Globalstar 2025 Annual Report: Key Insights for Investors

Executive Summary

Globalstar, Inc. (NASDAQ: GSAT) has released its Annual Report for the fiscal year ending December 31, 2025. The company remains a significant player in the satellite communications market, with its common stock listed on The Nasdaq Market LLC. This report contains crucial information that investors and shareholders must review, including the company’s operational performance, risk factors, regulatory landscape, and forward-looking statements. The contents of this report have the potential to impact share values given the strategic developments, risk profile, and financial status disclosed.

Key Points for Shareholders

• Revenue Concentration:
  A substantial portion of Globalstar’s revenue (approximately 63% in 2025) comes from the Updated Services Agreements with a major customer. These agreements impose significant obligations and are terminable by the customer at any time with advance notice or in the event of force majeure. There is no assurance that Globalstar will continue to receive expected revenue under these agreements, which is a material risk for shareholders.
• Shareholder Structure:
  As of February 20, 2026, Globalstar had 128,554,348 shares of voting common stock and 149,425 shares of preferred stock outstanding. The aggregate market value of common stock held by non-affiliates as of June 30, 2025, was approximately \$1.1 billion.
• Regulatory Risks:
  Globalstar operates within an extensive regulatory framework across multiple jurisdictions, including U.S. International Traffic in Arms Regulations and Export Administration Regulations. These regulations limit export capabilities and expose the company to possible sanctions and penalties. Changes in international trade regulations or data privacy laws may significantly affect operations and revenues.
• Competitive Landscape:
  The company faces intense competition from well-resourced rivals with newer technologies. This competitive pressure could result in loss of customers, lower revenues, and challenges entering new markets.
• Operational and Macro Risks:
  Globalstar is exposed to global macro-economic conditions, including inflation, interest rates, currency risks, and political instability. These factors can delay or decrease customer spending, impact the company’s ability to raise capital, or increase operational costs.
• Supply Chain and Technological Risks:
  The company relies on the electronics industry for equipment and component parts. Industry shortages or supply chain disruptions could delay shipments and impact operations. Additionally, the complexity of network hardware/software upgrades poses technical and operational challenges.
• Cybersecurity and Insurance:
  There are risks related to cyber-attacks and security breaches, which could materially affect business operations. Shareholders should note the importance of the company’s ability to maintain adequate insurance coverage for such risks.
• Legal/Health Risks:
  Ongoing litigation, investigations, and potential health and safety risks relating to wireless device emissions are acknowledged, with possible impacts on costs and reputation.
• Shareholder Rights and Market Risks:
  • Restrictions on the ability to pay dividends.
  • Limited trading market and price volatility for GSAT shares.
  • Potential dilution through future issuances of common or preferred stock and debt securities with superior rights.
  • Controlling stockholder interests and anti-takeover provisions in charter documents and Delaware law.
• International Operations:
  About 13% of sales in 2025 were generated in foreign countries, exposing Globalstar to currency risk and geopolitical tensions, which may affect revenue and operational stability.

Potential Share Price Movers

Revenue Risks: The dependency on one major customer for over half of revenues is critical. If this relationship changes or terminates, it could lead to a significant drop in revenue and share value.
Regulatory Uncertainty: Any adverse change in regulatory or licensing status, spectrum allocation, or international trade laws may materially affect Globalstar’s valuation.
Competitive Pressures: Failure to adequately compete or innovate in the satellite communications market could erode market share.
Macro-Economic and Supply Chain Factors: Disruptions due to geopolitical conflicts, supply shortages, or inflation could impact the company’s financial performance and share price.

Risk Factor Summary

Globalstar’s business is subject to numerous risks, including:

• Ability to meet obligations and realize benefits under key service agreements.
• Maintaining adequate satellite network capacity and ground infrastructure.
• Technological upgrades and replacements of network equipment.
• Raising capital on reasonable terms.
• Protecting proprietary information and intellectual property.
• Operational risks in international and developing markets.
• Compliance with restrictive financial covenants.
• Cybersecurity vulnerabilities and insurance coverage.
• Trade credit risk, litigation, and investigations.
• Health and safety risks related to wireless devices.
• Regulatory compliance and spectrum rights.
• Dividend restrictions, market volatility, and anti-takeover risks.

Regulatory and Environmental Matters

Globalstar is subject to U.S. and international regulations which restrict exports of certain technologies and impose sanctions. The company has obtained export licenses for operations outside the U.S. Environmental matters are also recognized, including compliance with regulations and potential risks relating to wireless device emissions.

Forward-Looking Statements

The report contains forward-looking statements based on current expectations and assumptions. These statements are subject to risks and uncertainties, and actual results may differ materially. Shareholders are urged to consider these risks when evaluating investment decisions.

Access to SEC Filings

Globalstar’s annual, quarterly, and current reports, proxy statements, and other filings are available at www.sec.gov and www.globalstar.com.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Investors are strongly advised to read the full Globalstar 2025 Annual Report and consult with financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties; actual results may differ materially.

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