[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Financial%20Statements) Presents Iridium Communications Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025, covering balance sheets, operations, cash flows, and notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$2.57 billion** by June 30, 2025, from **$2.67 billion** at year-end 2024, primarily due to reduced cash Balance Sheet Summary (as of June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | **Total Assets** | **$2,568,111** | **$2,671,471** | | Cash and cash equivalents | $79,309 | $93,526 | | **Total Liabilities** | **$2,094,496** | **$2,094,834** | | Long-term secured debt, net | $1,809,169 | $1,757,767 | | **Total Stockholders' Equity** | **$473,615** | **$576,637** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2025 total revenue increased to **$216.9 million**, but net income decreased to **$22.0 million** due to a non-recurring prior-year gain Q2 2025 vs Q2 2024 Performance (Three Months Ended June 30) | Metric | Q2 2025 (In thousands) | Q2 2024 (In thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $216,906 | $201,067 | +7.9% | | Operating Income | $50,258 | $43,646 | +15.1% | | Net Income | $21,968 | $32,336 | -32.1% | | Diluted EPS | $0.20 | $0.27 | -25.9% | H1 2025 vs H1 2024 Performance (Six Months Ended June 30) | Metric | H1 2025 (In thousands) | H1 2024 (In thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $431,784 | $404,920 | +6.6% | | Operating Income | $110,646 | $93,417 | +18.4% | | Net Income | $52,380 | $51,989 | +0.7% | | Diluted EPS | $0.48 | $0.42 | +14.3% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow increased to **$190.7 million**, while cash used in investing decreased and financing activities increased, driven by repurchases and dividends Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (In thousands) | 2024 (In thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $190,696 | $152,540 | | Net cash used in investing activities | $(45,256) | $(137,719) | | Net cash used in financing activities | $(162,608) | $(22,845) | | **Net decrease in cash** | **$(14,217)** | **$(8,329)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, financial instruments, debt, equity, revenue, and related party transactions - The company's Term Loan balance was **$1.77 billion** as of June 30, 2025, bearing interest at SOFR plus 2.25% with a 0.75% SOFR floor and maturing in September 2030[39](index=39&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - The company repurchased **4.9 million shares** for **$135.0 million** in the first six months of 2025, with **$295.3 million** remaining available for repurchase under the current program[58](index=58&type=chunk)[60](index=60&type=chunk) - Total services revenue for H1 2025 was **$309.9 million**, with commercial services contributing **$256.4 million** and government services contributing **$53.5 million**[61](index=61&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial performance, including revenue, operating expenses, net income, liquidity, capital resources, debt, and cash flow [Overview of Our Business](index=18&type=section&id=Overview%20of%20Our%20Business) Iridium operates a 66-satellite LEO constellation for global mobile communications, expanded into PNT services, and grew billable subscribers to **2.48 million** by June 2025 - Iridium is the only commercial provider of communications services with true global coverage via its **66-satellite L-band constellation**[88](index=88&type=chunk)[89](index=89&type=chunk) - The company acquired Satelles, Inc. in Q2 2024 to enter the secure position, navigation, and timing (PNT) services market, which is expected to generate substantial growth[90](index=90&type=chunk) - Billable subscribers grew by **3% year-over-year** to approximately **2,483,000** as of June 30, 2025[92](index=92&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q2 2025 total revenue grew **8%** to **$216.9 million**, driven by Engineering and Support services, while net income decreased **32%** due to a non-recurring gain Q2 2025 vs Q2 2024 Revenue Breakdown | Revenue Stream | Q2 2025 ($M) | Q2 2024 ($M) | Change (%) | | :--- | :--- | :--- | :--- | | Services | 155.6 | 152.5 | +2% | | Subscriber equipment | 19.5 | 22.8 | -15% | | Engineering and support | 41.9 | 25.8 | +62% | | **Total Revenue** | **216.9** | **201.1** | **+8%** | - The significant increase in Engineering and Support revenue and associated costs was primarily due to increased work under government contracts, predominantly the contract with the Space Development Agency (SDA)[97](index=97&type=chunk)[99](index=99&type=chunk) - The decrease in Q2 2025 net income was primarily caused by a **$19.8 million** gain on the equity method investment in Satelles recorded in Q2 2024 upon its acquisition, which did not recur[108](index=108&type=chunk)[109](index=109&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity sources include cash from operations, **$79.3 million** cash on hand, and a **$100 million** Revolving Facility, with H1 2025 cash used for repurchases and dividends - Cash and cash equivalents decreased to **$79.3 million** from **$93.5 million** at year-end 2024, primarily due to share repurchases and dividends[127](index=127&type=chunk) - The company has a Term Loan with a balance of **$1.77 billion** maturing in 2030 and a Revolving Facility with **$50 million** outstanding maturing in 2028[128](index=128&type=chunk)[131](index=131&type=chunk)[137](index=137&type=chunk) - A **$28.5 million** excess cash flow prepayment in Q2 2025 has suspended required quarterly principal payments until the fourth quarter of 2026[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on its **$1.77 billion** Term Loan and **$50 million** Revolving Facility, partially mitigated by an interest rate cap - The company has an outstanding Term Loan of **$1.77 billion** and a Revolving Facility of **$50.0 million**, both subject to variable interest rates based on SOFR[146](index=146&type=chunk)[147](index=147&type=chunk) - An interest rate cap is in place to manage exposure on a notional amount of **$1.0 billion** of the Term Loan, providing a hedge if one-month SOFR exceeds **1.436%**[146](index=146&type=chunk) [Controls and Procedures](index=28&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[151](index=151&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter ended June 30, 2025[152](index=152&type=chunk) [Part II. Other Information](index=30&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=30&type=section&id=ITEM%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings beyond routine litigation incidental to its business - There are no material pending legal proceedings against the company[155](index=155&type=chunk) [Risk Factors](index=30&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes have occurred in the risk factors since the Annual Report on Form 10-K for December 31, 2024 - No material changes have occurred in the risk factors since the last Annual Report[157](index=157&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **2,553,517 shares** at **$25.45** per share, with **$295.3 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1-30 | 1,228,806 | $24.40 | | May 1-31 | 587,689 | $25.51 | | June 1-30 | 737,022 | $27.13 | | **Total** | **2,553,517** | **$25.45** | - The maximum value of shares that may yet be purchased under the plan is **$295.3 million** as of June 30, 2025[158](index=158&type=chunk) [Other Information](index=31&type=section&id=ITEM%205.%20Other%20Information) Timothy P. Kapalka, Chief Accounting Officer, adopted a Rule 10b5-1 trading plan for the potential sale of up to **5,833 shares** - Timothy P. Kapalka, Chief Accounting Officer, adopted a Rule 10b5-1 trading plan for the sale of up to **5,833 shares**[161](index=161&type=chunk)[162](index=162&type=chunk) [Exhibits](index=32&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1) and XBRL data files[166](index=166&type=chunk)

