Globalstar, Inc.

Q4 2025 Earnings Call — February 27, 2026

Analyst Name (Firm): Edison Yu (Deutsche Bank)

Executive Name (Title): Paul (Title not specified)

Thank you for taking our questions. Congratulations on the progress and apologies about any background noise. First, I want to bring up a topic to you, Paul. There's been a lot of excitement about data centers in space. I think it's probably something maybe you don't want to tackle directly as a company, but just curious on your thoughts about the idea of doing this and potentially some maybe ancillary opportunities that could evolve from that.

Executive Name (Title): Paul (Title not specified)

Yeah, I mean, obviously, we're very focused on direct-to-sell and IoT and not really on the data center side. And obviously with all the demand for compute and AI and the difficulties people are having, building data centers and power being an issue, I understand why people are excited about it. Certainly it creates another reason for needing launch capacity, which there's going to be increasingly more launch capacity as new vendors come online. So I understand sort of how the industry got excited about it. I mean, I think there's a lot of technical challenges to it. Obviously, maintenance is a lot harder, upgrades a lot harder, cooling and so forth are hard in space. So yeah, but this is a great technical challenge for people and certainly an interesting thing. And if you're a science fiction fan, it kind of maps out to a lot of things people have talked about over the years and about what humanity will do in space. So it's exciting. But, yeah, it's definitely not our focus area.

Analyst Name (Firm): Edison Yu (Deutsche Bank)

Understood, understood. And then, I mean, switching gears, what should we think about, how should we think about the next milestones for C3, the C3 constellation? Is there anything this year that you would call out that would be of particular importance?

Executive Name (Title): Paul (Title not specified)

Yeah, I mean, we just did the critical design review, so that's, you know, a very important portion of making sure that the system design, you know, and holistically the entire system is designed well. And we will continue to do a lot of work in terms of network, you know, ground network build-out. Obviously a lot of work going on on the regulatory side and discussion are advancing well and, you know, regulators are excited about the capabilities that Global Star has already brought to market, either by ourselves or with our partners. A lot of, you know, SOS and these kind of emergency capabilities, and it's been demonstrated over and over. So, as we go to C3, things only get better, more capabilities, and so forth, more satellites in orbit. We are continuing to just tick off, grind away, you know, all these launches. It's not a high level thing. It's a, it's really, you got to be on top of every single little detail and that's what the teams have been doing. And, and so it's, yeah, it's not one thing. It's sort of many, many things across the board to get done.

Analyst Name (Firm): Edison Yu (Deutsche Bank)

Last one for me, just on XCOM brand, you made some progress since, you know, last quarter with Blendo. Can you just remind us, or any kind of what specific customer KPIs were kind of validated or that you found to be very, very encouraging as part of this process? And does this give you more confidence in getting future pipelines? Thank you.

Executive Name (Title): Paul (Title not specified)

Yeah. So, I mean, the kinds of things that people are obviously looking for, the ability to get a lot of throughput in a dense environment. So that was the thing that we always touted about the technology in the beginning. But, you know, with Boingo, one of the other things that's really cool is that we can run the system over DAS, distributed antenna systems. So we can overlay that. And a DAS system generally just gives you more coverage, but not more capacity. But because we can process the data from each radio node or head, we can actually then increase the capacity in the system as well. And then there's other things that we've demonstrated in the warehouse automation space in terms of ease of deployment and the fact that if you cluster users in a given area, it doesn't really take down the capacity of the whole system. It still shares the capacity of all the radio nodes that are there. So that kind of capability and those kind of KPIs are super important. And then obviously just getting to commercial hardness, testing the system under, you know, difficult circumstances. And we have been able to prove to very demanding customers that the system is commercially ready.

And so in terms of the pipeline, they're focused on warehouse automation. And now we're looking at whether you actually use community systems on this, whether you use WIP and SIBR. because we're talking about stadiums, conventions, centers, density of users, and not to mention military bases as well. I think, you know, the pipeline is definitely growing. We're excited by some of the go-to-market partners that we have. I know that we sit on it in terms of some parts of the mobile. We're looking at the African-American strategy for defense and other government-led opponents. So these pipelines are great. And then as we look out, there's going to be a lot of demand for non-activity, for things like physical aid and so forth.

