Globalstar shares tumble on Q4 earnings miss

Published 27/02/2025, 22:58
Globalstar shares tumble on Q4 earnings miss

COVINGTON, La. - Globalstar, Inc. (NASDAQ:GSAT) reported fourth-quarter earnings that fell short of analyst expectations, sending shares down 6.8% in after-hours trading.

The satellite communications company posted a loss of $0.42 per share for Q4, significantly wider than the breakeven result analysts had forecast. Revenue came in at $61.17 million, slightly above the consensus estimate of $60.24 million and up 17% YoY.

For the full year 2024, Globalstar reported record revenue of $250.3 million, up 12% from 2023 and exceeding the high end of its guidance range. However, the company recorded a net loss of $63.2 million for the year, driven primarily by non-operating items like a loss on debt extinguishment and foreign currency losses.

"2024 was a remarkable year for Globalstar as we executed well on several key initiatives that we believe will enable long-term, sustainable growth," said CEO Dr. Paul E. Jacobs. He highlighted progress on enhancing the company’s product portfolio and recent partnership announcements.

Adjusted EBITDA for 2024 reached a record $135.3 million, compared to $116.7 million in 2023. The company reiterated its 2025 guidance, projecting revenue between $260 million and $285 million with an adjusted EBITDA margin of approximately 50%.

Globalstar ended 2024 with $391.2 million in cash and cash equivalents, up from $56.7 million at the end of 2023. The increase was largely due to payments received under recently updated service agreements with its largest customer.

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