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Globalstar Bets on XCOM RAN: Could This Be the Next Big Growth Driver?
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Key Takeaways
Globalstar launched XCOM RAN, claiming at least 4x higher capacity than baseline 5G NR systems.
The firm completed its first 5G data call using XCOM RAN over n53 spectrum with 100/60 Mbps speeds.
Heavy XCOM RAN investment cut Q2 EBITDA by $1.9M, though 2025 revenue is guided at $260-$285M.
Globalstar, Inc. (GSAT - Free Report) , known for its satellite communications services, is making a strategic bet on XCOM’s Radio Access Network (RAN) technology as another key growth driver in its evolving portfolio. In February 2024, Globalstar announced the commercial availability of its XCOM RAN multipoint RAN for private wireless deployments, highlighting that it could deliver at least 4 times higher capacity compared to baseline 5G NR systems.
In December 2024, Globalstar achieved its first 5G data call using XCOM RAN over its n53 spectrum, reaching speeds of 100 Mbps downlink and 60 Mbps uplink. This experiment used prototype radios and 5G modules, and demonstrated that the combination of XCOM’s radio technology with licensed mid-band spectrum can support demanding, mission-critical applications. In August 2025, the company revealed that its XCOM RAN architecture would be used to evaluate high-capacity 5G systems tailored for defense and tactical environments.
Globalstar continues to advance the software-defined, end-to-end XCOM RAN solution, supported by strong technical validation and growing interest from prospective partners. Offering lower latency, greater spectral efficiency, easier deployment and dynamic spectrum sharing, XCOM RAN has the potential to significantly broaden Globalstar’s addressable market while enabling future hybrid satellite-terrestrial architectures.
In the second quarter, Globalstar invested heavily in the continued development and enhancement of XCOM RAN. These efforts, while increasing cash costs and pressuring adjusted EBITDA by approximately $1.9 million, also reduced the adjusted EBITDA margin by 300 basis points compared to the prior year. However, the company had anticipated these upfront costs and remains confident in the long-term profitability and strategic significance of the product.
For 2025, the company anticipates revenues to be in the range of $260-$285 million and expects adjusted EBITDA margins around 50%. However, the satellite and communications sector face intense competition, driven by rapid technological innovation and an increasing wave of new players entering the market alongside established providers. Players like Iridium Communications (IRDM - Free Report) and Gilat Satellite Networks (GILT - Free Report) are eyeing significant expansion of their addressable markets amid the increasing demand for global connectivity.
Taking a Look at IRDM & GILT Growth Drivers
Iridium STL, powered by Satelles, offers a stronger and more reliable timing and location service, available globally at low cost. Interest in this solution has grown significantly, and it’s expected to be a key growth driver through 2030 across civil and commercial markets. Iridium plans to build its next-generation network in the 2030s, delivering standards-based 5G/6G services directly to consumer devices for enhanced connectivity beyond cell towers. The network will also host Aireon and introduce space-based VHF services, supporting the aviation industry’s shift from ground-based to satellite communications. Also, the company aims to strengthen and expand its role as the global alternative for PNT across critical infrastructure, leveraging its spectrum assets, partner ecosystem and proven strategy to sustain long-term leadership.
Key catalysts over the next five years include TNT, NTN Direct and IoT, while by 2030, D2D, PNT, IoT and government are expected to push service revenues to Iridium’s $1 billion target. However, the company has cut its 2025 service revenue growth view to 3-5% (from 5-7%), citing the maritime broadband transition, USAID-related voice losses and a PNT revenue delay to 2026.
GILT offers advanced solutions across sectors like In-Flight Connectivity (IFC), defense and public safety. With rising global demand for defense SATCOM, driven by NGSO growth and geopolitical tensions, Gilat is well-positioned to capitalize on these trends through its deep expertise and continued investment in secure, high-performance satellite communication technologies. In August 2025, Gilat announced that its defense division, Gilat Defense, secured a multimillion-dollar contract from Israel’s Ministry of Defense. In the second quarter of 2025, Gilat’s Defense division strengthened its growth foundation amid rising global defense spending and demand for secure SATCOM solutions. In addition, Gilat DataPath secured a contract to provide field and technical services for the U.S. Army, starting with an initial order of more than $7 million.
For 2025, the company anticipates revenues to be in the range of $435 million to $455 million, up from the previous forecast of $415 million to $455 million. Adjusted EBITDA is anticipated between $50 million and $53 million compared with the earlier range of $47 million to $53 million.
GSAT stock is trading at a substantial premium, with a forward 12-month price/sales of 14.32X compared with the industry’s 1.37X.
Image Source: Zacks Investment Research
GSAT’s estimates are on an upward trajectory at present. The consensus mark for 2025 earnings has been revised up 77.1% to a loss of 8 cents per share over the past 60 days and the same for 2026 has moved north 200% to 1 cent.
