Company: IRDM
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001628280-25-018712
Chunk: 31

Company: Iridium Communications Inc.
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 8
Chunk 31
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 decreases in headcount costs, including equity compensation costs and in professional fees, including acquisition costs for Satelles in the prior year. These decreases were offset in part by the increased spend related to our channel partner conference held in March 2025 and an increase in stock appreciation rights expense in the current year resulting from changes in our stock valuation between the years.

Depreciation and Amortization 

Depreciation and amortization expense increased by $1.9 million, or 4%, for the quarter ended March 31, 2025, compared to the prior year period, as some of the on-orbit spares launched in the second quarter of 2023 were placed in to service in the first quarter of 2025, and increased amortization related to customer relationships acquired from Satelles. 

23

Other Income (Expense), net

Interest Expense, Net

Interest expense, net increased $1.2 million, or 6%, for the three months ended March 31, 2025, compared to the prior year quarter primarily reflecting the higher average outstanding debt balance, offset in part by the $1.6 million in fees expensed in connection with the additional Term Loan amounts borrowed in the first quarter of 2024.

Other Income (Expense), net

Other expense, net, was $1.7 million for the three months ended March 31, 2025, compared to immaterial other income, net, for the prior year period, primarily as the result of changes in foreign currency exchange rates.

Income Tax Expense

For the three months ended March 31, 2025, our income tax expense was $5.8 million, compared to $7.9 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 decreased tax expense associated with stock compensation and nondeductible executive compensation.

Loss on Equity Method Investments

For the three months ended March 31, 2025, our loss on equity method investments was $0.6 million, compared to $1.6 million in the prior year period. These reflect the portion of losses recorded on our equity method investments, which included Satelles prior to the acquisition on April 1, 2024. 

Net Income 

Net income was $30.4 million for the three months ended March 31, 2025, compared to $19.7 million for the prior year