Globalstar, Inc.GSAT
Globalstar, Inc. Revenue Disclosure
3. REVENUE
Disaggregation of Revenue
The following table discloses revenue disaggregated by type of product and service (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Service revenue: | |||||||||||||||||
| Wholesale capacity services | $ | 172,731 | $ | 145,299 | $ | 109,067 | |||||||||||
| Subscriber services | |||||||||||||||||
| Commercial IoT | 27,263 | 26,245 | 22,867 | ||||||||||||||
| SPOT | 37,311 | 41,140 | 44,184 | ||||||||||||||
| Duplex | 15,238 | 20,156 | 25,932 | ||||||||||||||
Government and other services | 4,766 | 4,849 | 2,146 | ||||||||||||||
| Total service revenue | 257,309 | 237,689 | 204,196 | ||||||||||||||
Total subscriber equipment sales | 15,677 | 12,660 | 19,612 | ||||||||||||||
| Total revenue | $ | 272,986 | $ | 250,349 | $ | 223,808 | |||||||||||
"Wholesale capacity services" revenue in the above table includes revenue associated with the Updated Services Agreements and Service Agreements, as applicable. As consideration for the services provided by Globalstar, payments include a fixed service fee, payments relating to certain service-related operating expenses and capital expenditures, additional fees related to expanded services, and potential bonus payments subject to satisfaction of certain licensing, service and other related criteria. For a discussion of the Updated Services Agreements, see Note 2: Special Purpose Entity.
"Government and other services" revenue in the table above includes revenue associated with engineering and other communication services, such as terrestrial spectrum and network services, government service contracts and teleport lease arrangements. The Company's largest network services agreement is with Parsons Corporation, a leading technology provider in the national security and global infrastructure markets, to utilize the Company's satellite network for a mission critical service for government applications.
The Company attributes equipment revenue to various countries based on the location where equipment is sold. Service revenue is generally attributed to the various countries based on the Globalstar entity that holds the customer contract. Revenue does not reflect our intercompany transactions; such intercompany transactions reflect globally accepted transfer pricing principles and align profits with the business operations and functions of the various legal entities in our international business.
The following table discloses revenue disaggregated by geographical market (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Service revenue: | |||||||||||||||||
| United States | $ | 228,661 | $ | 206,402 | $ | 170,621 | |||||||||||
| Canada | 10,430 | 12,873 | 16,058 | ||||||||||||||
| Europe | 7,041 | 6,529 | 6,856 | ||||||||||||||
| Central and South America | 10,588 | 11,329 | 9,978 | ||||||||||||||
| Others | 589 | 556 | 683 | ||||||||||||||
| Total service revenue | 257,309 | 237,689 | 204,196 | ||||||||||||||
| Subscriber equipment sales: | |||||||||||||||||
| United States | $ | 9,479 | $ | 6,654 | $ | 8,599 | |||||||||||
| Canada | 1,119 | 1,077 | 5,153 | ||||||||||||||
| Europe | 3,347 | 3,292 | 2,985 | ||||||||||||||
| Central and South America | 1,730 | 1,633 | 2,863 | ||||||||||||||
| Others | 2 | 4 | 12 | ||||||||||||||
| Total subscriber equipment sales | 15,677 | 12,660 | 19,612 | ||||||||||||||
| Total revenue | $ | 272,986 | $ | 250,349 | $ | 223,808 | |||||||||||
Accounts Receivable
The Company records trade accounts receivable from its customers when it has a contractual right to receive payment either on demand or on fixed or determinable dates in the future. The Company's receivable balances by type and classification are presented in the table below, net of allowance for credit losses, and may include amounts related to earned but unbilled receivables (in thousands):
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Accounts receivable, net of allowance for credit losses | ||||||||||||||
Subscriber and other accounts receivable | $ | 15,070 | $ | 14,829 | ||||||||||
| Wholesale capacity accounts receivable | 4,906 | 12,123 | ||||||||||||
Total accounts receivable, net of allowance for credit losses | $ | 19,976 | $ | 26,952 | ||||||||||
The Company has entered into a satellite procurement agreement for the replacement satellites and two launch services agreements to launch the replacement satellites to support the Phase 2 Service Period. The replacement satellites purchased under the satellite procurement agreement are intended to replace the Company's HIBLEO-4 U.S.-licensed system. Pursuant to the Service Agreements, payments are expected to be made to the Company by the Customer on a straight-line basis over the design life of the replacement satellites beginning with the initiation of service for the Phase 2 Service Period. Based on construction in progress recorded through December 31, 2025, the Company expects to bill $316.7 million associated with the Phase 2 Service Period. Refer to Note 10: Commitments and Contingencies for additional information regarding these agreements.
