Globalstar Soars to New Heights: Record Revenue and EBITDA Mark 2024 Q4
Globalstar, a leading provider of satellite-based communication services, has reported record-breaking financial results in its fourth quarter of 2024. The company's total revenue increased by 17% to $61.2 million compared to the prior year period, with service revenue rising by 18%, driven primarily by wholesale capacity revenue.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a significant jump of 21% to $30.4 million in the fourth quarter, while adjusted EBITDA margin increased due to higher revenue offset partially by an increase in operating expenses.
For the full year, Globalstar's total revenue reached a record $250.3 million, exceeding the top end of its guidance range and representing a 12% increase from the previous year. Service revenue grew by 16%, with commercial IoT service revenue reaching new heights due to increased adoption and average subscribers.
The company also achieved record annual adjusted EBITDA of $135.3 million, a 16% increase year-over-year, while adjusting EBITDA margin reached 54%, up 190 basis points from the previous year's 52%. This impressive performance is attributed to the growth in wholesale capacity revenue and commercial IoT service revenue.
Globalstar has been busy with strategic actions, including its uplifting to the NASDAQ Global Select Market earlier this month. The company implemented a 1-for-15 reverse stock split, which realigns its outstanding shares to more normalized levels relative to its peers and optimizes trading fundamentals through improved liquidity. This action also meets institutional minimum stock price requirements, potentially broadening its investor base.
The company's balance sheet is equally impressive, with $391.2 million in cash on hand as of December 31, 2024. The significant investment from its customer of $913 million, including cash payments totaling $689 million and certain in-kind asset contributions, has had a substantial impact on the company's cash costs.
According to Rebecca Clary, Globalstar's CFO, "We are pleased to see continued adoption of our IoT services." The company is looking forward to expansion of its product offerings this year with the long-awaited launch of a QA device announced yesterday. With these record-breaking results and strategic actions, Globalstar is poised for continued success in 2025.