Financial Performance - Net income for Q2 2025 was $22.0 million, or $0.20 per diluted share, down from $32.3 million, or $0.27 per diluted share in Q2 2024[1] - Total revenue for Q2 2025 was $216.9 million, an 8% increase from the same period in 2024, with service revenue at $155.6 million, representing 72% of total revenue[1] - Operational EBITDA for Q2 2025 was $121.3 million, a 6% increase from $114.0 million in Q2 2024[1] - Total revenue for the first half of 2025 was $431.78 million, a 7% increase from $404.92 million in the first half of 2024[23] Subscriber Metrics - The company ended Q2 2025 with 2,483,000 total billable subscribers, a 3% year-over-year increase[2] - Total billable subscribers reached 2,483 thousand as of June 30, 2025, representing a 3% increase from 2,413 thousand in 2024[26] - IoT data subscribers increased by 5% to 1,924 thousand, while commercial voice and data subscribers remained stable at 415 thousand[26] - Total net billable subscriber additions for the three months ended June 30, 2025, were 40 thousand, a decrease of 50% compared to 80 thousand in 2024[26] Revenue Breakdown - Commercial service revenue was $128.8 million, up 2% from the prior year, while government service revenue grew 1% to $26.8 million[7][8] - Total service revenue for Q2 2025 reached $155.57 million, a 2% increase from $152.47 million in Q2 2024[22] - Commercial service revenue increased by 2% to $128.82 million in Q2 2025, compared to $125.97 million in Q2 2024[24] - Engineering and support revenue surged 62% to $41.9 million in Q2 2025, primarily due to increased activity with the U.S. government[13] Future Outlook - The company expects total service revenue growth of 3% to 5% for full-year 2025, down from previous guidance of 5% to 7%[14] - The company anticipates continued growth in total service revenue and operational EBITDA for 2025[21] Shareholder Actions - The Board approved a quarterly dividend increase of 5.5% for the third quarter of 2025, reflecting confidence in long-term growth[11] - The company repurchased approximately 2.6 million shares for $65.0 million during the quarter, with $295.3 million remaining authorized for repurchase[12] Debt and Capital Expenditures - Iridium's net leverage was 3.6 times trailing twelve months OEBITDA as of June 30, 2025, with a target to fall below 2.0 times by the end of the decade[15] - Net debt increased to $1.75 billion in Q2 2025 from $1.60 billion in Q2 2024[24] - Capital expenditures for Q2 2025 were $20.71 million, up from $12.44 million in Q2 2024[24] Subscriber Challenges - Subscriber equipment revenue decreased by 15% to $19.46 million in Q2 2025, compared to $22.78 million in Q2 2024[24] - Government voice and data subscribers decreased by 22% to 49 thousand, contributing to a total government subscriber decline of 10%[26] - The company reported a 100% decrease in net additions for broadband service, with a loss of 0.3 thousand subscribers in the first half of 2025[26] - The total government voice and data and IoT data service subscribers decreased by 58% in the three months ended June 30, 2025[26] - The company experienced a 71% decline in net additions for IoT data in the first half of 2025, with only 37 thousand new subscribers added[26] - Overall, the company is focusing on expanding its IoT data services while addressing challenges in government and broadband segments[26]

