🧾 What This Document Is — An Annual Report in Action

This isn't a dry filing—it's Globalstar's 2025 Annual Report, packaged as a Form 10-K. Think of it as the company's "year-in-review" magazine for investors. It combines the legally required financial statements with a strategic letter from the CEO, explaining what they did, why it matters, and where they're headed. Its purpose is to show stockholders that their investment is in a growing, strategically relevant company.

🏢 What The Company Does — The Space & Ground Connectivity Platform

👉 In simple terms, Globalstar owns and operates satellites that provide communication services, but they're much more than just a "satellite phone" company. They are a global connectivity platform operating at the crossroads of satellite technology, licensed radio spectrum, private 5G networks, and the Internet of Things (IoT).

Their business has two main sides: 1) A wholesale business where they sell network capacity to other companies (like Apple for satellite messaging on iPhones), and 2) Their own direct services for IoT tracking, consumer safety devices (SPOT), and private wireless networks. Their "bent pipe" satellite architecture is a key advantage—it allows them to innovate services quickly without redesigning the entire satellite network.

🚀 Key Moves of 2025 — A Year of Structural Advancement

2025 was marked by major investments and strategic expansions:

Constellation Roadmap: Advanced plans for their next-generation satellite network, called the "Extended MSS Network." This includes launching replacement satellites soon and developing a third-generation constellation (C-3) of over 50 satellites.
Ground Game Strong: Made one of their largest-ever investments in ground infrastructure, deploying new tracking antennas across multiple continents to support future network capacity and reliability.
Defense & Public Sector: Deepened their entry into government and defense markets, with their technology being evaluated for advanced military 5G applications.
Two-Way IoT Launched: Commercially rolled out the RM200M module, enabling two-way satellite communication for IoT devices—a big step up from one-way monitoring.
Terrestrial Tech Traction: Their private 5G technology (XCOM RAN) and licensed Band n53 spectrum gained commercial traction, highlighted by a proof-of-concept with Boingo Wireless.
Market Visibility: Completed a transfer to the prestigious NASDAQ Global Select Market and rang the opening bell, boosting investor visibility.

💰 Financial Highlights — Record Revenue & Profitability

2025 was a "transformational financial year" with strong growth:

Record Revenue: Reached $273.0 million, up 9% from 2024.
Strong Profitability: Maintained a healthy Adjusted EBITDA margin of 50%. (Adjusted EBITDA is a key profit metric that adds back interest, taxes, and non-cash expenses).
IoT Growth: Average commercial IoT subscribers grew 6%, and revenue from selling IoT hardware surged 50% year-over-year.
2026 Guidance: Forecasts revenue between $280 million and $305 million for 2026, with an Adjusted EBITDA margin of ~50%. This implies ~7% growth at the midpoint.

📦 Financial Position & What Changed

The company is investing heavily in its future while maintaining a stable financial footing.

Reduced Net Loss: GAAP net loss significantly improved to $8.7 million in 2025 from a $63.2 million loss in 2024.
Investment Phase: Heavy spending on ground infrastructure and satellite development is reflected in their depreciation and capital allocation.
Debt Management: Notably, they had no "loss on extinguishment of debt" in 2025, compared to a $27.4 million charge in 2024, indicating a cleaner balance sheet action last year.

🔮 What's Next — The 2026 Priorities

The roadmap for 2026 is clear and focused on scaling their investments:

Launch Satellites: Plan to launch two satellites during 2026 as part of their constellation upgrade.
Expand Ground Network: Continue global expansion of ground stations.
Grow Key Markets: Deepen presence in defense/public sector, scale XCOM RAN deployments, and accelerate IoT solution proliferation globally.
Deliver Value: Maintain disciplined operations to deliver long-term value to stockholders.

🌍 Industry Context & Why It Matters

Globalstar is positioning itself as the satellite industry transitions from a niche capability to mainstream global communications infrastructure. They differentiate themselves from new entrants with decades of operational experience, global licenses, and proven orbital assets. Their move into hybrid satellite-terrestrial networks (via XCOM RAN) and mission-critical IoT taps into massive growth trends in industrial automation, logistics, and public safety. This isn't just about talking satellites; it's about becoming essential infrastructure for a connected world.

⚖️ The Big Picture — Strengths & Risks

👍 Strengths:
- Proven Operator: Decades of experience in a field where many new players are untested.
- Asset-Rich: Owns licensed spectrum and existing satellites—a hard-to-replicate foundation.
- Diversified Growth: Multiple growth engines (wholesale, IoT, private wireless, defense).
- Strategic Partner: Their wholesale relationship with a major tech company (implied to be Apple) provides a stable revenue base.
⚠️ Risks:
- Execution Risk: Success depends on flawlessly launching new satellites and deploying new ground infrastructure.
- Capital Intensive: The path to growth requires significant ongoing investment.
- Competitive Landscape: Faces competition from both traditional satellite players and new mega-constellation projects.
- Technology Adoption: Growth in IoT and private wireless depends on market adoption of their specific technologies (XCOM RAN, Band n53).

🧠 The Analogy

Think of Globalstar as building and operating a space-and-ground highway system. They own the satellites (the orbiting overpasses) and the licensed radio spectrum (the dedicated lanes). Their 2025 was all about widening those lanes (ground infrastructure), designing exits for new types of traffic (two-way IoT, private 5G), and securing contracts with major freight companies (defense, enterprise partners) to ensure their highway becomes a critical artery for global data traffic.

📇 Key Contacts & People

Chief Executive Officer: Dr. Paul E. Jacobs
Executive Chairman of the Board: James Monroe III
Chief Financial Officer & Corporate Secretary: Rebecca S. Clary
General Counsel & VP, Regulatory Affairs: L. Barbee Ponder IV
Investor Relations Email: [email protected]
Headquarters Address: 1351 Holiday Square Blvd., Covington, LA 70433
Main Phone: (985) 335-1500
Auditor: Ernst & Young, LLP
Transfer Agent: Computershare

🧩 Final Takeaway

Globalstar is executing a clear strategy to transform from a legacy satellite operator into a multi-faceted connectivity platform for the IoT and 5G era. 2025 showed strong financial results and significant infrastructure investment. Their future hinges on successfully launching new satellites and commercializing their unique blend of space and ground technologies.

Globalstar, Inc. — ARS Filing