Globalstar, Inc. (GSAT) Bundle
A Brief History of Globalstar, Inc.
Overview
Globalstar, Inc. is a leading provider of satellite communications services, utilizing a constellation of low-earth orbit satellites to offer voice and data services globally. Established in the 1990s, the company has evolved significantly, adapting to changes in technology and market demand.
Recent Financial Performance
As of September 30, 2024, Globalstar reported total revenue of $72.3 million for the third quarter, a 26% increase from $57.7 million in the third quarter of 2023. For the nine months ended September 30, 2024, total revenue reached $189.2 million, up from $171.4 million in the prior year, representing a 10% increase.
| Revenue Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Subscriber Services | $68.9 million | $53.6 million | $180.0 million | $155.2 million |
| Equipment Sales | $3.4 million | $4.1 million | $9.2 million | $16.2 million |
| Total Revenue | $72.3 million | $57.7 million | $189.2 million | $171.4 million |
Subscriber and Revenue Growth
Globalstar's subscriber base has shown resilience, with the average number of subscribers reaching 781,215 as of September 30, 2024, compared to 769,706 in 2023. Notably, the Commercial IoT segment experienced a 5% increase in revenue for the three months ended September 30, 2024, attributed to higher average subscribers and improved average revenue per user (ARPU).
| Subscriber Type | Average Subscribers (Q3 2024) | Average Subscribers (Q3 2023) | ARPU (Monthly) |
|---|---|---|---|
| Duplex | 26,535 | 33,501 | $74.81 |
| SPOT | 242,134 | 258,485 | $14.38 |
| Commercial IoT | 512,260 | 477,344 | $4.33 |
| Total | 781,215 | 769,706 | N/A |
Operating Expenses and Profitability
Operating expenses increased to $62.9 million in the third quarter of 2024, compared to $55.7 million in the same period of 2023. The increase is attributed to higher costs associated with network expansion and supporting services. The net loss for the nine months ended September 30, 2024, was $12.9 million, compared to a net loss of $9.6 million in the previous year.
| Period | Operating Expenses | Net Loss |
|---|---|---|
| Q3 2024 | $62.9 million | $12.9 million |
| Q3 2023 | $55.7 million | $9.6 million |
| Nine Months 2024 | $185.9 million | $12.9 million |
| Nine Months 2023 | $159.6 million | $9.6 million |
Liquidity and Cash Flow
As of September 30, 2024, Globalstar had cash and cash equivalents of $51.9 million, down from $56.7 million at the end of 2023. The net cash provided by operating activities for the nine months ended September 30, 2024, was $98.5 million, compared to $68.6 million in 2023.
| Cash Flow Type | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $98.5 million | $68.6 million |
| Net Cash Used in Investing Activities | ($107.7 million) | ($142.4 million) |
| Net Cash Provided by Financing Activities | $4.9 million | $105.9 million |
Debt and Equity Structure
Globalstar's total debt stood at $424.1 million as of September 30, 2024, an increase from $398.7 million at the end of 2023. This increase resulted from a combination of PIK interest payments and new debt issuance under the 2023 Funding Agreement. The company issued 149,425 shares of Series A Preferred Stock in 2022, providing a fixed dividend of 7.0%.
