Executive Summary

Q4 2024 revenue rose 17% year over year to $61.2M, driven by wholesale capacity services; adjusted EBITDA increased 21% to $30.4M, while GAAP net loss widened to $50.2M due to non‑cash debt extinguishment and FX losses .
Full-year 2024 revenue reached a record $250.3M (+12% YoY), exceeding the high end of guidance; adjusted EBITDA was a record $135.3M (54% margin) .
Management reiterated 2025 guidance: revenue $260–$285M and adjusted EBITDA margin ~50%, citing near‑term margin compression from strategic investments in XCOM RAN and MSS product development .
Catalysts: launch of two‑way satellite IoT (RM200M), FCC 15-year mobile earth terminal renewal, expanded services agreements (new constellation, ground infrastructure), and uplisting to Nasdaq Global Select via 1‑for‑15 reverse split .

What Went Well and What Went Wrong

What Went Well

Wholesale capacity services were the primary growth driver; Q4 service revenue increased 18% YoY with adjusted EBITDA up 21% YoY to $30.4M .
Commercial IoT posted Q4 service revenue growth (+8% YoY) on higher subscribers and ARPU; full‑year Commercial IoT service revenue achieved a record .
Strategic progress: two‑way satellite IoT launched; Band n53 5G data call reached 100 Mbps/60 Mbps, expanding terrestrial opportunities and validating spectrum utility .
Quote: “We are reiterating our previously‑issued financial guidance for 2025… adjusted EBITDA margin expected to be approximately 50%, impacted by incremental strategic investments…” — CFO Rebecca Clary .
Quote: “We made important strides… partnerships with Parsons, Peiker, Liquid Intelligent Technologies… expansion of our wholesale capacity arrangement…” — CEO Dr. Paul E. Jacobs .

What Went Wrong

GAAP net loss in Q4 widened to $50.2M, primarily from non‑cash loss on extinguishment of debt and unfavorable FX; operating loss was $4.2M despite revenue growth .
Subscriber‑driven revenue declined $1.3M in Q4 on expected Duplex churn and fewer SPOT activations, partially offset by Commercial IoT growth .
Operating expenses rose modestly (+2% YoY) on network operating and product development costs tied to ground infrastructure and MSS/XCOM initiatives .
Execution visibility: management did not provide updated launch timing for the extended MSS constellation; ground gateway build‑out ongoing and long‑cycle .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$60.4	$72.3	$61.2
Service Revenue ($USD Millions)	$57.6	$68.9	$57.7
Adjusted EBITDA ($USD Millions)	$32.6	$42.8	$30.4
Implied Adj. EBITDA Margin (%)	54.0% ($32.6M/$60.4M)	59.2% ($42.8M/$72.3M)	49.7% ($30.4M/$61.2M)
Net Income (Loss) ($USD Millions)	$(9.7)	$9.9	$(50.2)
Diluted EPS ($USD)	$(0.01)	$0.00	$(0.42) (post 1:15 split)

Notes: Q4 statements reflect the 1:15 reverse split; Q2/Q3 figures presented as reported at the time .

Segment revenue breakdown (service revenue detail)

Segment	Q4 2023 ($M)	Q4 2024 ($M)
Wholesale Capacity Services	$25.7	$36.2
Commercial IoT	$6.0	$6.4
SPOT	$10.5	$10.1
Duplex	$5.8	$4.5
Government & Other	$1.0	$0.5
Total Service Revenue	$49.0	$57.7
Subscriber Equipment Sales	$3.5	$3.5
Total Revenue	$52.4	$61.2

Selected KPIs

KPI	Q4 2023	Q4 2024
Avg Subscribers – Commercial IoT	492,143	514,918
Avg Subscribers – SPOT	254,464	235,785
Avg Subscribers – Duplex	31,338	24,853
ARPU – Commercial IoT ($/mo)	$4.05	$4.17
ARPU – SPOT ($/mo)	$13.73	$14.24
ARPU – Duplex ($/mo)	$62.16	$60.10

Drivers and commentary:

Q4 revenue growth was primarily wholesale capacity fee expansion tied to updated services agreements; subscriber equipment sales were flat; subscriber services mixed with IoT growth and legacy churn .
Q3 included performance‑based bonuses under services agreements ($7.5M out‑of‑period) aiding revenue; not repeated in Q4 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	$260–$285M (Investor Day, 12/12/2024)	$260–$285M (reiterated)	Maintained
Adjusted EBITDA Margin	FY2025	~50% (Investor Day)	~50% (reiterated)	Maintained
Revenue	FY2024	$245–$250M (raised in Q3)	Actual $250.3M (beat high end)	Beat
Long‑term Revenue	First full year of extended MSS service	>$495–$500M (Investor Day)	~$500M (reiterated on call)	Maintained
Long‑term Adj. EBITDA Margin	First full year of extended MSS service	>54%	>54% (reiterated)	Maintained

Management notes near‑term margin compression (12–18 months) due to investments in XCOM RAN and MSS product development, not dependent on extended MSS deployment timing .

