Globalstar Q1 Revenue at $70.1M, Below Consensus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy GSAT?
Reports Q1 revenue $70.1M, consensus $70.56M. "We delivered strong operational and financial results in the first quarter, continuing the momentum we built entering 2026," said Dr. Paul E. Jacobs, CEO of Globalstar. "Demand is growing across our government, defense, and private wireless businesses, reflecting the market's need for scalable, integrated solutions across both satellite and terrestrial based connectivity. Subsequent to the quarter end, we announced our entry into a merger agreement with Amazon, which we believe marks a significant milestone - one that validates the long-term strategy Globalstar has pursued for more than 30 years and positions us to deliver on the vision of connecting users and devices anywhere and anytime. Finally, Globalstar greatly appreciates the recent decision of the FCC's Space Bureau regarding the exclusive nature of our licensed MSS spectrum."
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GSAT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GSAT
Wall Street analysts forecast GSAT stock price to fall
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 82.090
Low
60.00
Averages
67.00
High
75.00
Current: 82.090
Low
60.00
Averages
67.00
High
75.00
About GSAT
Globalstar, Inc. is a global telecommunications provider. The Company provides mobile satellite services, including voice and data communications services to retail, business and governmental customers, as well as wholesale satellite capacity services. It also offers these services over its network of in-orbit satellites and ground stations. Its low earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, it delivers satellite and terrestrial connectivity solutions. Its comprehensive connectivity ecosystem includes a software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53 in XCOM RAN and trusted GPS messengers Saved by SPOT for safety and personal communication for business and enterprise applications. The Company serves business, enterprise, and consumer markets across the globe. It supports applications that track and protect assets, enable automation, enhance operational efficiency, and safeguard lives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SpaceX IPO Sparks Market Buzz Amid Amazon's Satellite Plans
- SpaceX IPO Outlook: The upcoming SpaceX IPO has generated significant market buzz, yet the inherent volatility of IPO stocks may lead retail investors to substantial losses, particularly in an overheated market.
- Amazon's Satellite Initiative: Amazon is launching a satellite broadband project called Amazon Leo, aiming to provide high-speed internet services globally, especially in underserved rural areas, which is expected to open a new revenue stream in the coming months.
- Competitive Landscape: Amazon Leo directly competes with SpaceX's Starlink, which currently boasts over 7,800 satellites and 2.7 million customers, while Amazon is actively expanding its satellite network, having completed 10 launches and planning to deploy 50 more satellites in the near future.
- Investment Risk Comparison: While the SpaceX IPO garners attention, analysts highlight the risks due to its private financial data and valuation uncertainties, suggesting that Amazon, as a well-established entity, presents a more stable investment opportunity.
See More
SpaceX IPO Prospects and Competitive Risks
- SpaceX IPO Plans: SpaceX is preparing for an IPO, but the potential losses from its social media platform X and AI company xAI could jeopardize the overall profitability of the offering, prompting investors to assess risks carefully.
- Starlink Profitability: In 2025, Starlink is projected to generate $10.4 billion in sales for SpaceX, with an expected 80% surge to $18.7 billion in 2026, making it the primary revenue driver and highlighting its strong market position.
- Competitive Threat: Amazon is developing its satellite communication network, Amazon Leo, planning to compete with Starlink by acquiring Globalstar and launching additional satellites, which could lead to price wars and compress SpaceX's profits.
- Regulatory Dynamics: Amazon has requested an extension from the FCC for its satellite launch deadline, aiming to complete its constellation in the coming years, a move that could foster market competition and impact SpaceX's market share.
See More
SpaceX Faces Intensifying Competition from Amazon's Satellite Network
- Starlink Profitability: SpaceX operates over 10,000 Starlink satellites, projected to generate $10.4 billion in revenue by 2025, accounting for 70% of total sales, highlighting its strong profitability in the satellite communications market.
- Amazon Leo Initiative: Amazon's Leo satellite network has launched 300 satellites and plans to expand through a $11.6 billion acquisition of Globalstar, although it still needs to reach at least 1,618 satellites for commercial service, indicating its ambitions in satellite communications.
- Competitive Risks: With Amazon aiming to launch beta service by the end of 2026, SpaceX may face pricing pressure that could reduce its profits, particularly as Starlink's high profit margins attract competitors' interest.
