Globalstar to Report Q4 Earnings: How to Approach the Stock Now?

Globalstar, Inc. GSAT will report fourth-quarter 2025 results on Feb. 27, before market open.

The Zacks Consensus Estimate for the bottom line is pegged at earnings of one cent per share. Analysts’ earnings estimates remained unchanged for GSAT over the past 60 days. The consensus estimate for total revenues is pinned at $71.8 million.

Globalstar operates a low-Earth orbit (LEO) satellite constellation to provide mobile satellite services (MSS) and voice and data connectivity to retail, enterprise and government customers. The company’s terrestrial spectrum consists of Band 53 and its 5G variant, n53 and XCOM RAN. It is benefiting from steady growth in wholesale capacity services and commercial IoT revenues as well as growing traction in the government, especially U.S. federal agencies and defense markets.

What Our Model Predicts for GSAT

Our proven model does not predict an earnings beat for GSAT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

GSAT has an Earnings ESP of 0.00% and a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Focus on Ahead of GSAT’s Q4 Earnings

Globalstar has been gaining from continued execution across wholesale, Commercial IoT, government and private wireless initiatives. Wholesale capacity services remain a key contributor, with revenues being influenced by the timing of service fees tied to reimbursement of network-related costs as the company expands and upgrades its global ground infrastructure. Commercial IoT continues to show strength, driven by subscriber growth supported by record gross activations over the past 12 months, higher device sales and increasing adoption across safety, logistics and infrastructure markets. In the last earnings call, the company introduced a two-way Commercial IoT module (RM200M) that is globally available, with customer product integrations underway.

The company continues to invest in its XCOM RAN business, enhancing product and service capabilities while incurring primarily personnel-related costs ahead of meaningful revenue scale. XCOM RAN is being positioned for mission-critical applications, including warehouse automation, robotics, high-density venues and other enterprise deployments, with a revenue model that includes equipment, spectrum usage and software licensing, and a potential Network-as-a-Service component over time. Management projects margin expansion in the coming periods.

Globalstar is advancing development of its extended MSS network and third-generation C-3 satellite system, alongside a global ground network expansion that includes up to 90 new tracking antennas. Globalstar recently added that it is installing three new six-meter C-3 tracking antennas at the ground station in Yeo Ju, South Korea. The company has also advanced its HIBLEO XL-1 filing to expand operational frequency and support future satellite capabilities.

Globalstar, Inc. Price, Consensus and EPS Surprise

Globalstar, Inc. price-consensus-eps-surprise-chart | Globalstar, Inc. Quote

Apart from this, the company maintains strong liquidity, solid operating cash flow generation and adjusted EBITDA margins of approximately 50% despite ongoing strategic investments. Management has reiterated full-year revenue guidance of $260-$285 million and an adjusted EBITDA margin of around 50%.

However, a volatile macro backdrop remains concerning. Competition is also intensifying in the satellite and communication space amid the increasing demand for global connectivity. The company faces stiff competition from other companies such as Iridium Communications IRDM, EchoStar SATS and Israel-based Gilat Satellite Networks GILT.

GSAT Stock Surges

GSAT’s shares have skyrocketed 192.1% over the past year. It has significantly outperformed the Satellite and Communication Industry and the Zacks S&P 500 composite’s rise of 189.8% and 19.6%, respectively.

Iridium stock is down 25.1% while shares of Gilat and EchoStar are up 98.8% and 280.5%, respectively, over the same time frame.

GSAT's Stretched Valuation

GSAT stock is not so cheap, as its Value Style Score of F suggests a stretched valuation at this moment.

In terms of Price/Book, GSAT shares are trading at 20.9X, higher than the Internet Software Services industry’s 4.78X, indicating more risk than opportunity.

In comparison, IRDM, GILT and SATS trade at multiples of 5.19X, 1.69X and 4.53X, respectively.

What to Do With GSAT Stock Before Q4?

Globalstar is gaining from growth in wholesale services, Commercial IoT and government demand, but macro uncertainty, elevated investment spending and intensifying competition remain concerns.

Existing investors may consider maintaining their positions in GSAT ahead of the fourth-quarter earnings release, while prospective investors may prefer to wait for a more attractive entry opportunity.

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

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