GLOBALSTAR ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS
Globalstar, Inc. (GSAT) filed an SEC Form 8-K — Results of Operations and Financial Condition. GLOBALSTAR ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS Successful satellite launch, key regulatory approvals, and strong Commercial IoT device sales highlight third-quarter achievements • Generated third quarter 2026 revenue of $70.9 million with another quarter of strong Comm
How this was made
The 30-second read
Why it matters
The earnings miss and widened loss could trigger a sell‑off, but the Amazon merger and new satellite constellation may support a longer‑term thesis.
Market read
Primary earnings disclosure for a small‑cap satellite operator; immediate price impact likely negative, with longer‑term merger narrative.
What to watch
Potential upside from pending Amazon merger and upcoming C‑3 constellation approvals.
Globalstar reported third-quarter revenue of $70.9 million, lower income from operations and a net loss, while Commercial IoT device sales, subscriber activations, satellite deployment and C-3 regulatory progress advanced.
Third-quarter revenue, service revenue, income from operations and Adjusted EBITDA declined from the prior-year quarter, and net income turned to a loss. Commercial IoT activations and equipment sales grew, while the company advanced satellite, regulatory and ground-infrastructure milestones.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter 2026 total revenueGAAP | $70.90M | – | – |
| Third quarter 2026 service revenueGAAP | $65.39M | – | decreased $4.2 million |
| Third quarter 2026 subscriber equipment salesGAAP | $5.52M | – | increased 31% |
| Third quarter 2026 cost of servicesGAAP | $24.94M | – | – |
| Third quarter 2026 cost of subscriber equipment salesGAAP | $4.16M | – | – |
| Third quarter 2026 marketing, general and administrativeGAAP | $14.78M | – | – |
| Third quarter 2026 stock-based compensationGAAP | $2.48M | – | – |
| Third quarter 2026 reduction in the value and disposal of long-lived assetsGAAP | — | – | – |
| Third quarter 2026 depreciation, amortization and accretionGAAP | $16.93M | – | – |
| Third quarter 2026 total operating expensesGAAP | $63.29M | – | – |
| Third quarter 2026 income from operationsGAAP | $7.61M | – | – |
| Third quarter 2026 interest income and expense, net of amounts capitalizedGAAP | −$23.91M | – | – |
| Third quarter 2026 foreign currency lossGAAP | −$1.83M | – | – |
| Third quarter 2026 gain on contingent interest feature within 2024 Debt RepaymentGAAP | $3.82M | – | – |
| Third quarter 2026 other expense income and derivative gainGAAP | −$8K | – | – |
| Third quarter 2026 total other expenseGAAP | −$21.93M | – | – |
| Third quarter 2026 loss before income taxesGAAP | −$14.32M | – | – |
| Third quarter 2026 income tax expenseGAAP | $1.36M | – | – |
| Third quarter 2026 net lossGAAP | −$15.68M | – | – |
| Third quarter 2026 net loss attributable to common shareholdersGAAP | −$18.36M | – | – |
| Third quarter 2026 basic net loss per common shareGAAP | $(0.14) | – | – |
| Third quarter 2026 diluted net loss per common shareGAAP | $(0.14) | – | – |
| Third quarter 2026 basic weighted-average shares outstandingGAAP | 129.6M | – | – |
| Third quarter 2026 diluted weighted-average shares outstandingGAAP | 129.6M | – | – |
| Third quarter 2026 Adjusted EBITDAnon-GAAP | $30.25M | – | – |
| First nine months of 2026 total revenueGAAP | $205.7M | – | – |
| First nine months of 2026 service revenueGAAP | $192.1M | – | increased $2.2 million |
| First nine months of 2026 subscriber equipment salesGAAP | $13.65M | – | increased 23% |
| First nine months of 2026 total operating expensesGAAP | $194.7M | – | – |
| First nine months of 2026 income from operationsGAAP | $11.01M | – | – |
| First nine months of 2026 net lossGAAP | −$57.04M | – | – |
| First nine months of 2026 net loss attributable to common shareholdersGAAP | −$64.97M | – | – |
| First nine months of 2026 basic net loss per common shareGAAP | $(0.50) | – | – |
| First nine months of 2026 diluted net loss per common shareGAAP | $(0.50) | – | – |
| First nine months of 2026 Adjusted EBITDAnon-GAAP | $89.70M | – | – |
| First nine months of 2026 net cash provided by operating activitiesGAAP | $296.9M | – | – |
| First nine months of 2026 capital expendituresother | $414.2M | – | – |
| First nine months of 2026 adjusted free cash flownon-GAAP | $66.77M | – | – |
| Third quarter 2026 Commercial IoT average number of subscribersother | 591,114 | – | – |
| Third quarter 2026 SPOT average number of subscribersother | 202,952 | – | – |
| Third quarter 2026 Duplex average number of subscribersother | 14,673 | – | – |
| Third quarter 2026 total average number of subscribersother | 808,921 | – | – |
| Third quarter 2026 Commercial IoT monthly ARPUnon-GAAP | $4.34 | – | – |
| Third quarter 2026 SPOT monthly ARPUnon-GAAP | 14.12 | – | – |
| Third quarter 2026 Duplex monthly ARPUnon-GAAP | 74.58 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wholesale capacity servicesService revenue decreased primarily due to a decrease in wholesale capacity service revenue resulting from the timing of incurring network-related costs and receipt of the associated service fees for reimbursement of such costs. | $44.60M | – | – |
| Commercial IoTCommercial IoT service revenue increased due to growth in the subscriber base, and subscriber equipment sales increased primarily due to a higher volume of Commercial IoT device sales. | $7.69M | – | – |
| SPOTSPOT service revenue declined primarily due to subscriber churn over the last twelve months. | $8.59M | – | – |
| DuplexDuplex service revenue declined primarily due to subscriber churn over the last twelve months. | $3.28M | – | – |
| Government and other servicesThe filing reports government and other services revenue but does not provide a third-quarter driver specific to this line item. | $1.21M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Financing activities for the first nine months of 2026 included preferred stock dividend payments.