Earnings Call Themes & Trends

Topic	Q2 2024 (Prior-2)	Q3 2024 (Prior-1)	Q4 2024 (Current)	Trend
Wholesale Capacity Services	Primary revenue driver; raising FY24 guidance	Strong growth incl. performance bonuses; updated services agreements	Continued strength; fees tied to expanded services under updated agreements	Sustained growth
Commercial IoT	Record Q2 service revenue; activations up; ARPU rising	+5% service revenue; subscribers up	+8% service revenue; ARPU up; two‑way RM200M launched	Improving; product expansion
XCOM RAN (Terrestrial)	Installations/validation at major retailer; government study	Equipment shipments and engineering work contributing	Short‑term margin investment focus; ecosystem advancing; cost curve work underway	Building pipeline; investment phase
Band n53 (Terrestrial Spectrum)	Strategic asset; deployments expanding	Ecosystem and global approvals noted	First 5G data call at 100/60 Mbps	Technical validation
Regulatory/Licensing	—	FCC extended HIBLEO‑4 constellation 15 years	15‑year renewal of blanket mobile earth terminal authorization; Mexico terrestrial authority reiterated	Strengthened license posture
Extended MSS Constellation	Capex/launch services progressing (SpaceX)	Updated services agreements; constellation expansion	No updated launch timing; gateways underway (long cycle)	Execution ongoing; timeline undisclosed
Capital & Liquidity	Cash $64.3M; ops CF funding capex	Cash $51.9M; strong adj. EBITDA	Cash $391.2M after $689M customer cash payments; capex $260.6M	Liquidity inflected

Management Commentary

CFO: “Total revenue for the fourth quarter increased 17%… Fourth quarter adjusted EBITDA increased 21%… 2025 revenue $260–$285M; adjusted EBITDA margin around 50%” .
CEO: “We made important strides… partnerships with Parsons, Peiker… expansion of our wholesale capacity arrangement… we demonstrated XCOM RAN technology live at our analyst and investor day” .
CEO on D2D: “We enabled the first commercial D2D service years ago… hundreds of millions of devices… our dedicated spectrum resource… almost 4x that of any other D2D player currently” .
CEO on two‑way IoT: “Until now… one‑way… proud that our refocused product development team… deliver full two‑way satellite Commercial IoT solutions” .

Q&A Highlights

Extended MSS constellation: features (beamforming/power control); launch timing not updated; gateways and ground infrastructure build‑out underway and long‑cycle .
XCOM RAN commercialization: major retail customer pacing drives rollout; team working down cost curve to compete vs Wi‑Fi/5G small cells; pipeline expanding .
Margin and cash flow: EBITDA margin compression expected over 12–18 months due to XCOM/MSS investments; capex funded via customer prepayments/financing; detailed Phase 2 funding split ~50/50; first launch expected 2025 for Phase 2 satellite .
Two‑way IoT ramp: in beta; expects initial ramp in 2025, deeper deployment in 2026; depends on partner application rollout; manufacturing readiness in place .
Spectrum/regulatory: Globalstar’s big LEO MSS posture strong; others seeking spectrum; NTN standard complexity could require additional work; GEO‑to‑LEO transition not trivial .

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable at the time of retrieval due to SPGI request limits; therefore, explicit EPS/revenue/EBITDA consensus comparisons are not provided. Values retrieved from S&P Global.
Implication: Absent published consensus, we cannot formally designate Q4 as a beat/miss versus Street; model updates likely to reflect reiterated FY25 guidance, Q4 wholesale capacity strength, and near‑term margin investment commentary .

Key Takeaways for Investors

Wholesale capacity services remain the core growth engine; Q4 and FY24 strength anchor near‑term revenue visibility while updated agreements expand capacity and infrastructure .
Commercial IoT is inflecting with higher ARPU and the launch of two‑way RM200M, expanding addressable use cases (fleet/ELD, pipeline telemetry, disaster comms) and supporting mix quality .
Near‑term margin compression (12–18 months) is deliberate to accelerate XCOM RAN and MSS product development; monitor opex trajectory and terrestrial deal flow to gauge pacing back to mid‑50s margins longer term .
Liquidity profile significantly improved post updated agreements (cash $391M), funding extended MSS capex and gateway builds; reduces financing risk through 2025 execution .
Execution milestones to watch: Phase 2 satellite launch (2025), ground gateway progress, two‑way IoT customer deployments, additional Band n53 private network wins, and Parsons’ commercialization in defense/government .
Strategic positioning in D2D strengthened by spectrum advantage (Band n53) and bent‑pipe architecture; regulatory posture appears favorable with recent FCC renewals and Mexico authority .
Trading lens: stock‑moving catalysts include two‑way IoT commercialization milestones, extended MSS contract updates/launch timing, and tangible XCOM RAN customer rollouts; risk is timing uncertainty of constellation launches and pace of terrestrial monetization .

Globalstar, Inc. (GSAT)·Q4 2024 Earnings Summary