- FCC Regulatory Dynamics: Amazon has requested an extension from the FCC to meet its 1,618 satellite target, and it is expected that the FCC will support this request to promote market competition, which could impact SpaceX's market position and future profitability.
See More
Sirius XM Stock Soars on YouTube Partnership Announcement
- Stock Surge: Sirius XM's shares rallied 16.7% in April, primarily driven by a new partnership with YouTube, which is expected to significantly enhance advertising revenue potential, reflecting market confidence in its advertising technology.
- Analyst Upgrade: Rosenblatt analyst Barton Crockett raised Sirius XM's price target from $24 to $46 and upgraded the rating from 'neutral' to 'buy', citing the YouTube deal as a major endorsement of Sirius' advertising capabilities.
- Earnings Beat Expectations: Sirius XM reported first-quarter earnings on the last day of April that exceeded expectations, with revenue growing 1%, adjusted EBITDA rising 6%, and earnings per share increasing 22% to $0.72, indicating effective cost management.
- Future Growth Potential: While the subscription business faces challenges, the new advertising segment could drive growth, and analysts believe the value of its spectrum assets may lead to a re-rating of the company's valuation, showcasing market optimism about its future.
See More
Amazon's Satellite Internet Service Poised for Growth
- New Business Outlook: Amazon plans to launch its satellite internet service, Amazon Leo, in Q3 2026, which is expected to become a new revenue growth engine, with CEO Andy Jassy stating it has the potential to become a multi-billion dollar revenue source.
- Strong Customer Base: Amazon Leo has already secured customers like AT&T, Delta Air Lines, JetBlue, and NASA, and notably gained Apple's support through the acquisition of Globalstar, enhancing its competitive position in the market.
- Significant Technical Advantages: Jassy noted that Amazon Leo will improve downlink and uplink performance by 2x and 6x over existing competitors, respectively, while also offering cost advantages, which is expected to attract more users, especially in underserved broadband areas.
- Notable Synergies: The launch of Amazon Leo is likely to boost AWS revenues, as Jassy mentioned that governments and enterprises want to store satellite data in the cloud and perform analytics, creating a compelling market appeal for the combined services.
See More
Amazon's Q1 Earnings Expectations Analysis
- Earnings Forecast: Amazon is expected to report Q1 earnings per share of $1.64 and revenue of $177.3 billion, reflecting a robust 14% year-over-year growth that underscores the company's strong market performance and growth potential.
- Cloud Business Growth: AWS revenue is projected to reach $36.92 billion, representing a 26% increase year-over-year, indicating Amazon's strengthening position in the cloud computing sector, particularly amid surging demand for AI services.
- Rising Capital Expenditures: Amazon anticipates capital expenditures will hit $200 billion by 2026, exceeding analyst expectations by $50 billion, highlighting significant investment decisions in AI and satellite internet services.
- Layoffs and Investment Balance: While Amazon announced layoffs of 16,000 employees, its investments in OpenAI and Anthropic demonstrate a long-term strategic focus on AI, aiming to enhance market competitiveness through technological innovation.
See More
SpaceX IPO Sparks Market Buzz Amid Amazon's Satellite Plans
- SpaceX IPO Outlook: The upcoming SpaceX IPO has generated significant market buzz, yet the inherent volatility of IPO stocks may lead retail investors to substantial losses, particularly in an overheated market.
- Amazon's Satellite Initiative: Amazon is launching a satellite broadband project called Amazon Leo, aiming to provide high-speed internet services globally, especially in underserved rural areas, which is expected to open a new revenue stream in the coming months.
- Competitive Landscape: Amazon Leo directly competes with SpaceX's Starlink, which currently boasts over 7,800 satellites and 2.7 million customers, while Amazon is actively expanding its satellite network, having completed 10 launches and planning to deploy 50 more satellites in the near future.
- Investment Risk Comparison: While the SpaceX IPO garners attention, analysts highlight the risks due to its private financial data and valuation uncertainties, suggesting that Amazon, as a well-established entity, presents a more stable investment opportunity.
See More
SpaceX IPO Prospects and Competitive Risks
- SpaceX IPO Plans: SpaceX is preparing for an IPO, but the potential losses from its social media platform X and AI company xAI could jeopardize the overall profitability of the offering, prompting investors to assess risks carefully.