A Who Owns Globalstar, Inc. (GSAT)
Major Shareholders
As of 2024, Globalstar, Inc. (GSAT) has a diverse ownership structure comprising institutional investors, individual shareholders, and preferred stockholders. The largest shareholders include:
| Shareholder | Type of Ownership | Percentage Ownership |
|---|---|---|
| Thermo Companies | Institutional | Approximately 39.9% |
| Virewirx, Inc. | Institutional | Approximately 14.2% |
| BlackRock, Inc. | Institutional | Approximately 7.5% |
| The Vanguard Group, Inc. | Institutional | Approximately 6.9% |
| Other Institutional Investors | Institutional | Approximately 25.5% |
| Individual Shareholders | Individual | Approximately 5.0% |
Preferred Stock Ownership
Globalstar has issued Series A Preferred Stock, which also contributes to the ownership landscape:
| Preferred Stockholder | Type of Ownership | Amount of Preferred Shares |
|---|---|---|
| Thermo Companies | Preferred | 149 shares |
| Other Preferred Shareholders | Preferred | Not disclosed |
Recent Stock Performance
The stock performance of GSAT has been volatile, with the following key statistics for the year 2024:
| Metric | Value |
|---|---|
| Current Share Price (as of September 30, 2024) | $0.20 |
| Market Capitalization | $389 million |
| 52-Week High | $0.35 |
| 52-Week Low | $0.15 |
| YTD Performance | -10% |
Stockholder Equity
The equity structure of Globalstar as of September 30, 2024, is summarized below:
| Category | Amount (in thousands) |
|---|---|
| Preferred Stock | $0 |
| Common Stock | $189 |
| Additional Paid-In Capital | $2,466,279 |
| Accumulated Other Comprehensive Income | $5,552 |
| Retained Deficit | $(2,077,927) |
| Total Stockholders’ Equity | $394,093 |
Debt Obligations
As of September 30, 2024, Globalstar's debt obligations are outlined below:
| Debt Type | Amount (in millions) |
|---|---|
| 2023 13% Notes | $219.6 |
| 2023 Funding Agreement | $155.0 |
| 2021 Funding Agreement | $49.5 |
| Total Debt | $424.1 |
Recent Developments
Globalstar has been actively engaging in various agreements and partnerships that impact ownership structure and financial performance:
- In June 2024, Virewirx issued 7.7 million shares of Globalstar common stock as part of a transaction valued at $8.1 million, including costs incurred under the Support Services Agreement.
- The Service Agreements with Apple have significantly influenced revenue streams and operational capacity.
- Globalstar has entered into a License Agreement with XCOM, enhancing its technological capabilities in wireless spectrum innovations.
Globalstar, Inc. (GSAT) Mission Statement
Corporate Overview
Globalstar, Inc. aims to provide reliable satellite communication services globally, focusing on enhancing connectivity in underserved areas. The company is committed to delivering innovative solutions that cater to the diverse communication needs of various industries, including government, maritime, and IoT sectors.
Financial Performance
As of September 30, 2024, Globalstar reported a total revenue of $72.3 million, a 26% increase from $57.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $189.2 million, up 10% from $171.4 million in 2023.
| Revenue Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Service Revenue | $68.9 million | $53.6 million | $180.0 million | $155.2 million |
| Subscriber Equipment Sales | $3.4 million | $4.0 million | $9.2 million | $16.2 million |
| Total Revenue | $72.3 million | $57.7 million | $189.2 million | $171.4 million |
Subscriber Metrics
As of September 30, 2024, Globalstar had approximately 781,215 total subscribers, reflecting a year-over-year increase in average number of subscribers across several service categories.
| Subscriber Type | Average Subscribers (Q3 2024) | Average Subscribers (Q3 2023) |
|---|---|---|
| Duplex | 26,535 | 33,501 |
| SPOT | 242,134 | 258,485 |
| Commercial IoT | 512,260 | 477,344 |
| Other | 286 | 376 |
| Total | 781,215 | 769,706 |
Operating Expenses
For the three months ended September 30, 2024, operating expenses totaled $62.9 million, increasing from $55.7 million in the same quarter of 2023. For the nine months, operating expenses were $185.9 million, compared to $159.6 million in 2023.
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Cost of Services | $62.9 million | $55.7 million | $185.9 million | $159.6 million |
Debt and Cash Position
As of September 30, 2024, Globalstar's total debt stood at $424.1 million, an increase from $398.7 million at the end of 2023. The cash and cash equivalents were reported at $51.9 million.
| Financial Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $424.1 million | $398.7 million |
| Cash and Cash Equivalents | $51.9 million | $56.7 million |
Market Strategy
Globalstar's strategic focus includes expanding its market presence in satellite communications, leveraging partnerships, and enhancing its service offerings to meet the growing demand for connectivity solutions.
