Core Insights - Iridium Communications reported Q2 2025 EPS of $0.20, missing the Zacks Consensus Estimate by 13% and down from $0.27 in the prior year due to a one-time gain of $19.8 million last year not recurring [1][9] - Quarterly revenues reached $216.9 million, an 8% increase year over year, driven by service revenues and equipment sales, beating consensus estimates by 1% [2][9] Revenue Breakdown - Total service revenues increased by 2% year over year to $155.6 million, contributing 72% to total revenues, with a subscriber base expansion driving the growth [3][4] - The commercial service segment accounted for 59% of total revenues, rising 2% to $128.8 million, supported by strong IoT performance [4] - Government service revenues grew by 1% to $26.8 million, attributed to a contractual rate increase with the U.S. Space Force [4] Equipment and Engineering Performance - Subscriber equipment sales declined by 15% to $19.5 million, aligning with company expectations, and are projected to remain flat for the full year [5] - Engineering and support revenues surged by 62% to $41.9 million, primarily due to increased U.S. government activity, indicating ongoing demand for Iridium's satellite expertise [6] Financial Metrics - Total operating expenses were $166.6 million, up from $157.4 million in the prior-year quarter, mainly due to higher service costs [7] - Operational EBITDA increased by 6% year over year to $121.3 million, reflecting strength in recurring service and engineering revenues [10] Subscriber and Liquidity Information - As of June 30, the company had 2,483,000 billable subscribers, a 3% increase from the previous year, supported by commercial IoT growth [10] - Total cash, cash equivalents, and marketable securities were $79.3 million, with $1.8 billion of net debt [11] Updated Outlook - The company lowered its full-year 2025 service revenue growth guidance from 5%-7% to 3%-5% due to several factors, including subscriber losses and delays in PNT revenues [12] - OEBITDA is still forecasted to be between $490 million and $500 million, an increase from $470.6 million in 2024 [13]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth prospects, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down selections [8] Stock Example: Iridium Communications (IRDM) - Iridium Communications, a satellite communications company, holds a 2 (Buy) Zacks Rank and a VGM Score of B [11] - The company has a Value Style Score of B, supported by a forward P/E ratio of 24.26, indicating attractive valuation metrics [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate to $1.04 per share, with an average earnings surprise of +27.1% [12]

Core Viewpoint - Iridium Communications (IRDM) has faced significant selling pressure, resulting in a 14.4% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential turnaround for the stock [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - IRDM's current RSI reading is 26.03, suggesting that the heavy selling pressure may be exhausting itself and a price reversal could be imminent [5]. - RSI serves as a momentum oscillator that helps identify potential price reversals, allowing investors to seek entry points for potential rebounds [3]. Group 2: Fundamental Analysis - Analysts have raised earnings estimates for IRDM, with a 1.1% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - IRDM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [8].

Core Insights - Iridium Communications reported revenue of $216.91 million for the quarter ended June 2025, reflecting a year-over-year increase of 7.9% and a surprise of +1.08% over the Zacks Consensus Estimate of $214.59 million [1] - The company's EPS was $0.20, down from $0.27 in the same quarter last year, resulting in an EPS surprise of -13.04% compared to the consensus estimate of $0.23 [1] Financial Performance Metrics - The average revenue per user (ARPU) for commercial voice and data was $46.00, slightly below the estimated $46.60 [4] - The ARPU for commercial IoT data was reported at $7.83, compared to the estimated $8.16 [4] - Total billable subscribers for commercial voice and data, IoT data, and broadband service reached 2.36 million, slightly below the estimated 2.37 million [4] - Total billable subscribers for government voice and data and IoT data service was 128 thousand, compared to the estimated 135.97 thousand [4] - Revenue from subscriber equipment was $19.46 million, significantly lower than the estimated $23.29 million, marking a year-over-year decline of -14.6% [4] - Service revenue totaled $155.57 million, slightly below the estimated $160.09 million, with a year-over-year increase of +2% [4] - Engineering and support service revenue was $41.88 million, exceeding the estimated $31.57 million, representing a year-over-year increase of +62.2% [4] - Commercial service revenue was $128.82 million, below the estimated $133.25 million, with a year-over-year increase of +2.3% [4] - Government service revenue was $26.75 million, in line with the estimated $26.73 million, reflecting a year-over-year change of +0.9% [4] - Hosted payload and other data service revenue was $14.55 million, below the estimated $15.99 million, with a year-over-year increase of +0.8% [4] - Government engineering and support service revenue was $39.48 million, exceeding the estimated $29.27 million, marking a year-over-year increase of +62.5% [4] - Commercial engineering and support service revenue was $2.4 million, surpassing the estimated $1.54 million, with a year-over-year increase of +58.2% [4] Stock Performance - Iridium's shares have returned +12.6% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Operational EBITDA increased by 6% in Q2 to $121.3 million, driven by revenue from engineering and support and recurring services [22] - Service revenue rose by 2% to $128.8 million, led by growth in IoT [22] - Commercial IoT revenue totaled $44.8 million in Q2, up 8% from the previous year [22] - Subscriber equipment sales decreased by 15% to $19.5 million [24] - The company updated its full-year service revenue growth guidance from 5%-7% to 3% [25] Business Line Data and Key Metrics Changes - Voice and data revenue rose by 1% to $56.8 million, with subscriber numbers remaining consistent [22] - Commercial broadband revenue declined by 6% to $12.7 million due to a shift from primary service to companion backup VSAT plans [23] - Engineering and support revenue increased significantly to $41.9 million, up from $25.8 million in the prior year [24] Market Data and Key Metrics Changes - Government service revenue increased modestly to $26.8 million, reflecting a step-up in EMSS contracts with the U.S. Government [23] - The maritime broadband business is transitioning to a companion service, impacting service revenue growth [7][25] Company Strategy and Development Direction - The company is focusing on investments in new revenue streams, including Iridium Certus IoT products and PNT services, to achieve a $1 billion service revenue target by 2030 [8][28] - The strategy includes expanding partnerships with mobile network operators and enhancing the product portfolio to address specific customer needs [10][94] - The company is also exploring next-generation network technologies to enhance service offerings [18][83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite short-term adjustments in service revenue guidance [28] - The company anticipates continued demand for PNT services as organizations address vulnerabilities in GPS systems [11][27] - Management highlighted the importance of capital investments and R&D to support future growth [17][31] Other Important Information - Capital expenditures for the year are expected to reach approximately $90 million, focusing on satellite software and cloud-based infrastructure [13] - The company has a cash balance of $79.3 million and a net leverage of 3.6 times OIBDA [28] Q&A Session Summary Question: Service revenue reduction guidance and maritime ARPU stabilization - Management indicated that maritime broadband is less than 10% of the business and will remain a solid foundation despite ARPU pressures [37][38] Question: Timing of PNT revenue and customer acquisition - Management noted that the timing of certain PNT revenues has shifted to next year, but the opportunity for growth remains strong [41][42] Question: FAA issues and Aireon service - Management is monitoring FAA developments and believes there is a significant opportunity for Aireon in the future [44] Question: IoT growth and annual growth deceleration - Management remains confident in achieving double-digit growth in IoT for the second half of the year, driven by new product developments [50][51] Question: Partnership with Amazon constellation - Management discussed the potential for partnerships with large commercial players to drive growth in industrial and mobility sectors [104]

