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Globalstar is already working on the new satellite constellation program for Apple, Globalstar CEO Paul Jacobs told investors in the company’s third quarter call on Nov. 7. 

The company’s stock has soared in the past week after Globalstar announced further ties with Apple, as the tech giant is making a major investment with Globalstar to fund a new constellation to expand satellite-to-cell capabilities. 

Jacobs confirmed work is underway but did not share more details. 

“In terms of the work on the new satellites, these things take a reasonably long period of time. We are in work already, but we haven’t given any specifics about who [will build the satellites] or where we are in that progress,” he said. 

Globalstar expects revenue will more than double from 2024 levels when the expanded satellite services are operational with Apple under the new deal. Apple is entitled to 85% of network capacity on the new constellation for its services. 

Jacobs said Globalstar is looking ahead to how it can use the remaining 15% capacity to offer services to other customers, but it’s too early for an update. 

“We have started some of those discussions. It’s more around choosing the precise services that we will provide over it, whether they are extensions of existing services or new things,” Jacobs told investors. “There’s a lot of work being done and we’ve hired people specifically to work on those capabilities, but I don’t have something specific to tell you today. There are quite a number of things that we will be able to do with the new constellation.” 

Jacobs said the capabilities from the new constellation will enhance Globalstar’s next phase of growth.  

“These agreements and additional new satellites should give our current and future customers confidence that Globalstar will provide vital connectivity solutions well into the future,” he said. “We are excited about what this means for Globalstar’s future and the vital role we will continue to play in delivering important services and we are pleased with the value creation that this deal provides for our shareholders.” 

Part of Apple’s deal with Globalstar included $232 million to pay down debt. Globalstar has already received the funds and paid the note off, CFO Rebecca Clary said during the investor call. 

Q3 Results 

Globalstar raised the low end of its 2024 revenue guidance after posting record revenue in the third quarter of 2024 with increased service revenue from the Apple deal. 

Globalstar announced its third quarter results on Nov. 7, reporting total revenue for the third quarter of $72.3 million, an increase of 25% year-over-year. This growth included performance-based bonuses, including $7.5 million associated with 2023 and first half of 2024 performance.

Net income was $9.9 million for the third quarter of 2024, compared to net loss of $6.2 million for the prior year’s quarter. 

Globalstar posted a major bump to adjusted EBITDA, which increased 34% year-over-year to $42.8 million with an increase in high-margin service revenue. 

Globalstar updated its financial outlook after this performance, raising the bottom end of guidance. Revenue in 2024 is now expected between $245 million and $250 million (up from $235 million). Globalstar also increased the expected adjusted EBITDA margin from 53% to 54%.