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Iridium(IRDM) - 2025 Q1 - Quarterly Results
IRDMIridium(IRDM)2025-04-22 11:00

Financial Performance - Iridium reported Q1 2025 net income of 30.4million,or30.4 million, or 0.27 per diluted share, up from 19.7million,or19.7 million, or 0.16 per diluted share in Q1 2024, representing a 54% increase in net income year-over-year [2]. - Total revenue for Q1 2025 was 214.9million,a5214.9 million, a 5% increase compared to the same period in 2024, with service revenue contributing 154.3 million and equipment revenue at 60.6million[2].−TotalrevenueforQ12025was60.6 million [2]. - Total revenue for Q1 2025 was 214,878,000, representing a 5% increase from 203,853,000inQ12024[21].−Totalservicerevenueincreasedby4203,853,000 in Q1 2024 [21]. - Total service revenue increased by 4% to 154,292,000 in Q1 2025, up from 148,577,000inQ12024[22].−OperationalEBITDAforQ12025was148,577,000 in Q1 2024 [22]. - Operational EBITDA for Q1 2025 was 122,118,000, a 6% increase compared to 115,014,000inQ12024[22].−NetincomeforQ12025was115,014,000 in Q1 2024 [22]. - Net income for Q1 2025 was 30,412,000, up from 19,653,000inQ12024,markingasignificantincrease[21].SubscriberGrowth−ThecompanyendedQ12025with2,443,000totalbillablesubscribers,a519,653,000 in Q1 2024, marking a significant increase [21]. Subscriber Growth - The company ended Q1 2025 with 2,443,000 total billable subscribers, a 5% increase from 2,333,000 in Q1 2024, driven by growth in commercial IoT [3]. - The number of total billable subscribers rose to 2,443 in Q1 2025, a 5% increase from 2,333 in Q1 2024 [23]. Revenue Breakdown - Commercial service revenue was 127.5 million, up 4% year-over-year, with commercial IoT data revenue increasing by 11% to 43.8million[8].−IoTdataservicerevenuegrewby1143.8 million [8]. - IoT data service revenue grew by 11% to 43,856,000 in Q1 2025, compared to 39,455,000inQ12024[22].−AverageRevenuePerUser(ARPU)forIoTdataincreasedby239,455,000 in Q1 2024 [22]. - Average Revenue Per User (ARPU) for IoT data increased by 2% to 7.75 in Q1 2025, compared to 7.57inQ12024[23].FutureOutlook−Iridiumexpectstotalservicerevenuegrowthof57.57 in Q1 2024 [23]. Future Outlook - Iridium expects total service revenue growth of 5% to 7% for full-year 2025, with total service revenue for 2024 at 614.9 million [13]. - The company anticipates OEBITDA for 2025 to be between 490millionand490 million and 500 million, compared to 470.6millionin2024[13].ShareholderReturns−Thecompanyplanstoincreaseitsquarterlydividendto470.6 million in 2024 [13]. Shareholder Returns - The company plans to increase its quarterly dividend to 0.15 per share starting in Q3 2025, marking a 5.5% increase from the previous dividend [10]. - Iridium repurchased approximately 2.4 million shares for 70.0millionduringthequarter,with70.0 million during the quarter, with 360.3 million remaining authorized for repurchase through December 2027 [11]. Debt and Expenses - The company reported a net debt of 1,772,281,000asofQ12025,anincreasefrom1,772,281,000 as of Q1 2025, an increase from 1,446,913,000 in Q1 2024 [22]. - Total operating expenses for Q1 2025 were 154,490,000,slightlyupfrom154,490,000, slightly up from 154,082,000 in Q1 2024 [21]. - Capital expenditures for Q1 2025 were 24,546,000,comparedto24,546,000, compared to 14,564,000 in Q1 2024 [22]. Leverage - Iridium's net leverage was 3.7 times trailing twelve months OEBITDA at the end of Q1 2025, with a target to reduce it below 4.0 times through 2026 [14].