Financial Data and Key Metrics Changes - Operational EBITDA increased by 6% in Q2 to $121.3 million, driven by revenue from engineering and support and recurring services [22] - Service revenue rose by 2% to $128.8 million, led by growth in IoT [22] - Commercial IoT revenue totaled $44.8 million in Q2, up 8% from the previous year [22] - Subscriber equipment sales decreased by 15% to $19.5 million [25] - The company updated its full-year service revenue growth guidance from 5%-7% to between 3% and 5% [26] Business Line Data and Key Metrics Changes - Voice and data revenue rose by 1% to $56.8 million, with subscriber numbers remaining consistent [22] - Commercial broadband revenue declined by 6% to $12.7 million due to a shift from primary service to companion backup plans [23] - Engineering and support revenue increased significantly to $41.9 million, reflecting growing work with the Space Development Agency [25] Market Data and Key Metrics Changes - Government service revenue modestly increased to $26.8 million, reflecting a step-up in EMSS contracts with the U.S. Government [24] - The maritime broadband business is transitioning to a companion service, impacting service revenue growth [6][26] Company Strategy and Development Direction - The company aims to achieve $1 billion in service revenue by 2030, focusing on investments in D2D, PNT, IoT, and government sectors [8][29] - New products like Iridium Certus IoT and NTN Direct are seen as core pillars for future growth [8][12] - The company is expanding its partner ecosystem, adding nearly 50 new business relationships since the start of 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite short-term adjustments in service revenue guidance [29] - The company is optimistic about the demand for PNT services, especially in light of vulnerabilities in GPS systems [11][28] - Management noted that capital expenditures will reach approximately $90 million this year, focusing on satellite software and cloud-based infrastructure [12][31] Other Important Information - The company plans to relocate its headquarters about three blocks away to accommodate growth [71] - A quarterly dividend payment of $0.14 per share was made, with an increase to $0.15 per share expected in Q3 [31] Q&A Session Summary Question: Service revenue reduction guidance and ARPU stabilization - Management indicated that broadband is less than 10% of the business and will remain a solid foundation despite ARPU pressures [38][39] Question: Timing of PNT revenue - Management noted that some PNT revenue slipped into next year but remains optimistic about future growth [42][43] Question: FAA issues and opportunities - Management is monitoring FAA developments and believes there is a significant opportunity for Aireon services in the future [45] Question: IoT data line growth and acceleration - Management expressed confidence in double-digit growth for IoT in the second half of the year, citing new product developments [52][56] Question: Partnership with Amazon constellation - Management emphasized that growth in the commercial space relies on new services and partnerships, particularly in IoT and autonomous systems [104][106]

Core Insights - Iridium Communications reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.23 per share, and down from $0.27 per share a year ago, representing an earnings surprise of -13.04% [1] - The company posted revenues of $216.91 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.08% and up from $201.07 million year-over-year [2] - Iridium has outperformed the S&P 500 with an 11.8% gain since the beginning of the year compared to the S&P 500's 8.1% gain [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $224.34 million, and for the current fiscal year, it is $1.04 on revenues of $876.34 million [7] - The estimate revisions trend for Iridium was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Satellite and Communication industry is currently in the top 39% of Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by a factor of more than 2 to 1 [8] - Another company in the same industry, Globalstar, is expected to report a quarterly loss of $0.09 per share, with revenues projected at $62.67 million, reflecting a year-over-year increase of 3.8% [9]

[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)

FOR RELEASE Thursday, July 24, 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 "We're making great progress on our direct-to-device service with testing now underway and are also finding exciting, innovative applications for our new PNT service," said Matt Desch, CEO, Iridium. Desch added, "I'm pleased that the Board approved an increase to our September ...

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]