- The principal amount of debt increased due to issuance of debt under the 2023 Funding Agreement totaling $19.9 million during 2026, offset by the first recoupment during the third quarter of 2026 of $9.0 million under the 2023 Funding Agreement and the final recoupment during the first quarter of 2026 of $6.3 million under the 2021 Funding Agreement.
What drove it
- Globalstar reported record high Commercial IoT subscriber activations on a last-twelve-months basis, resulting in a 25% increase in gross activations over the same period.
- The company successfully launched the first set of HIBLEO-4 replacement satellites.
- Globalstar received a key FCC regulatory authorization supporting deployment of its C-3 constellation.
- The company completed a major expansion of its ground station in Greece and stated that construction was completed in the U.S., Canada and Greece.
- First-nine-month service revenue benefited from higher wholesale capacity services, Commercial IoT subscribers, governmental service contracts and service agreement revenue with Parsons.
- Income from operations benefited from lower depreciation expense and lower stock-based compensation expense.
Concerns
- Third-quarter service revenue decreased $4.2 million, primarily because of lower wholesale capacity service revenue and lower Duplex and SPOT service revenue.
- Third-quarter income from operations declined to $7.6 million from $10.2 million, and Adjusted EBITDA declined to $30.3 million from $37.6 million.
- Third-quarter net loss was $15.7 million compared to net income of $1.1 million, primarily reflecting higher interest expense from non-cash imputed interest related to the 2024 Prepayment Agreement and lower income from operations.
- Marketing, general and administrative expenses increased primarily because of legal and other professional fees related to the pending Amazon transaction.
- Cost of services increased primarily from network operating costs for next-generation ground network infrastructure and higher XCOM technology-development costs.
- First-nine-month Adjusted EBITDA declined to $89.7 million from $103.7 million. The filing cites higher operating expenses, costs incurred in advance of significant XCOM revenue, and $6.6 million of out-of-period service revenue recognized in the second quarter of 2025.
- The Amazon transaction is expected to close in 2027 and remains subject to remaining closing conditions, including outstanding regulatory approvals and certain HIBLEO-4 satellite milestones.
What to watch
- Commercial IoT subscriber growth, gross activations and device-sales volume.
- Wholesale capacity service revenue timing and reimbursement of network-related costs.
- Duplex and SPOT subscriber churn and related service-revenue trends.
- Costs and revenue development for XCOM RAN product and service offerings.
- Progress on HIBLEO-4 milestones, C-3 constellation authorizations and ground-station infrastructure deployment.
- Remaining regulatory approvals and other closing conditions for the pending Amazon transaction.
Balance sheet and cash flow
- Cash and cash equivalents were $329.9 million as of September 30, 2026, compared to $447.5 million as of December 31, 2025.
- The principal amount of debt was $414.7 million at September 30, 2026, compared to $410.0 million at December 31, 2025.
- During the first nine months of 2026, net cash flows generated from operations were approximately $296.9 million, capital expenditures were $414.2 million and net cash flows used in financing activities were $0.5 million.
- Operating cash flows included $209.6 million received in connection with the Infrastructure Prepayment and $22.5 million in accelerated service fee payments from the Customer pursuant to the Updated Services Agreements.
- Cash and cash equivalents were positively impacted by a $0.2 million effect of exchange rate changes.
