5 Revealing Analyst Questions From Globalstar's Q2 Earnings Call

Globalstar delivered a quarter that exceeded Wall Street’s expectations, driven by growth in wholesale capacity services and momentum in its commercial Internet of Things (IoT) segment. Management attributed revenue gains to new service agreements, particularly with government and commercial customers, and highlighted the successful integration of its satellite network with partners for mission-critical applications. CFO Rebecca Clary noted, “Service revenue increased 10%, driven primarily by wholesale capacity services, which benefited from the timing of service fees associated with the reimbursement of network-related costs.”

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Globalstar’s Q2 Earnings Call

• Michael Ridgeway (Robertson Stephens) asked about progress in the international retail opportunity for terrestrial services. CEO Paul Jacobs explained that while sales cycles are long, engagement is expanding, and the company is making headway on multiple fronts beyond initial applications.

• Ridgeway (Robertson Stephens) inquired about additional verticals and use cases. Jacobs detailed that Globalstar is now targeting horizontal markets and undertaking lab tests and pilot deployments, with incremental development being tailored to customer needs.

• Ridgeway (Robertson Stephens) sought updates on XCOM RAN licensing. Jacobs responded that initial licensing efforts faced challenges but the company is now exploring Network as a Service and spectrum-related business models as alternatives.

• Ridgeway (Robertson Stephens) questioned progress on international terrestrial licenses. Jacobs noted recent authorization in Mexico and ongoing regulatory work for higher power systems, describing the process as routine and advancing as planned.

• Griffin Taylor Boss (B. Riley Securities) asked about ongoing XCOM RAN development work. Jacobs indicated that major technical milestones are complete, with only incremental work remaining for new opportunities and continued cost optimization in software development.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) the pace of new satellite launches and ground infrastructure upgrades to assess network expansion progress, (2) revenue contributions from government and defense sector partnerships, and (3) adoption rates for the RM200 2-way module and XCOM RAN technology. Execution on international regulatory milestones and further commercial contract wins will also be important indicators of momentum.

Globalstar currently trades at $27.59, up from $25.20 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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