Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 36

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 8
Chunk 36
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2 $23.1 

Engineering and support service revenue increased $23.1 million, or 41%, for the six months ended June 30, 2025 compared to the prior year period primarily due to increased work under certain government projects, including the contract awarded by the SDA. 

Operating Expenses

Cost of Services (exclusive of depreciation and amortization)

Cost of services (exclusive of depreciation and amortization) increased by $16.5 million, or 19%, for the six months ended June 30, 2025 from the prior year period, primarily as a result of an increase in work under certain government engineering contracts, including the SDA contract, as noted above.

Cost of Subscriber Equipment

Cost of subscriber equipment decreased $3.7 million, or 13%, for the six months ended June 30, 2025, compared to the prior year period, which was in line with the change in equipment revenue for the same period, as noted above.

Research and Development

Research and development expenses decreased by $4.0 million, or 29%, for the six months ended June 30, 2025 compared to the prior year period based on decreased spending on device-related features for our network. 

Selling, General and Administrative 

Selling, general and administrative expenses decreased by $3.2 million, or 4%, 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