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Sep 30, 2022
Globalstar Q3 2022 Earnings Report
Globalstar's third quarter saw revenue increase due to higher service revenue, particularly in wholesale capacity, despite challenges in subscriber equipment sales. The company also experienced a significant net loss due to a non-cash charge related to the abandonment of second-generation Duplex assets.
Key Takeaways
Globalstar's Q3 2022 total revenue increased by 15% year-over-year, driven by a rise in service revenue. However, the company reported a net loss of $204.4 million, primarily due to a non-cash charge of $174.5 million related to the abandonment of its second-generation Duplex assets. Adjusted EBITDA increased by 35% to $14.2 million.
Total revenue increased by 15% compared to Q3 2021, driven by higher service revenue.
Service revenue increased due to higher wholesale capacity service revenue and a 5% increase in Commercial IoT service revenue.
Net loss was $204.4 million, impacted by a $174.5 million non-cash charge from abandoning second-generation Duplex assets.
Adjusted EBITDA increased by 35% to $14.2 million due to higher revenue offset partially by higher operating expenses.
Globalstar
Globalstar
Globalstar Revenue by Segment
Revenue by Segment
Wholesale Capacity Services Revenue
CapyFin.comCommercial IoT Revenue
CapyFin.comSPOT Revenue
CapyFin.comDuplex Revenue
CapyFin.com Forward Guidance
Globalstar provided financial guidance for full-year 2023, excluding revenue from terrestrial spectrum opportunities, expecting total revenue between $185 million and $230 million and an Adjusted EBITDA margin of approximately 55%.
Positive Outlook
- Total revenue in 2023 between $185 million and $230 million.
- Adjusted EBITDA margin of approximately 55%, up from 36% during the nine months ended September 30, 2022.
- Financial metrics are expected to continue to improve significantly by 2026.
- Total revenue expected to increase by approximately 35% compared to the 2023 forecast in 2026.
Revenue & Expenses
Visualization of income flow from segment revenue to net income