Company: IRDM
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001418819-25-000009
Chunk: 33

Company: Iridium Communications Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 the prior year quarter primarily reflecting the fees paid in the prior year that were incurred in connection with our increased Term Loan in the third quarter of 2024 that did not recur in 2025.

22

Other Expense, net

Other expense, net, was $0.4 million for the three months ended September 30, 2025, compared to $0.3 million for the prior year period, primarily as the result of changes in foreign currency exchange rates.

Income Tax Expense

For the three months ended September 30, 2025, our income tax expense was $10.0 million, compared to $6.0 million for the prior year period. The increase in income tax expense is primarily related to increased pre-tax book income in 2025 compared to 2024 and increased tax expense associated with stock compensation and nondeductible executive compensation.

Loss on Equity Method Investments

For the three months ended September 30, 2025, our loss on equity method investments was $0.7 million compared to a loss of $0.5 million in the prior year period. 

Net Income 

Net income was $37.1 million for the three months ended September 30, 2025, compared to $24.4 million for the prior year period. The $12.7 million improvement in net income was primarily the result of the increases in engineering and support services revenue and commercial services revenue and decreasing operating expenses, as described above.

Comparison of Our Results of Operations for the Nine Months Ended September 30, 2025 and 2024

Nine Months Ended September 30,Change2025% of Total Revenue2024% of Total Revenue($ in thousands)DollarsPercentRevenue:Services$475,105 72 %$460,899 75 %$14,206 3 %Subscriber equipment64,083 10 %69,819 11 %(5,736)(8)%Engineering and support services119,531 18 %86,973 14 %32,558 37 %Total revenue658,719 100 %617,691 100 %41,028 7 %Operating expenses:Cost of services (exclusive of depreciationand amortization)153,152 23 %129,761 21 %23,391 18 %Cost of subscriber equipment36,830 6 %40,595 7 %(3,765)(9)%Research and development14,