Iridium(US:IRDM)2025-04-22 11:00Financial Performance - Iridium reported Q1 2025 net income of $30.4 million, or $0.27 per diluted share, up from $19.7 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 $214.9 million, a 5% increase compared to the same period in 2024, with service revenue contributing $154.3 million and equipment revenue at $60.6 million [2]. - Total revenue for Q1 2025 was $214,878,000, representing a 5% increase from $203,853,000 in Q1 2024 [21]. - Total service revenue increased by 4% to $154,292,000 in Q1 2025, up from $148,577,000 in Q1 2024 [22]. - Operational EBITDA for Q1 2025 was $122,118,000, a 6% increase compared to $115,014,000 in Q1 2024 [22]. - Net income for Q1 2025 was $30,412,000, up from $19,653,000 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 $43.8 million [8]. - IoT data service revenue grew by 11% to $43,856,000 in Q1 2025, compared to $39,455,000 in Q1 2024 [22]. - Average Revenue Per User (ARPU) for IoT data increased by 2% to $7.75 in Q1 2025, compared to $7.57 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 $490 million and $500 million, compared to $470.6 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 $70.0 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 $1,772,281,000 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, slightly up from $154,082,000 in Q1 2024 [21]. - Capital expenditures for Q1 2025 were $24,546,000, 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].