Globalstar Nabs a SpaceX Deal. How Should You Play GSAT Stock Now?

Globalstar (GSAT), the next-generation telecommunications infrastructure and technology provider, has made a major move in the satellite communications race by securing a Falcon 9 launch deal with SpaceX. 

The agreement supports the company’s 2022 procurement commitment with MDA (MDALF) and represents a pivotal step in Globalstar’s long-term space infrastructure strategy. The upcoming satellites, built in partnership with MDA and Rocket Lab (RKLB), are set to integrate with the second-generation satellites currently in orbit. 

The deal underscores how committed Globalstar is to scale its next-generation network. With more satellites on the way, the company is expanding its in-space footprint and enhancing its ability to deliver consistent, high-quality global satellite services. 

Market sentiment responded immediately. On July 7, the same day the announcement hit, GSAT stock surged 6.4% in a single session. Is GSAT stock simply riding the space wave? Or is there meaningful value under the surface that investors should be eyeing right now?

About Globalstar Stock

Globalstar's roots lie in Covington, Louisiana, but its operational footprint spans more than 120 countries. The company delivers voice and data services through satellite to commercial and recreational customers. With a market capitalization of $3.3 billion, Globalstar offers mobile and fixed satellite phones, simplex, and duplex satellite data modems.

GSAT stock has demonstrated clear upward strength. Shares have climbed 37% over the past 52-weeks. More recently, the momentum has sharpened, rising 35% in just the last month. The rally aligns with expanding investor confidence in the company’s technology roadmap and upcoming launches.

GSAT trades at about 12.6 times forward sales. That valuation suggests that investors are paying a premium for strategic positioning and long-term potential, not inflated hype.

Globalstar Misses on Q1 Earnings

Globalstar’s first-quarter fiscal 2025 earnings, released on May 8, offered a mixed but directionally solid performance. The company posted total revenue of $60 million, marking a 6% increase year-over-year (YOY). Although the figure came in slightly below Wall Street's forecast of $62.43 million, the core growth driver, service revenue, stood strong at $57.1 million. Subscriber equipment sales contributed another $3 million.

The revenue uptick fueled a 3% rise in adjusted EBITDA, which climbed to $30.4 million compared to $29.6 million in the year-ago quarter. That said, the bottom line did not match the same momentum. Net loss widened 31% YOY to $17.3 million.

Globalstar reported a loss per share of $0.16, which was wider than analysts’ expectations and up 23% YOY. Still, balance sheet strength offered reassurance. Operating cash flow for the period was $51.9 million, and adjusted free cash flow rose to $47.6 million, reflecting solid cash management amid growth investments.

Operationally, the company is pressing ahead. It launched a two-way satellite IoT solution through its LEO constellation, a key milestone in expanding real-time data capabilities. Management emphasized that the first quarter set a strong foundation for 2025, noting strategic hires that bring deep expertise in scaling technology platforms.

Looking ahead, the company reaffirmed its full-year guidance for revenue between $260 million and $285 million as well as an adjusted EBITDA margin near 50%. Meanwhile, analysts expect a 40% YOY narrowing in Q2 2025 loss per share, projecting it to land at -$0.09.

What Do Analysts Expect for Globalstar Stock?

The analyst sentiment around GSAT stock is unanimously bullish. Both analysts currently covering GSAT have issued “Strong Buy” recommendations, signaling conviction in the company’s growth path and satellite deployment strategy.

The average price target of $52.50 represents potential upside of 94%. Meanwhile, the Street-High target of $60 suggests a potential climb of 122% from current levels.