Iridium Communications Reports $216.9M Revenue and $22.0M Net Income for Q2 2025

Iridium Communications Inc. reported a total revenue of $216.9 million for the three months ended June 30, 2025, marking an increase of 8% from $201.1 million in the same period of 2024. The company's net income for the quarter was $22.0 million, a decrease of 32% compared to $32.3 million in the prior year, primarily due to a significant gain from the acquisition of Satelles, Inc. recorded in the previous year. For the first half of 2025, total revenue reached $431.8 million, up 7% from $404.9 million in the first half of 2024, with net income slightly increasing to $52.4 million from $52.0 million.

The company experienced notable growth in its engineering and support services segment, which generated $41.9 million in revenue for the second quarter, a 62% increase from $25.8 million in the same quarter of 2024. This growth was largely attributed to increased work under government contracts, particularly with the Space Development Agency. In contrast, subscriber equipment revenue declined by 15% to $19.5 million, reflecting a decrease in sales volume of handsets and Short Burst Data devices.

Iridium's customer base expanded to approximately 2.48 million billable subscribers as of June 30, 2025, representing a 3% increase from 2.41 million subscribers a year earlier. The company noted a 9% rise in Internet of Things (IoT) revenue, driven by a larger contract with a significant customer and a 5% increase in IoT billable subscribers. However, commercial broadband revenue decreased by 6%, primarily due to a drop in average revenue per user (ARPU) as customers increasingly utilized the service as a companion offering.

The company’s operating expenses rose to $166.6 million for the second quarter, up 6% from $157.4 million in the prior year, driven by increased costs associated with government projects. Despite the rise in expenses, operating income improved by 15% to $50.3 million, reflecting the company's ability to manage costs effectively amid revenue growth. Iridium's effective tax rate for the quarter was 14.3%, down from 23.8% in the previous year, primarily due to tax benefits from foreign-derived intangible income.

Looking ahead, Iridium anticipates continued growth in its service revenue, particularly in the second half of 2025, as it implements previously announced price adjustments. The company also plans to maintain its focus on expanding its service offerings and customer base while managing operational costs effectively. Additionally, Iridium's Board of Directors has approved a quarterly dividend of $0.15 per share, payable on September 30, 2025, to stockholders of record as of September 15, 2025.