Q2 2025 Iridium Communications Inc Earnings Call

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Speaker Change: <unk>.

Speaker Change: Vice President Investor Relations.

Speaker Change: Thanks, Irene good morning, and welcome to <unk> second quarter 2025 earnings call. Joining me on this morning's call our CEO, Matt Desch, and our CFO Vince O'neill today's call will begin with a discussion of our second quarter results followed by Q&A.

Day and welcome to the Iridium Communications. Second quarter 2025 earnings conference call.

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After today's presentation, we will be an opportunity to ask questions.

Speaker Change: I Trust you've had the opportunity to review this morning's earnings release, which is available on the Investor Relations section of Iridium as website.

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Before I turn things over to Matt I'd like to caution all participants that our call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 forward.

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Speaker Change: Forward looking statements are statements that are not historical fact and include statements about future expectations plans and prospects.

Speaker Change: Vice president, investor relations.

Speaker Change: Such forward looking statements are based upon our current beliefs and expectations and are subject to risks, which could cause actual results to differ from forward looking statements.

Speaker Change: Thanks Irene. Good morning and welcome to room. Second quarter 2025 earnings call.

Speaker Change: Joining me on. This morning's, call are CEO, Matt Dash and our CFO Vince O'Neal.

Speaker Change: Such risks are more fully discussed in our filings with the Securities and Exchange Commission our remarks today should be considered in light of such risks.

Today's call Will begin with a discussion of our second quarter results, followed by Q&A.

Speaker Change: Any forward looking statements represent our views only as of today and while we may elect to update forward looking statements at some point in the future. We specifically disclaim any obligation to do so even if our views or expectations change.

Speaker Change: I trust, you've had the opportunity to review. This morning's earnings release which is available on the investor relations section of our website.

Speaker Change: Before I turn things over to Matt, I'd like to caution all participants that our call may contain forward-looking statements within the meaning of the private Securities. Litigation Reform, Act of 1995.

Speaker Change: During the call, we'll also be referring to certain non-GAAP financial measures, including operational EBITDA pro forma free cash flow free cash flow yield and free cash flow conversion.

Speaker Change: forward-looking statements are statements that are not historical fact and include statements about future expectations plans and Prospects

Speaker Change: These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. Please refer to today's earnings release, and the Investor Relations section of our website for further explanation of these non-GAAP financial measures as well as a reconciliation to the most directly comparable GAAP measures with that let me turn things over to Matt.

Speaker Change: So Ford looking statements are based upon our current beliefs and expectations and are subject to risk, which could cause actual results to differ from forward-looking statements.

Speaker Change: Such risks are more fully discussed in our filings with the Securities and Exchange Commission. Our remarks today should be considered in light of such risks.

Matt Desch: Thanks, Ken good morning, everyone.

Matt Desch: As you saw in our press release. This morning, we continue to grow across most product lines and remain on track for 5% operational EBITDA growth. This year at the midpoint of our guidance.

Any forward-looking statements represent our views only as of today. And while we may elect to update forward-looking statements at some point in the future, we specifically, disclaim any obligation to do. So even if our views are expectations change,

Matt Desch: We are however, adjusting our outlook for service revenue growth.

Speaker Change: During the call, we'll also be referring to certain non-gaap Financial measures including operational, labeda proformer free, cash flow, free cash flow yield and free cash flow conversion.

Matt Desch: Service revenue is now expected to grow between 3% and 5% this year.

Matt Desch: This reduction is driven primarily by three items the ongoing maritime broadband transition to a companion service.

Matt Desch: Some voice subscribers reductions we noted in the first quarter related to canceled usaid's funding and a delay in the expected timing of some PMT revenue, which now looks like it will come in 2026, rather than this year Vince will elaborate further on these items.

Speaker Change: These non-gaap Financial measures are not prepared in accordance with generally accepted accounting principles. Please refer to today's earnings release and the investor relations section of our website for further explanation of these non-gaap Financial measures as well as a Reconciliation to the most directly comparable, gaap measures with that. Let me turn things over to Matt.

Matt Dash: Thanks Ken. Good morning everyone.

Matt Desch: Regarding our maritime broadband business, while it has never been our primary growth vector for our 2030 service revenue target. It remains an important service, particularly as we have become a trusted companion solution for Starlink and other VSAT services.

Matt Dash: As you saw in our press release this morning, we continue to grow across most product lines and remain on track for 5%. Operational ebit of growth this year at the midpoint of our guidance.

Matt Dash: We are however, adjusting our outlook for service Revenue growth.

Matt Dash: Service revenue is now expected to grow between 3 and 5% this year.

Speaker Change: Today Iridium plays a vital role in maritime, especially where our terminals provide superior coverage and reliability compared to other <unk> solutions the.

Matt Dash: This reduction is driven primarily by 3 items, the ongoing Maritime Broadband transition to a companion service.

Matt Desch: The trade down we are seeing from some.

Matt Desch: Scrubbers who've been using iridium as a primary service and now moving to use us as a backup.

