Company: IRDM
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001418819-25-000009
Chunk: 31

Company: Iridium Communications Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 as the increased prevalence of usage of our service as a companion service in the current year period. We expect the shift to companion services to continue at the historical pace through at least the remainder of 2025. 

Government Service Revenue 

 Three Months Ended September 30,   20252024ChangeRevenueBillableSubscribers (1)RevenueBillableSubscribers (1)RevenueBillableSubscribers(Revenue in millions and subscribers in thousands)Government services$26.9 124$26.5 141$0.4 (17)

(1)Billable subscriber numbers shown are at the end of the respective period.

We provide airtime and airtime support to U.S. government and other authorized customers pursuant to our Enhanced Mobile Satellite Services (EMSS) contract. Under the terms of this agreement, which we entered into in September 2019, authorized customers utilize specified Iridium airtime services provided through the U.S. government’s dedicated gateway. The fee is not based on subscribers or usage, allowing an unlimited number of users access to these services. For the three months ended September 30, 2025, revenue increased slightly, reflecting the annual rate increases in the EMSS contract from $106.0 million to $107.0 million on September 15, 2024 and from $107.0 million to $110.5 million on September 15, 2025. 

21

Subscriber Equipment Revenue

Subscriber equipment revenue decreased by $0.7 million, or 3%, for the three months ended September 30, 2025, compared to the prior year period, primarily as a result of a decrease in volume of handset sales, offset in part by an increase in volume of Short Burst Data® device sales. 

Engineering and Support Service Revenue

 Three Months Ended September 30,  20252024Change (In millions)Commercial engineering and support services$1.9 $1.7 $0.2 Government engineering and support services38.3 29.0 9.3 Total engineering and support services$40.2 $30.7 $9.5 

Engineering and support service revenue increased by $9.5 million, or 31%, for the three months ended September 30, 2025, compared to the prior year period, primarily due to increased work under certain government contracts, predominantly the contract with the Space Development Agency, or the SDA.

Operating Expenses

Cost of Services