Business Overview / Sources of Revenue

Globalstar (GSAT) is a telecommunications company providing mobile satellite services (MSS) and terrestrial connectivity solutions globally, primarily through its low Earth orbit (LEO) satellite network. The company earns revenue chiefly from:

- Satellite communications services, including voice and data plans for remote business use, emergency services, and personal safety[4][5].
- Commercial IoT products and asset-tracking solutions used in industries such as oil and gas, transportation, and utilities[4][5].
- SPOT GPS messenger devices for tracking and emergency messaging[4].
- Wholesale capacity and spectrum licensing, leveraging its valuable mid-band terrestrial spectrum assets in the U.S. and internationally[2][5].

Recent business strategy emphasizes expanding wholesale and spectrum-based revenue streams, which are viewed as areas for substantial growth and profitability[2]. However, an exact percentage breakdown of revenue sources is not specified in the available information.

Revenue Growth Potential and Recurrence

Globalstar (GSAT) generates a significant portion of its revenue from recurring service agreements, especially through wholesale capacity and commercial IoT services. In 2024, service revenue hit record highs, with Commercial IoT service revenue up 15% year-over-year and overall annual revenue rising 12% to $250.3 million[1][5]. The company’s updated services agreement allows it to retain 100% of direct MSS and terrestrial revenue, allocating 85% of network capacity to its wholesale customer, which further highlights the strength and predictability of its recurring revenue base[1].

Looking ahead, Globalstar appears well-positioned for continued growth. The first quarter of 2025 saw a 6% revenue increase, and the company is investing in new satellite infrastructure to support expanded services[2]. While no explicit long-term growth rate is provided, recent trends suggest annual revenue growth in the mid-to-high single digits is achievable over the next 5+ years[1][2][5].

Economic Moat Factors

Globalstar (GSAT) possesses some economic moat characteristics, though they are relatively modest. Its partnership with Apple strengthens brand power and positions it as a sector leader, especially for satellite connectivity and IoT applications[4]. The company also benefits from owning unique spectrum assets, particularly Band n53, which holds significant commercial value and can drive growth in private 5G networks[4]. These assets serve as barriers to entry for competitors.

However, Globalstar operates in a capital-intensive industry with limited switching costs for enterprise customers, and it lacks substantial network effects or entrenched economies of scale relative to larger telecommunications providers[2][4]. Its recent strong revenue growth and ability to generate free cash flow provide some resilience, but its low return on invested capital indicates a weak moat overall[5]. Thus, while there are unique asset advantages, Globalstar’s economic moat remains relatively narrow.

Leadership

Paul Jacobs is the CEO of Globalstar (GSAT) and also serves as a Director, but he is not a founder of the company[1][3]. Jacobs has been in the CEO role since August 2023. There is no public information in the provided sources regarding his personal ownership stake in Globalstar. The leadership team includes executives with significant industry experience, such as Dr. Tamer Kadous and Daaman Hejmadi, who lead major business units, and Jay Monroe serves as Executive Chairman[1][2][3][4].

Financial Health

Globalstar (GSAT) has a debt-to-equity ratio of 146% with $502.7 million in debt and $241.4 million in cash, indicating a highly leveraged balance sheet[4]. Its cash position is less than its debt, suggesting financial risk. The company generated adjusted free cash flow of $47.6 million in Q1 2025, with an adjusted EBITDA margin around 51%[2][3]. Despite improving free cash flow, it remains unprofitable, with its net loss widening to $17.3 million in Q1 2025[2]. There is no evidence it is a net share repurchaser; Globalstar has generally not been reducing share count[4].

Last updated Jun 12, 2025