GSAT Q2 Deep Dive: Government Partnerships and Infrastructure Expansion Drive Growth

August 12, 2025 at 03:20 AM EDT

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Satellite communications provider Globalstar (NASDAQ: GSAT) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 11.2% year on year to $67.15 million. The company’s full-year revenue guidance of $272.5 million at the midpoint came in 4.4% above analysts’ estimates. Its non-GAAP profit of $0.04 per share was significantly above analysts’ consensus estimates.

Is now the time to buy GSAT? Find out in our full research report (it’s free).

Globalstar (GSAT) Q2 CY2025 Highlights:

Revenue: $67.15 million vs analyst estimates of $63.14 million (11.2% year-on-year growth, 6.4% beat)
Adjusted EPS: $0.04 vs analyst estimates of -$0.09 (significant beat)
Adjusted EBITDA: $35.79 million vs analyst estimates of $32.59 million (53.3% margin, 9.8% beat)
The company reconfirmed its revenue guidance for the full year of $272.5 million at the midpoint
Operating Margin: 9.2%, up from -2.4% in the same quarter last year
Market Capitalization: $3.58 billion

StockStory’s Take

Globalstar delivered a quarter that exceeded Wall Street’s expectations, driven by growth in wholesale capacity services and momentum in its commercial Internet of Things (IoT) segment. Management attributed revenue gains to new service agreements, particularly with government and commercial customers, and highlighted the successful integration of its satellite network with partners for mission-critical applications. CFO Rebecca Clary noted, “Service revenue increased 10%, driven primarily by wholesale capacity services, which benefited from the timing of service fees associated with the reimbursement of network-related costs.”

Looking ahead, Globalstar’s outlook is shaped by continued investment in next-generation satellite and ground infrastructure, expanding partnerships in government and defense, and the anticipated launch of new satellites. CEO Paul Jacobs emphasized the importance of recent agreements and infrastructure upgrades, stating, “These milestones mark a period of focused execution across multiple fronts, domestically and internationally as well as commercial and government sectors.” Management believes that the ongoing buildout of the Extended MSS Network and development of the XCOM RAN platform will position the company to address growing demand across industrial, commercial, and government sectors.

Key Insights from Management’s Remarks

Management credited the quarter’s performance to the ramp in wholesale services, new government programs, and progress on strategic technology initiatives.

Wholesale capacity momentum: The company saw increased demand from partners in both commercial and government sectors, with the Parsons agreement moving from proof-of-concept to a commercial phase. This shift validated Globalstar’s ability to deliver resilient communications for mission-critical applications worldwide.
Government engagement expansion: Globalstar entered a cooperative research and development agreement with the U.S. Army to evaluate satellite-enabled edge processing solutions, highlighting growing traction in defense and federal markets. Management expects these initiatives to contribute meaningful revenue in the future.
Commercial IoT subscriber growth: The commercial IoT segment benefited from a record number of gross activations over the last year, with the new RM200 2-way module gaining adoption across diverse industries, including oil and gas and military applications.
Ground infrastructure upgrades: The company launched a global ground infrastructure program, installing new antennas at major stations to increase network capacity and resiliency. This is part of preparations for the next-generation Extended MSS Network, expected to enhance service reliability and reach.
Technology platform investment: Development of the XCOM RAN platform continued, with management highlighting its potential to enter terrestrial wireless markets. Despite near-term cost impacts, the company views this as a strategic investment to expand its addressable market and support hybrid satellite-terrestrial architectures.

Drivers of Future Performance

Management expects future performance to be shaped by ongoing infrastructure investments, new satellite launches, and growing commercial and government partnerships.

Satellite launches and network upgrades: Globalstar anticipates that the deployment of new satellites with SpaceX and upgrades to ground infrastructure will increase network capacity, coverage, and service quality, supporting expanded offerings for both commercial and government clients.
Government and defense market expansion: The company is prioritizing partnerships with federal agencies and expects recent agreements to translate into new revenue streams. Management cited ongoing engagement with the U.S. Army and international regulatory progress as key drivers of future growth.
Product innovation and diversification: Continued rollout of the RM200 2-way module and advancement of the XCOM RAN platform are central to capturing new use cases beyond traditional satellite communications. These efforts are designed to tap into industrial, autonomous, and hybrid connectivity markets, with management noting strong customer interest and testing activity.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) the pace of new satellite launches and ground infrastructure upgrades to assess network expansion progress, (2) revenue contributions from government and defense sector partnerships, and (3) adoption rates for the RM200 2-way module and XCOM RAN technology. Execution on international regulatory milestones and further commercial contract wins will also be important indicators of momentum.

Globalstar currently trades at $27.86, up from $25.20 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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