Analyst Name (Firm): Mike Crawford (B Reilly Securities)

Thank you. Good morning. Could you help walk me the utility of having both MSS and terrestrial 5G flexibility with the arrestment spectrum and as well as perhaps maybe we should think about any potential interference issues?

Executive Name (Title): Paul (Title not specified)

Yeah. So, obviously, we found the fact that in the future there's a lot of synergy between warehouse automation and the fact that you can track using IoT, satellite IoT, anywhere you go and cover a complete supply chain logistics. So those kinds of things are obviously super interesting, but it's also just the fact that because of this, that means that we have Spectrum globally. And so for companies and partners that are looking to have some kind of terrestrial capability anywhere in the world. It's not to say that we don't trust the information that everyone is aware of, but we believe that we can go get those to the extent that our partner is interested in that as well. So it's a nice synergy between the global nature or global horizon nature of it. From an intersectoral standpoint, I mean, you know, the idea is that if you are in cellular or we're running a terrestrial network on that spectrum, if a device is not, it needs to go to the satellite, it could also affect the cholesterol network as well.

So there's ways of either managing which frequency bands are being used, which time is being used, or also just a question of what a system does and then use or need to use at a given time. And our satellite knows what I'm talking about. Although a startup version of Bluetooth remote doesn't have multi-mode capability, we're working on that right now. So, that's going to certification and so forth. So, they will have multi-mode capability very quickly, and that would be manageable. And, of course, the simple terrestrial modes.

Analyst Name (Firm): Mike Crawford (B Reilly Securities)

Actually, it's a little difficult to hear you because your line's breaking up a little bit. I'll just ask one final question. But can Global Star share any targeted launch windows for the replenishment satellites this year?

Executive Name (Title): Paul (Title not specified)

We're not updating. We're saying second quarter this year for the first launch and second half for the second launch.

Analyst Name (Firm): Greg Pendy (Clear Street)

Hey, guys. Thanks for taking my question, and congrats on 2025. I just wanted to zero in on the IoT offering. Can you remind us when your services went live for two-way communications? I believe it was somewhat mid-quarter, and in addition, it looks like from your ARPU, you haven't changed pricing. Is that correct? And is that likely to continue going forward? Thanks.

Executive Name (Title): Paul (Title not specified)

Sure. So what's going on on the two-way system is that our customers are actually building out their solutions right now. So you won't see revenues from two-way IoT in any significant amount right now. and the customers are in process of validating their end-to-end systems and so forth. So it's still a little bit more that the module went commercial. It's tested. It's hardened. It's in mass production now, and really it's just we're waiting on the customers to finish their applications because these are built into some other device.

Analyst Name (Firm): Greg Pendy (Clear Street)

Okay, so is it fair to say that that wasn't benefiting the subscribers too in the quarter because you had decent growth in subscribers?

Executive Name (Title): Paul (Title not specified)

Right, no, that's still a one-way system predominantly.

Analyst Name (Firm): Logan Lily hog (Craig Hallam)

Hey, guys, Logan on for Georgia this morning. You mentioned the contribution from Parsons in the quarter. I was hoping you could just talk kind of broadly about how the government pipeline is shaped up over the past few quarters and just kind of what you're seeing there. And kind of on that note, as we think about the longer term guidance, how would you frame sort of what's considered in there in terms of government contribution?

Executive Name (Title): Paul (Title not specified)

Okay, so the pipeline, I mean, there's sort of two aspects to it. It's the things that we are already talking about, working with them on, and then there's some other newer opportunities that we're still in the process of valuing and having a contract very large and focused on the permanent opportunities there. We haven't made any announcements about the growth in the contract. come from the idea that we will expand to other regions and we get better payment as other regions come on our line. And so that's the near term. And then as they ship their solution into the devices, then we get the revenue from revenue. But predominantly today, it's the build-out of the network to support other regions of the world.

