Globalstar — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q3 2026 was $70.9 million, down from $73.8 million in Q3 2025.
• Service revenue was $65.4 million, a decrease of $4.2 million year-over-year, driven by lower wholesale capacity service revenue, and declines in Duplex and SPOT service revenue due to subscriber churn.
• Commercial IoT service revenue increased, supported by record high activations on a last twelve-months basis, resulting in a 25% increase in gross activations compared to the prior year period.
• Revenue from subscriber equipment sales was $5.5 million, up 31% year-over-year, primarily due to higher volume of Commercial IoT device sales.
• Income from operations was $7.6 million in Q3 2026, compared to $10.2 million in Q3 2025.
• Operating expenses decreased due to lower depreciation and stock-based compensation, partially offset by higher MG&A expenses (driven by legal fees for the Amazon transaction) and higher cost of services.
• Net loss for Q3 2026 was $15.7 million, compared to net income of $1.1 million in Q3 2025, impacted by higher interest expense from non-cash imputed interest on the 2024 Prepayment Agreement.
• Adjusted EBITDA for Q3 2026 was $30.3 million, down from $37.6 million in Q3 2025.
• Year-to-date revenue for the first nine months of 2026 was $205.7 million, up from $201.0 million in the same period of 2025.
• Year-to-date income from operations was $11.0 million, up from $7.8 million in the first nine months of 2025.
• Year-to-date net loss was $57.0 million, compared to net income of $3.0 million in the first nine months of 2025.
• Year-to-date Adjusted EBITDA was $89.7 million, down from $103.7 million in the first nine months of 2025.
• Cash and cash equivalents were $329.9 million as of September 30, 2026, down from $447.5 million as of December 31, 2025.
• Net cash flows from operations for the first nine months of 2026 were approximately $296.9 million.
• Capital expenditures for the first nine months of 2026 were $414.2 million.
• Adjusted free cash flow for the first nine months of 2026 was $66.8 million, down from $133.3 million in the same period of 2025.
• Principal debt was $414.7 million at September 30, 2026, up from $410.0 million at December 31, 2025.
• Deferred revenue (net) was $1,212.9 million ($44.2 million current + $1,168.7 million long-term) as of September 30, 2026, compared to $868.9 million ($62.0 million current + $806.9 million long-term) at December 31, 2025.

Guidance and Future Outlook

• Globalstar has suspended financial outlook and will not hold future earnings conference calls or provide forward-looking guidance updates in connection with the pending Amazon transaction.
• The pending transaction with Amazon is expected to close in 2027, subject to remaining closing conditions including regulatory approvals and achievement of HIBLEO-4 satellite milestones.

Business Segments and Product Lines

• Successfully launched the first set of HIBLEO-4 replacement satellites to maintain reliability of the existing mobile satellite services network.
• Advanced next-generation C-3 constellation development with key regulatory authorizations from the U.S. FCC and Germany.
• Completed construction of ground station infrastructure in the U.S., Canada, and Greece as part of a global modernization initiative for the C-3 constellation.
• Commercial IoT segment showed strong growth with record high activations on a last twelve-months basis.
• Government service revenue increased, including the Parsons service agreement moving beyond the proof of concept phase into the first year of service.
• XCOM technology development costs increased during the third quarter of 2026 compared to the prior year.

Market and Competitive Landscape

• The Company serves business, enterprise, and consumer markets globally with a focus on asset tracking, automation, operational efficiency, and safety applications.
• The Company is expanding its direct-to-device connectivity capabilities through the C-3 constellation.

Risks and Challenges

• Service revenue declines in Duplex and SPOT segments due to subscriber churn over the last twelve months.
• Net loss was impacted by unfavorable changes in foreign currency exchange rates.
• Future financial performance is subject to the completion of the Amazon merger, including obtaining regulatory approvals and meeting satellite milestones.
• Risks associated with the merger include potential litigation, disruption to business operations, customer contract terminations, and loss of key personnel.

Management Commentary and Tone

• CEO Dr. Paul E. Jacobs stated the Company made significant progress with the satellite launch and regulatory milestones, which are expected to strengthen the foundation of the satellite network for the next era of connectivity.
• Management highlighted the achievement of record high Commercial IoT activations and the successful launch of replacement satellites as key third-quarter highlights.

Other Key Points

• The FCC Space Bureau approved Amazon's application to acquire Globalstar's FCC licensing in October.
• The pending transaction with Amazon remains subject to satisfaction of closing conditions, including receipt of outstanding regulatory approvals and achievement of HIBLEO-4 satellite milestones.
• Operating cash flows for the first nine months of 2026 included $209.6 million received from the Infrastructure Prepayment and $22.5 million in accelerated service fee payments.
• Financing activities reflected a draw of $19.9 million under the 2023 Funding Agreement, offset by recoupments and preferred stock dividend payments.
• The Company incurred transaction costs related to the Amazon merger, contributing to higher MG&A expenses.
• The 2025 Adjusted EBITDA benefited from an out-of-period wholesale capacity service revenue of $6.6 million that did not recur in 2026.