Is Globalstar Poised for a Major IoT Upside With RM200M Release?

Globalstar, Inc. (GSAT) recently announced the commercial availability of its RM200M two-way satellite IoT module, positioning the company at the forefront of global IoT innovation. With global certification now achieved, the RM200M is set to accelerate the next generation of IoT adoption across sectors like logistics, energy, agriculture and environmental monitoring.

Utilizing Globalstar’s licensed L- and S-band spectrum, along with its next-generation satellites, the module enables two-way communication, facilitating real-time monitoring and data transmission. It's specifically engineered to support cellular connectivity from the same hardware module. With certification across major international markets, Globalstar has gained a key advantage in accelerating adoption among enterprise IoT customers, ranging from North America to APAC. On its last earnings call, management highlighted ongoing growth in the average number of commercial IoT subscribers, fueled by a record number of activations over the past year. It anticipates that this trend will continue as the adoption of the new two-way module increases.

Per a report from Grand View Research, the global satellite IoT market is projected to reach $7.23 billion at a CAGR of 19.5% from 2025 to 2033. Rising demand for remote monitoring and asset tracking across various industries is fueling this explosive growth. As demand for remote monitoring and asset tracking accelerates, GSAT’s two-way communication capabilities and plans to integrate cellular connectivity from the same module strengthen its competitive edge, positioning it to capture a larger share of the fast-growing satellite IoT market.

However, macroeconomic and tariff uncertainties remain a worry for management. Nonetheless, GSAT is well-positioned to mitigate any significant financial impact with its advanced global manufacturing and logistics network. Globalstar expects full-year 2025 revenues between $260 million and $285 million, and an adjusted EBITDA margin of around 50%.

GSAT Faces Pressure in a Competitive Satellite Landscape

McLean, VA-based Iridium Communications (IRDM) continues to benefit from expanding commercial IoT momentum. In September 2024, 3GPP approved Iridium’s proposal to expand NB-IoT for non-terrestrial networks (NTN) under Release 19, expected by late 2025. This will enable Iridium’s consumer D2D services, support inbound IoT roaming and deliver global coverage. Standards-based chipsets will lower costs and simplify satellite integration, unlocking new markets and fueling IoT growth for Iridium.

Iridium’s IoT partners continue to roll out new devices with its mid-band technology. It anticipates double-digit IoT growth in 2025, backed by a new contract with its top IoT partner and strong demand for personal satellite devices.

Carlsbad, CA, Viasat, Inc. (VSAT) specializes in advanced digital satellite telecommunications and other wireless networking and signal processing equipment. Its strong bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. The soon-to-launch ViaSat-3 Flight 2 satellite, which will double bandwidth capacity, acts as a positive catalyst. ViaSat has completed the buyout of Inmarsat, one of the leading companies in the satellite IoT market. Inmarsat’s well-established business significantly enhances Viasat’s global distribution. Management aims to make fiscal 2026 a launch year, focusing on integrating Viasat and Inmarsat resources and unlocking growth and earnings potential for strong cash generation.

GSAT’s Price Performance, Valuation and Estimates

GSAT’s shares have gained 185.4% in the past year compared with the Zacks Satellite and Communication industry's growth of 149.8%.

In terms of Price/Sales, GSAT stock is trading at a premium, with a forward 12-month price/sales of 18.24X compared with the industry’s 1.43X.

The Zacks Consensus Estimate for GSAT’s 2025 earnings has remained unchanged over the past 60 days.

At present, GSAT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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This article originally published on Zacks Investment Research (zacks.com).

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