Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 41

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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 Six Months Ended June 30,  20252024Change (In thousands)Cash provided by operating activities$190,696 $152,540 $38,156 Cash used in investing activities$(45,256)$(137,719)$92,463 Cash used in financing activities$(162,608)$(22,845)$(139,763)

Cash Flows Provided by Operating Activities

Net cash provided by operating activities for the six months ended June 30, 2025 increased by $38.2 million from the prior year period. Working capital increased by approximately $21.9 million, primarily due to higher cash inflows associated with timing of customer and vendor payments, offset in part by recognition of deferred revenue. These changes were also due to increased net income and a decrease in non-cash income from equity method investments as the prior year included a gain on the acquisition of Satelles.

Cash Flows Used in Investing Activities

Net cash used in investing activities for the six months ended June 30, 2025 decreased by $92.5 million as compared to the prior year period, primarily as a result of the Satelles acquisition during the prior year period.

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Cash Flows Used in Financing Activities

Net cash used in financing activities for the six months ended June 30, 2025 increased by $139.8 million compared to the prior year period primarily due a decrease in borrowings in the current year. The prior year period included additional borrowings under the Term Loan of $125.0 million associated with the acquisition of Satelles, Inc.

U.S. Tax Regulation Update

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA permanently extends certain expiring provisions of the Tax Cuts and Jobs Act, modifies the international tax framework, and restores certain favorable business tax provisions, among other changes. The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We are currently assessing the OBBBA’s expected impact on our consolidated financial statements.

Seasonality

Our results of operations have been subject to seasonal usage changes for commercial customers, and we expect that our results will be affected by similar seasonality going forward. March through October are typically the peak months for commercial voice services revenue and related subscriber equipment sales. In December 2024, a large IoT customer began to phase out its annual retail pricing plans and subsequently revised