Globalstar — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter of 2026 was $70.9 million, down from $73.8 million in the prior year's third quarter.
• Service revenue was $65.4 million, a decrease of $4.2 million year-over-year, driven by lower wholesale capacity service revenue and subscriber churn in Duplex and SPOT segments, partially offset by growth in Commercial IoT service revenue.
• Revenue from subscriber equipment sales was $5.5 million, a 31% increase year-over-year, primarily due to higher Commercial IoT device sales.
• Income from operations was $7.6 million for the quarter, compared to $10.2 million in the prior year period.
• Net loss was $15.7 million for the third quarter of 2026, compared to net income of $1.1 million in the prior year period, impacted by higher interest expense from non-cash imputed interest on the 2024 Prepayment Agreement.
• Adjusted EBITDA was $30.3 million for the quarter, down from $37.6 million in the prior year period.
• For the first nine months of 2026, total revenue was $205.7 million, up from $201.0 million in the same period of 2025.
• Income from operations for the first nine months of 2026 was $11.0 million, compared to $7.8 million in the prior year period.
• Net loss for the first nine months of 2026 was $57.0 million, compared to net income of $3.0 million in the prior year period.
• Adjusted EBITDA for the first nine months of 2026 was $89.7 million, down from $103.7 million in the prior year period.
• 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 were approximately $296.9 million for the first nine months of 2026.
• Capital expenditures were $414.2 million for the first nine months of 2026.
• Adjusted free cash flow was $66.8 million for the first nine months of 2026, down from $133.3 million in the prior year period.
• Principal debt was $414.7 million at September 30, 2026, compared to $410.0 million at December 31, 2025.
• Deferred revenue, net, was $44.2 million (current) and $1,168.7 million (non-current) as of September 30, 2026.

Guidance and Future Outlook:

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

• Commercial IoT achieved record high subscriber activations on a last twelve-months basis, resulting in a 25% increase in gross activations over the same period.
• Commercial IoT service revenue growth was driven by an increase in the subscriber base during the third quarter of 2026.
• Commercial IoT average monthly revenue per user (ARPU) was $4.34 for the third quarter of 2026, up from $4.22 in the prior year period.
• SPOT service revenue declined due to subscriber churn over the last twelve months; average subscribers were 202,952 in Q3 2026 versus 220,609 in Q3 2025.
• Duplex service revenue declined due to subscriber churn; average subscribers were 14,673 in Q3 2026 versus 20,220 in Q3 2025.
• Government and other services revenue increased, including a service agreement with Parsons moving beyond the proof of concept phase.
• Successfully launched the first set of HIBLEO-4 replacement satellites to support the reliability of the existing mobile satellite services network.
• Received key regulatory authorization from the U.S. FCC for the next-generation C-3 constellation.
• Completed a major expansion of ground station infrastructure in Greece, part of a global initiative to update approximately 35 ground stations in 25 countries and territories.
• XCOM technology development costs increased during the third quarter of 2026 compared to the same period in 2025.

Market and Competitive Landscape:

• The Company serves business, enterprise, and consumer markets globally with a low Earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum.
• The Company is advancing its next-generation C-3 constellation to deliver greater capacity, improved performance, and expanded direct-to-device connectivity capabilities.

Risks and Challenges:

• Service revenue declines were attributed to subscriber churn in the Duplex and SPOT segments over the last twelve months.
• Net loss was impacted by unfavorable changes in foreign currency exchange rates during the first nine months of 2026.
• Higher operating expenses were driven by increased legal and professional fees related to the pending Amazon transaction.
• Costs to support XCOM technology development increased during the third quarter of 2026.
• Adjusted EBITDA and adjusted free cash flow decreased due to higher operating expenses and the timing of cash receipts pursuant to Updated Services Agreements.

Management Commentary and Tone:

• Dr. Paul E. Jacobs, Chief Executive Officer, stated the Company made significant progress highlighted by the successful satellite launch and important regulatory and infrastructure milestones.
• Management noted these achievements are expected to strengthen the foundation of the satellite network as they prepare for the next era of connectivity.

Other Key Points:

• In October, the FCC Space Bureau approved Amazon's application to acquire Globalstar's FCC licensing.
• The pending transaction with Amazon remains subject to satisfaction of closing conditions, including receipt of outstanding regulatory approvals and Globalstar's achievement of certain HIBLEO-4 satellite milestones.
• Operating cash flows for the first nine months of 2026 included $209.6 million received in connection with 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 under the 2021 and 2023 Funding Agreements and preferred stock dividend payments.
• A 1:15 reverse stock split was completed on February 10, 2025, with all historical share and per share amounts adjusted to reflect this split.
• The Company recognized a non-cash gain on the contingent interest feature within the 2024 Debt Repayment of $3.8 million in the third quarter and $8.0 million year-to-date.
• 2025 Adjusted EBITDA benefited from an out-of-period wholesale capacity service revenue of $6.6 million recognized in the second quarter of 2025, which did not recur in 2026.