Globalstar, Inc. Q4 FY2025 earnings call

• 2025 was transformational with record full-year revenue and 50% adjusted EBITDA margin. • Focused on scaling core business and laying foundation for growth. • Launched two-way satellite IoT capabilities and completed commercial rollout of RM-200MS module. • Secured early government and defense wins, expanded in multiple verticals. • Achieved proof of concept with Parsons, advanced XCOM RAN-based 5G research. • Fireworks awarded Phase II SBIR contract leveraging Globalstar's XMRI5 platform. • Expanded global ground station network, advanced ITU financial commitments, and XCOM RAN ecosystem. • Average commercial IoT subscribers up 6%, IoT hardware sales revenue up 50%.

Full Year 2025: Total revenue reached a record $273,000,000, up 9% from 2024. Service revenue was $257,300,000, up 8%, driven by increased wholesale services. Subscriber equipment revenue was $15,700,000, up 24% due to higher commercial IoT device sales. Income from operations was $7,400,000 vs. a loss of $900,000 in 2024. Net loss improved to $7,600,000 from $63,200,000 in 2024. Adjusted EBITDA was $136,100,000, a 50% margin. Q4 2025: Total revenue $72,000,000, service revenue $67,400,000 (up 17%), equipment revenue $4,600,000 (up 31%). Loss from operations $400,000 vs. $4,200,000 in Q4 2024. Net loss $10,600,000 vs. $50,200,000 in prior year. Adjusted EBITDA $32,400,000, up 7% from prior year's quarter. Balance sheet: Cash and cash equivalents $447,500,000, operating cash flows $621,700,000, capital expenditures $550,400,000, adjusted free cash flow $171,500,000. Principal debt balance $410,000,000 at year-end.

• Expect total revenue between $280,000,000 and $305,000,000 in 2026 with an adjusted EBITDA margin of approximately 50%. • Confident in continued growth trajectory as scaling next-generation infrastructure and expanding commercial opportunities. • C3 constellation critical design review completed, work ongoing on ground network buildout and regulatory side. • Two-way IoT capabilities in process of being adopted by customers, module in mass production. • Pipeline for XCOM RAN includes warehouse automation, CBRS, military use cases, stadiums, convention centers, military bases.

Q: Thoughts on data centers in space?

A: Not focused on that, but understand industry excitement, but technical challenges exist.

Q: Next milestones for C3 constellation?

A: Critical design review done, work on ground network buildout and regulatory side.

Q: XCOM RAN customer KPIs with Boingo?

A: Throughput in dense environment, running over DAS, warehouse automation ease of deployment and capacity sharing.

Q: MSS and terrestrial 5G flexibility with S-band spectrum?

A: Synergy due to global harmonized spectrum, working on multimode capability for satellite modems.

Q: Targeted launch windows for replenishment satellites?

A: First launch in second quarter, second launch in second half.

Q: When two-way communications services went live?

A: Customers building out solutions, module commercial but waiting on customers to finish applications.

Q: Government pipeline and longer-term guidance?

A: Pipeline has near-term and newer opportunities, near-term revenue from network buildout for other regions.

Q: Ground infrastructure upgrade for longer-term MSS network?

A: Committed to ITU to spend $2,000,000,000, halfway through, buildouts going well.