Key Highlights

● Holders may elect $90.00 in cash or 0.3210 Amazon shares, with cash capped at 40%.

● Closing is expected in 2027, subject to regulatory approvals and satellite milestones.

● Second quarter 2026 Revenue was $64.8 million with adjusted EBITDA of $26.0 million.

● Cash was $409.8 million against Debt principal of $423.7 million at June 30, 2026.

Globalstar, Inc. (NASDAQ:GSAT) operates a mobile satellite services network and is the subject of a definitive agreement under which Amazon (NASDAQ:AMZN) would acquire the company. Because of that pending transaction, ordinary Earnings analysis may carry less weight than deal terms, timing and conditions. Figures come from the April 14, 2026 transaction announcement and the second-quarter 2026 release dated August 6, 2026.

Cash or Stock at $90

Under the announced terms, Globalstar holders may elect $90.00 in cash or 0.3210 Amazon shares, with stock value capped at $90.00 and cash elections limited to 40% of shares, with excess converted to stock pro rata. The total consideration could fall by up to $110 million if Globalstar misses certain operational milestones. Closing is expected in 2027, subject to regulatory approvals and satellite replacement milestones, and holders of about 58% of voting power had already approved by written consent. For the second quarter ended June 30, 2026, revenue was $64.8 million, adjusted EBITDA was $26.0 million versus $35.8 million a year earlier, cash was $409.8 million and debt principal was $423.7 million. Globalstar did not provide a third-quarter date in the August release.

Guidance Suspended, Capex Stays High

The pending deal changed Globalstar's disclosure pattern. The August release stated that the company had suspended financial outlook and earnings calls because of the Amazon transaction, so investors have fewer forward guidance points than before. Capital spending remains heavy, at $208.3 million for the first six months of 2026, mainly for replacement satellites and the extended mobile satellite services network. The announcement also noted a separate Amazon and Apple (NASDAQ:AAPL) agreement for connectivity supporting iPhone and Apple Watch features, with continued support on Globalstar's constellations that MDA Space is manufacturing.

Service revenue was $60.0 million in the second quarter. Globalstar stated in its August release that it does not plan to hold future earnings calls, which may limit management commentary on the quarterly results. Debt principal of $423.7 million against cash of $409.8 million as of June 30, 2026 indicates a roughly balanced position, although Capital Expenditure on the new network continues at a high pace.

Approvals, Milestones and Stock Value

Investors may watch for regulatory developments, including filings and any approvals required before closing, as well as progress on the replacement satellite milestones that condition the transaction and could reduce consideration if missed. The value of the stock election depends on Amazon's share price, so the effective payout could differ from the $90.00 headline within the cap. A third-quarter report may still be filed even without a call, and investors may look at adjusted EBITDA trends, capital spending and cash against debt. Any change in the timing guidance of 2027, new disclosures in Merger proxy materials, or developments in Apple's satellite plans could also be relevant to how the situation is assessed. Timing of satellite deliveries from MDA Space could be a relevant operational marker.

A Long Road to Closing

Globalstar's profile is now defined largely by a pending Acquisition with conditions, regulatory steps and a long timeline, alongside ongoing satellite investment. Outcomes could differ from the announced terms, and no assurance exists that the transaction will close as described.