Company: IRDM
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001418819-25-000009
Chunk: 101

Company: Iridium Communications Inc.
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 table summarizes the Company’s engineering and support services revenue: Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024 (In thousands)(In thousands)Commercial$1,852 $1,731 $5,893 $4,404 Government38,333 29,016 113,638 82,569 Total engineering and support services revenue$40,185 $30,747 $119,531 $86,973 Approximately 37% and 51% of the Company’s accounts receivable balance at September 30, 2025 and December 31, 2024, respectively, were due from prime contracts or subcontracts with agencies of the U.S. government. The Company’s contracts with customers generally do not contain performance obligations with terms in excess of one year. As such, the Company does not disclose details related to the value of performance obligations that are unsatisfied as of the end of the reporting period. The total value of any performance obligations that extend beyond one year is immaterial to the financial statements. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the condensed consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in unbilled accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $15.4 million and $12.0 million for the three months ended September 30, 2025 and 2024, respectively, and $45.5 million and $26.4 million for the nine months ended September 30, 2025 and 2024, respectively. 

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The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the condensed consolidated balance sheets. The commissions are recognized over the estimated usage period. The following table presents contract assets not separately disclosed:September 30, 2025December 31, 2024(In thousands)Contract Assets:Commissions$1,