Financial Data and Key Metrics Changes - Operational EBITDA increased by 10% in Q3 2025 to $136.6 million, driven by revenue from recurring services and engineering support [29] - Service revenue rose by 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services [29] - Voice and data revenue increased by 4% to $59.9 million, reflecting price increases implemented in July, which drove a 4% increase in ARPU [29] - Commercial IoT revenue totaled $46.7 million, up 7% from the previous year [29] - Government service revenue modestly increased to $26.9 million, reflecting a step-up in the EMSS contract with the U.S. government [31] Business Line Data and Key Metrics Changes - Commercial broadband revenue decreased by 17% year-over-year, attributed to a non-maritime contract from the prior year that was not renewed [30] - Hosting and other data services revenue rose by 14% to $18.7 million, driven by PNT services [30] - Subscriber equipment sales were $21.5 million, slightly down from the previous year [33] - Engineering and support revenue increased to $40.2 million, reflecting growth from contracts with the Space Development Agency [33] Market Data and Key Metrics Changes - The company anticipates a decline in broadband revenue growth rate to trend closer to 8% in Q4 due to a mix shift in the maritime business [37] - The IoT business is expected to grow below 10% for the full year, with a significant portion of revenue coming from industrial applications [36] Company Strategy and Development Direction - The company plans to focus on unique, specialized services in the satellite industry and will not participate in price-driven commodity markets [12] - Iridium NTN Direct is being developed as a new standards-based D2D service to tap into a larger market opportunity [12] - The company aims to invest in growth areas around industrial-grade IoT and PNT services, as well as explore acquisitions in complementary areas [14] - The company is committed to deleveraging its balance sheet while continuing its quarterly dividend program [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition in the satellite market, particularly from new entrants like Starlink, but remains confident in Iridium's established market position [10][26] - The company expects to generate at least $1.5 to $1.8 billion in total cash flows from 2026 through 2030, providing flexibility for growth initiatives [25] - Management is optimistic about the long-term prospects of PNT services and anticipates significant revenue growth from this area [100] Other Important Information - The company has paused its share repurchase program to emphasize strategic growth initiatives [25] - Iridium's cash and cash equivalents balance stood at $88.5 million as of September 30, 2025 [41] - The company expects to pay cash taxes of less than $10 million per year through 2027 due to recent tax legislation [38] Q&A Session Summary Question: Follow-up on strategic options and M&A - Management indicated that while they have not been a big acquisition company, they are looking at complementary areas for potential M&A opportunities [46][48] Question: Business lines insulated from competitive risk - Management stated that no business is completely insulated, but areas like cockpit safety services and PNT are relatively protected due to regulatory barriers and established credibility [53][55] Question: Impact of D2D on voice and data segment - Management noted that most users in the voice and data segment are industrial or security-focused, with minimal leisure use [60][62] Question: Update on IoT business and D2D initiative - Management confirmed that the IoT subscriber base includes about 900,000 personal users, but the majority are industrial applications [66][67] Question: Clarification on Deutsche Telekom agreement - Management clarified that the agreement with Deutsche Telekom pertains to Iridium NTN Direct, which is a new narrowband IoT solution [78][79]

Financial Data and Key Metrics Changes - Operational EBITDA increased by 10% in Q3 2025 to $136.6 million, driven by revenue from recurring services and engineering support [21] - Service revenue rose by 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services [22] - Voice and data revenue increased by 4% year-over-year to $59.9 million, reflecting price increases implemented in July [22] - Commercial IoT revenue totaled $46.7 million, up 7% from the previous year [22] - Government service revenue modestly increased to $26.9 million, reflecting a step-up in the EMSS contract with the U.S. Government [24] Business Line Data and Key Metrics Changes - Commercial broadband revenue decreased by 17% year-over-year, attributed to a non-maritime contract that was not renewed [22] - Hosting and other data services revenue rose by 14% to $18.7 million, driven by an increase in PNT services [23] - Subscriber equipment sales were $21.5 million, slightly down from the prior year [26] - Engineering and support revenue increased to $40.2 million from $30.7 million in the previous year [27] Market Data and Key Metrics Changes - The company anticipates full-year service revenue growth to be approximately 3% and OIBDA guidance between $495 million and $500 million [27] - The IoT business is expected to grow below 10% for the full year, with a modest increase in Q4 [30] - The decline in broadband revenue is expected to continue into Q4, trending closer to 8% [31] Company Strategy and Development Direction - The company plans to focus on unique specialized services in the satellite industry and will not participate in price-driven commodity markets [7][9] - Iridium NTN Direct is being developed as a new standards-based D2D service to access a larger market opportunity [9] - The company aims to invest in regulated applications where demand for safety services is growing, particularly in maritime and aviation [10] - Iridium is exploring acquisitions in adjacent areas that complement its existing services [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition in the satellite market due to the proposed acquisition of EchoStar Spectrum by StarLink [6] - The company remains confident in its ability to grow revenues despite the competitive landscape and plans to enhance its market position [7] - Management expects to generate $1.5 billion to $1.8 billion in total cash flows from 2026 through 2030, providing flexibility for growth initiatives [18] Other Important Information - The company has paused its share repurchase program to emphasize strategic growth initiatives while continuing its quarterly dividend program [18] - Iridium signed over 70 new technology and distribution partners since the beginning of the year, indicating strong growth potential [19] - The company expects to pay cash taxes of less than $10 million per year through 2027, enhancing cash generation [33] Q&A Session Summary Question: Follow-up on strategic options and M&A timeline - Management indicated that while they have not been a big acquisition company, they are looking at complementary areas for potential M&A, but specific timing is uncertain [41][44] Question: Business lines insulated from competitive risk - No business is completely insulated, but areas like cockpit safety services and PNT are considered well protected due to regulatory barriers and established credibility [50][52] Question: Breakdown of voice and data segment users - The majority of voice and data users are industrial or security-focused, with minimal leisure or casual users [55] Question: Update on IoT subscriber base - Approximately 900,000 of the IoT subscriber base are personal users, but the majority are industrial users requiring robust devices [60] Question: Impact of broadband contract loss - The loss of a non-maritime contract impacted broadband revenue, but new products are expected to stabilize this segment [68] Question: Nature of agreement with Deutsche Telekom - The agreement with Deutsche Telekom relates to roaming arrangements for Iridium NTN Direct, which is currently in testing [72][75]