Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 58

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 58
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%, for the six months ended June 30, 2025 compared to the prior year period, primarily due to lower equity compensation costs, offset in part by increased spend related to our channel partner conference held in March 2025.

Depreciation and Amortization 

Depreciation and amortization expense increased by $4.0 million, or 4%, compared to the prior year period due to increased depreciation as some of the on-orbit spares launched in the second quarter of 2023 were placed into service in 2025. 

Other Expense

Interest Expense, Net

Interest expense, net increased $0.1 million for the six months ended June 30, 2025 compared to the prior year period. The increase resulted primarily from the increase in the outstanding debt balance as compared to the prior year period, offset in part by the refinancing fees expensed in the prior year that did not recur in 2025. 

Other Expense, net

Other expense, net, was $2.6 million for the six months ended June 30, 2025, compared to $0.6 million for the prior year period, primarily as the result of changes in foreign currency exchange rates.

25

Income Tax Expense

For the six months ended June 30, 2025, our income tax expense was $9.6 million, compared to $12.5 million for the prior year period. The decrease in income tax expense is primarily related to increased tax benefit from the deduction for foreign derived intangible income and U.S. tax credits plus decreased tax expense associated with stock compensation and nondeductible executive compensation, partially offset by increased pre-tax book income in 2025 compared to 2024.

Gain (Loss) on Equity Method Investments

For the six months ended June 30, 2025, our loss on equity method investments was $1.5 million, compared to a gain of $16.1 million for the prior year period. The change is primarily the result of the acquisition of Satelles in 2024, upon which we recorded a $19.8 million gain on our previously held equity method investment, as noted above. For the six months ended June 30, 2025, our loss on equity method investments reflects the portion of losses recorded on equity method investments during the period.

Net Income 

Net income was $52.4 million for the six months ended June 30, 2025, compared to $52.0 million for the prior year period