Amazon-acquired Globalstar's Q1 revenue rises, adjusted EBITDA misses estimates

Globalstar

07/05/2026 21:53

Overview

U.S. satellite communications firm's Q1 revenue rose 17% yr/yr, driven by wholesale services

Q1 adjusted EBITDA missed analyst expectations

Company previously entered definitive merger agreement to be acquired by Amazon

Outlook

Globalstar suspends financial outlook and will not provide future guidance due to pending Amazon merger

Result Drivers

WHOLESALE CAPACITY SERVICES - Revenue growth was primarily driven by increased wholesale capacity services revenue, including additional service fees for network-related cost reimbursement

COMMERCIAL IOT AND GOVERNMENT - Higher commercial IoT service revenue from subscriber growth and favorable pricing, and increased government and other services revenue from expanded service agreements

SUBSCRIBER CHURN - Revenue gains were partially offset by declines in Duplex and SPOT service revenue due to subscriber churn over the last twelve months

Company press release: ID:nBw188k50a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$17.42 mln
Q1 Adjusted EBITDA
Miss
$33.49 mln
$34.33 mln (4 Analysts)
Q1 EBITDA
$24.99 mln
Q1 Operating Expenses
$61.89 mln
Q1 Operating Income
$8.17 mln
Q1 Pretax Profit
-$15.82 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the wireless telecommunications services peer group is "buy"

Wall Street's median 12-month price target for Globalstar Inc is $73.00, about 10.9% below its May 6 closing price of $81.97

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)