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.