GlobalStar (GSAT) Q4 2025: Two-Way IoT Launch Expands Addressable Market by 50%
GlobalStar’s Q4 marked a pivotal step as the commercial launch of two-way IoT expanded its product suite and unlocked new verticals. The company’s infrastructure investments, government traction, and growing IoT pipeline signal a transition from foundational build-out to scalable growth. With C3 constellation progress and new government wins, GSAT’s 2026 outlook centers on multi-market connectivity and operational leverage.
Summary
- IoT Portfolio Expansion: Two-way satellite IoT launch broadens enterprise use cases and future revenue streams.
- Government Pipeline Momentum: New defense wins and Parsons partnership diversify end-markets and reduce reliance on legacy segments.
- Infrastructure Investment Sets Stage: Ground network and C3 constellation build-out underpin next-generation service growth in 2026.
Performance Analysis
GlobalStar posted its fourth consecutive year of record revenue with $273 million for 2025, up 9% year over year, driven by wholesale capacity services and a surge in commercial IoT device sales. Service revenue contributed $257.3 million, while equipment sales grew 24%, reflecting the ongoing shift toward enterprise and industrial IoT deployments. Profitability improved sharply, with income from operations turning positive and net loss narrowing substantially, aided by higher revenue and the absence of prior-year non-cash charges.
Adjusted EBITDA reached $136.1 million, maintaining a 50% margin, as operating expenses rose to support R&D and next-gen infrastructure. Q4 revenue hit $72 million, with service revenue up 17% and equipment revenue up 31% versus Q4 2024. Tariff-related equipment charges and ongoing investment in XCOM RAN, GSAT’s 5G radio access network initiative, weighed on costs but were offset by strong service fee growth and performance bonuses. Free cash flow improved, and the company ended the year with $447.5 million in cash, positioning it to fund its ongoing satellite and ground network expansion.
- IoT Device Sales Surge: Commercial IoT hardware revenue up 50% YoY, reflecting demand for asset tracking and monitoring applications.
- Service Revenue Resilience: Wholesale capacity services and network reimbursement fees drove core revenue growth, offsetting churn in legacy segments.
- Operating Leverage Emerges: Positive income from operations and rising EBITDA margin signal improved scalability as infrastructure investments mature.
GSAT’s financials reflect a business shifting from legacy satellite services toward diversified, higher-value IoT and government solutions, with infrastructure and product innovation now translating into commercial traction.
Executive Commentary
"2025 was a transformational year for GlobalStar... One of the most important milestones during the year was the launch of two-way satellite IoT capabilities and the completion of the commercial rollout of our RM200M module. This represents a significant expansion of our IoT portfolio moving beyond one-way monitoring to enable reliable command and control for enterprise, government, and industrial customers."
Paul Jacobs, Chief Executive Officer
"This improvement was due to higher revenue, as previously discussed, partially offset by increased operating expenses, including personnel costs to support our next-generation infrastructure build-out, continued investment in XCOM RAN development, and higher legal and professional fees."
Rebecca Clary, Chief Financial Officer
Strategic Positioning
1. Two-Way IoT Commercialization
The launch of two-way satellite IoT, enabling command and control as well as monitoring, marks a step change from GSAT’s traditional one-way offerings. This capability expands the addressable market into mission-critical enterprise, industrial, and government use cases, including asset tracking, remote operations, and safety applications. Early customer integration is underway, with mass production ready, but revenue ramp will lag as partners complete solution validation.
2. Government and Defense Diversification
GSAT’s government pipeline gained momentum through partnerships like Parsons and Fireworks, with proof-of-concept wins and a $1.9 million contract for advanced 5G systems in challenging RF environments. These initiatives reinforce GSAT’s relevance in defense and public safety, providing stable, high-value revenue streams and reducing exposure to consumer or legacy service churn.
3. Infrastructure and Spectrum Leverage
Significant capital deployed into the ground station network and C3 satellite constellation lays the foundation for global coverage, redundancy, and next-gen service offerings. With half of the $2 billion ITU commitment invested, GSAT is positioned to support expanded capacity and new spectrum-based solutions, with proprietary MSS (Mobile Satellite Services) spectrum as a core differentiator.