Matt Dash: Some voice subscriber reductions. We noted in the first quarter related to canceled usaid funding and a delay. In the expected timing of some pnt Revenue, which now, looks like it will come in 2026. Rather than this year. Vince will elaborate further on these items.

Matt Desch: <unk> at a quicker pace than we had expected.

Matt Desch: As a result, we believe this conversion will save about one percentage point from our service revenue growth this year.

Matt Desch: Even with these conversions maritime broadband will remain a solid contributor iridium <unk> long term cash flow.

Matt Dash: Trusted companion solution for starlink and other visat services.

Matt Desch: While we're not forecasting growth in maritime and the near term, we do believe that the launch of a number of new Iridium service GM DSS terminals over the next few quarters will allow us to continue to maintain our position in maritime overtime and that aviation broadband safety data link growth growth will help to support our broadband revenue through the end of the decade.

Matt Dash: Today idiom plays a vital role in Maritime especially where our terminals provide Superior coverage and reliability compared to other elban Solutions.

Matt Dash: The trade down, we are seeing from some sub subscribers who've been using our as a primary service and now moving to use us as a backup continues at a quicker Pace than we had expected.

Matt Desch: As we look out to 2030, we believe our investments in <unk> in our P&C businesses, along with growth in other areas like Iot and government will drive higher service revenue growth rates and allow us to achieve our $1 billion.

Matt Dash: As a result, we believe this conversion will shave about a percentage point from our service Revenue growth this year.

Matt Dash: Even with these conversions, Maritime Broadband will remain a solid contributor or idioms long-term, cash flow.

Matt Desch: Service revenue target in 2030.

Matt Desch: 2025 continues to be a year of investment and retooling as we prepare to layer on new revenue streams like our new Iridium service Iot products Iridium NTN direct which is our coming <unk> service.

Matt Desch: In satellite time and location are new P&C service these products and services, our core pillars of our future growth and we're excited about the reception there are already getting from partners and their customers.

Matt Dash: While we're not forecasting growth in Maritime in the near term, we do believe that the launch of a number of new Aryan service gmdss terminals. Over the next few quarters will allow us to continue to maintain our position in Maritime over time and that Aviation Broadband. Safety data link. Grow growth will help to support our Broadband Revenue, through the end of the decade.

Matt Desch: We continue to believe our portfolio of products and services operating on Iridium to one of a kind network positions us well for growth in existing markets like aviation energy transportation security as well as emerging markets like autonomous systems operating on land sea or in the air.

Matt Dash: As we look out to 2030, we believe our investments in D2D, and our pnt businesses along with growth in other areas, like iot and government will drive higher service Revenue. Growth rates and allow us to our 1 billion dollar service Revenue Target in 2030.

Matt Desch: Traditional voice products like satellite phones, and Wi Fi devices, and Iot applications for telemetry unintended sensors and location services.

Matt Dash: 2025 continues to be a year of investment in retooling as we prepare to layer on new revenue streams. Like our new arid service iot products are direct which is our coming. D Tod service.

Matt Dash: And satellite time and location are new pnt service.

Matt Desch: I'll continue to be popular with existing and new partners because they address specific customer needs that no other constellation can.

Matt Dash: These products and services are core pillars of our future growth and work, excited about the reception. They're already getting from partners and their customers.

Matt Desch: We're also attracting new partners like mobile network operators in cellular Iot operators, we were just beginning to deploy regional <unk> and Iot offerings.

Matt Desch: These operators acknowledge the limitations of cellular based edd and believes that iridium can extend their coverage with reliable global satellite service.

Matt Dash: We continue to believe our portfolio of products and services operating on a radium, is 1 of A Kind Network positions us, well for growth and existing markets. Like Aviation energy, Transportation Security, as well as Emerging Markets, like autonomous systems operating on Lancey, or in the air.

Matt Desch: These trends give us confidence in our recent capital investments and our longer term growth outlook.

Matt Desch: By exceeding our business with a broader offering of services. We are winding the spring for new subscriber and service revenue growth we.

Matt Dash: Traditional voice products, like satellite phones, and Wi-Fi devices, and iot applications for Telemetry unattended, sensors, and location services. All continue to be popular with existing, in a new partners because they address specific. Customer needs that. No other constellation can

Matt Desch: We are targeting specific industries, and adding new partners to address the needs of industries. It only now exploring satellite solutions.

Matt Desch: We have continued to add to our global ecosystem of business partners, adding nearly 50, new business relationship since the start of 2025.

Matt Dash: We're also attracting new partners like mobile network, operators, and cellular iot operators who are just beginning to deploy Regional D2D and iot offerings.

Matt Desch: This is how we've always grown getting new products in the hands of new partners to take us into new industries.

Matt Dash: These operators acknowledge the limitations of cellular-based DD and believe that our can extend their coverage with reliable global satellite service.

Matt Desch: In the first half of the year, we've already certified about 35, new devices for them.

Matt Dash: These Trends give us confidence in our recent Capital Investments and our longer-term growth Outlet.

