Globalstar Outlines Growth Strategy and Financial Outlook at Investor Day

Globalstar Outlines Growth Strategy and Financial Outlook at Investor Day

Investor Contact Information:
investorrelations@globalstar.com

Globalstar, Inc. (NYSE American: GSAT) (“Globalstar” or the “Company”), a next-generation telecommunications infrastructure and technology provider, held an investor day on Thursday, December 12, 2024. The Company’s executive leadership team outlined Globalstar’s strategic priorities and vision for the future by optimizing value for its core assets and providing updates to its short and long-term financial outlook.

Additionally, the Company hosted several customer panels during the event, which are available for replay on Globalstar’s investor relations website under “Events and Presentations”. A summary of the event is detailed below:

Terrestrial Wireless

XCOM RAN

Differentiated high-performance 5G architecture enabling automation, industrial 5G, and critical infrastructure applications with ease of deployment for mission-critical applications
Strategic focus on high-value market segments including warehouse automation / dense industrial 4.0, manufacturing, ports, and logistics facilities
Major global retailer deploying XCOM RAN solution with ongoing implementation in 2025

Band n53

Deployed in 12 countries covering nearly 1 billion POPs, including 100% coverage across the U.S., Canada, and Mexico
Represents a strategic spectrum asset that enables mission-critical applications, with potential for aggregation with CBRS for expanded capabilities
Band n53 ecosystem keeps growing and building revenue opportunities
First live 5G Radio Access Network over Band n53 demonstrated, showing quadrupled speeds as announced on December 12, 2024

Mobile Satellite Services (MSS)

Retail Consumer

Strong revenue generation with ~260,000 active subscribers contributing $44 million in 2023 annual service revenue
Achieved milestone of 10,000 rescues in 2024
Established brand presence in outdoor/adventure segment with loyal customer base and robust distribution channels
Executing on strategic investment in growth segments through enhanced product capabilities, enterprise market expansion, and selective consumer focus while maintaining profitable core business

Commercial IoT:

Currently serving ~481,000 average active devices across diverse market verticals
Generated $23 million in annual service revenue for 2023
Targeting significant market growth with projected TAM of $2.4B through various verticals including transportation & supply chain logistics, fleet management, animal tracking and automotive IoT
Strategic focus on emerging two-way technology to expand market opportunities, product enhancements (cost, size, weight, power), and increased ARPU through new capabilities all enabled through a growing market

Government & Wholesale Consumer:

Exclusive partnership with Parsons for public sector and defense applications as announced on December 3, 2024
Updated services agreement with wholesale customer includes new satellite constellation, expanded ground infrastructure and increased global MSS licensing per November 2024 Form 8-K
Globalstar will retain 100% of all terrestrial, MSS and other revenue and will continue to allocate 85% of its network capacity to render the Satellite Services to the Customer across existing and new satellites
Globalstar reserved 15% to service the Company’s direct MSS customers

Financial Performance & Outlook:

Reiterated full year 2024 revenue guidance range to $245-250 million and Adjusted EBITDA margin to 54%
Introduced full year 2025 revenue guidance of $260-285 million and Adjusted EBITDA margin of ~50%, driven by incremental strategic investments in terrestrial network and other long-term growth initiatives
Longer term, the Company expects revenue to more than double to over $495 million, with Adjusted EBITDA margins in excess of 54% in the first full year of extend MSS network service
Additional upside potential from terrestrial spectrum and XCOM RAN.

About Globalstar, Inc.

Globalstar empowers its customers to connect, transmit, and communicate in smarter ways – easily, quickly, securely, and affordably – offering reliable satellite and terrestrial connectivity services as an international telecom infrastructure provider. The Company’s LEO satellite constellation ensures secure data transmission for connecting and protecting assets, transmitting critical operational data, and saving lives for consumers, businesses, and government agencies across the globe. Globalstar’s terrestrial spectrum, Band 53, and its 5G variant, n53, offers carriers, cable companies, and system integrators a versatile, fully licensed channel for private networks with a growing ecosystem to improve customer wireless connectivity, while Globalstar’s XCOM RAN product offers significant capacity gains in dense wireless deployments. In addition to SPOT GPS messengers, Globalstar offers next-generation IoT hardware and software products for efficiently tracking and monitoring assets, processing smart data at the edge, and managing analytics with cloud-based telematics solutions to drive safety, productivity, and profitability. For more information, visit www.globalstar.com.

Forward Looking Statements

Certain statements contained in this press release other than purely historical information, including, but not limited to, expectations regarding future revenue, financial performance, financial condition, liquidity, projections, estimates and guidance, statements relating to our business plans, objectives and expected operating results, our anticipated financial resources, our ability to integrate the licensed technology into our current line of business, our expectations with respect to the pursuit of terrestrial spectrum authorities globally, the success of current and potential future applications for our terrestrial spectrum, our ability to meet our obligations and attain the attempted benefits under the updated services agreements, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Risks and uncertainties that could cause or contribute to such differences include, without limitation, those described under Item 1A. Risk Factors of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in the Company’s other filings with the SEC. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release to reflect actual results, future events or circumstances or changes in our assumptions, business plans or other changes.