Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 53

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 53
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 the SDA contract, as noted above. 

Cost of Subscriber Equipment

Cost of subscriber equipment includes the direct costs of equipment sold, which consist of manufacturing costs, allocation of overhead, and warranty costs.

Cost of subscriber equipment decreased by $2.6 million, or 19%, for the three months ended June 30, 2025, compared to the prior year period, primarily due to the decrease in volume of device sales, as noted above. 

Research and Development

Research and development expenses decreased by $2.2 million, or 34%, for the three 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 that are not directly attributable to the sale of services or products include sales and marketing costs, as well as employee-related expenses (such as salaries, wages, and benefits), legal, finance, information technology, facilities, billing and customer care expenses.

Selling, general and administrative expenses decreased by $2.1 million, or 4%, for the three months ended June 30, 2025, compared to the prior year period, primarily due to decreases in headcount costs, including equity compensation costs.

Depreciation and Amortization 

Depreciation and amortization expense increased by $2.1 million, or 4%, for the quarter ended June 30, 2025, 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 Income (Expense), net

Interest Expense, Net

Interest expense, net decreased $1.0 million, or 4%, for the three months ended June 30, 2025, compared to the prior year quarter primarily reflecting the fees paid in the prior year to reprice the Term Loan that did not recur in 2025.

Other Expense, net

Other expense, net, was $0.9 million for the three 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.

22

Income Tax Expense

For the three months ended June 30, 2025, our income tax expense was $3.8 million, compared to $4.6 million for the prior year period. The decrease in