4. XCOM RAN and Private 5G Readiness
XCOM RAN, GSAT’s 5G radio access network platform, advanced via successful trials with Boingo and warehouse automation pilots. The technology’s ability to increase capacity in dense environments and support multi-mode (satellite and terrestrial) connectivity is attracting commercial and defense interest, setting up GSAT as a hybrid connectivity provider.
5. Operational Discipline and Financial Flexibility
Disciplined cost management and a strengthened balance sheet provide GSAT with the flexibility to invest in growth initiatives while maintaining positive operating leverage. The company’s transition from net losses to operating income, coupled with rising free cash flow, supports ongoing R&D and strategic expansion.
Key Considerations
GSAT’s Q4 and 2025 results highlight a business in strategic transition, with foundational investments in infrastructure and product innovation beginning to yield commercial results. The focus now shifts to scaling new offerings and capturing value from diversified verticals.
Key Considerations:
- IoT Revenue Timing: Two-way IoT modules are commercially available, but material revenue depends on partner integration and application rollout in 2026 and beyond.
- Government Pipeline Scale: Early wins validate GSAT’s technology for defense and public safety, but full revenue impact will require broader adoption and contract expansion.
- C3 Constellation Execution: Timely launch and activation of new satellites are critical to unlocking incremental capacity and service differentiation.
- XCOM RAN Commercialization: Demonstrated technical KPIs and partner trials need to convert into recurring revenue streams to justify ongoing investment.
- Legacy Churn Offset: Continued churn in duplex and spot subscribers must be offset by growth in IoT and enterprise verticals to sustain top-line momentum.
Risks
Execution risk remains elevated as GSAT transitions from infrastructure build-out to commercial ramp, particularly around the timing and scale of IoT and government revenues. Delays in C3 satellite launches or regulatory approvals could impact capacity and service rollout. Competitive pressure from larger satellite and terrestrial network providers, as well as technology risk in XCOM RAN and multi-mode device integration, may challenge differentiation and margin structure. Tariff exposure and legacy subscriber churn are additional headwinds to monitor.
Forward Outlook
For Q1 2026, GlobalStar guided to:
- Total revenue between $280 million and $305 million for full-year 2026
- Adjusted EBITDA margin of approximately 50%
For full-year 2026, management maintained guidance:
- Revenue growth driven by scaling IoT, government, and 5G services
Management highlighted several factors that will shape 2026:
- Continued C3 constellation deployment, with first launch targeted for Q2 and a second in the second half
- Commercial ramp of two-way IoT and expanded government contracts as key growth drivers
Takeaways
GSAT’s strategic pivot from legacy satellite services to diversified, higher-value connectivity is gaining traction, with two-way IoT and government verticals setting up the next phase of growth.
- IoT and Government Are the Growth Engines: Early wins and product launches have expanded GSAT’s pipeline, but sustained revenue growth will hinge on execution and customer adoption in these segments.
- Infrastructure and Spectrum Remain Core Assets: Investment in ground stations, satellites, and spectrum licensing provides a durable moat and supports new service rollouts.
- Watch for Commercial Conversion: Investors should monitor progress on IoT partner deployments, government contract expansion, and the monetization of XCOM RAN capabilities in 2026.
Conclusion
GlobalStar’s Q4 and full-year 2025 results confirm an inflection point, with foundational investments now enabling product and vertical expansion. The company’s ability to convert pipeline into recurring revenue, execute on satellite launches, and manage legacy churn will dictate its trajectory in 2026 and beyond.
Industry Read-Through
GSAT’s pivot toward two-way IoT and government solutions reflects a broader industry trend: satellite operators are leveraging proprietary spectrum and hybrid architectures to move beyond basic connectivity into high-value, mission-critical applications. The success of GSAT’s XCOM RAN trials and government wins signals growing demand for integrated satellite-terrestrial solutions in defense, industrial, and public safety verticals. Competitors in the satellite and IoT ecosystem should take note—scalable infrastructure, spectrum flexibility, and the ability to serve diverse enterprise needs are becoming decisive factors for long-term growth and market relevance.