Iridium Communications Reports $214.9M Revenue and 55% Net Income Increase in Q1 2025

Iridium Communications Inc. reported a total revenue of $214.9 million for the first quarter of 2025, marking a 5% increase from $203.9 million in the same period of 2024. The growth was primarily driven by a 4% rise in service revenue, which reached $154.3 million, up from $148.6 million. Notably, the company’s net income surged to $30.4 million, a 55% increase compared to $19.7 million in the prior year, resulting in a diluted earnings per share of $0.27, up from $0.16.

The company experienced significant changes in its operational metrics, with a total of approximately 2.44 million billable subscribers as of March 31, 2025, reflecting a 5% increase from 2.33 million a year earlier. This growth was attributed to increased demand for Internet of Things (IoT) services, which saw a revenue increase of 11%, and a slight rise in voice and data service revenue. However, revenue from subscriber equipment declined by 7% to $23.1 million, primarily due to decreased sales of Short Burst Data devices.

Strategically, Iridium completed the acquisition of Satelles, Inc. on April 1, 2024, for approximately $125.5 million. This acquisition is expected to enhance Iridium's service offerings in satellite-based position, navigation, and timing services, potentially driving future revenue growth. The integration of Satelles contributed to a 23% increase in engineering and support services revenue, which reached $37.5 million in the first quarter of 2025, compared to $30.4 million in the previous year.

Operationally, the company reported total operating expenses of $154.5 million, slightly up from $154.1 million in the prior year. The increase was driven by higher costs associated with government projects and depreciation related to new satellite assets. Iridium's cash and cash equivalents decreased to $50.9 million from $93.5 million at the end of 2024, largely due to share repurchases totaling $70.5 million and capital expenditures of $24.5 million during the quarter. The company drew $20 million from its revolving credit facility for general corporate purposes, maintaining compliance with its credit agreement covenants.

Looking ahead, Iridium anticipates continued growth in service revenue driven by expanding customer demand and the integration of Satelles. The company plans to increase its quarterly dividend to $0.15 per share starting in the third quarter of 2025, reflecting confidence in its financial position and operational performance. However, challenges remain, including competition in the satellite communications market and the need to manage operational costs effectively.