Group 1 - Iridium Communications Inc. will participate in the Oppenheimer 28th Annual Technology, Internet & Communications Conference on August 12, 2025, at 12:25 p.m. ET [1] - The presentation will be available via webcast on Iridium's Investor Relations website and will be archived for seven days [1] - Iridium is a leading provider of global voice and data satellite communications, enabling real-time connections globally [2] Group 2 - In 2024, Iridium acquired Satelles and announced the Iridium Satellite Time and Location service, expanding its service offerings [2] - Iridium's common stock trades on the Nasdaq Global Select Market under the ticker symbol IRDM [2] - The company is headquartered in McLean, Virginia, USA [2]

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)

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]