Globalstar, Inc.

# Business Overview: Globalstar, Inc. (NASDAQ: GSAT)

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Executive Summary

Globalstar, Inc. operates a low Earth orbit (LEO) satellite constellation delivering Mobile Satellite Services (MSS) — voice and data connectivity in places terrestrial cellular networks don't reach. Headquartered in Covington, Louisiana, the company has evolved from a niche satellite-phone operator into the critical wholesale network infrastructure behind consumer "satellite SOS" features embedded in hundreds of millions of smartphones.

Globalstar's defining relationship is with Apple, which has contracted for dedicated satellite network capacity to power iPhone's Emergency SOS via satellite and related features. Apple's share of Globalstar's total revenue has grown from 49% in 2023 to 58% in 2024 to 63% in 2025, making Globalstar's financial profile effectively a leveraged bet on one of the largest technology companies in the world continuing to expand satellite-enabled device features.

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1. Core Business Model & How They Work

Globalstar monetizes a scarce, hard-to-replicate asset — licensed satellite spectrum plus an operating LEO constellation and global ground-gateway network — in three ways: wholesale capacity leasing, government services, and direct-to-consumer/IoT device and subscription sales.

[ Licensed Spectrum + LEO Satellites + Ground Gateways ] ➡️ [ Network Capacity ] ➡️ [ Wholesale (Apple) | Government/Parsons | Consumer IoT & SPOT devices ] ➡️ [ Service Revenue (recurring) + Equipment Revenue ]

Key Operational Drivers

1. Wholesale Capacity Services: Under its Service Agreements with Apple (amended as the "Updated Services Agreements" in October 2024), Globalstar dedicates network capacity to an "Extended MSS Network" — a new satellite constellation, expanded ground infrastructure, and broader global MSS licensing. Globalstar retains only 15% of current and future network capacity for other customers; the rest is committed to Apple.
2. Diversified Payment Structure: Apple's payments to Globalstar include a fixed service fee, reimbursement of certain operating expenses and capital expenditures, fees tied to expanded services, and potential bonus payments linked to licensing and service milestones — a structure that effectively has Apple co-funding Globalstar's next-generation satellite buildout.
3. Commercial IoT & Consumer Devices: Asset-tracking modules (STX-3, ST-150, ST100, the new two-way RM200M launched October 2025) and consumer products sold under the SPOT brand (SPOT Gen4, SPOT X, SPOT Trace) through retailers like Amazon and REI.
4. Government Services: An exclusive partnership with Parsons Corporation plus direct engineering services for government customers.
5. Terrestrial Spectrum Monetization: Licensed terrestrial spectrum in 12 countries (~12.0 billion MHz-POPs, ~1.0 billion population). In January 2026 Globalstar acquired XCOM Labs' intellectual property, including XCOM RAN radio technology, to further monetize this spectrum.

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2. Business Segments

Globalstar does not report discrete financial segments; it instead discloses revenue by service revenue (94% of 2025 revenue) versus equipment revenue (6%), and separately highlights its customer concentration with Apple.

┌─────────────────────────────────────────┐
│              Globalstar, Inc.             │
└────────────────────┬────────────────────┘
                      │
     ┌────────────────┼─────────────────────┬───────────────────────┐
     ▼                ▼                     ▼                       ▼
┌───────────┐   ┌──────────────┐    ┌───────────────┐      ┌──────────────────┐
│ Wholesale  │   │ Commercial IoT │  │  Government    │      │ Terrestrial        │
│ Capacity   │   │ & Consumer SPOT│  │  Services       │      │ Spectrum/Network   │
│ (Apple)    │   │ Devices        │  │  (Parsons)      │      │ Solutions (XCOM)    │
└───────────┘   └──────────────┘    └───────────────┘      └──────────────────┘

