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Sep 30
Iridium Q3 2025 Earnings Report
Iridium reported strong third quarter 2025 results with revenue growth and improved profitability while updating its full-year outlook.
Key Takeaways
Iridium Communications delivered solid Q3 2025 results driven by strong operational performance across commercial and government segments. The company achieved higher service revenue, expanded Operational EBITDA, and increased net income while maintaining strong cash flow and investing in long-term initiatives.
Total revenue rose 7% year-over-year to $226.9 million, driven by higher commercial and engineering revenues.
Net income increased to $37.1 million, or $0.35 per diluted share, compared to $24.4 million last year.
Operational EBITDA grew 10% year-over-year to $136.6 million.
Total billable subscribers reached 2.54 million, up 2% year-over-year, led by IoT data growth.
Iridium
Iridium
Iridium Revenue by Segment
Iridium Revenue by Geographic Location
Revenue by Segment
Commercial Voice & Data Revenue
CapyFin.comCommercial IoT Data Revenue
CapyFin.comCommercial Broadband Revenue
CapyFin.comHosted Payload & Other Data Revenue
CapyFin.comGovernment Services Revenue
CapyFin.comSubscriber Equipment Revenue
CapyFin.comEngineering & Support Revenue
CapyFin.comRevenue by Geographic Location
U.S. Government Revenue
CapyFin.comInternational Markets Revenue
CapyFin.com Forward Guidance
Iridium narrowed its 2025 guidance, expecting around 3% service revenue growth and Operational EBITDA between $495 million and $500 million, alongside disciplined capital allocation and ongoing deleveraging.
Positive Outlook
- Service revenue expected to grow approximately 3% for FY2025.
- OEBITDA guidance increased to between $495M and $500M.
- Cash taxes projected to remain below $10M annually through 2027.
- Net leverage expected to fall below 3.5x in 2025 and under 2.0x by decade-end.
- Continued dividend growth and strong cash flow support strategic flexibility.
Challenges Ahead
- Service revenue growth guidance narrowed from 3–5% to about 3%.
- Equipment sales expected to be modestly down versus 2024.
- Share repurchase program paused to focus on debt reduction.
- Rising operational costs may pressure margins in some segments.
- Slight decline in commercial broadband revenue due to non-recurring items.