Financial Data and Key Metrics Changes - Operational EBITDA increased by 10% in Q3 to $136.6 million, driven by recurring services and engineering support revenue [28] - Service revenue rose by 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services [28] - Voice and data revenue increased by 4% to $59.9 million, reflecting price increases that drove a 4% rise in ARPU [28] - Commercial IoT revenue reached $46.7 million, up 7% year-over-year [28] - Engineering and Support revenue grew to $40.2 million, compared to $30.7 million in the prior year [32] Business Line Data and Key Metrics Changes - Commercial broadband revenue declined by 17% year-over-year, attributed to a non-maritime contract not renewed [29] - Hosting and other data services revenue increased by 14% to $18.7 million, driven by PNT growth [30] - Government service revenue rose modestly to $26.9 million, reflecting a step-up in the EMSS contract with the U.S. government [31] - Subscriber equipment sales were $21.5 million, slightly down from the previous year [32] Market Data and Key Metrics Changes - The company anticipates service revenue growth of approximately 3% for the full year, with OEBITDA guidance narrowed to between $495 million and $500 million [33] - The decline in broadband revenue is expected to continue into Q4, trending closer to 8% year-over-year [36] - The government business is projected to generate $108 million in EMSS revenue from the U.S. Department of Defense this year [37] 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 regulated applications where demand for safety services is growing, such as maritime and aviation safety [14] - The company is exploring acquisitions in adjacent areas that complement its existing services [14] 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 [8] - The company remains confident in its ability to grow revenues despite the competitive landscape, citing strong partnerships and established market presence [10] - Management expects to generate at least $1.5 to $1.8 billion in total cash flows from 2026 through 2030, providing flexibility for strategic initiatives [24] - The company is pausing its share repurchase program to emphasize strategic growth initiatives [24] Other Important Information - The company has signed over 70 new technology and distribution partners since the beginning of the year, indicating strong growth potential [25] - The company expects to pay cash taxes of less than $10 million per year through 2027, enhancing cash generation [38] - Capital expenditures in Q3 were $21.5 million, with higher anticipated in 2024 to support Iridium NTN Direct and 5G standards [40] 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 [46][47] Question: Insulation from competitive risks in business lines - Management stated that no business is completely insulated, but areas like cockpit safety services and PNT are relatively protected due to regulatory hurdles [55][56] Question: Breakdown of voice and data segment users - The majority of users in the voice and data segment are industrial or security-related, with minimal leisure use [62][63] Question: Update on IoT business and consumer user portion - Approximately 900,000 IoT subscribers are personal users, but the majority of the IoT business is in industrial applications [69][70] Question: Impact of D2D competition on broadband and IoT - Management clarified that the impact from D2D competition is still small, and they are optimistic about the potential of their own D2D initiatives [75][80]

Financial Data and Key Metrics Changes - Operational EBITDA increased by 10% in Q3 to $136.6 million, driven by revenue from recurring services and engineering support [27] - Service revenue rose by 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services [27] - Voice and data revenue increased by 4% to $59.9 million, reflecting price increases implemented in July, resulting in a 4% rise in ARPU [27] - Commercial IoT revenue reached $46.7 million, up 7% year-over-year [27] - Government service revenue modestly increased to $26.9 million, reflecting a step-up in the EMSS contract with the U.S. government [30] Business Line Data and Key Metrics Changes - Commercial broadband revenue decreased by 17% year-over-year, attributed to a non-renewed contract from the previous year [28] - Hosting and other data services revenue grew by 14% to $18.7 million, driven by PNT services [29] - Subscriber equipment sales were $21.5 million, slightly down from the previous year [31] - Engineering and support revenue increased to $40.2 million, reflecting growth from contracts with the Space Development Agency [31] Market Data and Key Metrics Changes - The company anticipates service revenue growth of approximately 3% for the full year, with OEBITDA guidance narrowed to between $495 million and $500 million [32] - The decline in broadband revenue is expected to continue into Q4, trending closer to 8% year-over-year [35] - The government business is projected to generate $108 million in EMSS revenue from the Department of Defense this year [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 D2D service to tap into a larger market opportunity [12] - The company aims to invest in regulated applications where demand for safety services is growing, particularly in maritime and aviation [14] - Iridium is exploring acquisitions in adjacent areas that complement its existing services [14] 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 [8] - The company remains confident in its ability to grow revenues despite the evolving competitive landscape [10] - Management expects to generate at least $1.5 billion to $1.8 billion in total cash flows from 2026 through 2030, providing flexibility for growth initiatives [24] - The company is committed to deleveraging its balance sheet while continuing its quarterly dividend program [24] Other Important Information - The company has paused its share repurchase program to emphasize strategic growth initiatives [24] - Iridium's cash and cash equivalents balance was $88.5 million as of September 30, with net leverage at 3.5x OEBITDA [39] - The company expects to pay cash taxes of less than $10 million per year through 2027 [37] 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 [45][46] 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 hurdles [54][55] Question: Breakdown of voice and data segment users - Most users in the voice and data segment are industrial or security-related, with minimal leisure use [61][62] Question: Update on IoT business and D2D initiative - The IoT subscriber base includes about 900,000 personal users, but the majority are industrial users [68][69] Question: Clarification on Deutsche Telekom agreement - The agreement with Deutsche Telekom relates to Iridium NTN Direct, which is a new narrowband IoT solution [81][82]

