Financial Data and Key Metrics Changes - Operational EBITDA increased by 10% in Q3 2025 to $136.6 million, driven by revenue from recurring services and engineering support [21] - Service revenue rose by 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services [22] - Voice and data revenue increased by 4% year-over-year to $59.9 million, reflecting price increases implemented in July [22] - Commercial IoT revenue totaled $46.7 million, up 7% from the previous year [22] - Government service revenue modestly increased to $26.9 million, reflecting a step-up in the EMSS contract with the U.S. Government [24] Business Line Data and Key Metrics Changes - Commercial broadband revenue decreased by 17% year-over-year, attributed to a non-maritime contract that was not renewed [22] - Hosting and other data services revenue rose by 14% to $18.7 million, driven by an increase in PNT services [23] - Subscriber equipment sales were $21.5 million, slightly down from the prior year [26] - Engineering and support revenue increased to $40.2 million from $30.7 million in the previous year [27] Market Data and Key Metrics Changes - The company anticipates full-year service revenue growth to be approximately 3% and OIBDA guidance between $495 million and $500 million [27] - The IoT business is expected to grow below 10% for the full year, with a modest increase in Q4 [30] - The decline in broadband revenue is expected to continue into Q4, trending closer to 8% [31] Company Strategy and Development Direction - The company plans to focus on unique specialized services in the satellite industry and will not participate in price-driven commodity markets [7][9] - Iridium NTN Direct is being developed as a new standards-based D2D service to access a larger market opportunity [9] - The company aims to invest in regulated applications where demand for safety services is growing, particularly in maritime and aviation [10] - Iridium is exploring acquisitions in adjacent areas that complement its existing services [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition in the satellite market due to the proposed acquisition of EchoStar Spectrum by StarLink [6] - The company remains confident in its ability to grow revenues despite the competitive landscape and plans to enhance its market position [7] - Management expects to generate $1.5 billion to $1.8 billion in total cash flows from 2026 through 2030, providing flexibility for growth initiatives [18] Other Important Information - The company has paused its share repurchase program to emphasize strategic growth initiatives while continuing its quarterly dividend program [18] - Iridium signed over 70 new technology and distribution partners since the beginning of the year, indicating strong growth potential [19] - The company expects to pay cash taxes of less than $10 million per year through 2027, enhancing cash generation [33] Q&A Session Summary Question: Follow-up on strategic options and M&A timeline - Management indicated that while they have not been a big acquisition company, they are looking at complementary areas for potential M&A, but specific timing is uncertain [41][44] Question: Business lines insulated from competitive risk - No business is completely insulated, but areas like cockpit safety services and PNT are considered well protected due to regulatory barriers and established credibility [50][52] Question: Breakdown of voice and data segment users - The majority of voice and data users are industrial or security-focused, with minimal leisure or casual users [55] Question: Update on IoT subscriber base - Approximately 900,000 of the IoT subscriber base are personal users, but the majority are industrial users requiring robust devices [60] Question: Impact of broadband contract loss - The loss of a non-maritime contract impacted broadband revenue, but new products are expected to stabilize this segment [68] Question: Nature of agreement with Deutsche Telekom - The agreement with Deutsche Telekom relates to roaming arrangements for Iridium NTN Direct, which is currently in testing [72][75]

