- Iridium reported QQ2 2025 revenue of $216.9 million, up 7.9% year-over-year and 0.9% quarter-over-quarter, led by ongoing demand for global satellite voice and data services. Gross margin remained elevated at 75.3%, and EBITDA stood at $104.2 million (EBITDA margin of 48.0%), underscoring the durability of Iridium’s high-margin service mix. Operating income was $50.3 million with an operating margin of 23.17%.\n- Net income declined to $21.97 million, a year-over-year drop of 32.1% and QoQ decline of 27.8%, driven by elevated other expenses and interest costs. Earnings per share were $0.20. Free cash flow (FCF) was robust at $108.9 million, supported by operating cash flow of $129.6 million and modest capital expenditures of $20.7 million.\n- The balance sheet shows meaningful leverage with long-term debt of approximately $1.809 billion and net debt around $1.73 billion. Cash and cash equivalents totaled $79.3 million at quarter-end, and liquidity remains solid with current and quick ratios of 2.51 and 1.75 respectively. The company continued returning capital to shareholders via a roughly $65.6 million share repurchase in QQ2. While cash generation is strong, debt burden remains a material headwind and a key factor for investors to monitor alongside any sign of deleveraging or improvements in operating cost efficiency.\n- In sum, Iridium is delivering visible revenue growth and strong cash flow in a niche, defensible satellite network business, but the lack of formal forward guidance coupled with a high leverage position suggests a cautious stance on near-term profitability upside until financing and cost-structure improvements materialize.
Key Performance Indicators
Revenue
216.91M
QoQ: 0.94% | YoY:7.88%
Gross Profit
163.30M
75.29% margin
QoQ: -1.68% | YoY:68.56%
Operating Income
50.26M
QoQ: -16.77% | YoY:15.15%
Net Income
21.97M
QoQ: -27.77% | YoY:-32.06%
EPS
0.20
QoQ: -28.57% | YoY:-25.93%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 216.906 million USD; YoY growth 7.88%; QoQ growth 0.94%\n- Gross Profit: 163.303 million USD; gross margin 75.29%; YoY gross profit growth 68.56%; QoQ margin change -1.68%\n- Operating Income: 50.258 million USD; margin 23.17%; YoY operating income growth 15.15%; QoQ change -16.77%\n- Net Income: 21.968 million USD; net margin 10.13%; YoY net income decline -32.06%; QoQ decline -27.77%\n- EPS: 0.20 USD; diluted EPS 0.20; YoY EPS change -25.93%; QoQ change -28.57%\n- EBITDA: 104.214 million USD; EBITDA Margin ~48.0%\n- Free Cash Flow (FCF): 108.905 million USD; Operating Cash Flow (OCF): 129.615 million USD\n- Cash at End of Period: 79.309 million USD; Net cash provided by operating activities: 129.615 million USD\n- Balance sheet: total assets 2.56811 billion; total liabilities 2.09450 billion; total stockholders’ equity 473.615 million; cash and equivalents 79.309 million; long-term debt 1.809169 billion; net debt ~1.72986 billion\n- Liquidity/ratios: current ratio 2.51; quick ratio 1.75; cash ratio 0.78; debt-to-capitalization 0.793; debt to equity 3.82; interest coverage 2.21\n- Valuation signals (spot): price-to-sales ~15.0x; price-to-earnings ~37.02x; price-to-book ~6.87x; dividend yield ~0.47% with a payout ratio around 68.9%; share repurchases in QQ2 totaled ~$65.6 million.\n- Note: All figures in USD and presented on a US GAAP basis where applicable.
