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Can Globalstar’s (GSAT) Brazil Expansion Offset Recent Profit Pressures?

Simply Wall St·11/16/2025 04:27:53
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  • Globalstar reported record third-quarter revenue of US$73.85 million and reaffirmed full-year guidance, while also announcing a significant upgrade to its satellite ground infrastructure across Brazil to enhance connectivity and support next-generation IoT services.
  • Despite improved revenues and major technology investments, investor sentiment remained cautious due to a substantial year-over-year net income decline and earnings per share moving from positive to slightly negative.
  • We'll examine how Globalstar's expanded antenna network investment in Brazil could reshape its long-term growth and revenue outlook.

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Globalstar Investment Narrative Recap

Being a Globalstar shareholder means believing in the scaling demand for resilient, global satellite connectivity, particularly IoT and direct-to-device solutions, and trusting the payoff from heavy investment in network expansion. The latest Q3 results, which showed revenue growth and reaffirmed yearly guidance, did little to alleviate concerns over margin pressure from capital expenditure and recent weakness in quarterly net income; for now, these risks remain unchanged as the single largest threat to near-term performance.

Globalstar’s announcement of eight new C-3 tracking antennas across Brazilian ground stations is the most relevant development, advancing the company's infrastructure and capacity for next-generation services. This move not only underpins the revenue outlook but also exemplifies the scale of required investment that puts ongoing pressure on free cash flow, the key risk highlighted in the Q3 report.

However, despite international growth and new technology, the risk that high capital requirements may outstrip internal funding is something investors should...

Read the full narrative on Globalstar (it's free!)

Globalstar's narrative projects $383.1 million in revenue and $75.2 million in earnings by 2028. This requires 13.7% yearly revenue growth and a $124.2 million increase in earnings from the current -$49.0 million.

Uncover how Globalstar's forecasts yield a $60.00 fair value, a 5% downside to its current price.

Exploring Other Perspectives

GSAT Community Fair Values as at Nov 2025
GSAT Community Fair Values as at Nov 2025

Eight separate Simply Wall St Community member estimates for Globalstar’s fair value span from US$4.65 to US$60, reflecting wide disagreement on future potential. While optimism surrounds infrastructure expansion and IoT adoption, you should consider how ongoing capital requirements could affect profitability and growth, then explore more viewpoints for a fuller picture.

Explore 8 other fair value estimates on Globalstar - why the stock might be worth as much as $60.00!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.