Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 54

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 54
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 income tax expense is primarily related to increased tax benefit from the deduction for foreign derived intangible income and U.S. tax credits, partially offset by increased pre-tax book income in 2025 compared to 2024 and increased tax expense associated with stock compensation and nondeductible executive compensation.

Gain (Loss) on Equity Method Investments

For the three months ended June 30, 2025, our loss on equity method investments was $0.9 million, compared to a gain of $17.7 million in the prior year period. The prior year period amount includes a gain of $19.8 million, equal to the difference between the fair value and net book value of the equity method investment upon the acquisition of Satelles, while the current year reflects only the portion of losses recorded on our other equity method investments. 

Net Income 

Net income was $22.0 million for the three months ended June 30, 2025, compared to $32.3 million for the prior year period. The $10.4 million decrease in net income was primarily the result of the $19.8 million gain related to the acquisition of Satelles in the prior year, offset in part by the improvements in operating income, noted above.

Comparison of Our Results of Operations for the Six Months Ended June 30, 2025 and 2024

Six Months Ended June 30,Change2025% of Total Revenue2024% of Total Revenue($ in thousands)DollarsPercentRevenue:Services$309,862 72 %$301,044 74 %$8,818 3 %Subscriber equipment42,576 10 %47,650 12 %(5,074)(11)%Engineering and support services79,346 18 %56,226 14 %23,120 41 %Total revenue431,784 100 %404,920 100 %26,864 7 %Operating expenses:Cost of services (exclusive of depreciationand amortization)102,389 24 %85,913 21 %16,476 19 %Cost of subscriber equipment24,169 5 %27,826 7 %(3,657)(13)%Research and development9,696 2 %13,710 3 %(4,014)(29)%Selling, general and administrative80,380 19 %83,534 21 %(3,154)(4)%Depreciation and