Fri, Feb 28, 9:28 PM (58 days ago)
Globalstar, Inc. (GSAT) reported a revenue increase of 12% to $250.3 million for the fiscal year ended December 31, 2024, driven primarily by a 33% rise in wholesale capacity services, which constituted 58% of total revenue. However, net income remained negative at a loss of $63.2 million, compared to a loss of $24.7 million in 2023. Operating expenses rose 12% to $251.3 million, influenced by increased service costs and stock-based compensation. The company has entered into Updated Services Agreements with a key customer, Apple, which significantly impacts revenue, accounting for 58% of total revenue in 2024. Strategic initiatives include the development of a new satellite constellation and expanded infrastructure to enhance Mobile Satellite Services. Globalstar's financial condition shows a significant cash increase to $391.2 million, aided by substantial prepayments from the customer. However, total debt rose to $417.5 million, with ongoing obligations under various financing agreements. Key risks include reliance on a single customer for revenue, potential operational disruptions, and competition from emerging satellite services. The company also executed a 1-for-15 reverse stock split to enhance its market position on Nasdaq.