- Starlink Profitability: In 2025, Starlink is projected to generate $10.4 billion in sales for SpaceX, with an expected 80% surge to $18.7 billion in 2026, making it the primary revenue driver and highlighting its strong market position.
- Competitive Threat: Amazon is developing its satellite communication network, Amazon Leo, planning to compete with Starlink by acquiring Globalstar and launching additional satellites, which could lead to price wars and compress SpaceX's profits.
- Regulatory Dynamics: Amazon has requested an extension from the FCC for its satellite launch deadline, aiming to complete its constellation in the coming years, a move that could foster market competition and impact SpaceX's market share.
See More
SpaceX Faces Intensifying Competition from Amazon's Satellite Network
- Starlink Profitability: SpaceX operates over 10,000 Starlink satellites, projected to generate $10.4 billion in revenue by 2025, accounting for 70% of total sales, highlighting its strong profitability in the satellite communications market.
- Amazon Leo Initiative: Amazon's Leo satellite network has launched 300 satellites and plans to expand through a $11.6 billion acquisition of Globalstar, although it still needs to reach at least 1,618 satellites for commercial service, indicating its ambitions in satellite communications.
- Competitive Risks: With Amazon aiming to launch beta service by the end of 2026, SpaceX may face pricing pressure that could reduce its profits, particularly as Starlink's high profit margins attract competitors' interest.
- FCC Regulatory Dynamics: Amazon has requested an extension from the FCC to meet its 1,618 satellite target, and it is expected that the FCC will support this request to promote market competition, which could impact SpaceX's market position and future profitability.
See More
Sirius XM Stock Soars on YouTube Partnership Announcement
- Stock Surge: Sirius XM's shares rallied 16.7% in April, primarily driven by a new partnership with YouTube, which is expected to significantly enhance advertising revenue potential, reflecting market confidence in its advertising technology.
- Analyst Upgrade: Rosenblatt analyst Barton Crockett raised Sirius XM's price target from $24 to $46 and upgraded the rating from 'neutral' to 'buy', citing the YouTube deal as a major endorsement of Sirius' advertising capabilities.
- Earnings Beat Expectations: Sirius XM reported first-quarter earnings on the last day of April that exceeded expectations, with revenue growing 1%, adjusted EBITDA rising 6%, and earnings per share increasing 22% to $0.72, indicating effective cost management.
- Future Growth Potential: While the subscription business faces challenges, the new advertising segment could drive growth, and analysts believe the value of its spectrum assets may lead to a re-rating of the company's valuation, showcasing market optimism about its future.
See More
Amazon's Satellite Internet Service Poised for Growth
- New Business Outlook: Amazon plans to launch its satellite internet service, Amazon Leo, in Q3 2026, which is expected to become a new revenue growth engine, with CEO Andy Jassy stating it has the potential to become a multi-billion dollar revenue source.
- Strong Customer Base: Amazon Leo has already secured customers like AT&T, Delta Air Lines, JetBlue, and NASA, and notably gained Apple's support through the acquisition of Globalstar, enhancing its competitive position in the market.
- Significant Technical Advantages: Jassy noted that Amazon Leo will improve downlink and uplink performance by 2x and 6x over existing competitors, respectively, while also offering cost advantages, which is expected to attract more users, especially in underserved broadband areas.
- Notable Synergies: The launch of Amazon Leo is likely to boost AWS revenues, as Jassy mentioned that governments and enterprises want to store satellite data in the cloud and perform analytics, creating a compelling market appeal for the combined services.
See More
Amazon's Q1 Earnings Expectations Analysis
- Earnings Forecast: Amazon is expected to report Q1 earnings per share of $1.64 and revenue of $177.3 billion, reflecting a robust 14% year-over-year growth that underscores the company's strong market performance and growth potential.
- Cloud Business Growth: AWS revenue is projected to reach $36.92 billion, representing a 26% increase year-over-year, indicating Amazon's strengthening position in the cloud computing sector, particularly amid surging demand for AI services.
- Rising Capital Expenditures: Amazon anticipates capital expenditures will hit $200 billion by 2026, exceeding analyst expectations by $50 billion, highlighting significant investment decisions in AI and satellite internet services.
- Layoffs and Investment Balance: While Amazon announced layoffs of 16,000 employees, its investments in OpenAI and Anthropic demonstrate a long-term strategic focus on AI, aiming to enhance market competitiveness through technological innovation.
See More
