Summary by Futu AI
Globalstar reported strong financial results for Q3 2024, with total revenue increasing 26% to $72.3 million, driven primarily by a 59% surge in wholesale capacity services revenue to $43.9 million. Service revenue grew 29% to $68.9 million, while equipment sales declined to $3.4 million. The company maintained a solid subscriber base of approximately 778,000 users globally.Operating expenses increased to $62.9 million from $55.7 million, mainly due to higher network costs and stock-based compensation. The company recorded net income of $9.9 million compared to a net loss of $6.2 million in Q3 2023. Cash and cash equivalents stood at $51.9 million as of September 30, 2024.The company entered into Updated Services Agreements with its key customer in October 2024, securing $400 million in equity investment and up to $1.1 billion in infrastructure prepayments for network expansion. Commercial IoT subscribers grew 7% year-over-year, while the company continues to advance its terrestrial spectrum opportunities and technology partnerships.
