v3.26.1
Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue
4. REVENUE

Disaggregation of Revenue

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

Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Service revenue:
Wholesale capacity services$40,114 $42,385 $86,381 $79,094 
Subscriber services
Commercial IoT7,512 7,051 14,962 13,631 
SPOT8,604 9,224 17,259 18,595 
Duplex2,715 3,677 5,291 7,129 
Government and other services1,053 879 2,806 1,834 
Total service revenue59,998 63,216 126,699 120,283 
Total subscriber equipment sales4,774 3,932 8,137 6,897 
Total revenue$64,772 $67,148 $134,836 $127,180 

"Wholesale capacity services" revenue in the above table includes revenue associated with the Updated Services Agreements and Service Agreements, as applicable. 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 3: 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 (in thousands):

As of:
June 30, 2026December 31, 2025
Accounts receivable, net of allowance for credit losses:
Subscriber and other accounts receivable
$15,583 $15,070 
Wholesale capacity accounts receivable4,946 4,906 
Total accounts receivable, net of allowance for credit losses$20,529 $19,976 

The Company has entered into a satellite procurement agreement for the replacement satellites and two launch services agreements to launch the replacement satellites to support the Phase 2 Service Period. The replacement satellites purchased under the satellite procurement agreement are intended to replace 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 over the design life of the replacement satellites beginning with the initiation of service for the Phase 2 Service Period. Based on construction in progress recorded through June 30, 2026, the Company expects to bill $384.2 million associated with the Phase 2 Service Period. Refer to Note 10: 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 (in thousands):

As of:
June 30, 2026December 31, 2025
Short-term contract liabilities:
Subscriber and other contract liabilities
$16,464 $17,091 
Wholesale capacity contract liabilities, net of contract asset
39,715 44,929 
Total short-term contract liabilities$56,179 $62,020 
Long-term contract liabilities:
Subscriber and other contract liabilities
$1,159 $1,296 
Wholesale capacity contract liabilities, net of contract asset1,028,207 805,634 
Total long-term contract liabilities$1,029,366 $806,930 
Total contract liabilities$1,085,545 $868,950 

For subscriber and other contract liabilities, the amount of revenue recognized during the six months ended June 30, 2026 and 2025 from performance obligations included in the total contract liability balance at the beginning of these periods was $10.4 million and $11.4 million, respectively. For wholesale capacity contract liabilities, the amount of revenue recognized during the six months ended June 30, 2026 and 2025 from performance obligations included in the total contract liability balance at the beginning of these periods was $36.4 million and $31.3 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 (in thousands):

As of:
June 30, 2026December 31, 2025
Wholesale capacity contract liabilities, net:
Additional consideration associated with the 2023 Funding Agreement (1)
$6,020 $6,920 
Advanced payments for services expected to be performed with the ground spare satellite launched in June 202219,275 20,155 
Advanced payments contractually owed for services expected to be performed with the replacement satellite constellation prior to the Phase 2 Service Period919 3,924 
Advanced payments for the quarterly access fee, service-related operating and capital expenditures and other services
40,873 37,682 
Advanced payments under the Infrastructure Prepayment (See Note 3: Special Purpose Entity)
813,400 708,593 
Additional consideration associated with the Updated Services Agreements (2)
98,704 53,504 
Additional consideration associated with the 2024 Debt Repayment (3)
58,780 — 
Other advanced payments associated with future performance obligations (4)
75,739 60,674 
Contract asset (5)
(45,788)(40,889)
Wholesale capacity contract liabilities, net$1,067,922 $850,563 

(1)Includes additional consideration associated with the below-market interest rate within the 2023 Funding Agreement (as defined in Note 7: Long-Term Debt and Other Financing Arrangements below). This consideration will be recognized over the estimated Phase 2 Service Period. Refer to Note 7: Long-Term Debt and Other Financing Arrangements for discussion of the payoff of the 2021 Funding Agreement during March 2026.
(2)Primarily represents additional consideration for the implied economic benefit to Globalstar for receiving payments in advance of service. This consideration primarily includes an estimate of the significant financing component totaling $92.3 million related primarily to the Infrastructure Prepayment. The Company expects to recognize this consideration over the estimated Extended MSS Network service period.
(3)Includes additional value recognized upon adoption of ASU 2025-07 associated with the rights and privileges within the 2024 Debt Repayment (as defined in Note 7: Long-Term Debt and Other Financing Arrangements below). The Company expects to recognize this consideration over the estimated Extended MSS Network service period.
(4)Includes primarily: a) advanced service payments totaling $60.0 million pursuant to the Updated Services Agreements, which provide for a portion of annual service fees 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. These advanced payments will be recognized during the Extended MSS Network service period.
(5)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 and totaled $40.8 million as of June 30, 2026.