Analyst Name (Firm): Logan Lily hog (Craig Hallam)

Got it. Just one other really quick one. Can you just remind us where you are on the upgrade of the ground infrastructure for the longer-term MSS network?

Executive Name (Title): Paul (Title not specified)

Yeah, I mean, so one good metric is we committed to the ITU of spending $2 billion on extending the network, and we're halfway through that. That includes money that went into the satellites as well. But, you know, it gives you a sense of how far along we are, that those build-outs are going quite well on the ground side. The company is pretty experienced in doing these kinds of things. We had to do it for the original launch of the original wholesale business for our customer. So we know how to do this pretty well. And we've been making continuous announcements as different countries come online. I mean, you can see sort of a laundry list if you look through the press releases of all the places that are up and going now.

Analyst Name (Firm): Paul Jacobs (Closing Remarks)

Well, thanks, everybody, again, for joining us. It was a great year, a lot of stuff going on, and I really want to say thank you to our partners, our customers, and really to all the employees at GlobalStar. You guys have done an excellent job this year, really focused in on getting stuff done, and that obviously reflects the results that our investors are looking for. So we will continue to execute and look forward to talking to you about the progress and our growth going forward. So thanks, everybody, again.

Analyst Name (Firm): Management

We apologize if you experienced any technical issues today. This concludes today's conference call. Thank you for participating, and you may now disconnect.

Q3 2025 Earnings Call — November 6, 2025

Management: This represents growth over the prior year's third quarter, reaching a record quarterly amount. This improvement was driven by two key areas, wholesale capacity services and continued strength in commercial IoT. Our wholesale capacity services revenue increased primarily due to the timing of service fees associated with the reimbursement of network-related costs as we continue to expand and upgrade our global ground infrastructure. Commercial IoT also continues to be a growth driver for us. IoT service revenue increased on the back of subscriber growth, with average subscribers reaching 543,000, a 6% increase from the prior year's third quarter. This growth was again propelled by a record number of growth activations over the last 12 months. We also saw particularly strong equipment sales performance.

Equipment revenue from commercial IoT device sales was up 60% compared to the prior year's third quarter. We expect this momentum to continue, particularly with the recent commercial availability of our two-way module, which we believe will drive additional demand. Income from operations was $10.2 million in the quarter, up from $9.4 million in the prior year's third quarter. This improvement came despite higher operating expenses during the quarter due to planned increased investments in our business. Net income was lower than the prior year's third quarter, driven primarily by non-cash items. Specifically, we recognized higher interest expense from non-cash imputed interest related to the 2024 prepayment agreement. We also recorded net foreign currency losses from the remeasurement of intercompany balances. These items were partially offset by a non-cash gain on the quarterly mark-to-market adjustment of our derivative assets. Adjusted EBITDA for the third quarter reflects our strategic investment in growth opportunities, particularly XCOM.

We continue to enhance and develop our XCOM-ran product and service offerings, and as we've discussed previously, we're incurring costs, primarily personnel-related, in advance of significant revenue contribution from this business. We believe this is a solid investment for the company, and we remain confident in the strategic value of this initiative, particularly based on recent developments towards commercialization. Importantly, we continue to maintain healthy adjusted EBITDA margins, 51% in the third quarter and 52% year to date, even while making substantial investments in XCOM and next generation products. This demonstrates the profitability of our core business and gives us confidence that as these new revenue streams scale, we'll see meaningful margin expansion. For the year-to-date period, total revenue was $201 million, representing 6% growth compared to the same period last year. Service revenue was also up 6%, while equipment revenue increased 21%. The revenue and operating income story for the nine-month period largely mirrors what we saw in Q3. Now let me turn to our balance sheet and cash flow.

