What Globalstar, Inc. told the SEC could break it.

Globalstar imports subscriber equipment through its U.S. entity and re-exports it to its foreign subsidiaries, exposing it to U.S. import tariffs and duty-drawback recoverability. In the fourth quarter of 2025 it recognized a realized $1.1 million expense on tariffs for such equipment where previously recorded recoverable duty drawbacks are no longer deemed probable of being refunded, contributing to a 39% increase in cost of subscriber equipment sales for the year. Continued tariff escalation would further raise device costs and pressure equipment-sales margins.

“During the fourth quarter of 2025, we recognized $1.1 million in expense associated with tariffs on equipment imported by our U.S. entity and re-exported to our foreign subsidiaries that were previously recorded recoverable duty drawbacks but are no longer deemed probable of being refunded.”

Globalstar is materially reliant on a small number of key suppliers and vendors to construct and launch its satellites and to provide the equipment, component parts and other materials needed to operate its network — and notes that some of these suppliers are also competitors. Satellites are bespoke, long-lead-time assets with few qualified manufacturers and launch providers, so the loss of, a delay at, or price leverage from any key supplier (e.g. its satellite builder MDA Space or a launch provider) could disrupt the planned constellation replacement and its ability to maintain service. Electronics-industry shortages or cost increases could further pressure the business.

“We depend on a limited number of suppliers and vendors to construct and launch our satellites and provide us, directly or through other suppliers, with equipment, component parts and other materials required to operate our business and services relating to our operations, some of which are competitors.”