional service fees associated with the reimbursement of network-related costs and performance incentive bonuses. The second quarter of 2025 included out of period wholesale capacity services revenue of $6.6 million; excluding this item, service revenue during the first nine months of 2026 would have increased $8.8 million compared to the prior period. Consistent with the quarterly results discussed above, higher Commercial IoT subscribers contributed to the increase in service revenue for the first nine months of 2026, partially offset by lower service revenue due to fewer Duplex and SPOT subscribers. Also contributing to the increase in service revenue for the period was higher revenue from governmental service contracts, including our service agreement with Parsons as we moved beyond the proof of concept phase and into the first year of service.

Revenue from subscriber equipment sales increased 23% for the first nine months of 2026, compared to the same period in 2025, due to a higher volume of Commercial IoT device sales.

Income from Operations

Income from operations was $11.0 million during the first nine months of 2026, compared to $7.8 million during the same period in 2025. During the first nine months of 2026, higher revenue was partially offset by higher operating expenses, as discussed above.

Higher MG&A expenses and cost of services more than offset lower stock-based compensation and depreciation expense. Contributing to the increase in cost of services and MG&A expenses was the recognition of employee retention credits received in both the first and second quarters of 2025 that did not recur in 2026. The fluctuation in operating expenses was favorably impacted by a noncash disposal of assets recognized during the first quarter of 2025 that did not recur in 2026.

Net (Loss) Income

Net loss was $57.0 million for the first nine months of 2026, compared to net income of $3.0 million during the same period in 2025. In addition to the variances discussed above, net loss was also impacted by unfavorable changes in foreign currency exchange rates.

Adjusted EBITDA

Adjusted EBITDA was $89.7 million during the first nine months of 2026, compared to $103.7 million during the same period in 2025. Higher revenue was more than offset by higher operating expenses (excluding adjustments for non-cash or non-recurring items). Specifically, while we continue to enhance and develop our XCOM RAN product and service offerings, we have incurred costs, primarily for personnel, in advance of significant revenue. Also, as previously described, 2025 Adjusted EBITDA benefited from out of period service revenue of $6.6 million that was recognized in the second quarter of 2025.

Liquidity

As of September 30, 2026, we held cash and cash equivalents of $329.9 million, compared to $447.5 million as of December 31, 2025.

During the first nine months of 2026, net cash flows generated from operations were approximately $296.9 million, capital expenditures were $414.2 million and net cash flows used in financing activities were $0.5 million. Cash and cash equivalents were also positively impacted by a $0.2 million effect of exchange rate changes. Operating cash flows during the first nine months of 2026 included $209.6 million received in connection with the Infrastructure Prepayment, $22.5 million in accelerated service fee payments from the Customer pursuant to the Updated Services Agreements as well as other cash flows generated from the business. Capital expenditures were primarily associated with our commitments under the Updated Services Agreements related to the deployment of the replacement satellites and Extended MSS Network. Financing activities for the first nine months of 2026 reflected a draw pursuant to the 2023 Funding Agreement which was offset by scheduled recoupments under both the 2021 and 2023 Funding Agreements as well as preferred stock dividend payments.

Adjusted free cash flow during the first nine months of 2026 was $66.8 million compared to $133.3 million during the same period in 2025. This decrease was primarily due to the timing of cash receipts pursuant to the Updated Services Agreements, in part due to $22.5 million in accelerated service fees paid to us during the first nine months of 2026 compared to $37.5 million during the first nine months of 2025. Higher operating expenses, primarily due to transaction costs, and routine capital expenditures also unfavorably impacted free cash flow during the first nine months of 2026. Adjusted free cash flow is a non-GAAP financial measure. For more information, refer to "Reconciliation of Non-GAAP Adjusted Free Cash Flow."

The principal amount of our debt was $414.7 million at September 30, 2026, compared to $410.0 million at December 31, 2025. This increase was due to the issuance of debt under the 2023 Funding Agreement totaling $19.9 million during 2026 offset by the first recoupment during the third quarter of 2026 of $9.0 million under the 2023 Funding Agreement and the final recoupment during the first quarter of 2026 of $6.3 million under the 2021 Funding Agreement.

CONTINUED SUSPENSION OF FINANCIAL OUTLOOK AND CONFERENCE CALLS

In connection with the pending transaction with Amazon, Globalstar does not intend to hold future earnings conference calls or provide updates to forward-looking guidance.

About Globalstar, Inc.

Globalstar is a global telecommunications provider connecting what matters most. Through our industry-leading low Earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, we deliver reliable satellite and terrestrial connectivity solutions that empower customers worldwide to connect, transmit, and communicate smarter. 

Our comprehensive connectivity ecosystem includes software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53 in XCOM RAN™ and trusted GPS messengers Saved by SPOT™ for safety and personal communication for business and enterprise applications. 

Serving business, enterprise, and consumer markets across the globe, Globalstar supports applications that track and protect assets, enable automation, enhance operational efficiency, and safeguard lives. With unmatched reach and a relentless focus on innovation, and mission-critical performance, we're redefining what's possible for global connectivity. 

Note that all SPOT products described in this press release are the products of SPOT LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.

For more information, visit www.globalstar.com.

Investor Contact Information:
investorrelations@globalstar.com

Cautionary Statement About Forward-Looking Statements
Certain statements contained in this press release other than purely historical information, including, but not limited to, estimates, projections or statements relating to the Mergers, future revenue, financial performance, financial condition, liquidity, adjusted free cash flow, projections, estimates and guidance, statements relating to our business plans, objectives and expected operating results, our anticipated financial resources, our expectations about the future operational performance of our satellites (including their projected operational lives) and the completion and launch of new satellites, our expectations regarding the outcomes of regulatory and licensing proceedings, the expected growth prospects of our existing customers and the markets that we serve, our expectations relating to the impact of trade policies (including tariffs), our expectations about our ability to integrate the licensed technology into our current line of business, the expected benefits of the updated services agreements, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words "believe," "project," "might," "could," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Risks and uncertainties that could cause or contribute to such differences include, without limitation, our ability to complete the Mergers on the anticipated terms and timing, or at all, including obtaining required regulatory approvals and the satisfaction of other conditions to the completion of the Mergers, potential litigation relating to the Mergers, including the effects of any outcomes related thereto, the risk that disruptions from the Mergers (such as the ability of certain of our customers to terminate or amend contracts upon a change of control, or to withhold consent to such change of control) will harm our business, including current plans and operations, our ability to retain and hire key personnel, the diversion of management’s time and attention from ordinary course business operations, potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Mergers, contractual provisions that may impact our ability to pursue certain business opportunities or strategic transactions during the pendency, and/or following the completion of, the Mergers, the occurrence of any event, change, or other circumstance that could give rise to the termination of the Mergers, including in circumstances requiring us to pay a termination fee under the Merger Agreement, our ability to meet our obligations to attain the anticipated benefits under the Updated Services Agreements and avoid the potential adjustment of the Merger Consideration if we fail to meet certain milestones based on the Company's agreements with the Customer, and those described under Item 1A. Risk Factors of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and as updated in the Company’s other filings with the SEC. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release to reflect actual results, future events or circumstances or changes in our assumptions, business plans or other changes.

This press release contains measures such as EBITDA, Adjusted EBITDA, and Adjusted free cash flow, which are not recognized under U.S. generally accepted accounting principles (GAAP). Reconciliations of these non-GAAP measures to amounts reported in the Company’s consolidated financial statements are provided in this press release.

Source: Globalstar, Inc.