We ended the third quarter with cash and cash equivalents of $346.3 million. During the first nine months of 2025, we generated operating cash flow of $445.8 million, a strong result that reflects $299.6 million received in connection with the infrastructure prepayment and also demonstrates the cash generating capabilities of our business. Capital expenditures were $485.9 million during the period, reflecting our commitments under our updated services agreements for network expansion and upgrades, including ground infrastructure as well as satellite construction and launch costs. These investments are fundamental to our ability to deliver enhanced services and support our long-term growth. Financing activities used $6.1 million in cash, primarily for debt recoupment under the 2021 funding agreement and preferred stock dividend payments, offset partially by $27.1 million in proceeds under the 2023 funding agreement, which will be used to fund CapEx for our replacement satellites. Adjusted free cash flow for the nine-month period was $133.3 million, up significantly from $74.5 million in the prior year period.

This increase reflects primarily higher customer payments, including $37.5 million in accelerated service payments received during 2025. Total debt principal outstanding was $418.7 million at September 30th, 2025, largely in line with the prior year end and reflecting the financing activities previously discussed. Our financial position remains strong, with solid cash generation, ample liquidity, and strategic investments that position us for long-term growth. We're making deliberate investments in XCOM and next-generation products, and we're executing on our infrastructure commitments to support our wholesale services agreement. The fundamentals of our business are sound. We're growing revenue in strategic areas, generating strong operating cash flow, and managing our cost structure while investing for the future. Given our results to date and expectations for the balance of the year, we are reiterating our full year 2025 outlook and continue to expect revenue in the range of $260 million to $285 million and an adjusted EBITDA margin of approximately 50%.

Management: Thanks, Rebecca, and good afternoon, everyone. I'm pleased to be with you today and to discuss what has been a robust order for GlobalStar. Across every major part of our business, we're executing our strategy and delivering measurable progress that strengthens our position in the market. It's really never been a more exciting time to be in the connectivity industry and for GlobalStar in particular. My team and I have spent our careers driving many of the hottest trends in mobile communications and computing. Well, here we are again. On the satellite side, we couldn't be more proud to have helped pioneer direct-to-device services and witness the lifesaving impact of our network. There are now over half a billion devices capable of utilizing our network, and we continue to invest and innovate to maintain our leading position. And on the mobile wireless network side, our XCOM RAN technology is proving its benefits both in performance for mission-critical applications and its cost-effectiveness and ease of deployment.

As I've said previously, what drew us to GlobalStar is the strength and differentiation of our globally harmonized spectrum, three decades of LEO constellation operations, and deep engineering capability to deliver secure, reliable connectivity worldwide with the quality of service demanded by some of the world's most innovative technology leaders, something few others, if anyone, can claim. Recent activity in the market underscores that value as a wide variety of players now better understand the need for dedicated mobile satellite service or MSS spectrum. Other participants in the direct-to-device solution space have spent tens of billions to acquire L and S band assets that, while useful, lack the global coverage, priority rights, and harmonization with an established hardware ecosystem that defines our portfolio, one that has been deployed for decades by our GlobalStar customers. We believe this validates the global orientation of our strategy from inception, building the company around globally harmonized and licensed spectrum assets and a global Leo platform.

We see extraordinary potential for disruptive innovation around our spectrum bands and are confident we are playing a defining role now and for some time to come. For many reasons, GlobalStar holds the critical jigsaw pieces that complete the broader D2D puzzle. This moment is a strategic inflection point that could shape or reshape the future of a rapidly converging communications industry. Before I turn to the other parts of our business, let me acknowledge that you may have seen recent media reports regarding a potential strategic transaction involving GlobalStar. As a matter of policy, we do not comment on press articles, rumors, or market speculation, and therefore, we will not be addressing this topic during today's call or the Q&A following our remarks.

Management: Now, let's turn to the business, and let me start with our infrastructure expansion and satellite roadmap for our C3 constellation. We continue to make significant progress in the construction of our extended MSS network. In addition to development of our third generation C3 satellite system, this effort includes the build out of our global ground network with new infrastructure across multiple continents, including Europe, Asia, and North America. This global ground expansion is continuing, including up to 90 new tracking antennas supporting GlobalSTAR's C3 satellite system, representing a significant investment in the functionality of our network. This significantly underscores our mission and strategy to support resilient and robust connectivity that not only serves the needs of today, but also prepares for those of tomorrow. And to that end, our Hiblio XL1 filing is designed to expand operational frequencies, which is a foundational step towards our planned next satellite era. This system will introduce new satellites, orbital shells, and frequency bands to enable greater capacity and throughput.

