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Jun 30
Iridium Q2 2025 Earnings Report
Iridium posted steady Q2 2025 results with higher revenue but lower net income due to nonrecurring prior-year gains.
Key Takeaways
Iridium delivered 8% revenue growth in Q2 2025 driven by engineering and support services, while commercial IoT data continued to expand. Net income fell YoY due to the absence of a one-time gain recorded in Q2 2024.
Total revenue rose 8% YoY to $216.9 million, driven by engineering and support services
Operational EBITDA increased 6% YoY to $121.3 million
Commercial IoT data revenue grew 8% YoY with subscriber growth to 1.9M
Net income declined to $22M due to prior-year one-time gain impact
Iridium
Iridium
Iridium Revenue by Segment
Revenue by Segment
Commercial Voice & Data Revenue
CapyFin.comCommercial IoT Data Revenue
CapyFin.comHosted Payload & Other Revenue
CapyFin.comGovernment Services Revenue
CapyFin.comSubscriber Equipment Revenue
CapyFin.comEngineering & Support Revenue
CapyFin.com Forward Guidance
Iridium lowered its 2025 service revenue growth outlook but maintained OEBITDA guidance, expecting continued IoT and engineering growth.
Positive Outlook
- Full-year OEBITDA maintained at $490M–$500M
- Cash taxes expected below $10M annually through 2026
- Engineering & support revenue expected to increase YoY
- Net leverage to fall below 4.0x OEBITDA by 2026
- Continued dividend growth with a 5% increase for 2025
Challenges Ahead
- Service revenue growth outlook lowered to 3–5% from 5–7%
- Government subscribers declined YoY, especially in voice and data
- Equipment revenue expected to remain flat vs. 2024
- Net income pressured by higher depreciation and amortization
- IoT subscriber growth slowed vs. prior year