Iridium(US:IRDM)2025-10-23 11:02Subscriber Growth - As of September 30, 2025, the company had approximately 2,542,000 billable subscribers, an increase of 60,000 or 2% from 2,482,000 subscribers as of September 30, 2024[94]. Revenue Performance - Total revenue for the three months ended September 30, 2025, was $226.9 million, a 7% increase from $212.8 million in the same period of 2024[97]. - Service revenue increased by $5.4 million or 3% to $165.2 million, while engineering and support services revenue rose by $9.4 million or 31% to $40.2 million[97]. - Total revenue for the nine months ended September 30, 2025, was $658.7 million, an increase of $41.0 million, or 7%, compared to the prior year period[113]. Income and Profitability - Operating income for the three months ended September 30, 2025, was $70.1 million, a 28% increase from $54.9 million in the same period of 2024[97]. - Net income for the three months ended September 30, 2025, was $37.1 million, representing a 52% increase from $24.4 million in the prior year[97]. - Net income for the nine months ended September 30, 2025, was $89.5 million, an increase of 17.1% compared to $76.4 million in the prior year period[128]. Expenses and Costs - Cost of services (exclusive of depreciation and amortization) increased by $23.4 million, or 18%, for the nine months ended September 30, 2025, primarily due to increased work under government engineering contracts[118]. - Research and development expenses decreased by $5.3 million, or 26%, for the nine months ended September 30, 2025, based on decreased spending on device-related features[120]. - Selling, general and administrative expenses decreased by $11.6 million, or 9%, for the nine months ended September 30, 2025, primarily due to lower equity compensation costs[121]. Tax and Interest - Income tax expense for the three months ended September 30, 2025, was $10.0 million, compared to $6.0 million for the prior year period, primarily due to increased pre-tax book income[110]. - Income tax expense increased to $19.6 million for the nine months ended September 30, 2025, from $18.5 million in the prior year, primarily due to increased pre-tax book income[126]. - Interest expense, net decreased by $1.7 million, or 7%, for the three months ended September 30, 2025, primarily reflecting fees from the prior year that did not recur[108]. Cash Flow and Investments - Cash provided by operating activities increased by $20.3 million to $291.5 million for the nine months ended September 30, 2025, compared to $271.2 million in the prior year[143]. - Cash used in investing activities decreased by $89.5 million to $66.8 million for the nine months ended September 30, 2025, compared to $156.3 million in the prior year, mainly due to the absence of the Satelles acquisition[145]. Shareholder Returns - Total dividends paid during the nine months ended September 30, 2025, were $46.9 million, slightly down from $49.1 million in the prior year[141]. - The company repurchased 1.9 million shares of common stock at a total cost of $50.0 million during the quarter, with $245.3 million remaining available for repurchase[142]. Financial Position - As of September 30, 2025, total cash and cash equivalents were $88.5 million, down from $93.5 million as of December 31, 2024[130]. - The Term Loan balance was $1,774.7 million as of September 30, 2025, with an interest rate of SOFR plus 2.25%[134]. - The company has non-cancelable purchase obligations of approximately $11.6 million for inventory purchases due within the next twelve months[139]. Strategic Initiatives - The company acquired Satelles, Inc. in Q2 2024, which is expected to generate substantial growth in service revenue from government and commercial customers[92]. - The company plans to focus on specialized services and evaluate potential acquisitions to support new revenue streams amid increased competition from SpaceX[95]. Accounts Management - Accounts receivable are due from both domestic and international customers, with credit evaluations performed to assess financial conditions[153]. - Reserves are recorded to provide for estimated credit losses related to accounts receivable[153]. - Accounts payable are owed to both domestic and international vendors[153].