Image: Bigstock
Globalstar Bets on XCOM RAN: Could This Be the Next Big Growth Driver?
Key Takeaways
Globalstar, Inc. (GSAT - Free Report) , known for its satellite communications services, is making a strategic bet on XCOM’s Radio Access Network (RAN) technology as another key growth driver in its evolving portfolio. In February 2024, Globalstar announced the commercial availability of its XCOM RAN multipoint RAN for private wireless deployments, highlighting that it could deliver at least 4 times higher capacity compared to baseline 5G NR systems.
In December 2024, Globalstar achieved its first 5G data call using XCOM RAN over its n53 spectrum, reaching speeds of 100 Mbps downlink and 60 Mbps uplink. This experiment used prototype radios and 5G modules, and demonstrated that the combination of XCOM’s radio technology with licensed mid-band spectrum can support demanding, mission-critical applications. In August 2025, the company revealed that its XCOM RAN architecture would be used to evaluate high-capacity 5G systems tailored for defense and tactical environments.
Globalstar continues to advance the software-defined, end-to-end XCOM RAN solution, supported by strong technical validation and growing interest from prospective partners. Offering lower latency, greater spectral efficiency, easier deployment and dynamic spectrum sharing, XCOM RAN has the potential to significantly broaden Globalstar’s addressable market while enabling future hybrid satellite-terrestrial architectures.
In the second quarter, Globalstar invested heavily in the continued development and enhancement of XCOM RAN. These efforts, while increasing cash costs and pressuring adjusted EBITDA by approximately $1.9 million, also reduced the adjusted EBITDA margin by 300 basis points compared to the prior year. However, the company had anticipated these upfront costs and remains confident in the long-term profitability and strategic significance of the product.
For 2025, the company anticipates revenues to be in the range of $260-$285 million and expects adjusted EBITDA margins around 50%.
However, the satellite and communications sector face intense competition, driven by rapid technological innovation and an increasing wave of new players entering the market alongside established providers. Players like Iridium Communications (IRDM - Free Report) and Gilat Satellite Networks (GILT - Free Report) are eyeing significant expansion of their addressable markets amid the increasing demand for global connectivity.
Taking a Look at IRDM & GILT Growth Drivers
Iridium STL, powered by Satelles, offers a stronger and more reliable timing and location service, available globally at low cost. Interest in this solution has grown significantly, and it’s expected to be a key growth driver through 2030 across civil and commercial markets. Iridium plans to build its next-generation network in the 2030s, delivering standards-based 5G/6G services directly to consumer devices for enhanced connectivity beyond cell towers. The network will also host Aireon and introduce space-based VHF services, supporting the aviation industry’s shift from ground-based to satellite communications. Also, the company aims to strengthen and expand its role as the global alternative for PNT across critical infrastructure, leveraging its spectrum assets, partner ecosystem and proven strategy to sustain long-term leadership.
Key catalysts over the next five years include TNT, NTN Direct and IoT, while by 2030, D2D, PNT, IoT and government are expected to push service revenues to Iridium’s $1 billion target. However, the company has cut its 2025 service revenue growth view to 3-5% (from 5-7%), citing the maritime broadband transition, USAID-related voice losses and a PNT revenue delay to 2026.
GILT offers advanced solutions across sectors like In-Flight Connectivity (IFC), defense and public safety. With rising global demand for defense SATCOM, driven by NGSO growth and geopolitical tensions, Gilat is well-positioned to capitalize on these trends through its deep expertise and continued investment in secure, high-performance satellite communication technologies. In August 2025, Gilat announced that its defense division, Gilat Defense, secured a multimillion-dollar contract from Israel’s Ministry of Defense. In the second quarter of 2025, Gilat’s Defense division strengthened its growth foundation amid rising global defense spending and demand for secure SATCOM solutions. In addition, Gilat DataPath secured a contract to provide field and technical services for the U.S. Army, starting with an initial order of more than $7 million.
For 2025, the company anticipates revenues to be in the range of $435 million to $455 million, up from the previous forecast of $415 million to $455 million. Adjusted EBITDA is anticipated between $50 million and $53 million compared with the earlier range of $47 million to $53 million.
GSAT’s Price Performance, Valuation and Estimates
GSAT’s shares have gained 83.9% in the past year compared with the Zacks Satellite and Communication industry's growth of 129.5%.
Image Source: Zacks Investment Research
GSAT stock is trading at a substantial premium, with a forward 12-month price/sales of 14.32X compared with the industry’s 1.37X.
Image Source: Zacks Investment Research
GSAT’s estimates are on an upward trajectory at present. The consensus mark for 2025 earnings has been revised up 77.1% to a loss of 8 cents per share over the past 60 days and the same for 2026 has moved north 200% to 1 cent.
Image Source: Zacks Investment Research
At present, GSAT sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.