Globalstar, Inc. (GSAT): Results of Operations and Financial Condition
Globalstar, Inc. (GSAT) filed an SEC Form 8-K — Results of Operations and Financial Condition. GLOBALSTAR ANNOUNCES SECOND QUARTER 2026 FINANCIAL RESULTS • Generated second quarter 2026 revenue of $64.8 million with record high Commercial IoT subscriber activations. • Continued progress on regulatory approval process in connection with the previously announced Merger Agree
How this was made
The 30-second read
Why it matters
The most tradable elements are (1) the HSR waiting period expiration in July 2026, (2) Q2 revenue mix shifts (service revenue down, Commercial IoT activations up), and (3) profitability deterioration (operating loss and larger net loss) alongside higher costs tied to the transaction and network buildout.
Market read
This is a primary-source earnings and deal-timeline update that can move GSAT via expectations for deal closing in 2027 and near-term execution/cost trajectory.
What to watch
Adjusted EBITDA fell to $26.0M from $35.8M year over year, and legal/professional costs tied to the Amazon transaction increased, which can pressure near-term valuation even if the deal advances.
Globalstar reported second quarter 2026 revenue of $64.8 million, a $26.5 million net loss and $26.0 million of Adjusted EBITDA as higher operating costs and lower service revenue weighed on results.
Commercial IoT activations and subscriber-equipment revenue increased, but service revenue declined, operating results moved to a loss and Adjusted EBITDA fell from the prior-year quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $64.8 million | – | – |
| Service revenueGAAP | $60.0 million | – | decreased $3.2 million, or 5% |
| Revenue generated from subscriber equipment salesGAAP | $4.8 million | – | increased $0.8 million, or 21% |
| Loss from operationsGAAP | $4.8 million | – | – |
| Net lossGAAP | $26.5 million | – | – |
| Adjusted EBITDAnon-GAAP | $26.0 million | – | – |
| Commercial IoT gross activations on a last twelve-month basisother | over 20% increase | – | – |
| Total revenue for the first six months of 2026GAAP | $134.8 million | – | – |
| Service revenue for the first six months of 2026GAAP | $126.7 million | – | increased $6.4 million, or 5% |
| Revenue generated from subscriber equipment sales for the first six months of 2026GAAP | $8.1 million | – | increased $1.2 million, or 18% |
| Income from operations for the first six months of 2026GAAP | $3.4 million | – | – |
| Net loss for the first six months of 2026GAAP | $41.4 million | – | – |
| Adjusted EBITDA for the first six months of 2026non-GAAP | $59.4 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Service revenueThe decrease primarily reflected lower wholesale capacity service revenue resulting from the timing of service fees associated with reimbursement of network-related costs, as well as declines in Duplex and SPOT service revenue due to subscriber churn. Higher Commercial IoT service revenue partially offset these items. | $60.0 million | – | decreased $3.2 million, or 5% |
| Subscriber equipment salesGrowth was primarily due to a higher volume of Commercial IoT device sales and, to a lesser extent, sales of XCOM RAN systems. | $4.8 million | – | increased $0.8 million, or 21% |
What drove it
- Globalstar achieved record high Commercial IoT subscriber activations during the second quarter of 2026.
- Commercial IoT service revenue increased due to subscriber-base growth.
- The first six months of 2026 included higher wholesale capacity service fees associated with reimbursement of network-related costs.
- Service revenue for the first six months benefited from higher revenue under the service agreement with Parsons Corporation as the company moved beyond the proof of concept phase and into the first year of service.
- The HSR waiting period for the proposed transaction with Amazon expired on July 17, 2026.
- The company is preparing for the launch of its first set of replacement satellites and is continuing development of third-generation satellites and ground infrastructure.
Concerns
- The second quarter of 2025 included out of period wholesale capacity services revenue of $6.6 million that did not recur in the second quarter of 2026.
- Duplex and SPOT service revenue declined due to subscriber churn over the last twelve months.
- MG&A expenses increased primarily because of legal and other professional fees related to the Amazon transaction.
- Cost of services increased primarily from network operating costs supporting next-generation ground-network infrastructure and increased XCOM technology-development costs.
- Net loss was affected by unfavorable changes in foreign currency losses and gains, higher interest expense from non-cash imputed interest related to the 2024 Prepayment Agreement, and weaker operating results.
- The proposed Amazon transaction remains subject to outstanding regulatory approvals and Globalstar's achievement of certain HIBLEO-4 replacement satellite milestones.
What to watch
- Outstanding regulatory approvals from the FCC and certain international merger control, foreign investment and satellite and communications authorities for the Amazon transaction.
- Achievement of certain HIBLEO-4 replacement satellite milestones, which are among the remaining closing conditions for the Amazon transaction.
- Launch of the first set of replacement satellites, rescheduled for later this month.
- Commercial IoT subscriber activation trends and the conversion of activations into service revenue.
- The pace of XCOM RAN product and service development costs relative to significant revenue.
- Capital expenditures associated with deployment of replacement satellites and the Extended MSS Network.
Balance sheet and cash flow
- Cash and cash equivalents of $409.8 million as of June 30, 2026, compared to $447.5 million as of December 31, 2025.
- Net cash flows generated from operations were approximately $159.7 million during the first six months of 2026.
- Capital expenditures were $208.3 million during the first six months of 2026.
