Trimming estimates consistent with revised guidance. We are reducing our revenue, Adjusted (Operational) EBITDA and EPS estimates for the remainder of 2025 and for 2026. During the 2Q earnings call, management indicated that Iridium remains on track for 5% Operational EBITDA growth in 2025 at the midpoint of guidance, but trimmed its outlook for service revenue growth, now expected to grow 3-5% in 2025 (previously 5-7%). The reduction is driven by three variables: (1.) The ongoing maritime broadband transition to a companion service; (2.) Some voice subscriber reductions as noted in 1Q’25 related to canceled USAID funding; and (3.) A delay in the expected timing of some PNT revenue, which management now expects to recognize in 2026 rather than in 2025.

Our revised estimates for 2025 and 2026, respectively, are: $872M and $899M in revenue; $492M and $501M in OEBITDA, and EPS of $0.95 and $1.10. We expect Iridium’s blended gross margin to remain in the 47% range, and SG&A to remain in the 20% range.