Iridium Announces Third Quarter 2025 Results; Updates Full-Year Outlook
Rhea-AI Summary
Iridium (Nasdaq:IRDM) reported Q3 2025 results and updated its 2025 outlook on Oct 23, 2025. Q3 total revenue was $226.9M (+7% YoY) with service revenue $165.2M (+3% YoY). GAAP net income was $37.1M ($0.35/share) and Operational EBITDA was $136.6M (+10% YoY). Total billable subscribers were 2.542M (+2% YoY).
Iridium raised its full-year OEBITDA guidance to $495M–$500M, expects ~3% service revenue growth for 2025, plans continued dividend growth, paused share repurchases to invest and deleverage, and targets net leverage below 3.5x in 2025 and below 2.0x by decade end.
Positive
- Total revenue +7% YoY to $226.9M
- Operational EBITDA +10% YoY to $136.6M
- GAAP net income $37.1M ($0.35/share)
- Total billable subscribers 2.542M (+2% YoY)
- Raised full-year OEBITDA guidance to $495M–$500M
Negative
- Government voice subscribers -29% YoY to 45,000
- Commercial broadband revenue -17% YoY
- Net leverage 3.5x trailing twelve months OEBITDA
- Equipment revenue down 3% in Q3; FY equipment expected modestly lower
News Market Reaction – IRDM
On the day this news was published, IRDM declined 7.48%, reflecting a notable negative market reaction. Argus tracked a trough of -15.0% from its starting point during tracking. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $169M from the company's valuation, bringing the market cap to $2.09B at that time.
Data tracked by StockTitan Argus on the day of publication.
"We continue to execute with discipline, focusing efforts on growth markets where our unique network delivers a competitive advantage, specifically in government, regulated industries, and critical infrastructure," said Matt Desch, CEO of Iridium. "We expect our investments in support of services for these strategic areas to drive resilient financial results as we continue to innovate and focus on long-term value creation."
Desch added, "Our continued strong cash flow supported the increase in our quarterly dividend, equivalent to a
Revenue
Iridium reported third quarter total revenue of
Income from Operations
Net income was
Subscribers
The Company ended the third quarter with 2,542,000 total billable subscribers, up from 2,482,000 for the year-ago period and 2,483,000 for the quarter ended June 30, 2025. Total billable subscribers grew
Iridium Business Highlights
Service – Commercial
Commercial service represented
- Commercial service revenue was
$138.3 million 4% from the comparable period last year.- Commercial voice and data: Revenue was
$59.9 million 4% from the year-ago period, and subscribers fell3% from the year-ago period to 411,000. Average revenue per user ("ARPU") rose to$48 - Commercial IoT data: Revenue was
$46.7 million 7% from the year-ago period, driven by a5% growth in subscribers from the year-ago period to 1,991,000. ARPU was$7.95 $7.79 - Commercial broadband: Revenue was
$13.0 million 17% from$15.5 million 2% from the year-ago period to 16,300. The prior year quarter included a non-recurring revenue recognition of$1.4 million $265 $309 - Hosted payload and other data service: Revenue was
$18.7 million 14% from$16.4 million
- Commercial voice and data: Revenue was
- Iridium's commercial business ended the third quarter with 2,418,000 billable subscribers, which compares to 2,341,000 for the prior-year quarter and 2,355,000 for the quarter ended June 30, 2025. IoT data subscribers represented
82% of billable commercial subscribers at the end of the third quarter, an increase from81% at the end of the prior-year period.
Service –
Iridium's voice and data solutions improve situational awareness for military personnel and track critical assets in tough environments around the globe, providing a unique value proposition. Under Iridium's Enhanced Mobile Satellite Services contract (the "EMSS Contract"), a seven-year,
- Government service revenue grew
1% to$26.9 million - Under the terms of the multi-year EMSS Contract, Iridium's fixed-price rate increased to
$110.5 million - Iridium's
U.S. government business ended the third quarter with 124,000 subscribers, which compares to 141,000 for the prior-year quarter and 128,000 for the quarter ended June 30, 2025. Government voice and data subscribers decreased29% from the year-ago period to 45,000 as of September 30, 2025. Government IoT data subscribers remained relatively flat year-over-year and represented64% of government subscribers at the third quarter end.
Equipment
- Equipment revenue was
$21.5 million 3% compared to$22.2 million - For the full-year 2025, the Company expects equipment sales will be modestly down from 2024 levels.
Engineering & Support
- Engineering and support revenue was
$40.2 million 31% compared to$30.7 million U.S. government, including the contract awarded by the Space Development Agency. - For the full-year 2025, the Company expects engineering and support revenue to be materially higher than in 2024.
