• Globalstar Inc (GSAT) reported a 53% increase in total revenue for Q3 2023, driven by a significant improvement in profitability.

• The company's Adjusted EBITDA increased by 125% over the third quarter of the previous year.

• Globalstar Inc (GSAT) increased its guidance for 2023 total revenue to a new range between $215 and $230 million.

• The company reported a net loss of $6.2 million for the third quarter of 2023, compared to a net loss of $204.4 million for the third quarter of 2022.

• Warning! GuruFocus has detected 3 Warning Signs with GSAT.

Globalstar Inc (GSAT) announced its operating and financial results for the third quarter and year-to-date period ended September 30, 2023, on November 2, 2023. The company reported a significant improvement in profitability during the third quarter, with a 53% increase in total revenue. This growth was driven by the high margin nature of the company's revenue sources, leading to a 125% increase in Adjusted EBITDA over the third quarter of the previous year.

Financial Performance Highlights

Globalstar Inc (GSAT) reported total revenue of $57.7 million during the third quarter of 2023, a 53% increase compared to the third quarter of 2022. This increase was primarily due to higher service revenue, which increased by $20.3 million or 61% during the third quarter of 2023. The company's subscriber equipment sales, however, decreased by $0.3 million or 7% in the third quarter of 2023 compared to the third quarter of 2022.

Globalstar Inc (GSAT) reported an income from operations of $2.0 million during the third quarter of 2023, compared to a loss from operations of $186.6 million during the third quarter of 2022. The company's net loss was $6.2 million for the third quarter of 2023, compared to a net loss of $204.4 million for the third quarter of 2022.

Year-to-Date Financial Review

For the nine months ended September 30, 2023, Globalstar Inc (GSAT) reported a total revenue increase of $64.2 million, or 60%, compared to the same period in 2022. The company's service revenue increased primarily due to higher wholesale capacity service revenue. Subscriber equipment sales also increased by 40% due to production challenges in the comparable prior year period.

The company reported an income from operations of $11.8 million for the nine months ended September 30, 2023, compared to a loss from operations of $211.7 million during the same period in 2022. The net loss improved to $9.6 million for the nine months ended September 30, 2023, from $251.6 million during 2022.

Financial Outlook

Globalstar Inc (GSAT) updated its financial guidance for the full year 2023, anticipating total revenue between $215 million and $230 million, representing an increase of approximately 45% to 55% over 2022 total revenue. The company also expects an Adjusted EBITDA margin of approximately 55%, compared to 39% in 2022.