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]

Financial Data and Key Metrics Changes - Operational EBITDA increased by 6% to $122.1 million, driven by recurring commercial services and engineering support revenue [38] - Service revenue rose by 4% to $127.5 million, led by growth in IoT and Iridium PNT [38] - Voice and data revenue grew by 2% to $55.9 million, reflecting subscriber growth in telephony services [39] - Commercial IoT revenue increased by 11% to $43.8 million, attributed to a two-year contract with the largest IoT partner [39] - Revenue from commercial broadband decreased by 6% to $12.9 million, due to the conversion of primary customers to lower usage plans [42] - Hosting and other data services revenue rose by 7% to $14.9 million, with optimism for P&T services following the acquisition of Satellis [43] Business Line Data and Key Metrics Changes - Engineering and support revenue reached $37.5 million, up from $30.4 million in the prior year, driven by contracts with the U.S. government [45] - Subscriber equipment sales totaled $23.1 million, down from the previous year's high but tracking expected levels [44] - Government service revenue modestly increased to $26.8 million, reflecting a step-up in EMSS contracts with the U.S. government [43] Market Data and Key Metrics Changes - The company anticipates double-digit growth in commercial IoT for 2025, driven by ongoing demand for personal satellite communications [48] - The government business is expected to generate full-year revenue of $108 million in 2025 due to the EMSS contract [49] Company Strategy and Development Direction - The company is focusing on expanding its partner ecosystem and leveraging its unique satellite capabilities to address market needs, particularly in IoT and PNT [21][30] - Iridium plans to mitigate tariff impacts through strategic partnerships and logistics adjustments, maintaining its market position without passing costs to customers [16][110] - The company is optimistic about growth in P&T services, especially with increasing vulnerabilities in GPS systems [30][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience during economic shocks, citing past performance during the 2008 recession and the 2020 pandemic [17][92] - The geopolitical environment is expected to remain volatile, but the company believes it is insulated from significant impacts [34][82] - Future growth is anticipated in the IoT market, with new services like Iridium NTN Direct expected to drive revenue growth through the end of the decade [27][35] Other Important Information - The company plans to increase its quarterly dividend to 15 cents per share starting in Q3 2025, reflecting confidence in business prospects [53] - Capital expenditures are expected to rise in 2025 to support work with 5G standards [54] Q&A Session Summary Question: Impact of tariffs on subscriber growth and service revenue - Management indicated it is too early to determine the long-term effects of tariffs on subscriber growth and service revenue, noting that demand remains stable [58][60] Question: Changes in government subscriber numbers - The decrease in government subscribers was attributed to a government cleanup activity rather than specific funding cuts [62][64] Question: Future pricing actions - Management confirmed plans for smaller, more frequent price increases rather than large increases every few years, which will take effect in the second half of the year [66][68] Question: Revenue from directed device plans - Initial revenues from directed device services are expected to come from IoT roaming, with a ramp-up anticipated towards the latter part of the decade [70][72] Question: Update on aviation services - Aviation services are growing, with ongoing flight trials for certification, but significant revenue growth is not expected until early next year [85][87] Question: Government exposure in the business - Management estimated that government-related revenue constitutes about 20% of the business, with a relatively small portion coming from civil applications [98] Question: Pricing mechanics for P&T services - Management highlighted the unique value of Iridium's P&T services in providing reliable global coverage, especially in environments with GPS vulnerabilities [100][104]