Capital Allocation
Capital expenditures were
Iridium paid its third quarter dividend of
During the quarter, the Company repurchased approximately 1.9 million shares of its common stock under its previously announced share repurchase program for a total purchase price of
2025 and Longer-Term Outlook
The Company updated its full-year 2025 outlook for service revenue growth and OEBITDA, as well as some aspects of its long-term guidance as follows:
- Total service revenue growth of approximately
3% for full-year 2025. (Previously, guidance for total service revenue growth was between3% and5% for full-year 2025). Total service revenue for 2024 was$614.9 million - Full-year 2025 OEBITDA between
$495 million $500 million $490 million $500 million $470.6 million - Cash taxes of less than
$10 million $10 million - Net leverage below 3.5 times OEBITDA in 2025 and falling below 2.0 times OEBITDA by the end of the decade. (Previously, guidance for net leverage was below 4.0 times OEBITDA through 2026). Net leverage was 3.6 times OEBITDA at December 31, 2024.
(1) Non-GAAP Financial Measures & Definitions
In addition to disclosing financial results that are determined in accordance with
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Iridium Communications Inc. |
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Supplemental Reconciliation of GAAP Net Income to Operational EBITDA |
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(In thousands) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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GAAP net income |
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$ 37,127 |
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$ 24,446 |
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$ 89,507 |
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$ 76,435 |
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Interest expense, net |
|
22,593 |
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24,246 |
|
67,169 |
|
68,706 |
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Income tax expense |
|
10,003 |
|
6,005 |
|
19,629 |
|
18,501 |
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Depreciation and amortization |
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52,975 |
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51,160 |
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157,479 |
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151,680 |
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Share-based compensation |
|
13,155 |
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17,678 |
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43,992 |
|
51,026 |
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Acquisition and related costs(1) |
|
— |
|
410 |
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— |
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2,785 |
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(Gain) loss on equity method investments |
|
734 |
|
467 |
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2,242 |
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(15,664) |
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Operational EBITDA |
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$ 136,587 |
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$ 124,412 |
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$ 380,018 |
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$ 353,469 |
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(1) |
Represents direct costs incurred in connection with the negotiation, consummation and integration of acquisition transactions, whether or not actually completed. These costs generally include legal and advisory fees, severance and other related costs. |
Conference Call Information
As previously announced, the Company will host a conference call to discuss its results at 8:30 a.m. Eastern Time on Thursday, October 23, 2025. Callers should dial 1-412-902-6740 to access the call. The conference call will also be simultaneously webcast on Iridium's Investor Relations webpage at www.iridium.com. An archive of the webcast will be available following the live conference call.
About Iridium Communications Inc.
Iridium® is the only mobile voice, data, and PNT satellite network that spans the entire globe. Iridium enables connections between people, organizations, and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. In 2024, Iridium acquired Satelles and its positioning, navigation, and timing (PNT) service. Iridium Communications Inc. is headquartered in
Forward-Looking Statements
Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding Iridium's strategy and accelerated investments in markets that leverage Iridium's network capabilities;
expectations with respect to total service revenue growth, subscriber growth, OEBITDA, cash taxes and net leverage for 2025; cash taxes and net leverage over the long term; anticipated equipment sales and engineering and support service revenue for 2025; the payment and growth of dividends, share repurchases, and expected revenues from its EMSS contract with the
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Iridium Communications Inc. |
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Condensed Consolidated Statements of Operations |
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(In thousands) |
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Three Months Ended September 30, |
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2025 |
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2024 |
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Revenue |
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Service revenue |
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|
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Commercial |
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$ 138,333 |
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$ 133,309 |
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Government |
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26,910 |
|
26,546 |
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Total service revenue |
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165,243 |
|
159,855 |
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Subscriber equipment |
|
21,507 |
|
22,169 |
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Engineering and support service |
|
40,185 |
|
30,747 |
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Total revenue |
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226,935 |
|
212,771 |
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Operating expenses |
|
|
|
|
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Cost of services (exclusive of depreciation and amortization) |
|
50,762 |
|
43,848 |
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Cost of subscriber equipment sales |
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12,661 |
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12,769 |
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Research and development |
|
4,944 |
|
6,189 |
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Selling, general and administrative |
|
35,508 |
|
43,953 |
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Depreciation and amortization |
|
52,975 |
|
51,160 |
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Total operating expenses |
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156,850 |
|
157,919 |
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Operating income |
|
70,085 |
|
54,852 |
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Other expense, net |
|
|
|
|
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Interest expense, net |
|
(22,593) |
|
(24,246) |
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Other income, net |
|
372 |
|
312 |
|
Total other expense, net |
|
(22,221) |
|
(23,934) |
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Income before income taxes and loss on equity method investments |
|
47,864 |
|
30,918 |
|
Income tax expense |
|
(10,003) |
|
(6,005) |
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Loss on equity method investments |
|
(734) |
|
(467) |
|
Net income |
|
$ 37,127 |
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$ 24,446 |
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Operational EBITDA |
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$ 136,587 |
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$ 124,412 |
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Iridium Communications Inc. |
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Condensed Consolidated Statements of Operations |
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(In thousands) |
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Nine Months Ended September 30, |
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2025 |
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2024 |
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Revenue |
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Service revenue |
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|
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Commercial |
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$ 394,695 |
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$ 381,353 |
