📊 GSAT Key Takeaways
Is Globalstar, Inc. (GSAT) a Good Investment?
Globalstar operates a profitable core business with strong positive free cash flow ($30.6M, 43.7% FCF margin), but is burdened by excessive debt servicing costs ($474.6M debt with only 1.7x interest coverage), resulting in ongoing net losses despite operating income. While EPS improvements (+74.6% YoY) suggest a turnaround trajectory, the weak interest coverage, negative ROE/ROA, and high leverage (1.38x debt/equity) create material financial risk without significant revenue acceleration or debt reduction.
Globalstar’s fundamentals are improving with 9% revenue growth, a swing to positive operating income, and strong liquidity, giving it runway to execute. However, persistent net losses, thin margins, and low interest coverage—along with unusually high free cash flow likely influenced by one‑offs—temper the quality and durability of results.
Why Buy Globalstar, Inc. Stock? GSAT Key Strengths
- Positive free cash flow generation of $30.6M with exceptional 43.7% FCF margin demonstrates core business viability and strong cash conversion
- Operating profitability with 11.7% operating margin and positive operating cash flow of $35.2M shows sustainable underlying business model
- Improving fundamentals with EPS up 74.6% YoY and revenue growth of 9.0% YoY indicates turnaround trajectory
- Adequate near-term liquidity with current ratio of 1.60x and cash position of $358.4M
- Total asset base of $2.4B provides substantial collateral and operational scale
- Strong liquidity with 2.42x current ratio and $447M cash
- Positive operating income and improving net loss YoY
- Exceptional free cash flow providing investment flexibility (likely non-recurring)
GSAT Stock Risks: Globalstar, Inc. Investment Risks
- Critically weak interest coverage of only 1.7x leaves minimal margin for operational fluctuations or debt service disruptions
- Persistent net losses of -$17.4M and negative net margin of -24.9% despite operating profitability indicates unsustainable debt burden
- High leverage ratio of 1.38x debt/equity with long-term debt of $474.6M vastly exceeding annual operating income, requiring years to delever
- Negative returns on equity (-5.1%) and assets (-0.7%) indicate company is destroying shareholder value
- Limited financial flexibility to invest in growth, refinance debt, or weather revenue disruptions due to debt overhang
- Thin profitability (2.7% operating margin) and continuing net losses
- Weak interest coverage (1.5x) with moderate leverage (1.36x D/E)
- Cash flow quality risk from one-time inflows; potential future capex needs
Key Metrics to Watch
- Interest coverage ratio - must improve above 2.5x to ensure sustainable debt servicing
- Debt-to-EBITDA ratio - critical indicator of deleveraging progress given $474.6M debt burden
- Operating margin expansion - core business must maintain 11.7%+ margins to support debt reduction
- Revenue growth rate - must accelerate above 9% to meaningfully improve interest coverage and path to profitability
- Free cash flow conversion - sustainability of 43.7% FCF margin is essential to debt paydown trajectory
- Operating margin
- Interest coverage
Globalstar, Inc. (GSAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 43.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
GSAT Profit Margin, ROE & Profitability Analysis
GSAT vs Telecom Sector: How Globalstar, Inc. Compares
How Globalstar, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Globalstar, Inc. Stock Overvalued? GSAT Valuation Analysis 2026
Based on fundamental analysis, Globalstar, Inc. shows some fundamental concerns relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Globalstar, Inc. Balance Sheet: GSAT Debt, Cash & Liquidity
GSAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Globalstar, Inc.'s revenue has grown significantly by 107% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.29 indicates the company is currently unprofitable.
GSAT Revenue Growth, EPS Growth & YoY Performance
GSAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $60.0M | -$17.3M | $-0.16 |
| Q3 2025 | $72.3M | $1.1M | $-0.01 |
| Q2 2025 | $60.4M | $1.9M | $-0.03 |
| Q1 2025 | $56.5M | -$13.2M | $-0.13 |
| Q3 2024 | $57.7M | $9.0K | $0.00 |
| Q2 2024 | $55.1M | $9.0K | $0.00 |
| Q1 2024 | $56.5M | -$3.5M | $0.00 |
| Q3 2023 | $37.6M | $9.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Globalstar, Inc. Dividends, Buybacks & Capital Allocation
GSAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Globalstar, Inc. (CIK: 0001366868)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GSAT
What is the AI rating for GSAT?
Globalstar, Inc. (GSAT) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GSAT's key strengths?
Claude: Positive free cash flow generation of $30.6M with exceptional 43.7% FCF margin demonstrates core business viability and strong cash conversion. Operating profitability with 11.7% operating margin and positive operating cash flow of $35.2M shows sustainable underlying business model. ChatGPT: Strong liquidity with 2.42x current ratio and $447M cash. Positive operating income and improving net loss YoY.
What are the risks of investing in GSAT?
Claude: Critically weak interest coverage of only 1.7x leaves minimal margin for operational fluctuations or debt service disruptions. Persistent net losses of -$17.4M and negative net margin of -24.9% despite operating profitability indicates unsustainable debt burden. ChatGPT: Thin profitability (2.7% operating margin) and continuing net losses. Weak interest coverage (1.5x) with moderate leverage (1.36x D/E).
What is GSAT's revenue and growth?
Globalstar, Inc. reported revenue of $70.1M.
Does GSAT pay dividends?
Globalstar, Inc. pays dividends, with $2.6M distributed to shareholders in the trailing twelve months.
Where can I find GSAT SEC filings?
Official SEC filings for Globalstar, Inc. (CIK: 0001366868) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GSAT's EPS?
Globalstar, Inc. has a diluted EPS of $-0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GSAT a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Globalstar, Inc. has a SELL rating with 67% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GSAT stock overvalued or undervalued?
Valuation metrics for GSAT: ROE of -5.1% (sector avg: 15%), net margin of -24.9% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy GSAT stock in 2026?
Our dual AI analysis gives Globalstar, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GSAT's free cash flow?
Globalstar, Inc.'s operating cash flow is $35.2M, with capital expenditures of $4.6M. FCF margin is 43.7%.
How does GSAT compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -24.9% (avg: 14%), ROE -5.1% (avg: 15%), current ratio 1.60 (avg: 1).