Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 52

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 52
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 (1)RevenueBillableSubscribers (1)RevenueBillableSubscribers(Revenue in millions and subscribers in thousands)Government services$26.8 128$26.5 142$0.3 (14)

(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, or 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 June 30, 2025, revenue increased slightly, reflecting a contractual step up in the EMSS contract on September 15, 2024. 

21

Subscriber Equipment Revenue

Subscriber equipment revenue decreased by $3.3 million, or 15%, for the three months ended June 30, 2025, compared to the prior year period, primarily as a result of a decrease in volume of handset and Short Burst Data® device sales. 

Engineering and Support Service Revenue

 Three Months Ended June 30,  20252024Change (In millions)Commercial engineering and support services$2.4 $1.5 $0.9 Government engineering and support services39.5 24.3 15.2 Total engineering and support services$41.9 $25.8 $16.1 

Engineering and support service revenue increased by $16.1 million, or 62%, for the three months ended June 30, 2025, compared to the prior year period, primarily due to increased work under certain government contracts, predominantly the contract awarded by the Space Development Agency, or the SDA.

Operating Expenses

Cost of Services (exclusive of depreciation and amortization)

Cost of services (exclusive of depreciation and amortization) includes the cost of network engineering and operations staff, including contractors, software maintenance, product support services and cost of services for government and commercial engineering and support service revenue.

Cost of services (exclusive of depreciation and amortization) increased by $14.1 million, or 36%, for the three months ended June 30, 2025 from the prior year period, primarily as a result of the increase in work under certain government projects, including