0001366868-26-000012
SEC filingGlobalstar, Inc. reported total revenue of $273.0 million for fiscal year 2025, representing growth from $250.3 million in 2024. The company achieved operating income of $7.4 million, a significant improvement from an operating loss of $0.9 million in the prior year. However, net loss attributable to common shareholders was $19.3 million, an improvement from $73.8 million in 2024. Key drivers included service revenue of $257.3 million and subscriber equipment sales of $15.7 million. The company generated strong operating cash flow of $621.6 million, primarily driven by deferred revenue recognition, while investing $550.4 million in network upgrades. Total assets increased to $2.33 billion from $1.71 billion in 2024, with significant growth in property and equipment.
Globalstar reported fiscal year 2025 total revenue of $273.0 million, representing a 9.0% increase from $250.3 million in 2024. The company achieved operating income of $7.4 million, a significant improvement from an operating loss of $0.9 million in the prior year. Net loss was $8.7 million, substantially improved from a net loss of $63.2 million in 2024. Net loss attributable to common shareholders was $19.3 million compared to $73.8 million in 2024. Basic and diluted loss per share was $0.15, improved from $0.59 in 2024. The company's total assets grew to $2.33 billion from $1.71 billion in 2024, with property and equipment increasing to $1.31 billion from $673.6 million.
Revenue consisted of service revenue of $257.3 million and subscriber equipment sales of $15.7 million. Service revenue increased from $237.7 million in 2024, while subscriber equipment sales increased from $12.7 million. The company's only reportable segment is its Mobile Satellite Services (MSS) business, which provides voice and data communications services, wholesale satellite capacity services, terrestrial spectrum and network solutions, and government services. The company provides communications products and services including data transmissions and voice communications (Commercial IoT, SPOT and Duplex).
Gross profit was $176.9 million, representing a gross margin of 64.8%, improved from 63.0% in 2024. Operating margin was 2.7%, a significant improvement from negative 0.4% in the prior year. Operating expenses totaled $265.6 million, including cost of services of $83.2 million, cost of subscriber equipment sales of $12.9 million, marketing, general and administrative expenses of $51.4 million, stock-based compensation of $23.4 million, reduction in value and disposal of long-lived assets of $7.2 million, and depreciation, amortization and accretion of $87.4 million. The company's space component assets of $1.1 billion are depreciated over an estimated 15-year useful life.
Operating cash flow was $621.6 million, primarily driven by deferred revenue recognition of $481.5 million. Investing activities used $550.4 million for network upgrades, including $97.1 million for Phase 1 and Phase 2 Service Period upgrades and $442.3 million for Extended MSS Network upgrades. Financing activities used $16.2 million. Free cash flow (operating cash flow minus investing cash flow) was $71.2 million. The balance sheet shows total assets of $2.33 billion, including cash and equivalents of $447.5 million, property and equipment of $1.31 billion, and derivative assets of $114.5 million. Total liabilities were $1.97 billion, including long-term debt of $452.0 million and deferred revenue of $869.0 million. Stockholders' equity was $355.7 million.
The filing contains forward-looking statements subject to risks and uncertainties. The company's networks and those of third-party service providers may be vulnerable to cyber-attacks and security breaches. Critical audit matters identified include the useful life estimate of space component assets ($1.1 billion) and valuation of the embedded derivative ($114.5 million). The company's internal control over financial reporting was effective as of December 31, 2025. The company completed a 1:15 reverse stock split on February 10, 2025, and all historical share amounts have been adjusted accordingly.