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3. Product Portfolio

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4. Competitive Landscape

            MOBILE SATELLITE SERVICES POSITIONING
┌────────────────────────────────────────────────────────────┐
│ High │                                                        │
│  ▲   │        [Globalstar]            [Viasat/Inmarsat]       │
│  S   │        (consumer device        (broad MSS, maritime,   │
│  C   │         distribution via        aviation)              │
│  A   │         Apple + SPOT)                                  │
│  L   │                      [Iridium]      [ORBCOMM]          │
│  E   │                      (global voice/  (IoT-focused)      │
│      │                       handset MSS)                     │
│ Low  │  [Thuraya] (regional: Middle East/Africa)               │
│      └──────────────────────────────────────────────────────► │
│        Low      CONSUMER/DEVICE DISTRIBUTION REACH      High  │
└────────────────────────────────────────────────────────────┘

• Direct-to-cellular / satellite-to-phone: SpaceX's Starlink direct-to-cell service, Amazon Leo, and AST SpaceMobile are the newest and most capital-intensive threats — all pursuing a similar "no special hardware needed" smartphone-satellite model that could erode Globalstar's unique wholesale position with Apple over time.
• Traditional MSS: Viasat (which acquired Inmarsat), Iridium, and ORBCOMM are the largest global rivals in voice/data MSS and IoT; Thuraya is the principal regional competitor in the Middle East and Africa.
• Consumer devices: SPOT competes indirectly with traditional Personal Locator Beacons.
• Terrestrial spectrum: Competes with Anterix, Nextwave, TerraStar, and CBRS license holders; EchoStar's spectrum sales to SpaceX and AT&T are cited in Globalstar's own filing as a factor that could intensify competition for spectrum value.
• Globalstar states it "compete[s] aggressively on price," and competes on coverage, quality, and portability.

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5. Strategic Strengths & Risks

Strengths (The Moat)

• Exclusive, deeply-funded Apple relationship: Apple doesn't just buy capacity — it helps fund Globalstar's capital expenditures and next-generation satellite program, aligning incentives and raising the switching cost of ever displacing Globalstar as the iPhone's satellite network partner.
• Scarce, licensed global spectrum: Terrestrial and MSS spectrum rights across 12+ countries are a government-granted asset that is extraordinarily difficult for a new entrant to replicate.
• Next-generation satellite program underway: Agreements with MDA Space for 17 replacement satellites (delivery expected 2026) plus a February 2025 agreement for more than 50 third-generation (C-3) satellites, with SpaceX launches planned in 2026, substantially de-risk the constellation's near-term technical runway.

Risks

• Extreme customer concentration: Apple represented 63% of 2025 revenue. Any renegotiation, in-sourcing, or multi-sourcing decision by Apple would be a severe blow.
• Competitive threat from direct-to-cell entrants: Starlink, Amazon Leo, and AST SpaceMobile are all racing toward satellite-to-standard-smartphone connectivity without Globalstar's spectrum, which could eventually offer Apple (or other device makers) an alternative.
• Capital intensity: $550.4M of 2025 capital expenditures and an ongoing multi-satellite replacement/expansion program require continued access to capital or continued Apple co-funding.
• Historical net losses: Despite 2025's narrower net loss of $(8.7)M (improved from $(63.2)M in 2024), the company has a long history of unprofitability on a GAAP basis.

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6. Financial Overview

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7. Summary Conclusion

Globalstar has transformed from a legacy satellite-phone operator into the wholesale satellite-capacity backbone behind one of the most widely distributed consumer hardware features in the world — Apple's iPhone satellite connectivity. That relationship now drives nearly two-thirds of revenue and is funding the company's next-generation constellation, a highly favorable arrangement while it lasts. The central risk mirrors the opportunity: Globalstar's fortunes are now closely tied to a single counterparty's strategic choices, in a market where well-capitalized rivals (Starlink, Amazon Leo, AST SpaceMobile) are racing toward competing direct-to-device satellite architectures that could eventually reduce Apple's — or any future partner's — reliance on Globalstar's specific spectrum and satellites.