v3.25.1
Revenue
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue
3. REVENUE

Disaggregation of Revenue

The following table discloses revenue disaggregated by type of product and service (amounts in thousands):

Three Months Ended
March 31, 2025March 31, 2024
Service revenue:
Wholesale capacity services$36,709 $31,212 
Subscriber services
Commercial IoT6,580 6,437 
SPOT9,371 10,243 
Duplex3,452 4,755 
Government and other services955 818 
Total service revenue57,067 53,465 
Total subscriber equipment sales2,965 3,015 
Total revenue$60,032 $56,480 

"Wholesale capacity services" revenue in the above table includes revenue associated with the Updated Services Agreements. As consideration for the services provided by Globalstar, payments include a fixed service fee, payments relating to certain service-related operating expenses and capital expenditures, additional fees related to expanded services, and potential bonus payments subject to satisfaction of certain licensing, service and other related criteria. For a discussion of the Updated Services Agreements, see Note 2: Special Purpose Entity.

"Government and other services" revenue in the table above includes revenue associated with engineering and other communication services, such as terrestrial spectrum and network services, government service contracts and teleport lease arrangements. The Company's largest network services agreement is with Parsons Corporation, a leading technology provider in the national security and global infrastructure markets, to utilize the Company's satellite network for a mission critical service for government applications.

Accounts Receivable

The Company records trade accounts receivable from its customers when it has a contractual right to receive payment either on demand or on fixed or determinable dates in the future. The Company's receivable balances by type and classification are presented in the table below, net of allowance for credit losses, and may include amounts related to earned but unbilled receivables (amounts in thousands):

As of:
March 31, 2025December 31, 2024
Accounts receivable, net of allowance for credit losses
Subscriber and other accounts receivable
$13,546 $14,829 
Wholesale capacity accounts receivable9,311 12,123 
Total accounts receivable, net of allowance for credit losses$22,857 $26,952 

The Company entered into a satellite procurement agreement and a launch services agreement to support the Phase 2 Service Period. The new satellites purchased under the satellite procurement agreement are intended to replenish the Company's HIBLEO-4 U.S.-licensed system. Pursuant to the Service Agreements, payments are expected to be made to the Company by the Customer on a straight-line basis once the new satellites are successfully utilized to provide services for the Phase 2 Service Period. Based on construction in progress incurred by the Company, amounts expected to be billed by the Company associated with the Phase 2 Service Period of the Service Agreements were $252.5 million as of March 31, 2025. Refer to Note 8: Commitments and Contingencies for additional information regarding these agreements.
Contract Liabilities

Contract liabilities, which are included in deferred revenue on the Company’s consolidated balance sheet, represent the Company’s obligation to transfer service or equipment to a customer from whom the Company has previously received consideration. The Company's contract liabilities by type and classification are presented in the table below (amounts in thousands).

As of:
March 31, 2025December 31, 2024
Short-term contract liabilities
Subscriber and other contract liabilities
$17,923 $19,710 
Wholesale capacity contract liabilities, net of contract asset
36,101 41,491 
Total short-term contract liabilities$54,024 $61,201 
Long-term contract liabilities
Subscriber and other contract liabilities
$1,350 $1,431 
Wholesale capacity contract liabilities, net of contract asset324,743 286,740 
Total long-term contract liabilities$326,093 $288,171 
Total contract liabilities$380,117 $349,372 

For subscriber and other contract liabilities, the amount of revenue recognized during the three months ended March 31, 2025 and March 31, 2024 from performance obligations included in the contract liability balance at the beginning of these periods was $6.6 million and $7.4 million, respectively. For wholesale capacity contract liabilities, the amount of revenue recognized during the three months ended March 31, 2025 and March 31, 2024 from performance obligations included in the contract liability balance at the beginning of these periods was $28.5 million and $23.6 million, respectively.

The duration of the Company’s contracts with subscribers is generally one year or less. The Updated Services Agreements have no expiration date; therefore, the related contract liabilities may be recognized as revenue over various periods according to when the related performance obligation is satisfied.

The components of wholesale capacity contract liabilities are presented in the table below (amounts in thousands).

As of:
March 31, 2025December 31, 2024
Wholesale capacity contract liabilities, net:
Additional consideration associated with the 2021 and 2023 Funding Agreements (1)
$11,139 $12,247 
Advanced payments for services expected to be performed with the ground spare satellite launched in June 202221,474 21,914 
Advanced payments contractually owed for services expected to be performed with the next-generation satellite constellation prior to the Phase 2 Service Period7,702 8,950 
Advanced payments for the Phase 1 Service Period fixed fee, service-related operating and capital expenditures and other services
24,429 25,170 
Advanced payments under the Infrastructure Prepayment (See Note 2: Special Purpose Entity)
278,043 278,043 
Additional consideration associated with the Updated Services Agreements (2)
22,556 7,288 
Other advanced payments associated with future performance obligations (3)
40,782 18,284 
Contract asset (4)
(45,281)(43,665)
Wholesale capacity contract liabilities, net$360,844 $328,231 

(1)Includes additional consideration associated with the below-market interest rates within the 2021 Funding Agreement and 2023 Funding Agreement. This consideration will be recognized over the estimated Phase 1 and Phase 2 Service Periods.
(2)Includes additional consideration representing the implied economic benefit to Globalstar for receiving these payments in advance of service. This consideration includes: a) $10.8 million associated with the fee reduction mechanism embedded in the 2024 Debt Repayment and a portion of the Infrastructure Prepayment, and b) an estimate of the significant financing component totaling $11.9 million within these agreements. It is anticipated that this consideration will be recognized over the estimated Extended MSS Network service period.
(3)Includes primarily: a) advanced service payments received during the first quarter of 2025 totaling $22.5 million related to the Updated Services Agreements, which provide for annual service fees of $30 million to be accelerated and b) $13.3 million of make whole fees paid by Customer for the extinguishment of the 2023 13% Notes in 2024. This consideration will be recognized during the Extended MSS Network service period.
(4)Primarily includes warrants with an initial fair value at the time of issuance of $48.3 million which was recorded in equity with an offset to a contract asset on the Company's consolidated balance sheets. The fair value of the warrants is recorded as a reduction to revenue over time.