It's an important step forward that aligns with the other network investments we are making today. And while we are not currently planning significant investment in our own mega constellation, this filing gives us the future option to work with partners supporting our constellation, sorry, our spectrum on a mega constellation that is coordinated with our existing and planned constellations.

Management: Let's turn to the government sector. We continue to see strong traction following our wins earlier this year. We've made meaningful progress with Parsons Corporation, transitioning from proof of concept to commercial engagement that leverages our satellite network within their advanced software-defined communications architecture. This partnership highlights GlobalStar's ability to deliver resilient, low latency, and mission-critical connectivity for defense and public safety applications. We continue to expect government-related opportunities to represent an expanding source of revenue in 2026 and beyond. Our commercial IoT subscriber growth is strong and accelerating with strong MSS device sales supported by growing adoption in safety, logistics, and infrastructure markets. Gross activations are up 40% over the same quarter last year, and total units are up 100% on a quarterly basis compared to the prior year. That doesn't even include the new two-way module, which is now being integrated into our customers' finished products. These sales, combined with increased enterprise demand, are contributing to a balanced and diversified revenue profile.

Another milestone this quarter is the global availability of our two-way commercial IoT module, the RM200M. Already receiving certifications in key regions, the RM200M is now officially available for worldwide deployment. Leveraging GlobalSTAR's licensed LNS band spectrum and second-generation satellites, the module delivers reliable two-way connectivity, reducing friction when deploying across numerous geographic regions. On the private wireless side, momentum continues to build for XCOM RAN. During the quarter, we received an initial order from a new XCOM RAN customer advancing their next-generation robotics application and a significant expansion of this program. XCOM RAN is positioned to play a critical part in ensuring quality of service in warehouse and factory automation, where reliable and secure connectivity is at the core of a robotic future in these environments. We believe we can demonstrate not only significantly differentiated performance of our 5G-based systems over industrial Wi-Fi, but also improved economics for large area applications.

And we are addressing new applications outside of warehouse automation, which we believe will grow our addressable market significantly. Stepping back, this has been a year of meaningful acceleration for GlobalStar. We've expanded our infrastructure, strengthened our product lineups, deepened our government relationships, and enhanced the commercial viability and visibility of our technology portfolio. These accomplishments have not gone unnoticed. Increased partner engagement and growing investor confidence reflect a renewed understanding of GlobalStar's strong market position, combining spectrum ownership, global infrastructure, product lineup, and operational expertise that few others can match. Overall, this has contributed to positioning the company in the market as a high-value strategic asset in the rapidly converging satellite and terrestrial communications ecosystem. While we remain focused on executing our plan, this recognition underscores the scalability and relevance of what we've built and what's still ahead.

As we look to the close of the year, our focus remains on execution, including completing key infrastructure milestones expanding enterprise and government deployments, and continuing to drive adoption of our new technologies across both satellite and terrestrial domains. We're proud of what our team has accomplished and energized by the growing momentum we see across all segments of our business. Thank you for your continued support. I look forward to sharing more about our progress in the quarters to come.

Management: With that, I will turn the call back to the operator.

Analyst (B. Reilly Securities): Thank you. Regarding your C.C., Correct me if I'm wrong, if this is not completely synonymous with your extended MSS network, but can the ground segment improvements that you're putting in at these gateways be used by your existing constellation that's being refreshed?

Management: Yeah, so we've put in antennas that are specific for the Cooley system, or sorry, the C3 system. And yeah, so we have the existing satellite antennas for the existing constellation already.

Analyst (B. Reilly Securities): Okay. And I believe it's going to be two batch launches to replenish that constellation. Is there any update on when the first of those might occur?

Management: We have not given any new indications on when the launches are going to occur.

