Compared to Estimates, Iridium (IRDM) Q2 Earnings: A Look at Key Metrics

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]