Globalstar Reports 11% Revenue Growth and Net Income Turnaround in Q2 2025

Globalstar, Inc. reported a significant improvement in its financial performance for the second quarter of 2025, with total revenue reaching $67.1 million, an increase of 11% from $60.4 million in the same period of 2024. For the first half of 2025, revenue rose 9% to $127.2 million compared to $116.9 million in the prior year. The growth was primarily driven by a 24% increase in wholesale capacity services revenue, which accounted for 63% of total revenue in the second quarter. The company also reported a net income of $19.2 million for the quarter, a turnaround from a loss of $9.7 million in the previous year, while the net income for the first half of 2025 was $1.9 million, compared to a loss of $22.9 million in the same period of 2024.

In terms of operational metrics, Globalstar's subscriber count remained stable, with approximately 784,000 subscribers as of June 30, 2025. The company noted a slight increase in its Commercial IoT subscriber base, which grew by 5% year-over-year. However, the SPOT and Duplex service revenues experienced declines due to competitive pressures and a reduction in average subscribers. The company is actively working on product development to enhance its offerings, particularly for the SPOT service, which is expected to stabilize demand.

Strategically, Globalstar has made significant advancements, including the execution of Updated Services Agreements with Apple Inc. These agreements are designed to expand services over a new mobile satellite network, which includes a new satellite constellation and enhanced ground infrastructure. The company has also entered into agreements with SpaceX for the launch of new satellites, with the first set expected to be operational by the fourth quarter of 2025. Additionally, Globalstar's total assets increased to $1.91 billion as of June 30, 2025, up from $1.71 billion at the end of 2024, reflecting ongoing investments in network upgrades and satellite procurement.

The company’s operating expenses for the second quarter decreased slightly to $61.0 million from $61.8 million in the prior year, primarily due to lower stock-based compensation costs. However, total operating expenses for the first half of 2025 increased to $129.5 million from $123.0 million, influenced by higher costs associated with network upgrades and the termination of a support services agreement. Globalstar's cash and cash equivalents stood at $308.2 million, down from $391.2 million at the end of 2024, largely due to capital expenditures related to the Extended MSS Network.

Looking ahead, Globalstar anticipates continued growth driven by the expansion of its service offerings and subscriber base. The company expects to benefit from the infrastructure prepayments received under the Updated Services Agreements, which will support capital expenditures for network enhancements. However, management has cautioned that the loss of its primary customer, Apple, could have a material adverse impact on its financial condition. Overall, Globalstar remains focused on leveraging its satellite network to meet the increasing demand for mobile satellite services globally.