Executive Summary
Iridium Communications delivered a solid QQ1 2025, evidencing ongoing demand for its mobile voice and data satellite services. Revenue reached USD 214.9 million, up 5.4% year over year and 0.9% sequentially, with gross margin expanding to 77.3% and EBITDA of USD 112.8 million (52.5% EBITDA margin). Net income of USD 30.4 million supported earnings per share (EPS) of USD 0.28 (diluted USD 0.27), reflecting healthier profitability on a year-over-year basis despite a modest QoQ decline in net income.
Operating cash flow was USD 61.1 million in the quarter, contributing to free cash flow of USD 36.5 million. The company generated USD 50.9 million in cash at period end and deployed significant cash toward a USD 70.5 million share repurchase. Net debt stood at USD 1.756 billion, with total debt of USD 1.807 billion, underscoring a leverage-heavy balance sheet that remains a key overhang for forward-looking performance and flexibility.
The quarter reinforces Iridium’s ability to monetize its satellite voice/data and IoT offerings while balancing a capital-intensive model. Management commentary (where available) underscores a strategic focus on hosted payloads, IoT data services, and government/non-government markets. However, the combination of high leverage and modest liquidity implies a careful watch on refinancing risk, interest coverage, and cash generation catalysts in the near term.
Overall, the QQ1 2025 results reflect healthy core profitability and cash generation within a high-leverage, capital-heavy framework. The balance of growth through IoT and hosted payload monetization against debt repayment and potential refinancing needs will likely drive investor attention in the near term.
Key Performance Indicators
QoQ: -16.31% | YoY:54.74%
QoQ: -12.50% | YoY:75.00%
Key Insights
Revenue: USD 214.878m; YoY +5.41%, QoQ +0.89%
Gross Profit: USD 166.091m; Gross Margin 77.30%; YoY +77.11%, QoQ +8.71%
EBITDA: USD 112.803m; EBITDA Margin 52.50% (EBITDA/Revenue)
Operating Income: USD 60.388m; Operating Margin 28.10%; YoY +21.33%, QoQ +15.87%
Net Income: USD 30.412m; Net Margin 14.15%; YoY +54.74%, QoQ -16.31%
Earnings Per Share (EPS): USD 0.28; Diluted USD 0.27; YoY +75.00%, QoQ -12.50%
Free Cash Flow: USD 36.535m; Operating Cash Flow: USD 61.081m; Capital Expenditures: USD -24...
Financial Highlights
Revenue: USD 214.878m; YoY +5.41%, QoQ +0.89%
Gross Profit: USD 166.091m; Gross Margin 77.30%; YoY +77.11%, QoQ +8.71%
EBITDA: USD 112.803m; EBITDA Margin 52.50% (EBITDA/Revenue)
Operating Income: USD 60.388m; Operating Margin 28.10%; YoY +21.33%, QoQ +15.87%
Net Income: USD 30.412m; Net Margin 14.15%; YoY +54.74%, QoQ -16.31%
Earnings Per Share (EPS): USD 0.28; Diluted USD 0.27; YoY +75.00%, QoQ -12.50%
Free Cash Flow: USD 36.535m; Operating Cash Flow: USD 61.081m; Capital Expenditures: USD -24.546m
Liquidity/Leverage: Cash and cash equivalents USD 50.899m; Total debt USD 1.806bn; Net debt USD 1.756bn; Current ratio 1.99; Quick ratio 1.36; Interest coverage 2.77x
Cash Flow / Financing: Net cash used for financing activities USD -81.063m; Share repurchases USD -70.478m; Dividends USD -15.667m; Net cash change in period USD -42.627m; Cash at end of period USD 50.899m
Valuation/Multiples: P/E ~ 24.65x; P/S ~ 13.96x; EV/Revenue ~ 42.15x; Dividend Yield ~ 0.52%
Trailing Four Quarters Revenue: ~USD 841.7m; Trailing Four Quarters Net Income: ~USD 123.5m (rounded)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
214.88M |
5.41% |
0.89% |
| Gross Profit |
166.09M |
77.11% |
8.71% |
| Operating Income |
60.39M |
21.33% |
15.87% |
| Net Income |
30.41M |
54.74% |
-16.31% |
| EPS |
0.28 |
75.00% |
-12.50% |
Key Financial Ratios
operatingProfitMargin
28.1%
operatingCashFlowPerShare
$0.56
freeCashFlowPerShare
$0.33
dividendPayoutRatio
51.5%
Management Commentary
Transcript data not provided in the supplied dataset. Consequently, management quotes and thematic highlights from an QQ1 2025 earnings call are unavailable for inclusion.
Forward Guidance
No formal forward guidance was published in the provided data. Given Iridium's operating profile and capital structure, investors should monitor: (1) debt refinancing timing and terms given a high leverage position (net debt/EBITDA near elevated levels) and interest rate sensitivity; (2) trajectory of revenue growth driven by IoT/Data services, hosted payload monetization, and government programs; (3) cadence of free cash flow generation and potential deleveraging alternatives (equity raises, asset sales, or restructuring); (4) competitive dynamics in satellite communications and any materiel shifts in capex intensity among peers. In the absence of explicit guidance, a qualitative read suggests a path where continued operating profitability supports cash generation, but debt management remains the principal risk factor.