Core Insights - Iridium Communications Inc. reported a net income of $22.0 million for Q2 2025, down from $32.3 million in Q2 2024, primarily due to a one-time gain from the acquisition of Satelles, Inc. in the previous year [1][2] - Total revenue for Q2 2025 was $216.9 million, an 8% increase compared to the same period in 2024, with service revenue contributing $155.6 million and equipment sales generating $61.3 million [2][3] - The company ended the quarter with 2,483,000 total billable subscribers, reflecting a 3% year-over-year growth, driven mainly by the commercial IoT segment [3][4] Financial Performance - Operational EBITDA for Q2 2025 was $121.3 million, a 6% increase from $114.0 million in Q2 2024 [1][12] - The company’s commercial service revenue was $128.8 million, up 2% from the previous year, while government service revenue grew by 1% to $26.8 million [7][8] - Equipment revenue decreased by 15% to $19.5 million compared to $22.8 million in Q2 2024 [8] Subscriber Metrics - The total billable subscribers increased by 3% year-over-year, with commercial IoT data subscribers representing 82% of the commercial subscriber base [3][24] - Government voice and data subscribers decreased by 22% year-over-year to 49,000, while government IoT data subscribers remained flat [8][24] - Average revenue per user (ARPU) for commercial voice and data was $46, unchanged from the previous year, while IoT data ARPU increased to $7.83 from $7.70 [7][24] Business Highlights - Commercial services accounted for 59% of total revenue, with diverse markets including maritime, aviation, and emergency services [4][5] - The company is progressing on its direct-to-device service and exploring innovative applications for its new PNT service [4] - Iridium's Enhanced Mobile Satellite Services contract with the U.S. Space Force is valued at $738.5 million, providing satellite airtime services for federal government subscribers [6] Capital and Shareholder Returns - Capital expenditures for Q2 2025 were $20.7 million, with gross term loan debt at $1.8 billion [7][9] - The company declared a quarterly dividend of $0.15 per share for Q3 2025, marking a 5.5% increase from the previous year [9][10] - Iridium repurchased approximately 2.6 million shares for $65.0 million, with $295.3 million remaining authorized for repurchase through December 2027 [10] Outlook - The company updated its full-year 2025 service revenue growth outlook to between 3% and 5%, down from the previous guidance of 5% to 7% [11][15] - Full-year 2025 Operational EBITDA is expected to be between $490 million and $500 million [15] - The company aims to maintain net leverage below 4.0 times EBITDA through 2026, targeting a reduction to below 2.0 times by the end of the decade [15]

