Summary by Moomoo AI
Globalstar reported Q2 2024 revenue of $60.4 million, up 10% year-over-year, driven by a 36% increase in wholesale capacity service revenue to $34.7 million. Service revenue grew 18% to $57.6 million while equipment sales declined to $2.8 million from $6.4 million last year. The company's total subscriber base expanded to approximately 785,000, with Commercial IoT devices increasing 9% over the last twelve months.Operating expenses increased to $61.8 million from $52.5 million, primarily due to higher network costs and stock-based compensation. Cost of services rose by $5.9 million related to network expansion, while stock-based compensation expense increased $6.6 million due to restricted stock units granted to executives. The company reported a net loss of $9.7 million compared to net income of $9,000 in Q2 2023.Cash and cash equivalents stood at $64.3 million as of June 30, 2024, up from $56.7 million at year-end 2023. Total debt increased to $425.8 million from $398.7 million, reflecting new funding agreement proceeds of $37.7 million partially offset by scheduled recoupments. The company continues to invest in network upgrades and next-generation satellite procurement under its agreement with MDA for delivery of 17-26 new satellites by 2025.
