GSAT · Globalstar, Inc.

Globalstar's first quarter 2026 results reflect strong operational momentum, with total revenue increasing 17% year-over-year to $70.1 million, driven primarily by higher wholesale capacity services revenue. Service revenue grew 17% to $66.7 million, while equipment sales rose 13% to $3.4 million. The company swung to operating income of $8.2 million from a loss of $8.5 million in the prior year, benefiting from higher revenue and lower operating expenses, including a non-recurring asset disposal charge in 2025. Net loss widened slightly to $17.4 million from $17.3 million, due to higher interest expense and foreign currency losses. Adjusted EBITDA improved to $33.5 million from $30.4 million, reflecting revenue growth partially offset by increased investment in XCOM RAN and other growth initiatives.

Subsequent to quarter end, Globalstar announced a definitive merger agreement with Amazon, under which Amazon will acquire the company for $90 per share in cash or stock, subject to a proration mechanism and potential downward adjustment. The transaction is expected to close in 2027 and underscores the strategic value of Globalstar's satellite spectrum and operational expertise. Additionally, the FCC reaffirmed Globalstar's exclusive Big LEO spectrum rights, providing regulatory clarity. The company continues to advance its next-generation satellite constellation, with two launches planned in 2026 and development of over 50 third-generation satellites. Management highlighted growing demand across government, defense, and private wireless markets, and noted that the merger with Amazon validates Globalstar's long-term strategy. The company has suspended earnings conference calls and forward-looking guidance due to the pending merger.