Core Viewpoint - Iridium Communications Inc. will host a conference call on July 24, 2025, to discuss its second-quarter 2025 financial results, with an earnings press release to be issued prior to the call [1][2]. Company Overview - Iridium Communications Inc. is a leading provider of global voice and data satellite communications, offering a unique mobile network that spans the entire globe [3]. - The company enables real-time connections between people, organizations, and assets, supported by a portfolio of reliable solutions for global communications [3]. - In 2024, Iridium acquired Satelles and announced the Iridium Satellite Time and Location® service, enhancing its service offerings [3]. Conference Call Details - The conference call is scheduled for July 24, 2025, at 8:30 a.m. Eastern Time, with participation available via a dedicated phone line [1]. - A replay of the webcast will be accessible approximately one hour after the call concludes, available on the investor relations section of the company's website [2].

Core Insights - AST SpaceMobile and Iridium Communications are leading satellite communications providers, with AST SpaceMobile developing a global cellular broadband network in space accessible by standard smartphones [1][4] - Iridium operates a large constellation of 66 LEO satellites, providing dedicated global voice and data communications services [2][10] AST SpaceMobile - AST SpaceMobile has launched its first five commercial satellites, named Bluebird, which feature the largest commercial communications arrays at 693 square feet [4] - The company holds over 3,650 patents related to its direct-to-cell satellite ecosystem, aiming to fill cellular coverage gaps [4][5] - Partnerships with major carriers like AT&T and Verizon enhance its market reach and funding for network development [5] - Despite significant growth, AST SpaceMobile faces challenges from macroeconomic conditions and competition from companies like SpaceX's Starlink [6][18] - ASTS has seen a 268% increase in stock price over the past year, with projected sales growth of 1314.6% in 2025 [8][15] Iridium Communications - Iridium's network utilizes a mesh architecture of 66 satellites, allowing for global service coverage and minimal ground infrastructure [2][10] - The company is expected to benefit from the introduction of new IoT transceivers and has a projected service revenue of over $100 million by 2030 [7][9] - Iridium's stock has increased by 14.6% over the past year, with a more modest sales growth projection of 5.4% for 2025 [8][15] - The company maintains a lower price-to-sales ratio of 3.57 compared to AST SpaceMobile's 68.13, indicating a more attractive valuation [16][18] Comparative Analysis - Both companies are expected to improve their sales in 2025, but Iridium has shown consistent revenue and EPS growth over the years [18] - AST SpaceMobile has outperformed Iridium in stock price growth, but Iridium's valuation metrics and earnings growth expectations make it a relatively better investment option [18]

Core Insights - Iridium Communications Inc. has appointed Monique Shivanandan to its Board of Directors, effective immediately [1][2] - Shivanandan brings extensive experience in cybersecurity and technology from her previous roles at HSBC, Chubb, Aviva, and Capital One [2][3] - She is recognized as an independent director and will serve on the Compensation Committee [3] Company Overview - Iridium Communications Inc. operates the only mobile voice and data satellite communications network that provides global coverage [3] - The company enables real-time connections for people, organizations, and assets worldwide [3] - In 2024, Iridium acquired Satelles and launched the Iridium Satellite Time and Location service [3]

