Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 57

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 57
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 pursuant to our 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 six months ended June 30, 2025, revenue increased slightly, reflecting a contractual step up in the EMSS contract on September 15, 2024.

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Subscriber Equipment Revenue

Subscriber equipment revenue decreased $5.1 million, or 11%, for the six months ended June 30, 2025, compared to the prior year period, primarily due to a decrease in volume of Short Burst Data device and handset sales. 

Engineering and Support Service Revenue

 Six Months Ended June 30,  20252024Change (In millions)Commercial engineering and support services$4.0 $2.7 $1.3 Government engineering and support services75.3 53.5 21.8 Total engineering and support services$79.3 $56.2 $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