Globalstar Q2: 50% Revenue Jump, Tightened FY23 Outlook & More

Globalstar, Inc. GSAT reported second-quarter FY23 sales growth of 49.7% year-on-year to $55.072 million, beating the consensus of $51.59 million.

EPS for the quarter was $0.00, compared with the consensus of $(0.01) loss.

Revenue jumped on increases in both service revenue and revenue generated from subscriber equipment sales.

Adjusted EBITDA was $27 million in Q2, an increase of 86% Y/Y due to higher revenue.

Q2 operating income was $2.6 million, compared to a loss of $(11.4) million in the year-ago period. 

Net income was less than $0.1 million in Q2, compared to a net loss of $(26.8) million a year ago. 

As of June 30, 2023, GSAT held cash and equivalents of $65.3 million.

Dave Kagan, Chief Executive Officer, commented, "This quarter's results further attest to the initiatives we embarked on to transform the Company along our four pillars – wholesale, legacy, IoT and terrestrial spectrum." 

FY23 Outlook: Globalstar narrowed its FY23 revenue to $200 million-$230 million (Prior View: $185 million-$230 million) against the consensus of $209.44 million. 

It continues to see an FY23 adjusted EBITDA margin of about 55%.

Price Action: GSAT shares are trading higher by 5.36% at $1.18 on the last check Thursday.