Globalstar Swings to a Loss in Q3 2026 as Interest Costs Surge

Globalstar was expected to post a profit of $0.10 per share in the third quarter of 2026. Instead, it reported a GAAP loss of $0.14 per share, a miss of 240% against the consensus estimate. The gap came from a sharp surge in interest expense that overwhelmed operating results, while the core business held together.

Interest expense more than doubled year over year, rising from $11.0 million to $23.9 million. The increase was largely non-cash, stemming from imputed interest tied to the 2024 Prepayment Agreement. A $3.8 million gain on a contingent interest feature within that same debt arrangement provided only partial relief, and the net effect was enough to flip what analysts had modeled as a profitable quarter into a reported loss.

Revenue also disappointed, coming in at $70.9 million against an estimate of $74.8 million, a shortfall of roughly 5% and a decline of about 4% from a year ago. Lower wholesale capacity service fees and subscriber churn in the Duplex and SPOT categories were the primary drags. Commercial IoT was a bright spot, with subscriber equipment sales rising 31% and last-twelve-months gross activations up 25%, but the growth was not large enough to offset weakness elsewhere.

The pending Amazon acquisition, which has already received approval from the FCC Space Bureau, continues to shape how Globalstar is presenting itself to investors. The company has suspended both financial guidance and earnings conference calls for the duration of the deal process. The transaction is expected to close in 2027, with completion tied to outstanding regulatory approvals and achievement of specific HIBLEO-4 satellite milestones. During the quarter, Globalstar successfully launched the first set of those replacement satellites, an operational step that matters directly to whether the merger closes on schedule.