Contract Liabilities
Contract liabilities, which are included in deferred revenue on the Company’s consolidated balance sheet, represent the Company’s obligation to transfer service or equipment to a customer from whom the Company has previously received consideration. The Company's contract liabilities by type and classification are presented in the table below (in thousands):
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Short-term contract liabilities | ||||||||||||||
Subscriber and other contract liabilities | $ | 17,091 | $ | 19,710 | ||||||||||
Wholesale capacity contract liabilities, net of contract asset | 44,929 | 41,491 | ||||||||||||
| Total short-term contract liabilities | $ | 62,020 | $ | 61,201 | ||||||||||
| Long-term contract liabilities | ||||||||||||||
Subscriber and other contract liabilities | $ | 1,296 | $ | 1,431 | ||||||||||
| Wholesale capacity contract liabilities, net of contract asset | 805,634 | 286,740 | ||||||||||||
| Total long-term contract liabilities | $ | 806,930 | $ | 288,171 | ||||||||||
| Total contract liabilities | $ | 868,950 | $ | 349,372 | ||||||||||
For subscriber and other contract liabilities, the amount of revenue recognized during the years ended December 31, 2025 and 2024 from performance obligations included in the total contract liability balance at the beginning of these periods was $15.6 million and $17.4 million, respectively. For wholesale capacity contract liabilities, the amount of revenue recognized during the years ended December 31, 2025 and 2024 from performance obligations included in the total contract liability balance at the beginning of these periods was $38.5 million and $34.1 million, respectively.
The duration of the Company’s contracts with subscribers is generally one year or less. The Updated Services Agreements have no expiration date; therefore, the related contract liabilities may be recognized as revenue over various periods according to when the related performance obligation is satisfied.
The components of wholesale capacity contract liabilities are presented in the table below (in thousands):
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Wholesale capacity contract liabilities, net: | ||||||||||||||
Additional consideration associated with the 2021 and 2023 Funding Agreements (1) | $ | 6,920 | $ | 12,247 | ||||||||||
Advanced payments for services expected to be performed with the ground spare satellite launched in June 2022 | 20,155 | 21,914 | ||||||||||||
| Advanced payments contractually owed for services expected to be performed with the replacement satellite constellation prior to the Phase 2 Service Period | 3,924 | 8,950 | ||||||||||||
| Advanced payments for the quarterly access fee, service-related operating and capital expenditures and other services | 37,682 | 27,664 | ||||||||||||
| Advanced payments under the Infrastructure Prepayment (See Note 2: Special Purpose Entity) | 708,593 | 278,043 | ||||||||||||
Additional consideration associated with the Updated Services Agreements (2) | 53,504 | 7,288 | ||||||||||||
Other advanced payments associated with future performance obligations (3) | 60,674 | 15,795 | ||||||||||||
Contract asset (4) | (40,889) | (43,670) | ||||||||||||
| Wholesale capacity contract liabilities, net | $ | 850,563 | $ | 328,231 | ||||||||||
(1)Includes additional consideration associated with the below-market interest rates within the 2021 Funding Agreement and 2023 Funding Agreement (in each case, as defined below). This consideration will be recognized over the estimated Phase 1 and Phase 2 Service Periods.
(2)Includes additional consideration representing the implied economic benefit to Globalstar for receiving payments in advance of service. This consideration primarily includes an estimate of the significant financing component totaling $49.2 million related primarily to the Infrastructure Prepayment. The Company expects to recognize this consideration over the estimated Extended MSS Network service period.
(3)Includes primarily: a) advanced service payments received during 2025 totaling $45.0 million based on the timing of payments from the Customer pursuant to the Updated Services Agreements, which provide for a portion of annual service fees to be accelerated and b) $13.3 million of make whole fees paid by Customer for the extinguishment of the 2023 13% Notes in 2024. These advanced payments will be recognized during the Extended MSS Network service period.
(4)Primarily includes warrants with an initial fair value at the time of issuance of $48.3 million which was recorded in equity with an offset to a contract asset on the Company's consolidated balance sheets. The fair value of the warrants is recorded as a reduction to revenue over time and totaled $40.9 million as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 4, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.