How Globalstar, Inc. (GSAT) Works
Business Model
Globalstar, Inc. operates primarily in the satellite communication sector, providing Mobile Satellite Services (MSS) and equipment revenue from the sale of MSS devices. The company generates revenue through various service categories, including wholesale capacity services, subscriber services, and government contracts.
Financial Performance
For the three months ended September 30, 2024, Globalstar reported total revenue of $72.3 million, a 26% increase from $57.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $189.2 million, a 10% increase from $171.4 million in 2023.
| Revenue Type | Q3 2024 Revenue ($000) | Q3 2023 Revenue ($000) | 9M 2024 Revenue ($000) | 9M 2023 Revenue ($000) |
|---|---|---|---|---|
| Service Revenue | 68,908 | 53,643 | 180,008 | 155,245 |
| Subscriber Equipment Sales | 3,399 | 4,040 | 9,164 | 16,154 |
| Total Revenue | 72,307 | 57,683 | 189,172 | 171,399 |
Service Revenue Breakdown
Service revenue is further categorized into several segments:
| Service Category | Q3 2024 Revenue ($000) | Q3 2023 Revenue ($000) | 9M 2024 Revenue ($000) | 9M 2023 Revenue ($000) |
|---|---|---|---|---|
| Duplex | 5,955 | 7,978 | 15,675 | 20,088 |
| SPOT | 10,444 | 11,350 | 31,066 | 33,703 |
| Commercial IoT | 6,650 | 6,347 | 19,803 | 16,881 |
| Wholesale Capacity Services | 43,861 | 27,517 | 109,149 | 83,406 |
| Government and Other Services | 1,998 | 451 | 4,315 | 1,167 |
Subscriber Metrics
The average number of subscribers and Average Revenue Per User (ARPU) for the periods ended September 30, 2024, are as follows:
| Subscriber Type | Average Subscribers Q3 2024 | Average Subscribers Q3 2023 | Average Subscribers 9M 2024 | Average Subscribers 9M 2023 | ARPU Q3 2024 ($) | ARPU Q3 2023 ($) |
|---|---|---|---|---|---|---|
| Duplex | 26,535 | 33,501 | 27,899 | 35,143 | 74.81 | 79.38 |
| SPOT | 242,134 | 258,485 | 245,592 | 262,818 | 14.38 | 14.64 |
| Commercial IoT | 512,260 | 477,344 | 506,657 | 472,812 | 4.33 | 4.43 |
| Total | 781,215 | 769,706 | 780,446 | 771,164 | N/A | N/A |
Operating Expenses
Globalstar's total operating expenses increased to $62.9 million for Q3 2024 from $55.7 million in Q3 2023, and to $185.9 million for the nine months ended September 30, 2024 from $159.6 million in the same period of 2023.
Debt and Liquidity
As of September 30, 2024, Globalstar reported a principal amount of debt outstanding of $424.1 million, an increase from $398.7 million at the end of 2023. Cash and cash equivalents stood at $51.9 million as of September 30, 2024.
| Debt Type | Amount ($000) |
|---|---|
| 2023 Funding Agreement | 155,000 |
| 2021 Funding Agreement | 49,500 |
| 2023 13% Notes | 200,000 |
| Total Debt | 424,100 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Globalstar reported:
| Cash Flow Category | Amount ($000) |
|---|---|
| Net Cash Provided by Operating Activities | 98,535 |
| Net Cash Used in Investing Activities | (107,719) |
| Net Cash Provided by Financing Activities | 4,914 |
| Net Change in Cash and Cash Equivalents | (4,828) |
How Globalstar, Inc. (GSAT) Makes Money
Revenue Categories
Globalstar, Inc. generates revenue through two primary categories: service revenue and equipment revenue. The service revenue is further divided into several segments, including:
- Subscriber services
- Wholesale capacity services
- Government and other services
Financial Performance Overview
For the three months ended September 30, 2024, Globalstar reported total revenue of $72.3 million, an increase of 26% compared to $57.7 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue was $189.2 million, up 10% from $171.4 million in 2023.
