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Mar 31

Iridium Q1 2025 Earnings Report

Expected Revenue:$212M
+9.3% YoY
Expected EPS:$0.28
+86.7% YoY

Key Takeaways

Iridium posted revenue of $214.9 million and net income of $30.4 million for Q1 2025, showing strength in commercial services and engineering support, despite equipment sales and subscriber softness.

Total revenue grew 5% YoY to $214,878,000

Net income increased to $30,412,000 from $19,653,000 in Q1 2024

Engineering and support services rose 23% YoY

Commercial IoT revenue grew 11% to $43,856,000

Total Revenue
$215M
Previous year: $204M
+5.4%
EPS
$0
Previous year: $0.16
-100.0%
Comm. Voice/Data ARPU
$45
Previous year: $45
+0.0%
Comm. IoT ARPU
$7.75
Previous year: $7.57
+2.4%
Cash and Equivalents
$50.9M
Previous year: $174M
-70.7%

Iridium

Iridium

Iridium Revenue by Segment

Forward Guidance

Iridium reaffirmed its FY2025 outlook with expectations of steady service revenue and EBITDA growth, while noting potential tariff impacts on equipment margins.

Positive Outlook

  • Service revenue expected to grow 5% to 7% in FY2025
  • OEBITDA guidance of $490M to $500M
  • Engineering and support services expected to increase YoY
  • Cash taxes expected under $10M through 2026
  • Dividend increase planned for Q3 2025

Challenges Ahead

  • Equipment margins may be impacted by new tariffs
  • Government subscriber base declined 8% YoY
  • Broadband revenue declined 6% YoY
  • Overall net subscriber loss of 16,000 in Q1 2025
  • Commercial broadband ARPU declined from $274 to $261