Core Insights - Iridium Communications reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of +34.62% [1][2] - The company achieved revenues of $226.94 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.29% and up from $212.77 million year-over-year [2] - Iridium has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Financial Performance - The current consensus EPS estimate for the upcoming quarter is $0.26, with expected revenues of $223.28 million, while the estimate for the current fiscal year is $0.98 on revenues of $879.27 million [7] - Iridium shares have declined approximately 32.3% year-to-date, contrasting with the S&P 500's gain of 13.9% [3] Market Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The Zacks Rank for Iridium is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] - The Satellite and Communication industry, to which Iridium belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Subscriber Growth - As of September 30, 2025, the company had approximately 2,542,000 billable subscribers, an increase of 60,000 or 2% from 2,482,000 subscribers as of September 30, 2024[94]. Revenue Performance - Total revenue for the three months ended September 30, 2025, was $226.9 million, a 7% increase from $212.8 million in the same period of 2024[97]. - Service revenue increased by $5.4 million or 3% to $165.2 million, while engineering and support services revenue rose by $9.4 million or 31% to $40.2 million[97]. - Total revenue for the nine months ended September 30, 2025, was $658.7 million, an increase of $41.0 million, or 7%, compared to the prior year period[113]. Income and Profitability - Operating income for the three months ended September 30, 2025, was $70.1 million, a 28% increase from $54.9 million in the same period of 2024[97]. - Net income for the three months ended September 30, 2025, was $37.1 million, representing a 52% increase from $24.4 million in the prior year[97]. - Net income for the nine months ended September 30, 2025, was $89.5 million, an increase of 17.1% compared to $76.4 million in the prior year period[128]. Expenses and Costs - Cost of services (exclusive of depreciation and amortization) increased by $23.4 million, or 18%, for the nine months ended September 30, 2025, primarily due to increased work under government engineering contracts[118]. - Research and development expenses decreased by $5.3 million, or 26%, for the nine months ended September 30, 2025, based on decreased spending on device-related features[120]. - Selling, general and administrative expenses decreased by $11.6 million, or 9%, for the nine months ended September 30, 2025, primarily due to lower equity compensation costs[121]. Tax and Interest - Income tax expense for the three months ended September 30, 2025, was $10.0 million, compared to $6.0 million for the prior year period, primarily due to increased pre-tax book income[110]. - Income tax expense increased to $19.6 million for the nine months ended September 30, 2025, from $18.5 million in the prior year, primarily due to increased pre-tax book income[126]. - Interest expense, net decreased by $1.7 million, or 7%, for the three months ended September 30, 2025, primarily reflecting fees from the prior year that did not recur[108]. Cash Flow and Investments - Cash provided by operating activities increased by $20.3 million to $291.5 million for the nine months ended September 30, 2025, compared to $271.2 million in the prior year[143]. - Cash used in investing activities decreased by $89.5 million to $66.8 million for the nine months ended September 30, 2025, compared to $156.3 million in the prior year, mainly due to the absence of the Satelles acquisition[145]. Shareholder Returns - Total dividends paid during the nine months ended September 30, 2025, were $46.9 million, slightly down from $49.1 million in the prior year[141]. - The company repurchased 1.9 million shares of common stock at a total cost of $50.0 million during the quarter, with $245.3 million remaining available for repurchase[142]. Financial Position - As of September 30, 2025, total cash and cash equivalents were $88.5 million, down from $93.5 million as of December 31, 2024[130]. - The Term Loan balance was $1,774.7 million as of September 30, 2025, with an interest rate of SOFR plus 2.25%[134]. - The company has non-cancelable purchase obligations of approximately $11.6 million for inventory purchases due within the next twelve months[139]. Strategic Initiatives - The company acquired Satelles, Inc. in Q2 2024, which is expected to generate substantial growth in service revenue from government and commercial customers[92]. - The company plans to focus on specialized services and evaluate potential acquisitions to support new revenue streams amid increased competition from SpaceX[95]. Accounts Management - Accounts receivable are due from both domestic and international customers, with credit evaluations performed to assess financial conditions[153]. - Reserves are recorded to provide for estimated credit losses related to accounts receivable[153]. - Accounts payable are owed to both domestic and international vendors[153].

FOR RELEASE Thursday, October 23, 2025 Investor Contact: Press Contact: Kenneth Levy Iridium Communications Inc. +1 (703) 287-7570 ken.levy@iridium.com Jordan Hassin Iridium Communications Inc. +1 (703) 287-7421 jordan.hassin@iridium.com Net income was $37.1 million, or $0.35 per diluted share, for the third quarter of 2025, as compared to net income of $24.4 million, or $0.21 per diluted share, for the third quarter of 2024. Operational EBITDA ("OEBITDA") for the third quarter was $136.6 million, as compar ...

Core Insights - Iridium Communications Inc. reported strong financial results for Q3 2025, with total revenue of $226.9 million, a 7% increase compared to Q3 2024 [3][4] - The company continues to focus on growth markets, particularly in government and critical infrastructure, which is expected to drive resilient financial results [2][12] - Iridium's cash flow supports a 5% increase in its quarterly dividend, with plans for continued growth in dividends and strategic investments [2][9] Revenue Performance - Total revenue for Q3 2025 was $226.9 million, comprising $165.2 million in service revenue and $61.7 million from equipment sales and engineering projects [3] - Service revenue grew by 3% year-over-year, representing 73% of total revenue [3] - Commercial service revenue was $138.3 million, up 4% from the previous year, while government service revenue increased by 1% to $26.9 million [11][17] Subscriber Growth - The company ended Q3 2025 with 2,542,000 total billable subscribers, a 2% increase from the previous year [5][26] - Commercial IoT subscribers drove growth, with a 5% increase year-over-year [11] - Government voice and data subscribers decreased by 29% year-over-year, reflecting a decline in military and federal government contracts [11][26] Operational Performance - Net income for Q3 2025 was $37.1 million, or $0.35 per diluted share, compared to $24.4 million, or $0.21 per diluted share, in Q3 2024 [4][18] - Operational EBITDA for Q3 2025 was $136.6 million, a 10% increase from the prior year [4][18] - The company reported capital expenditures of $21.5 million for the quarter, with a gross term loan debt of $1.8 billion [8][24] Future Outlook - Iridium expects total service revenue growth of approximately 3% for the full year 2025, with OEBITDA projected between $495 million and $500 million [17] - The company anticipates cash taxes of less than $10 million per year through 2027 and aims to reduce net leverage below 3.5 times OEBITDA in 2025 [17] - Engineering and support revenue is expected to be materially higher than in 2024, driven by increased activity with the U.S. government [11][17]

