Core Insights - Iridium Communications Inc. reported strong financial results for Q3 2025, with total revenue of $226.9 million, a 7% increase compared to Q3 2024 [3][4] - The company continues to focus on growth markets, particularly in government and critical infrastructure, which is expected to drive resilient financial results [2][12] - Iridium's cash flow supports a 5% increase in its quarterly dividend, with plans for continued growth in dividends and strategic investments [2][9] Revenue Performance - Total revenue for Q3 2025 was $226.9 million, comprising $165.2 million in service revenue and $61.7 million from equipment sales and engineering projects [3] - Service revenue grew by 3% year-over-year, representing 73% of total revenue [3] - Commercial service revenue was $138.3 million, up 4% from the previous year, while government service revenue increased by 1% to $26.9 million [11][17] Subscriber Growth - The company ended Q3 2025 with 2,542,000 total billable subscribers, a 2% increase from the previous year [5][26] - Commercial IoT subscribers drove growth, with a 5% increase year-over-year [11] - Government voice and data subscribers decreased by 29% year-over-year, reflecting a decline in military and federal government contracts [11][26] Operational Performance - Net income for Q3 2025 was $37.1 million, or $0.35 per diluted share, compared to $24.4 million, or $0.21 per diluted share, in Q3 2024 [4][18] - Operational EBITDA for Q3 2025 was $136.6 million, a 10% increase from the prior year [4][18] - The company reported capital expenditures of $21.5 million for the quarter, with a gross term loan debt of $1.8 billion [8][24] Future Outlook - Iridium expects total service revenue growth of approximately 3% for the full year 2025, with OEBITDA projected between $495 million and $500 million [17] - The company anticipates cash taxes of less than $10 million per year through 2027 and aims to reduce net leverage below 3.5 times OEBITDA in 2025 [17] - Engineering and support revenue is expected to be materially higher than in 2024, driven by increased activity with the U.S. government [11][17]