Globalstar Q2 revenue up 11%, beats EBITDA estimates
Overview
Globalstar Q2 revenue rises 11% to $67.1 mln, driven by wholesale services
Adjusted EBITDA for Q2 beats estimates, reaching $35.8 mln, per LSEG data
Co reaffirms 2025 financial outlook, expecting revenue of $260-285 mln
Outlook
Globalstar reaffirms 2025 revenue guidance of $260 mln to $285 mln
Company expects 2025 adjusted EBITDA margin to be approximately 50%
Company anticipates increased IoT activations post two-way module sales
Result Drivers
WHOLESALE SERVICES - Revenue increase driven by higher wholesale capacity services, contributing $8.3 mln to service revenue
COMMERCIAL IOT - Growth in Commercial IoT subscribers and device sales boosted revenue, with a 5% increase in service revenue
INFRASTRUCTURE EXPANSION - New agreements and infrastructure developments, including a SpaceX launch agreement, support future growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income |
| $19.21 mln |
|
Q2 Adjusted EBITDA | Beat | $35.79 mln | $32.60 mln (2 Analysts) |
Q2 EBITDA |
| $41.49 mln |
|
Q2 Operating Expenses |
| $61 mln |
|
Q2 Operating Income |
| $6.15 mln |
|
Q2 Pretax Profit |
| $17.38 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the wireless telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Globalstar Inc is $52.50, about 50.2% above its August 6 closing price of $26.15
Press Release: ID:nBw27Hxdma
