Globalstar, Inc. Q2 FY2025 earnings call

• Financials: Second quarter financial results were strong with revenue growth, increased net income, and higher adjusted EBITDA. - Tariff Impact: Globalstar is well positioned to minimize significant financial impact from tariffs due to global manufacturing and logistics footprint. - Operational Highlights: Globalstar-Parsons commercial relationship advanced with proof of concept and capacity access agreement; engaged with U.S. Army for satellite-enabled edge processing solutions; kicked off global ground infrastructure program for next-generation network; signed launch services agreement with SpaceX for satellite deployment; progress on XCOM RAN platform and RM200 2-way module.

Total revenue for the second quarter increased 11% to $67.1 million compared to the prior year period of $60.4 million. Service revenue increased 10%, driven primarily by wholesale capacity services. Adjusted EBITDA rose to $35.8 million compared to $32.6 million in the prior year second quarter. Cash on hand ended the quarter at $308.2 million, and adjusted free cash flow for the 6 months ended June 30, 2025, was $77.9 million compared to $51.9 million in the prior year period.

• Reiterated full year 2025 outlook with revenue in the range of $260 million to $285 million. - Anticipates adjusted EBITDA margin of approximately 50%.

• Factors from SEC filings, including those in annual report on Form 10-K for 2024 and other filings, could cause results to differ materially. - Potential impact of tariffs, though expected to be relatively immaterial in the near term.

Q: Any updates developmentally on the international retail opportunity for terrestrial?

A: All interactions are going in the right direction, making progress on multiple fronts with potential for expansion.

Q: Are there any other engagements and other verticals that can be pointed to?

A: Working on government stuff and talking to companies rolling out networks for high-demand locations, with lab testing and discussions on deployments.

Q: XCOM RAN, any updates on licensable technology efforts?

A: Started with licensing but faced challenges; focused on product and end-to-end solutions, looking at Network as a Service models.

Q: Any updates on terrestrial licenses internationally?

A: Mexico recent, regulatory team focused on C-3 higher power systems, international licenses process ongoing.

Q: On spectrum sharing with XCOM RAN?

A: Technical team confident in position, great relationships with regulators.

Q: Follow-up on XCOM RAN development work?

A: Some incremental development, big technology done, working on horizontal opportunities and own software stack versions.