On May 7, 2026, Globalstar, Inc. (Nasdaq: GSAT) announced its financial results for the first quarter ended March 31, 2026, generating $70.1 million in total revenue.
This represents a 17 percent increase compared to the first quarter of 2025, a growth spike primarily attributed to higher wholesale capacity services revenue. The report comes as the company advances through a definitive merger agreement with Amazon, valued at approximately $11.6 billion.
Strategic Transition to Amazon Ownership
The first quarter results are the first disclosed since Globalstar entered into an Agreement and Plan of Merger with Amazon.com, Inc. on April 13, 2026. Under the terms of the agreement, Globalstar stockholders may elect to receive either $90.00 in cash per share or 0.3210 shares of Amazon common stock.
The acquisition is intended to integrate Globalstar’s Mobile Satellite Services (MSS) spectrum and operational expertise into the Amazon Leo network to enable direct-to-device (D2D) services for future generations of low Earth orbit satellites.
The merger, expected to close in 2027, is subject to regulatory approvals and the achievement of specific operational milestones. A downward adjustment of up to $110 million may be applied to the consideration if these milestones are not met.
During the quarter, Globalstar also received a favorable ruling from the Federal Communications Commission (FCC) Space Bureau, which reaffirmed the company’s exclusive MSS operating rights in the Big LEO spectrum band, a critical asset for the pending Amazon integration.
Wholesale Capacity and Infrastructure Investments
Wholesale capacity services, largely tied to the company’s ongoing partnership with Apple, remained the dominant revenue driver, accounting for 66 percent of total revenue in the first quarter. Service revenue reached $66.7 million, while subscriber equipment sales contributed $3.4 million, benefiting from increased demand for Commercial IoT and SPOT devices.
To support the requirements of the Extended MSS Network, Globalstar and its primary customer amended their prepayment agreement in April 2026. The amendment increased the maximum High Power Infrastructure Prepayment Balance by approximately $468 million, bringing the total potential funding structure to $1.58 billion. These funds are being utilized to finance the construction and launch of replacement and third-generation satellites.
Constellation Refresh and Technical Milestones
Globalstar is currently executing a large-scale capital project with MDA Space and SpaceX to modernize its orbital assets.
- Launches: Two launches are scheduled for late 2026 to deploy replacement satellites.
- Ground Segment: Expansion of global ground infrastructure is underway to support the Extended MSS Network.
- Manufacturing: Continued development of next-generation satellites with a focus on low size, weight, power, and cost (SWaP-C) technologies.
- Liquidity: As of March 31, 2026, the company held cash and cash equivalents of $358.4 million, down from $447.5 million at the end of 2025 due to heavy capital expenditures ($116.4 million during the quarter).
“We delivered strong operational and financial results in the first quarter, continuing the momentum we built entering 2026,” said Dr. Paul E. Jacobs, CEO of Globalstar. “Demand is growing across our government, defense, and private wireless businesses, reflecting the market’s need for scalable, integrated solutions across both satellite and terrestrial based connectivity.“
Regulatory and Operational Outlook
The company’s shift toward an operating profit of $8.2 million, compared to an operating loss in the prior year, signals a strengthening financial position as it nears the Amazon transition. However, high interest expenses related to the 2024 Prepayment Agreement contributed to a net loss of $17.4 million for the quarter.
Moving through the remainder of 2026, Globalstar’s focus will remain on meeting the operational milestones required by the merger agreement while managing the build-out of the Extended MSS Network. The upcoming satellite launches will be critical indicators of the company’s ability to maintain service continuity and expand its direct-to-device capabilities ahead of full-scale Amazon Leo deployment.
