Iridium(US:IRDM)2025-07-24 11:04Financial 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]