Globalstar Reports $60M Revenue in Q1 2025, Driven by Wholesale Capacity Services

Globalstar, Inc. reported a total revenue of $60.0 million for the first quarter of 2025, marking a 6% increase from $56.5 million in the same period of 2024. The growth was primarily driven by an 18% rise in wholesale capacity services revenue, which reached $36.7 million, up from $31.2 million a year earlier. However, the company experienced a decline in subscriber services revenue, particularly in its SPOT and Duplex segments, which saw decreases of 9% and 27%, respectively. The net loss for the quarter was $17.3 million, compared to a loss of $13.2 million in the prior year, resulting in a net loss per share of $0.16, up from $0.13.

In terms of operational metrics, Globalstar's subscriber count stood at approximately 778,000 as of March 31, 2025, a slight decrease from 782,000 in the previous year. The company attributed the decline in subscribers to competitive pressures, particularly affecting the SPOT and Duplex services. The average revenue per user (ARPU) for Commercial IoT, SPOT, and Duplex services showed mixed results, with Commercial IoT slightly increasing while Duplex experienced a notable drop in ARPU due to fewer subscribers and foreign exchange impacts.

Strategically, Globalstar has made significant advancements, including the execution of Updated Services Agreements with Apple Inc. to enhance its Mobile Satellite Services (MSS) offerings. These agreements are expected to provide expanded services over a new MSS network, which includes a new satellite constellation and upgraded ground infrastructure. The company has also entered into a satellite procurement agreement with Macdonald, Dettwiler and Associates Corporation (MDA) for the acquisition of at least 17 new satellites, with delivery expected in 2025. Additionally, Globalstar has partnered with SpaceX for the launch of these satellites, further solidifying its operational capabilities.

Financially, Globalstar's total operating expenses increased to $68.5 million in Q1 2025 from $61.2 million in Q1 2024, driven by higher costs associated with network upgrades and support services. The company reported a significant loss on the disposal of assets amounting to $7.0 million due to a satellite failure. As of March 31, 2025, Globalstar's cash and cash equivalents totaled $241.4 million, a decrease from $391.2 million at the end of 2024, primarily due to capital expenditures related to network upgrades.

Looking ahead, Globalstar anticipates continued growth in its wholesale capacity services, supported by the Updated Services Agreements and the expansion of its satellite network. However, the company remains cautious about the competitive landscape and the potential impact on subscriber growth and revenue. The management emphasized the importance of executing its strategic initiatives to enhance service offerings and operational efficiency, which are critical for long-term sustainability and profitability.