| Revenue Breakdown | Q3 2024 ($) | Q3 2023 ($) | YTD 2024 ($) | YTD 2023 ($) |
|---|---|---|---|---|
| Service Revenue | $68,908,000 | $53,643,000 | $180,008,000 | $155,245,000 |
| Subscriber Equipment Sales | $3,399,000 | $4,040,000 | $9,164,000 | $16,154,000 |
| Total Revenue | $72,307,000 | $57,683,000 | $189,172,000 | $171,399,000 |
Service Revenue Analysis
Service revenue consists of various segments:
- Duplex Services: Revenue decreased by 25% in Q3 2024 to $5.96 million from $7.98 million in Q3 2023.
- SPOT Services: Revenue decreased by 8% to $10.44 million in Q3 2024 from $11.35 million in Q3 2023.
- Commercial IoT: Revenue increased by 5% to $6.65 million in Q3 2024.
- Wholesale Capacity Services: Revenue surged by 59% to $43.86 million in Q3 2024.
- Government and Other Services: Revenue increased to $1.998 million in Q3 2024 from $451,000 in Q3 2023.
| Service Type | Q3 2024 Revenue ($) | Q3 2023 Revenue ($) |
|---|---|---|
| Duplex | $5,955,000 | $7,978,000 |
| SPOT | $10,444,000 | $11,350,000 |
| Commercial IoT | $6,650,000 | $6,347,000 |
| Wholesale Capacity | $43,861,000 | $27,517,000 |
| Government and Other | $1,998,000 | $451,000 |
Subscriber Base and Average Revenue per User (ARPU)
As of September 30, 2024, Globalstar had approximately 781,215 subscribers worldwide. The average revenue per user (ARPU) varied across different services:
| Service Type | ARPU Q3 2024 ($) | ARPU Q3 2023 ($) |
|---|---|---|
| Duplex | $74.81 | $79.38 |
| SPOT | $14.38 | $14.64 |
| Commercial IoT | $4.33 | $4.43 |
Operating Expenses
Total operating expenses for the three months ended September 30, 2024, were $62.9 million, compared to $55.7 million in the same period in 2023. Major components include:
- Cost of Services: Increased by $5.3 million.
- Marketing, General, and Administrative: $10.4 million.
- Stock-Based Compensation: Increased to $8.25 million.
- Depreciation, Amortization, and Accretion: $22.25 million.
| Expense Type | Q3 2024 ($) | Q3 2023 ($) |
|---|---|---|
| Total Operating Expenses | $62,873,000 | $55,666,000 |
| Cost of Services | $39,109,000 | $33,798,000 |
| Marketing, General, and Administrative | $10,439,000 | $12,090,000 |
| Stock-Based Compensation | $8,254,000 | $4,346,000 |
| Depreciation, Amortization, and Accretion | $22,249,000 | $21,865,000 |
Debt and Financing
As of September 30, 2024, the total principal amount of debt outstanding was $424.1 million, compared to $398.7 million at the end of 2023. The company has various funding agreements to support its operations and expansion.
Cash Flow Analysis
For the nine months ended September 30, 2024, Globalstar reported the following cash flow metrics:
| Cash Flow Category | 2024 ($) | 2023 ($) |
|---|---|---|
| Net Cash Provided by Operating Activities | $98,535,000 | $68,556,000 |
| Net Cash Used in Investing Activities | ($107,719,000) | ($142,385,000) |
| Net Cash Provided by Financing Activities | $4,914,000 | $105,902,000 |
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Resources:
- Globalstar, Inc. (GSAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Globalstar, Inc. (GSAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Globalstar, Inc. (GSAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.