Core Insights - New Iridium has successfully raised $2.65 million in seed financing to support its sustainable chemical innovation efforts [1][5] - The funding will accelerate the development of a low-cost, low-carbon platform technology and the construction of an industrial pilot facility with a capacity of 50 metric tons per year [2][3] Company Overview - New Iridium is a Colorado-based company founded in 2020, focusing on sustainable chemical manufacturing through innovative technologies [7] - The company aims to produce bio-based acetic acid and ethyl acetate, which have recently received USDA BioPreferred® certification for 100% bio-based content [2][3] Technology and Production - The company's process utilizes domestically sourced bio-ethanol as a renewable feedstock, leveraging existing bioethanol infrastructure to produce sustainable chemicals [3][7] - New Iridium's technology is designed for low-cost and low-carbon operation, providing scalable pathways to decarbonize critical segments of the chemical industry [3][6] Market Position and Future Plans - The seed round was led by Radicle Growth, indicating strong ties to the U.S. corn and bio-ethanol industries, and highlights New Iridium's recognition in the Corn Value Chain Challenge [5][6] - The company is positioned to advance a pipeline of CO₂-derived building block chemicals, further establishing its role in sustainable chemical production [7]

Core Insights - Iridium Communications Inc. has announced a partnership with Syniverse to support the rollout of Iridium NTN Direct service with mobile network operators (MNOs) globally [1][4] - The partnership aims to provide MNOs with a reliable solution for non-terrestrial network (NTN) services, integrating Iridium NTN Direct with Syniverse's global platform [1][4] Company Overview - Iridium Communications Inc. is a leading provider of global voice and data satellite communications, with a fully deployed satellite constellation and unmatched coverage [3][5] - The company has a history of providing reliable safety of life services and is headquartered in McLean, Virginia, trading on the Nasdaq under the ticker symbol IRDM [6] Industry Context - According to GSMA's 2025 Industry Survey, 85% of MNOs planning to pursue NTN services are looking for Low-Earth Orbit (LEO) solutions to extend their global coverage [2] - Iridium NTN Direct will offer direct-to-device (D2D) and narrow-band Internet of Things (NB-IoT) messaging for various applications, including consumer devices and industrial sectors [2][5] Partnership Details - The integration of Syniverse's system with Iridium's network is expected to simplify deployment for MNOs, ensuring consistency and security while accelerating access to non-terrestrial connectivity [4] - Syniverse has over 35 years of experience in mobile interoperability and serves approximately 600 carrier customers in 170 countries [4] Future Outlook - The first Iridium NTN Direct connected devices are planned to be available in 2026, with 3GPP Release 19 expected to be completed by the end of 2025 [5]

Core Viewpoint - Iridium Communications (IRDM) shares have increased by approximately 17.3% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1]. Earnings Report Summary - The most recent earnings report is essential for understanding the key drivers behind the stock's performance [1]. Estimates Movement - Fresh estimates for Iridium have remained flat over the past month, indicating no significant changes in expectations [2]. VGM Scores - Iridium has a strong Growth Score of A, but a lower Momentum Score of D, and a middle-range Value Score of C, resulting in an aggregate VGM Score of B, which is relevant for investors not focused on a single strategy [3]. Outlook - The company holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4].

Core Insights - Iridium Communications Inc. has launched a special U.S. government version of the Iridium® 9603 module designed for Enhanced Short Burst Data (ESBD), which provides low-latency and secure messaging services for the U.S. government and approved allies [1][2] Company Overview - Iridium is the only mobile voice and data satellite communications network that offers global coverage, enabling real-time connections between people, organizations, and assets [4] - The company is headquartered in McLean, Virginia, and its stock trades on the Nasdaq Global Select Market under the ticker symbol IRDM [4] Product Features - The Iridium 9603 ESBD module can replace the existing Iridium 9603 Short Burst Data® (SBD®) module and offers secure one- or two-way messaging with increased payload capacity for mobile-originated and mobile-terminated messages [1][2] - Applications for the ESBD module include command and control, image data transfer, and personnel and asset tracking [1] Strategic Importance - The new module enhances communication security for critical operations, ensuring that warfighters can exchange vital information confidently in various environments [2] - The Iridium network provides resilient L-band connectivity and global coverage, crucial for mission-critical communications for the Department of Defense and other federal agencies [3] Future Developments - The Iridium 9603 ESBD module is expected to be available to EMSS-approved value-added manufacturers in July [2]