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Government |
|
80,410 |
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79,546 |
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Total service revenue |
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475,105 |
|
460,899 |
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Subscriber equipment |
|
64,083 |
|
69,819 |
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Engineering and support service |
|
119,531 |
|
86,973 |
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Total revenue |
|
658,719 |
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617,691 |
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Operating expenses |
|
|
|
|
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Cost of services (exclusive of depreciation and amortization) |
|
153,152 |
|
129,761 |
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Cost of subscriber equipment sales |
|
36,830 |
|
40,595 |
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Research and development |
|
14,640 |
|
19,899 |
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Selling, general and administrative |
|
115,887 |
|
127,487 |
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Depreciation and amortization |
|
157,479 |
|
151,680 |
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Total operating expenses |
|
477,988 |
|
469,422 |
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Operating income |
|
180,731 |
|
148,269 |
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Other expense, net |
|
|
|
|
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Interest expense, net |
|
(67,169) |
|
(68,706) |
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Other expense, net |
|
(2,184) |
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(291) |
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Total other expense, net |
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(69,353) |
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(68,997) |
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Income before income taxes and gain (loss) on equity method investments |
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111,378 |
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79,272 |
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Income tax expense |
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(19,629) |
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(18,501) |
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Gain (loss), net on equity method investments |
|
(2,242) |
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15,664 |
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Net income |
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$ 89,507 |
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$ 76,435 |
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Operational EBITDA |
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$ 380,018 |
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$ 353,469 |
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Iridium Communications Inc. |
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Summary Revenue and OEBITDA Highlights |
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(In thousands) |
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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% Change |
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2025 |
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2024 |
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% Change |
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Revenue |
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Service revenue(1) |
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Commercial service revenue |
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Voice and data |
$ 59,930 |
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$ 57,693 |
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4 % |
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$ 172,682 |
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$ 169,125 |
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2 % |
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IoT data(2) |
46,707 |
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43,695 |
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7 % |
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135,303 |
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124,759 |
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8 % |
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Broadband(3) |
12,970 |
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15,549 |
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-17 % |
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38,570 |
|
42,719 |
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-10 % |
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Hosted payload and other data service(4) |
18,726 |
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16,372 |
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14 % |
|
48,140 |
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44,750 |
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8 % |
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Total commercial service revenue |
138,333 |
|
133,309 |
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4 % |
|
394,695 |
|
381,353 |
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3 % |
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Government service revenue(5) |
26,910 |
|
26,546 |
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1 % |
|
80,410 |
|
79,546 |
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1 % |
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Total service revenue |
165,243 |
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159,855 |
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3 % |
|
475,105 |
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460,899 |
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3 % |
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Subscriber equipment |
21,507 |
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22,169 |
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-3 % |
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64,083 |
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69,819 |
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-8 % |
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Engineering and support(6) |
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Commercial |
1,852 |
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1,731 |
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7 % |
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5,893 |
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4,404 |
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34 % |
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Government |
38,333 |
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29,016 |
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32 % |
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113,638 |
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82,569 |
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38 % |
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Total engineering and support |
40,185 |
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30,747 |
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31 % |
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119,531 |
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86,973 |
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37 % |
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Total revenue |
$ 226,935 |
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$ 212,771 |
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7 % |
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$ 658,719 |
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$ 617,691 |
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7 % |
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Operational EBITDA |
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Operational EBITDA |
$ 136,587 |
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$ 124,412 |
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10 % |
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$ 380,018 |
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$ 353,469 |
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8 % |
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Other |
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Capital expenditures(7) |
$ 21,535 |
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$ 18,616 |
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|
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$ 66,791 |
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$ 45,622 |
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Net debt(8) |
$ 1,736,188 |
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$ 1,652,722 |
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Cash, cash equivalents and marketable securities |
$ 88,533 |
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$ 159,588 |
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Revolving Credit Facility |
