Welcome to the Globalstar First Quarter 2025 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your first speaker today Rebecca Clary, CFO. Please go ahead.

Thank you. Operator, and good afternoon everyone. Before we begin, please note that today's call contains forward looking statements intended to fall within the Safe Harbor provided under the Securities Laws. Factors that could cause the results to differ materially are described in the risk factors section of Globalstar's SEC filings, including its annual report on Form 10K for the financial year ending 2024, and its other SEC filings, as well as today's earnings release, also note that management may reference EBITDA, adjusted EBITDA, free cash flow, or adjusted free cash flow on this call, which are financial measures not recognized under US GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in the earnings release, which is available on our website. I'll begin with a review of our financials, before touching on tariffs and our outlook, I'll then turn it over to Paul to cover key operational updates. Total revenue increased 6% to $60 million compared to the prior year period of 56.5 million service revenue increased 7% driven primarily by wholesale capacity services. Additionally, in commercial IoT, we are pleased to continue to see increases in the average number of subscribers, a high level of customer engagement and the adoption of our IoT devices and service offerings. The increase in revenue contributed to higher adjusted EBITDA, which was up 3% to $30.4 million compared to the prior year's first quarter of $29.6 million. Partially offsetting the effect of the revenue increase were certain cost increases, including expenses incurred to continue to develop and enhance our XCOM RAN product offering. Higher cash costs to support XCOM negatively impacted the change in adjusted EBITDA by 1.3 million, an adjusted EBITDA margin by approximately 200 basis points compared to…

Thanks, Rebecca, it's great to be on the call with all of you today, and I'm pleased to share our progress to start the years. Feel like we executed our plan well. So we continue to see demand for our suite of products and services, with new customers and use cases starting to come online. We've been working hard over the last several quarters to build a strategy and go to market approach to capture the opportunities and drive sustainable long term growth. This has included the launch of an investment in foundational assets with new and expanded partnerships and resulting in innovative products and solutions. We're continuing to bring in new team members with deep expertise in scaling businesses and progressing our wholesale business forward. We successfully launched our two way satellite, IoT solution via Globalstar's low earth orbiting satellite constellation. This marks a significant expansion beyond our traditional one way tracking capabilities, and addresses the rising global demand for reliable low power, low latency command and control systems across critical applications, including fleet tracking, asset monitoring and precision agriculture. This milestone reflects the success of our refocused product development team, who has streamlined priorities and accelerated innovation while leveraging our existing network infrastructure, low cost platform and new state of the art downlink to deliver competitive, commercial IoT solutions to the market quickly. I'm excited by the growth opportunities that we're aggressively pursuing on the space side of our business, now that we have removed the constraints that Globalstar's IoT business has been operating under for quite some time. Additionally, in the first quarter, we opened a new state of the art satellite Operations Control Center at our Covington, Louisiana headquarters. This facility significantly enhances our satellite fleet management capabilities, improves network performance and positions us for future…

[Operator Instructions]. Our first question comes from Mike Crawford of B. Riley Securities.

Thank you. I'm glad to hear you're looking to launch XCOM RAN commercially next quarter, and you remain bullish that's going to be profitable. Can you just walk us through any more of economics or assumptions regarding this business?

In terms of what? In terms of, I mean, we haven't made any announcements on forward looking revenues or so forth. I mean the issue with this is, as we've talked about, our primary initial customer is a very large retailer, and we're very engaged with them, but the sales cycle is long in these kinds of things. And I think we're very confident on moving forward but even in my Qualcomm days, like you never knew when a customer was going to push the button to launch it, often for factors that are completely outside of our control. So we are very engaged with them. Things are moving along. The system is working extremely well, and now we're, you know, kind of looking forward to that next step. We have expanded our direct sales capability in this area too. So we are looking for opportunities beyond the warehouse automation customer that we have right now, and we have gotten some initial contract on the government side as well, on this stuff too. So hopefully that turns into something larger as well.

Okay, Paul, thank you. Maybe I know you've been working to bring more vendors into the ecosystem, like maybe some lower cost radios, maybe to reduce overall bill of materials, that could maybe be something that attracts more interest, including from the large retail customer or others. Is that the progress there?

Yeah. I mean, we absolutely so what we demoed at Mobile World Congress was on our new radios that we're working or that that we built and now we will be commercially deploying. And, yeah, so that not only is it lower cost, but it also gives us a lot of flexibility in terms of the bands that we can cover. So those the ones that we showed off at MWC were Band 53 and CBRS. But as I mentioned in my script, we're super interested in the unlicensed cellular opportunities as well, and the ability to use Band 53 as sort of an anchor channel for that as well. And now we're talking about much larger bandwidths that we could conceivably coordinate and use for customers. So all these, these things are, you know, there's both cost and performance benefits out of having our own radios.

And then using band 53 or n53 as the anchor spectrum become any more or less important given some potential changes in the CBRS, band itself is coordinated with the U.S. Department of Defense?

Yeah, I think you know what's happened with CBRS is that it, you know, people thought it was going to really kick off the private network, cellular network business, and it's been less than expected. And so that's why we feel like having Band 53 is so important that we have something that we can guarantee is available for mission critical applications. And what I've said about private network, I mean, if you decide to use cellular, it's because you have a mission critical application. Otherwise you would have just used WiFi, but when you use it on CBRS, it's still not quite mission critical quality. I mean, it's better than WiFi, but it can come and go depending on whatever happens. So yeah, I think some of those changes may make it more available, but I think that we're in a really good position having a global band of spectrum that can be used as an anchor, like, that's a very differentiated position relative to other players in the market, and particularly when you're thinking about IoT applications, which are global. And so that's, yeah, we're super excited about all those kinds of opportunities, both on the space and the terrestrial side.

Okay, thank you. Just one last question for me is, well, it's really two parts one replenishment constellation. So it's great to hear that first anticipated launches later this year. When would you expect that to be completed, and thus triggering reimbursement of the CapEx that you've incurred to replenish your existing constellation? And then the second part would be when we might have these 50 or more satellites launched in the extended MSS network into operation? Thank you.

Yeah, so we haven't announced when we're launching the launch in the 50, so stay tuned. Obviously, that has -- we have other partners that are involved in making that decision. And the first one was, when will the service fees -- Rebecca you want to just talk to the financial implications?

Sure. The service fees will step up the fees that are tied to the CapEx for those replacement satellites will start being funded once, though that first batch is operational, so once they're providing service.

And that when 17 might be launched, I imagine that's going to be three or four launches to get them all up there?

We're expecting two, and the second launch has not been contracted yet, so more details to come on that.

[Operator Instructions]. Okay, I am showing no further questions at this time. I would now like to turn it back to Paul Jacobs, CEO for closing remarks.

Well, yes, I think we understood that today's earnings call was sort of impacted in terms of attendance by other earnings calls, it's a busy season right now, but we are going to be at a number of conferences coming up, so we'll get a good opportunity to interact with the investors and analysts then and appreciate Mike your comments and questions, and we'll see you soon. And I think, just to close, we really do have a differentiated position. I'm even more excited about it than I have been in the past. The fact that we were able to run over the air at Mobile World Congress was super exciting on the terrestrial side, because that's an extremely contested environment. A lot of companies there all trying to do stuff, and generally nobody is able to do anything over the air, that's significant and we really were able to do that, and that garnered a lot of attention for us. So that's why we also are excited to sort of step up our direct sales there. So yes, it's going to be an interesting year ahead, lot of opportunities, and we'll execute. And also the team's very focused on building out the network for our wholesale partner too. So stay tuned, and we'll continue to deliver on all these initiatives. Thanks very much everyone.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect you.