In This Article:
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Operational EBITDA: Increased 6% to $122.1 million in Q1.
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Service Revenue: Up 4% to $127.5 million, driven by IoT and Iridium PNT.
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Voice and Data Revenue: Rose 2% to $55.9 million.
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Commercial IoT Revenue: Increased 11% to $43.8 million.
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Commercial Broadband Revenue: Decreased 6% to $12.9 million.
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Hosting and Other Data Services Revenue: Up 7% to $14.9 million.
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Government Service Revenue: Increased to $26.8 million.
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Subscriber Equipment Sales: $23.1 million, down from Q1 last year.
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Engineering and Support Revenue: Increased to $37.5 million from $30.4 million.
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Cash and Cash Equivalents: $50.9 million as of March 31.
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Share Repurchase: Retired approximately 2.4 million shares at an average price of $29.48.
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Quarterly Dividend: $0.14 per share, with an increase to $0.15 per share starting Q3 2025.
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Capital Expenditures: $24.5 million in Q1.
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Pro Forma Free Cash Flow: Projected at $302 million for 2025.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Service revenue continued to expand with the rollout of new services and subscriber growth.
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Iridium's partner ecosystem remains strong, with partners bullish on new product offerings like Iridium PNT.
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The company has successfully mitigated supply chain risks by avoiding exposure to China and expanding logistics in Europe.
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Iridium's acquisition of Satelles has positioned it well in the PNT market, with growing interest from new customers.
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The company is confident in its ability to leverage its unique network for long-term growth, supported by a strong spectrum position and technology.
Negative Points
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New tariff levels have created uncertainty, potentially impacting equipment costs and operational EBITDA.
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Commercial broadband revenue declined by 6% due to increased use of Iridium as a companion service.
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There is ongoing uncertainty regarding U.S. trade policies, which could result in significant incremental costs.
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Government service revenue growth is modest, with some deactivations related to USAID funding changes.
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The geopolitical environment and potential funding challenges for foreign governments and NGOs could impact business.
Q & A Highlights
Q: How are tariffs expected to impact Iridium's costs and pricing strategy? A: Matthew Desch, CEO, explained that the current 10% tariffs could result in approximately $3 million in incremental costs, which Iridium plans to absorb without raising prices. If tariffs increase to 36%, costs could rise to $6-7 million. However, Iridium aims to mitigate these impacts through supply chain adjustments and does not foresee significant demand changes due to tariffs.