Analyst (B. Reilly Securities): Okay. And just to add to that, Mike, for the extended MSS network, as you know, we haven't provided timing for the replacement satellites, which you might be referring to, that are being launched in two batches. We're working with SpaceX to confirm an updated launch window in the first half of 2026.

Analyst (B. Reilly Securities): Okay. And then maybe just stepping back, Paul, to GlobalSTAR's harmonized spectrum holdings. Can you just maybe define those again in terms of megahertz pops or some related measurements or what you have in the U.S. as well as where you have landing rights internationally?

Management: I mean, it's essentially global coverage. So on the S band, we have 16.5 megahertz. On the L band, we have almost nine on the C band. We have over 300 megahertz. So let's see, there are 7 billion people on earth. So, okay. I can do that.

Analyst (B. Reilly Securities): And then on the C band, I believe there remains 59 megahertz slot that might not necessarily be required to operate your satellite networks given the improvements in technology over the past 20 years.

Management: No, it's um, there's actually so if you look at a c-band spectrum it's a large percentage of it is covered by wi-fi so unlicensed band use and then there's a chunk at the lower end that is not covered by that and all of the all this spectrum is being used as feeder link because the way the existing satellites work is that chunks of the fetal spectrum are allocated to reproducing the entire spectrum band on the LNS band sides per beam on the satellite. So it is actually all used for the satellite system. It's a question of if we look at it for terrestrial use, there's a chunk that hasn't been allocated for Wi-Fi use. Now, with that said, even in Wi-Fi bands, the team that came along from XCOM Labs is the same team that built the unlicensed band cellular technologies. And so it is possible that we can look at those bands for hosting unlicensed band NR, for example, 5G.

Analyst (B. Reilly Securities): Okay, thank you. And then final question from me just goes back to XCOM, RAN. So in the tests and test applications that you've been doing for quite some time now. What is the latest data that you're seeing in terms of increased performance and reliability versus industrial Wi-Fi?

Management: Yeah, so it works much better than industrial Wi-Fi because we don't have handoff regions and Wi-Fi wasn't really built for handoff anyways. We also have ease of deployment. We have this clustering where if the robots cluster under one of the radios, you don't just depend on the capacity of that radio. You actually get the capacity of the entire system. So in terms of performance benefits, it's dramatically better. It's more reliable, more mission critical. But what we've also been finding is that in these large area deployments, we're also economically better. So the economics of rolling out our system relative to an industrial Wi-Fi system is much better. And part of that comes from the fact that we have now built our own radio units and significantly cost reduced those as well as being able to provide more frequency bands on a faster basis when those are requested by our customers.

Analyst (B. Reilly Securities): Great. Thank you very much.

Analyst (Clear Street): Hey, guys. Thanks for taking my questions. Just on the accelerating IoT, can you just add any color on what the acceleration is? Do you think you're gaining share in the space, or do you think the market was just being outsized healthy growth? And how should we think about pricing with the two-way capabilities on a forward basis?

Management: Okay, so there are definitely new applications that we're able to address. I think that there is also the fact that when we look at some of the competitors in the area who have been in this area for a long time, there's definitely interest of our customer base to have diversity of supply or change suppliers. So that's definitely driving part of it. So some of it's taking share, some of it's new, you know, it's growing the pie.

Analyst (Clear Street): Um, and then say the other way, oh, on the two way pricing.

Management: Yeah. I mean, it's a new set of capabilities and, you know, there is market pricing out there for two way systems. Of course we expect to be aggressive and take share with the two way system. I should say the growth so far though, if I just want to reiterate, the growth so far is not on the two-way system yet. The two-way system is still, you know, we brought out the module, we baited it with people. They then started building it into their products and that takes a little bit of time for them to get up to speed and get their products rolled out. So the growth that you're seeing is actually the existing off the existing systems, which is really quite impressive.

