Company: IRDM
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001628280-25-035835
Chunk: 32

Company: Iridium Communications Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 8
Chunk 32
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, 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 income tax expense is primarily related to increased tax benefit from the deduction for foreign derived intangible income and U.S. tax credits, partially offset by increased pre-tax book income in 2025 compared to 2024 and increased tax expense associated with stock compensation and nondeductible executive compensation.

Gain (Loss) on Equity Method Investments

For the three months ended June 30, 2025, our loss on equity method investments was $0.9 million, compared to a gain of $17.7 million in the prior year period. The prior year period amount includes a gain of $19.8 million, equal to the difference between the fair value and net book value of the equity method investment upon the acquisition of Satelles, while the current year reflects only the portion of losses recorded on our other equity method investments. 

Net Income 

Net income was $22.0 million for the three months ended June 30, 2025, compared to $32.3 million for the prior year period. The $10.4 million decrease in net income was primarily the result of the $19.8 million gain related to the acquisition of Satelles