Company: IRDM
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001628280-25-018712
Chunk: 69

Company: Iridium Communications Inc.
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 2
Chunk 69
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 Three Months Ended March 31,  20252024Change (In thousands)Cash provided by operating activities$61,081 $71,426 $(10,345)Cash used in investing activities$(24,546)$(14,564)$(9,982)Cash provided by (used in) financing activities$(81,063)$45,524 $(126,587)

Cash Flows Provided by Operating Activities

Net cash provided by operating activities for the three months ended March 31, 2025 decreased by $10.3 million from the prior year period. Working capital decreased by approximately $17.5 million, primarily due to higher cash outflows associated with cash incentive, offset in part by inventory and timing of cash receipts, including accounts receivable and recognition of deferred revenue for projects and Satelles. These changes were offset in part by increased net income.

Cash Flows Used in Investing Activities

Net cash used in investing activities for the three months ended March 31, 2025 increased by $10.0 million as compared to the prior year period, primarily as a result of increased capital expenditures, including costs associated with NB-IoT, which we expect to continue for the remainder of 2025.

Cash Flows Provided by (Used in) Financing Activities

Net cash used in financing activities for the three months ended March 31, 2025 increased by $126.6 million compared to the prior year period primarily due to the additional borrowings under the Term Loan of $125.0 million in the prior year period compared to a draw of $20.0 million on the Revolving Credit Facility in 2025 and increased spend on share repurchases in the first quarter of 2025 as compared to 2024.

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. As a result, that customer’s annual billable subscribers will move to monthly plans, which we expect to increase seasonality in billable subscribers. We expect revenue to remain unaffected due to the fixed-price nature of our contract with this customer for 2025. U.S. government revenue and commercial IoT revenue have been less subject to seasonal usage changes.

Critical Accounting Policies and Estimates

The discussion and analysis