Analyst (Clear Street): Got it. That's very helpful. And then just, Wholesale looked pretty strong relative to what we were thinking. Just wondering, you mentioned there's half a billion devices, so just trying to understand the underlying growth. Is it just a growing number of enabled devices? Are you seeing usage? Is it, you know, can you just kind of hire usage from those who are already enabled? Just trying to understand why that is.

Management: Yeah, right. So I can't really comment on the customers of our customer. So let me not do that. But it's the number of devices that are out there is just talking about the growth of the number of devices that actually have the satellite modem and radio capabilities in it. So those set of devices continues to grow quite rapidly.

Analyst (Clear Street): Got it. That's very helpful. Thanks a lot.

Analyst (Craig Hallam Capital Group): Awesome. Thanks. Hey, guys. This is Logan on for George. Thanks for taking the question. You guys have been kind of talking about the XCOM RAN investment throughout the year, and I think you've been expanding the sales force a bit. And it certainly feels like you have a lot of opportunities in front of that asset. I was wondering if you could just talk a little bit about sort of how should investors think about the return profile or even the profitability of those assets over the next few years?

Management: Okay. So, I mean, the margins are good in that business. We're right at the beginning of the sort of the commercial adoption cycle of And so we expect to see growth not just from the existing customer that we've been focused on in the past, but from a new set of customers and also into a new set of areas. And we've put up various numbers for a total addressable market. And so, you know, there's a significant addressable market going forward. And what we're seeing also is that companies that have been in the 5G private network space that didn't have any differentiated technology are starting to feel a lot of pressure. We've seen layoffs and things like that. And we have not just differentiated technology, we have better economics. And of course, we have the dedicated spectrum for mission-critical applications, which, by the way, that hasn't even really started to come into play yet because we were focused on CBRS. So a lot of areas of growth, you know, we don't expect to see a lot of revenue in this fiscal year. But as we look forward into the next year, we expect to see growth there. And then, like I said, the margins are good. So we should be in a good place to build both revenues and profitability off of that business.

Analyst (Craig Hallam Capital Group): Got it. And then next one for me, I was kind of hoping you could talk a little bit about early traction with the two-way module, just sort of the feedback you're getting, any use cases that you want to call out that are kind of standing out and just sort of maybe your sense on adoption here over the next few years. Thanks.

Management: Yeah, I can't really give you a lot on the customers because they're all in the process of, you know, building their products and want to make their own announcements. But, you know, it is a lot of the similar industries that we've been in the past, but with new applications and new sets of customers. And there was a set of customers that weren't very interested in talking to us when we were only one way. And now we are able to – I think we'll take share in a number of markets with the two-way system. And then as we look forward to making the system also multi-mode with cellular capability in it as well, that will also satisfy demands of a certain customer base. Yeah, you know, it's not like there's some brand new area that I'd say, okay, this we can address now that we didn't, but we certainly have a set of customers that are, you know, talking to us that wouldn't have talked to us in the past with a one-way only system.

Analyst (Craig Hallam Capital Group): Okay, got it. Appreciate it, guys.

Analyst: Great. Thanks very much.

Analyst: One moment for our next call.

Analyst (Michael Ridgeway): Great. Thanks very much. Hi, Paul. A question first on the XCOMRAN warehouse implementation. Is this related to the early work that you have been doing and has been ongoing since you alluded to a large retail testing implementation?

Management: Yeah, so we are now in a position where I think we can address a larger customer set and also not just the original application that we were looking at, the sort of micro-fulfillment concept, but larger scale operations as well. And then we're going beyond just the warehouse automation space. We're talking to companies that do things like build out high density environments, you know, convention centers, airports, stadiums, that kind of hotspots, that kind of stuff. And so as time's gone on and we've been able to invest in the system, it's got a more horizontal feature set as opposed to just super focused on the warehouse automation space. So all of these things provide us with growth opportunities.

Analyst (Michael Ridgeway): So is that to say then that ultimately there's more of a unified connectivity outside the warehouse as well, using that as an example?

Management: Yes, for sure.

Analyst (Michael Ridgeway): Can you help us understand the revenue model behind this? You know, obviously you've got an equipment side and then there's the spectrum side of this. Is there any ongoing service associated with those implementations and how should we think about the profitability over time as clients grow, as new customers grow in that space?