Financial Highlights
- Revenue: 216.906 million USD; YoY growth 7.88%; QoQ growth 0.94%\n- Gross Profit: 163.303 million USD; gross margin 75.29%; YoY gross profit growth 68.56%; QoQ margin change -1.68%\n- Operating Income: 50.258 million USD; margin 23.17%; YoY operating income growth 15.15%; QoQ change -16.77%\n- Net Income: 21.968 million USD; net margin 10.13%; YoY net income decline -32.06%; QoQ decline -27.77%\n- EPS: 0.20 USD; diluted EPS 0.20; YoY EPS change -25.93%; QoQ change -28.57%\n- EBITDA: 104.214 million USD; EBITDA Margin ~48.0%\n- Free Cash Flow (FCF): 108.905 million USD; Operating Cash Flow (OCF): 129.615 million USD\n- Cash at End of Period: 79.309 million USD; Net cash provided by operating activities: 129.615 million USD\n- Balance sheet: total assets 2.56811 billion; total liabilities 2.09450 billion; total stockholders’ equity 473.615 million; cash and equivalents 79.309 million; long-term debt 1.809169 billion; net debt ~1.72986 billion\n- Liquidity/ratios: current ratio 2.51; quick ratio 1.75; cash ratio 0.78; debt-to-capitalization 0.793; debt to equity 3.82; interest coverage 2.21\n- Valuation signals (spot): price-to-sales ~15.0x; price-to-earnings ~37.02x; price-to-book ~6.87x; dividend yield ~0.47% with a payout ratio around 68.9%; share repurchases in QQ2 totaled ~$65.6 million.\n- Note: All figures in USD and presented on a US GAAP basis where applicable.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
216.91M
7.88%
0.94%
Gross Profit
163.30M
68.56%
-1.68%
Operating Income
50.26M
15.15%
-16.77%
Net Income
21.97M
-32.06%
-27.77%
EPS
0.20
-25.93%
-28.57%
Key Financial Ratios
currentRatio
2.51
grossProfitMargin
75.3%
operatingProfitMargin
23.2%
netProfitMargin
10.1%
returnOnAssets
0.86%
returnOnEquity
4.64%
debtEquityRatio
3.82
operatingCashFlowPerShare
$1.2
freeCashFlowPerShare
$1.01
dividendPayoutRatio
68.9%
priceToBookRatio
6.87
priceEarningsRatio
37.02
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the dataset. No earnings call transcript or management quotes are available to synthesize themes such as strategy, operations, or market conditions. Once the QQ2 2025 call transcript is supplied, I will extract management insights and group them by theme with context and implications for investors.
N/A
— N/A
N/A
— N/A
Forward Guidance
There is no formal forward guidance disclosed in the QQ2 2025 materials. Given Iridium’s strong free cash flow generation and the strategic importance of its global satellite network, the near-term outlook hinges on (a) any incremental visibility into backlog and contract wins in government and enterprise segments (including IoT and hosted payload initiatives), (b) the company’s ability to manage operating expenses and other charges, and (c) its capacity to manage leverage. Investors should monitor: (1) any announced capital allocation plan (deleveraging vs. continued share buybacks), (2) potential refinancing activity to lengthen debt maturities or reduce interest costs, and (3) progress on Certus, IoT, and hosted payload revenue streams that can sustain mid-term growth and margin stabilization.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0JDO.L Focus
75.29%
23.20%
4.64%
37.02%
0JBU.L
1.00%
-7.72%
-14.20%
-2.40%
ENET.L
97.40%
-4.12%
-1.33%
-29.00%
0I1B.L
59.30%
-6.46%
-1.42%
-13.04%
0IQC.L
1.41%
-0.65%
41.40%
88.20%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Iridium remains a cash-generative, margin-rich satellite communications player in a niche, defensible market. The QQ2 2025 results show resilient top-line growth and robust FCF generation, but the company carries a heavy balance sheet with substantial long-term debt and negative retained earnings, which constrains upside until deleveraging or margin improvements materialize. In the near term, the stock faces valuation comfort from steady cash flow but downside risk from refinancing needs and the potential for higher interest costs. A cautious but constructive stance is warranted: if management outlines a credible deleveraging plan and/or accelerates growth in high-margin IoT and hosted payload revenues, the investment case strengthens. Key factors to monitor include any updates on debt refinancing, cost controls, trajectory of Certus-enabled revenue, and any incremental government contract awards or backlog developments.
Key Investment Factors
Growth Potential
Iridium’s long-term growth thesis rests on expanding secure, global satellite communications for government and enterprise, accelerating IoT adoption via Iridium Certus, and monetizing hosted payload opportunities. Additional upside may come from maritime and aviation verticals, as well as expanded partnerships with service providers and VARs to broaden adoption of data-only satellite solutions.
Profitability Risk
Key risks include a high leveraged balance sheet (net debt ~$1.73B) and the potential for financing costs to erode margins; revenue concentration in government and select large customers; competitive pressure from other satellite networks; regulatory/geopolitical risk; and execution risk relating to new product launches (e.g., hosted payload, Certus services).
Financial Position
Solid cash flow generator with CFO of $129.6M and FCF of $108.9M in QQ2 2025 supports liquidity and flexibility, but the balance sheet remains highly leveraged (long-term debt ~$1.81B; net debt ~ $1.73B) with negative retained earnings (-$446.7M). The company maintains a reasonable current and quick ratio, but debt servicing and potential refinancing risk warrant close monitoring.
SWOT Analysis
Strengths
Global, resilient satellite network with near-global coverage and high-margin service mix (gross margin ~75%)