Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 35

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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 and ARPU. Voice and data revenue growth is expected to accelerate in the second half of 2025 as a result of the implementation of previously announced price actions. Hosted payload and other data service revenue increased $1.0 million, or 4%, compared to the prior year period, primarily due to increases in PNT revenue, partially offset by other data service contracts. Commercial broadband revenue decreased $1.6 million, or 6%, for the six months ended June 30, 2025, compared to the prior year period, primarily due to a decrease in ARPU reflecting the increased prevalence of usage of our service as a companion service and the conversion of customers to other plans. This previously identified trend has accelerated this quarter, and we expect it to continue at this higher pace through at least the remainder of 2025.  

Government Service Revenue 

 Six Months Ended June 30,   20252024ChangeRevenueBillableSubscribers (1)RevenueBillableSubscribers (1)RevenueBillableSubscribers(Revenue in millions and subscribers in thousands)Government services$53.5 128$53.0 142$0.5 (14)

(1)Billable subscriber numbers shown are at the end of the respective period.

We provide airtime and airtime support to the U.S. government and other authorized customers 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.