Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 37

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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, 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. The change primarily resulted from improved operating income in the current year, as a result of increases in engineering and support services revenue, as noted above, offset in part by the prior year gain on the Satelles acquisition.

Liquidity and Capital Resources

Our primary sources of liquidity are cash provided by operations, cash and cash equivalents and our Revolving Facility. These sources are expected to meet our short-term and long-term liquidity needs, including payments for (i) required principal and interest on the Term Loan, which we expect to be approximately $95.0 million in interest over the next 12 months, based on the current interest rate, (ii) capital expenditures of approximately $90.0 million in 2025, which we expect to moderate through the end of the decade, (iii) working capital, (iv) potential share repurchases, and (v) anticipated cash dividend payments to holders of our common stock.

As of June 30, 2025, our total cash and cash equivalents balance was $79.3 million, down from $93.5 million as of December 31, 2024. While we borrowed $