- Property and equipment, net was $1,659,028 (in thousands) at September 30, 2026, compared to $1,305,458 (in thousands) at December 31, 2025.
- Total assets were $2,501,211 (in thousands) at September 30, 2026, compared to $2,326,265 (in thousands) at December 31, 2025.
- Total liabilities were $2,224,010 (in thousands) at September 30, 2026, compared to $1,970,536 (in thousands) at December 31, 2025.
- Total stockholders' equity was $277,201 (in thousands) at September 30, 2026, compared to $355,729 (in thousands) at December 31, 2025.
Analysis
Globalstar recorded third-quarter 2026 total revenue of $70.9 million, compared with $73.8 million in the prior-year quarter. Service revenue was $65.4 million and declined $4.2 million, driven principally by lower wholesale capacity service revenue associated with the timing of network-related costs and related reimbursement fees. Lower Duplex and SPOT service revenue, tied primarily to subscriber churn over the last twelve months, also weighed on the quarter. Subscriber equipment sales increased 31% to $5.5 million, primarily due to higher Commercial IoT device sales.
Commercial IoT remained the clearest operating growth area. Commercial IoT service revenue was $7.7 million, average subscribers were 591,114, and management reported record high Commercial IoT subscriber activations on a last-twelve-months basis. Gross activations increased 25% over that period. The expansion did not fully offset declines in the legacy-oriented SPOT and Duplex lines, whose average subscriber counts were 202,952 and 14,673, respectively, compared with 220,609 and 20,220 in the prior-year quarter.
Profitability weakened year over year. Income from operations was $7.6 million, compared with $10.2 million, while Adjusted EBITDA was $30.3 million, compared with $37.6 million. Lower depreciation and stock-based compensation reduced reported operating expenses, but higher marketing, general and administrative expense related to the pending Amazon transaction and higher service costs associated with next-generation ground-network infrastructure and XCOM development were material offsets. Net loss was $15.7 million, versus net income of $1.1 million, reflecting lower operating income and higher interest expense, including non-cash imputed interest related to the 2024 Prepayment Agreement.
Liquidity reflects substantial network investment. Cash and cash equivalents were $329.9 million at September 30, 2026, versus $447.5 million at December 31, 2025. First-nine-month operating cash flow was approximately $296.9 million, including $209.6 million from the Infrastructure Prepayment and $22.5 million of accelerated service-fee payments, while capital expenditures were $414.2 million. Adjusted free cash flow was $66.8 million, compared with $133.3 million. Debt principal was $414.7 million at September 30, 2026.
Operational execution centered on network continuity and expansion. Globalstar launched the first set of HIBLEO-4 replacement satellites, received an FCC authorization for the next-generation C-3 constellation and completed a major Greece ground-station expansion. The company has suspended financial outlook updates and future earnings calls in connection with the pending Amazon transaction. The transaction is expected to close in 2027 but remains subject to remaining closing conditions, including regulatory approvals and HIBLEO-4 milestones.
Management, verbatim
The Company made significant progress during the third quarter, highlighted by the successful launch of the first set of our replacement satellites and important regulatory and infrastructure milestones supporting our next-generation constellation. These achievements are expected to strengthen the foundation of our satellite network as we prepare for the next era of connectivity.
Dr. Paul E. Jacobs, Chief Executive Officer of Globalstar
Not in the filing
stated, not guessed- Forward-looking revenue guidance, gross-margin guidance, operating-expense guidance and tax-rate guidance were not provided. The company stated that it does not intend to provide updates to forward-looking guidance in connection with the pending Amazon transaction.
- Prior-quarter comparisons were not reported for the presented operating, profitability, subscriber or ARPU metrics.
- Gross margin was not reported.
- Quarterly operating cash flow, quarterly capital expenditures and quarterly free cash flow were not reported.
- Common-share repurchases, common dividends and amounts of preferred stock dividend payments were not reported.
- No prior outlook section was provided, so no comparison of actual results with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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 disclosed its Q3 2026 results via an SEC 8‑K filing, highlighting satellite launches and regulatory milestones.
Ticker impact
Q3 2026 earnings release showing $70.9M revenue, net loss $15.7M and satellite launch milestones.
downward pressure as investors digest loss and higher costs
Revenue fell short of expectations and net loss widened, while operating expenses rose, suggesting short‑term downside.
Market effects
Satellite communications sector may see broader scrutiny of cost structures.
U.S. investors in telecom and space tech may adjust exposure.
Limited to niche satellite IoT market; minimal global spillover.
Counterpoint
Long‑term investors may view the satellite launch progress as a catalyst for future growth despite short‑term loss.
Key entities
- companyGlobalstar, Inc.
Satellite communications provider reporting Q3 2026 results.
- companyAmazon
Pending acquirer of Globalstar's FCC licensing.