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Core Insights - Iridium Communications Inc. has been selected by the U.S. Department of Transportation for a contract to support the deployment of Iridium's Positioning, Navigation, and Timing (PNT) services across the United States in collaboration with T-Mobile [1][2] - The partnership aims to enhance the resilience of 5G networks by providing complementary timing synchronization, which is crucial for maintaining service reliability and data integrity [2][3] Group 1 - The U.S. Department of Transportation's CPNT Action Plan focuses on evaluating commercially available PNT technologies to improve the resilience of critical infrastructure, including 5G networks [2] - T-Mobile will expand its installation of Iridium PNT receivers to 90 additional live 5G network sites, which will help protect against GPS disruptions [2][4] - Iridium's PNT signals offer sub-100-nanosecond accuracy and are significantly stronger than traditional GNSS systems, providing reliable service even indoors [4] Group 2 - The collaboration with T-Mobile highlights the effectiveness of Iridium's PNT solutions and positions them as a gold standard for timing synchronization services [3] - T-Mobile will conduct user equipment exercises at its testing range to evaluate the performance of the PNT services [3] - Iridium's low-Earth orbit satellite constellation ensures global connectivity and weather resilience for its PNT services [4][5]

Core Insights - Iridium Communications Inc. (NASDAQ:IRDM) is a prominent player in the global satellite communications industry, providing voice and data services with a unique global coverage through its satellite constellation [1][6] - The company has experienced slight short-term stock price declines, but its long-term growth prospects remain strong, with an estimated growth potential of 33.55% [2][3][6] - The Piotroski Score of 8 indicates strong financial health and solid fundamentals, positioning the company well for future growth opportunities [4][6] - A target price of $25 has been set for IRDM, suggesting confidence in the company's ability to rebound and capitalize on growth opportunities, especially after recently touching a local minimum [5][6]

Core Viewpoint - Iridium Communications (IRDM) stock is highlighted as a compelling investment opportunity due to its growth, strong cash generation, and significant valuation discount [1]. Financial Performance - The company has a free cash flow yield of 16.2%, indicating robust cash generation capabilities [5]. - Revenue growth over the last 12 months stands at 7.6%, suggesting an increase in cash reserves [5]. Valuation Metrics - Currently, IRDM stock is trading at a substantial discount, being 46% below its 3-month high, 47% below its 1-year high, and 59% below its 2-year high [5]. Market Context - The stock has experienced significant declines in the past, including a 31% drop during the Global Financial Crisis, nearly 30% during the 2018 correction, a 44% decline during the COVID pandemic, and a nearly 47% drop due to inflation shocks [8]. - Despite solid fundamentals, the stock is not immune to market volatility and can decline even in favorable market conditions [9].

Core Insights - Iridium Communications Inc. has integrated its data services into Qualcomm's Snapdragon Mission Tactical Radio (MTR) for U.S. government and allied users, enhancing satellite communication capabilities in challenging environments [1][2][4]. Group 1: Integration and Capabilities - The integration allows Snapdragon MTR-equipped devices, including handheld radios and autonomous vehicles, to utilize Iridium's reliable L-band satellite communications, especially in areas where terrestrial networks are compromised [2][3]. - The Snapdragon MTR can support multiple Iridium services, such as Short Burst Data (SBD) for low-latency messaging and Iridium Burst for simultaneous broadcasts to numerous devices, enhancing global connectivity [3][4]. Group 2: Government Applications and Future Developments - Devices with integrated Iridium services will be available through the Enhanced Mobile Satellite Services (EMSS) program, providing secure satellite communication access for approved government users [4][5]. - Iridium and Qualcomm are also working on making Iridium data services available via the Snapdragon X75 5G Modem-RF System, targeting government partners for unique satellite connectivity solutions [5]. Group 3: Company Background - Iridium Communications Inc. operates the only mobile voice and data satellite communications network that provides global coverage, enabling real-time connections across various markets [7]. - In 2024, Iridium expanded its capabilities by acquiring Satelles, enhancing its positioning, navigation, and timing (PNT) services [7].