Management: Yeah, so there is those things that you said, but also there is an annuity component of software license because the main computation is done on commercial off-the-shelf servers. And so we license the software into those servers as well. And then the other thing that's happened is that over time, we've been able to build out the entire stack. So we look forward to the ability to provide network as a service. And that obviously is very much a nice annuity kind of business. So that hasn't happened yet. That's the thing that we're sort of looking to in the medium term. But we get the idea that we don't want to just sell something and then walk away. Right. So from a margin perspective, we could expect a delay on margin accretion as installs happen over several quarters.

Analyst (Michael Ridgeway): Margin accretion to the overall company?

Management: To the overall business, from that business. Yeah. Oh, yeah. Well, this business right now is still an investment phase, so for sure. But on a gross margin basis, gross margins are solid here and we have differentiated technology and we put the effort into driving the cost, you know, driving down the cost curve. So, yeah, so margins should be good. And then to the extent that you get an embedded base, I think this might be where you were going, embedded base of kind of annuity revenue, then obviously that's very high margin.

Analyst (Michael Ridgeway): That's super helpful. Just last question talking about this. We've come through 10 years where we haven't seen any market transactions in MSS, and now we've gotten a few and another one announced this morning. Can you maybe spend a little bit more time, you did at the beginning of the call, but just differentiate what GlobalStar has and the utility and the global harmonization from a relative value perspective from what we've seen in the market, if you could.

Management: Yeah, so I don't want to talk about transactions or speculation, but I will talk about our competitive positioning, which is, we have spectrum, which is globally harmonized, meaning that it is not just for a small number of markets. You don't have to worry as a satellite operator whether you're crossing boundaries, whether they're country boundaries or just inter-system, inter-operator boundaries. The spectrum covers the entire Earth. And yes, there might be a few countries here and there we didn't get landing rights, but for the most part, the world is covered by our spectrum and system. So that is differentiated. Some of the transactions that have been seen in the market have been focused on particular geographies. And in some cases, I would say there's questions about whether some of the spectrum, whether it will continue to be available post-license reauthorization processes of some of the spectrum that's transacted. So we're watching that. We've put our hat in the ring for some of these spectrum assets in case they are reallocated, and we certainly can put them to good use, and they are also covered by our Hiblio XL filing.

Analyst (Michael Ridgeway): Great. That's helpful. One last question on the C3 ground station buildout. You've mentioned 90 new tracking antennas. Where does that put you in terms of the total buildout plan in percentage terms?

Management: That's the build-up. I mean, the 90-plus is the new set of antennas for this.

Analyst (Michael Ridgeway): Okay. And how many are actually deployed?

Management: I mean, we're in the process of rolling them out. I don't think we've given an exact number to date. But, Rebecca, if we have said anything more precise than that, please speak up.

Management: No, we haven't. We've talked about the sites where we're currently in construction, which is around close to 30 sites. So making really good progress and definitely on track with those milestone dates and the various agreements, both regulatory ground infrastructure build-out and satellite construction.

Analyst (Michael Ridgeway): That's super helpful. Thank you. Great quarter. You've made a lot of progress. Thanks for the color, and good luck.

Management: Thanks very much.

Management: Thank you very much.

At this time, I'm showing no further questions.

I would like to turn the call back over to Paul Jacobs for closing remarks.

Management: Well, I think it has been a great quarter, and we're really firing on all cylinders, and we're excited by, as I said, the fact that we focused on building a global company and a global spectrum position, global set of customers, global infrastructure from the very beginning. And that is showing to be a particularly valuable place to be in this change in the industry. And I do, as I said earlier, see this as a strategic inflection point. And so being in that part of the industry again and with the ability to play in a new inflection point. It's extremely exciting and should be, we expect it should be good for all of us and our supporters and investors. So thank you very much for being there for us and we look forward to updating you more into the future.

Management: Thank you very much. This concludes today's conference. You may now disconnect.