COVINGTON, La. - Globalstar (NYSE:GSAT), Inc. (NYSE American: GSAT), a provider of satellite and terrestrial communication services, recently shared its financial outlook and strategic priorities during an investor day held last Thursday. According to InvestingPro data, the company operates with a moderate debt-to-equity ratio of 1.07 and maintains a current ratio of 1.09, indicating stable liquidity. The company's executive leadership team focused on the value optimization of core assets and provided updates on their financial projections, though analysts note the company is not expected to be profitable this year.
Globalstar has demonstrated a live 5G Radio Access Network (LON:NETW) over Band n53, which has reportedly quadrupled speeds. This milestone was achieved on December 12, 2024, and is part of Globalstar's terrestrial wireless strategy that includes the XCOM RAN architecture. This technology is aimed at facilitating automation and industrial 5G applications, with a strategic focus on high-value market segments such as warehouse automation and logistics facilities. A major global retailer is set to deploy the XCOM RAN solution with implementation ongoing in 2025.
The company's Band n53 has been deployed in 12 countries, covering nearly 1 billion people, with full coverage in the U.S., Canada, and Mexico. The growing ecosystem around this band is expected to create new revenue opportunities.
In the Mobile Satellite Services (MSS) sector, Globalstar reported approximately 260,000 active subscribers in its retail consumer segment, contributing $44 million in annual service revenue in 2023. The commercial IoT segment, with around 481,000 average active devices, generated $23 million in service revenue the same year. The company has demonstrated strong operational efficiency with a gross profit margin of 67.34% in the last twelve months, according to InvestingPro metrics. The company has also entered into an exclusive partnership with Parsons (NYSE:PSN) for public sector and defense applications as of December 3, 2024.
Financially, Globalstar reiterated its revenue guidance for 2024 to be in the range of $245-250 million with an Adjusted EBITDA margin of 54%. For 2025, the company has set a revenue guidance of $260-285 million and an Adjusted EBITDA margin of approximately 50%. The company expects its revenue to more than double to over $495 million in the longer term, building on its current revenue growth of 13.58% and EBITDA of $84.03 million. For deeper insights into Globalstar's financial health and growth prospects, including additional ProTips and comprehensive valuation analysis, investors can access the detailed Pro Research Report available on InvestingPro.
These updates and strategic plans were made during Globalstar's investor day and are based on a press release statement from the company. The information provided is aimed at informing investors and stakeholders of Globalstar's current performance and future expectations.
In other recent news, Globalstar, Inc. has announced significant changes to its stock structure, including a reverse stock split and a reduction in the number of authorized shares. This strategic move aims to optimize the company's capital structure and is part of ongoing efforts to enhance shareholder value. The exact timing and ratio of the reverse stock split, as well as the specific reduction in authorized shares, will be decided at a future date.
On the technological front, Globalstar has successfully completed its first 5G data call using the Band n53 spectrum. This marks a critical advancement in the company's capabilities. Furthermore, the company plans to list on the Nasdaq Global Select Market in the first quarter of 2025, alongside the reverse stock split.
In collaboration with Globalstar, Quectel Wireless Solutions has also highlighted the potential of their modules to deliver robust connectivity solutions. In terms of financial performance, Globalstar reported a record Q3 revenue of $72 million, a 25% increase from the same period last year, primarily driven by a 28% rise in service revenue.
Globalstar has also secured a 10-year authorization to expand its terrestrial applications in Mexico. Meanwhile, Apple Inc (NASDAQ:AAPL). plans to introduce satellite connectivity to its Apple Watch Ultra by 2025, following its investment in satellite service provider Globalstar. These are among the recent developments in the operations of Globalstar, Inc.
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