Globalstar Reports $250.3 Million Revenue for Fiscal Year 2024, Driven by Wholesale Capacity Services

Globalstar, Inc. reported a total revenue of $250.3 million for the fiscal year ending December 31, 2024, marking a 12% increase from $223.8 million in 2023. The growth was primarily driven by a 33% rise in wholesale capacity services revenue, which accounted for 58% of total revenue, up from 49% the previous year. However, the company experienced declines in subscriber services revenue, particularly in its SPOT and Duplex segments, which saw decreases of 7% and 22%, respectively. The net loss for the year was $63.2 million, compared to a loss of $24.7 million in 2023, largely attributed to increased operating expenses and a significant loss on extinguishment of debt.

In terms of strategic developments, Globalstar entered into Updated Services Agreements with Apple Inc. in late 2024, which are expected to enhance its service offerings through a new Mobile Satellite Services (MSS) network. This includes the construction of a new satellite constellation and expanded ground infrastructure. The agreements require the customer to prepay for certain services, which has contributed to a significant increase in cash reserves, with cash and cash equivalents rising to $391.2 million by year-end 2024, up from $56.7 million in 2023.

Operationally, Globalstar reported approximately 774,000 subscribers as of December 31, 2024, a slight increase from 776,000 in 2023. The company noted a 15% increase in revenue from its Commercial IoT services, driven by a 6% rise in average subscribers and improved average revenue per user (ARPU). The company also highlighted a significant uptick in gross activations for Commercial IoT devices, which increased over 30% quarter-over-quarter in the fourth quarter of 2024. However, the SPOT segment faced challenges due to competitive pressures, leading to a decrease in subscriber numbers.

Looking ahead, Globalstar anticipates continued growth driven by the expansion of its MSS network and the introduction of new products, including two-way Commercial IoT devices. The company is also focused on optimizing its operational capacity and enhancing its service offerings to meet increasing demand. However, it faces risks related to market competition, the performance of its satellite network, and the successful execution of its strategic initiatives. The company has expressed confidence in its ability to navigate these challenges and capitalize on growth opportunities in the satellite communications market.