Globalstar’s first quarter results were met with a negative market reaction, as revenue and adjusted EPS both fell short of Wall Street expectations. Management pointed to ongoing investments in its XCOM RAN (Radio Access Network) platform and growth in wholesale capacity services as key drivers of revenue growth. However, upfront costs to support new product development, particularly in the commercial IoT segment, weighed on margins. CFO Rebecca Clary noted that higher cash costs for XCOM development reduced adjusted EBITDA margins by about 200 basis points, though she remains optimistic about the long-term profitability of the initiative.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Globalstar’s Q1 Earnings Call

• Mike Crawford (B. Riley Securities) asked for more details on the anticipated economics of XCOM RAN. CEO Paul Jacobs replied that while initial customer engagement is promising, the timing of revenue realization will depend on customer launch decisions, which are often outside of Globalstar’s control.
• Mike Crawford (B. Riley Securities) inquired about efforts to lower radio costs and broaden the vendor ecosystem. Jacobs explained that new radios demonstrated at Mobile World Congress will reduce costs and improve flexibility, supporting adoption across different spectrum bands.
• Mike Crawford (B. Riley Securities) asked about the importance of Band 53 as an anchor spectrum for private networks. Jacobs stated that Band 53 offers a globally available, mission-critical channel that differentiates Globalstar from competitors relying on less reliable spectrum.
• Mike Crawford (B. Riley Securities) sought clarification on the timeline for replacement satellite launches and related financial milestones. CFO Rebecca Clary confirmed that capital expenditure reimbursement would begin once the first batch of satellites becomes operational, with launch dates to be announced.
• No further analyst questions on the call.

Catalysts in Upcoming Quarters

Looking forward, our team will be monitoring (1) the pace and scale of commercial adoption for XCOM RAN in industrial and government markets, (2) the successful launch and activation of next-generation satellites to expand network capacity, and (3) management’s continued ability to offset tariff and supply chain risks through operational flexibility. Updates on wholesale partnerships and IoT customer wins will also serve as key indicators of execution.

Globalstar currently trades at $23.63, up from $20.18 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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