$ 50,000 |
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$ — |
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Term Loan, gross |
$ 1,774,721 |
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$ 1,812,310 |
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|
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Deferred financing costs |
(14,878) |
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(17,537) |
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|
|
|
|
|
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Term Loan, net |
$ 1,759,843 |
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$ 1,794,773 |
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(1) |
Service revenue consists of primarily subscription-based services which often generate a long-term recurring revenue stream from subscribers. |
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(2) |
IoT data service provides a two-way short burst data transmission between Iridium's network and a telemetry unit, which may be located, for example, on a container in transit or a buoy monitoring oceanographic conditions. |
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(3) |
Broadband is comprised of Iridium OpenPort® and Iridium Certus. |
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(4) |
Hosted payload and other services consist primarily of services that do not have traditional billable subscribers. Hosted payload services consist of hosting and data services to our payload customers, Aireon LLC and L3Harris Technologies, Inc. Other services include primarily Iridium's one-way satellite timing, location, and authentication services (STL) which provides position, navigation and timing technology. |
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(5) |
Government service revenue consists of voice and IoT data subscription-based services provided to agencies of the |
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(6) |
Engineering and support includes engineering services for the Space Development Agency contract and to assist commercial customers in developing new technologies for use on Iridium's satellite system, as well as maintenance services to the |
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(7) |
Capital expenditures based on cash spent in the respective period. |
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(8) |
Net debt is calculated by taking the sum of the gross Term Loan and gross drawn Revolving Credit Facility, amounts, less cash, cash equivalents and marketable securities. |
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Iridium Communications Inc. |
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Subscriber Highlights |
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(In thousands, except ARPU) |
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As of September 30, |
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2025 |
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2024 |
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% Change |
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Billable Subscribers (1) (2) |
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Commercial |
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Voice and data, IoT data |
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Voice and data |
411 |
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422 |
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-3 % |
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IoT data |
1,991 |
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1,902 |
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5 % |
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Broadband (3) |
16.3 |
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16.7 |
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-2 % |
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Total commercial voice and data, IoT data |
2,418 |
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2,341 |
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3 % |
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Government |
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Voice and data and IoT data service |
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Voice and data |
45 |
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63 |
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-29 % |
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IoT data |
79 |
|
78 |
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2 % |
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Total government voice and data and IoT |
124 |
|
141 |
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-12 % |
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Total billable subscribers |
2,542 |
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2,482 |
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2 % |
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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% Change |
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2025 |
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2024 |
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% Change |
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Net Billable Subscriber Additions |
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Commercial |
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Voice and data. IoT data and Broadband service |
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Voice and data |
(4) |
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5 |
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-180 % |
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(4) |
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14 |
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-129 % |
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IoT data |
67 |
|
65 |
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3 % |
|
104 |
|
193 |
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-46 % |
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Broadband |
— |
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(0.1) |
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100 % |
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(0.3) |
|
0.1 |
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-400 % |
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Total commercial voice and data, IoT data |
63 |
|
70 |
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-10 % |
|
100 |
|
207 |
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-52 % |
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Government |
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Voice and data and IoT data service |
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Voice and data |
(4) |
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— |
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NM |
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(17) |
|
1 |
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-1800 % |
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IoT data |
— |
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(1) |
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150 % |
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— |
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(5) |
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110 % |
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Total government voice and data and IoT |
(4) |
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(1) |
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-250 % |
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(17) |
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(4) |
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-313 % |
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Total net billable subscriber additions |
59 |
|
69 |
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-14 % |
|
83 |
|
203 |
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-59 % |
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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% Change |
|
2025 |
|
2024 |
|
% Change |
|
ARPU (2) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Voice and data |
$ 48 |
|
$ 46 |
|
4 % |
|
$ 46 |
|
$ 45 |
|
2 % |
|
IoT data |
$ 7.95 |
|
$ 7.79 |
|
2 % |
|
$ 7.75 |
|
$ 7.68 |
|
1 % |
|
Broadband |
$ 265 |
|
$ 309 |
|
-14 % |
|
$ 261 |
|
$ 284 |
|
-8 % |
|
|
|
|
(1) |
Subscribers as of the end of the respective period. |
|
(2) |
Billable subscriber and average monthly revenue per unit ("ARPU") data is not applicable for Hosted payload and other data service revenue items and is excluded from presentation above. |
|
(3) |
Broadband is comprised of Iridium OpenPort® and Iridium Certus. |
|
(4) |
ARPU is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period. |
|
Investor Contact: |
Press Contact: |
|
Kenneth Levy |
Jordan Hassin |
|
Iridium Communications Inc. |
Iridium Communications Inc. |
|
+1 (703) 287-7570 |
+1 (703) 287-7421 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/iridium-announces-third-quarter-2025-results-updates-full-year-outlook-302592030.html
SOURCE Iridium Communications Inc.
FAQ
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