- Net cash flows from financing activities were $10.6 million during the first six months of 2026.
- Cash and cash equivalents were positively impacted by a $0.3 million effect of exchange rate changes.
- Operating cash flows included $104.8 million received in connection with the Infrastructure Prepayment and $15.0 million in accelerated service fee payment from the Customer pursuant to the Updated Services Agreements.
Analysis
Globalstar reported second quarter revenue of $64.8 million, including $60.0 million of service revenue and $4.8 million of subscriber-equipment sales. Service revenue decreased $3.2 million, or 5%, from the prior-year quarter, principally because of the timing of wholesale-capacity service fees associated with reimbursement of network-related costs. The company also cited subscriber churn in Duplex and SPOT services. The prior-year quarter included $6.6 million of out of period wholesale capacity services revenue; Globalstar stated that excluding this item, second-quarter 2026 service revenue would have increased $3.4 million compared with the prior period.
Commercial IoT was the primary offset to the service-revenue decline. Globalstar reported record high Commercial IoT subscriber activations and an over 20% increase in gross activations on a last twelve-month basis. Subscriber-equipment sales increased $0.8 million, or 21%, primarily on higher Commercial IoT device volume, with XCOM RAN system sales also contributing. For the first six months, total revenue was $134.8 million compared with $127.2 million, while service revenue increased $6.4 million, or 5%, supported by wholesale-capacity fees, Commercial IoT subscribers and higher Parsons Corporation service-agreement revenue.
Profitability weakened in the quarter. Loss from operations was $4.8 million, compared with income from operations of $6.1 million in the prior-year quarter, and net loss was $26.5 million compared with net income of $19.2 million. Adjusted EBITDA, a non-GAAP measure, was $26.0 million compared with $35.8 million. Higher MG&A expenses related to the Amazon transaction, higher network operating costs for next-generation ground infrastructure, increased XCOM technology-development costs and the absence of 2025 employee retention credits contributed to the pressure. Net loss also reflected foreign-currency remeasurement effects and higher interest expense, partly offset by a noncash gain on the contingent interest feature within the 2024 Debt Repayment.
Liquidity was supported by operating cash generation, including the Infrastructure Prepayment and accelerated service-fee payment, but capital expenditures exceeded operating cash flows during the first six months. Cash and cash equivalents were $409.8 million as of June 30, 2026, compared with $447.5 million as of December 31, 2025. Capital expenditures were primarily associated with commitments under the Updated Services Agreements for replacement satellites and the Extended MSS Network.
Strategically, Globalstar is progressing its replacement-satellite launch preparations, third-generation satellite development and ground-station expansion. The Amazon transaction advanced past expiration of the HSR waiting period on July 17, 2026, but remains subject to other regulatory approvals and specified HIBLEO-4 replacement satellite milestones. The company did not provide forward financial guidance in the supplied filing text.
Management, verbatim
During the second quarter, we remained focused on disciplined execution across our business while continuing to invest in the technologies and infrastructure that support our long-term strategy,
Dr. Paul E. Jacobs, Chief Executive Officer of Globalstar
We continue to make meaningful progress across our product, network and commercial initiatives while advancing the regulatory process associated with our previously announced Merger Agreement with Amazon.
Dr. Paul E. Jacobs, Chief Executive Officer of Globalstar
Not in the filing
stated, not guessed- GAAP and non-GAAP diluted EPS
- Gross profit and gross margin
- Operating expenses as an absolute amount
- Income tax expense or benefit and tax rate
- Quarterly operating cash flow
- Quarterly capital expenditures
- Free cash flow
- Debt balance
- Share repurchases
- Dividends
- Forward financial guidance
- Prior-year second-quarter total revenue
- Prior-year second-quarter service revenue
- Prior-year second-quarter subscriber-equipment revenue
- Prior-year first-six-month service revenue
- Prior-year first-six-month subscriber-equipment revenue
- Prior-quarter comparisons for reported metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Globalstar filed an 8-K with Q2 2026 results and an update on its previously announced merger agreement with Amazon, including regulatory progress and satellite network execution.
Ticker impact
Globalstar reports Q2 2026 results and says the HSR waiting period for its Amazon merger expired July 17, 2026.
Bias modestly positive on merger progress, but tempered by weaker service revenue and higher operating costs driving a larger net loss.
The filing is a primary disclosure (8-K with Q2 financials) and includes a concrete regulatory milestone (HSR expiration) plus quantified P&L drivers (service revenue down, operating loss and net loss up).
Market effects
LEO satellite and connectivity peers may see read-through on commercial IoT activation momentum and execution risk around next-gen replacement launches.
Limited direct regional spillover; primarily US-listed small-cap telecom infrastructure sentiment.
International regulatory approvals (FCC and foreign investment/satellite authorities) remain a gating item for cross-border satellite M&A.
Counterpoint
HSR expiration does not guarantee final approvals; investors may discount the deal until remaining regulatory conditions and Globalstar’s HIBLEO-4 milestones are secured.
Key entities
- companyGlobalstar, Inc.
Next-generation telecommunications infrastructure provider reporting Q2 2026 results and merger regulatory progress with Amazon.
- companyAmazon
Counterparty in Globalstar’s proposed merger agreement; remaining regulatory approvals are still required.
- regulatorFCC
Named as one of the remaining regulatory authorities involved in the merger review.