Matt Desch: They will be deploying in their respective industries to address their growing customer needs. This is on pace with prior years and underscores the consistent volume of new applications and solutions, our partners deploy each year to grow Iridium book of business.

Matt Dash: By seeding our business with a broader offering of services. We are winding the spring for new subscriber and service Revenue growth.

Matt Dash: We are targeting specific Industries and adding new partners to address the needs of industries that only now, exploring satellite Solutions.

Matt Desch: I've spoken previously about the unique opportunity, we see in position navigation and timing, especially with the increasing prominence of GPS failures in conflict zones, and the growing threat that bad actors posed to critical infrastructure like cell towers data centers shipping in air travel.

Matt Dash: We have continued to add to our Global ecosystem of business partners adding nearly 50 new business relationships since the start of 2025.

Matt Dash: This is how we've always grown getting new products in the hands of new partners to take us into new Industries.

Matt Desch: We found that manufacturers of drones and autonomous systems are keenly aware of the critical role that trusted time and navigation serve in the safety and reliability of their assets.

Matt Dash: In the first half of the year we've already certified about 35 new devices for them. Uh, that they will be deploying in their respective Industries to address, their growing customer needs

Matt Desch: We're getting a strong reception to our satellite time and location service and are seeing interest from a variety of commercial players.

Matt Dash: This is on Pace with prior years and underscores, the consistent volume of new applications. And solutions are Partners deploy each year to grow ours, book of business.

Matt Desch: Recently maritime insurance providers, who view Iridium PMT is one of the only real solutions available to ship operators to protect against GPS spoofing and curtail the risks of asset and cargo loss.

Matt Desch: I would highlight that GPS failures to go far beyond conflict zones, and we are speaking with operators of telecom transportation and energy businesses, who are actively exploring solutions to address these threats <unk>.

Matt Dash: I've spoken previously about the unique opportunity, we see in position navigation and timing especially with the increasing, prominence of GPS, failures and conflict zones, and the growing threat that bad actors pose to critical infrastructure like cell towers data, centers, shipping and air travel.

Matt Dash: We found that manufacturers of drones and autonomous systems are keenly aware of the critical role that trusted time and navigation, serve in the safety and reliability of their assets.

Matt Desch: Iridium industrial grade solutions are relevant to both commercial and government users as they provide global protection and security that others cannot easily match.

Matt Desch: We believe that we are at least five years ahead of any other viable global alternative PNT solutions, which gives us confidence in meaningful revenue growth and broad industry adoption over the next few years.

Matt Dash: We're getting a strong reception to our satellite time and location service and are seen interest from a variety of commercial players. Most recently Maritime insurance providers who view arid and pnt, as 1 of the only real solutions available to ship, operators to protect against GPS spoofing and curtail the risk of asset and cargo loss.

Matt Desch: As we said previously we're investing for growth.

Matt Desch: Capex this year will reach about $90 million as we invest in satellite software a new cloud based ground infrastructure to implement our direct to device service as well as cover some onetime investments to move and expand our corporate headquarters.

Matt Dash: I would highlight that GPS failures go far beyond conflict zones and we are speaking with operators of Telecom transportation and energy, businesses who are actively exploring solutions to address these threats.

Matt Desch: Our work on this new standards based services proceeding at an unprecedented pace and we're on schedule to begin on air live testing soon and for the introduction of Iridium NTN direct in 2026.

Matt Dash: Relevant to both commercial and government users as they provide Global protection and security that others cannot easily match.

Matt Desch: A number of <unk> are signed or underway with global <unk> for Iridium NTN direct and we're really pleased that the market reception we're getting.

Matt Dash: We believe that we are at least 5 years ahead of any other viable, Global alternative, pnt solution, which gives us confidence and meaningful Revenue growth and Broad industry adoption over the next few years.

Matt Dash: As we said, previously, we're investing for growth.

Matt Desch: From our conversations we know there is strong demand for global standards based Iot and consumer messaging to complement some of the other <unk> approaches that are using regional cellular frequencies.

Matt Desch: We expect that some of these <unk> will be ready to announce their partnerships with iridium soon in la.

Matt Desch: I look forward to supporting them as they roll out their <unk> and Iot offerings to customers with our truly global reliable coverage.

Matt Desch: You may have seen our announcements with <unk> back in May This partnership will allow us to quickly and seamlessly rollout iridium NTN direct with <unk> worldwide.

Matt Desch: <unk> already served 600 carriers in 170 countries and their integration of our <unk> offering will provide <unk> and their customers the ability to roam onto our network on day one.

Matt Desch: I'd also like to touch upon our work with the U S government.

Matt Desch: With the current administration's priorities such as Golden Dome, the growing threats in the Indo pay Com theater in the U S government growing recognition of the importance of commercial space, we remain well positioned for growth, especially given our unique network and our 25 year relationship with this customer.

Matt Desch: Over the past year, we've announced a number of new contracts with the USG that enabled greater use of our network and we believe our relationship with the Dod has never been stronger.

It's no accident that our development work with them has grown over the years and we have and that we're increasingly being asked to do more you see this clearly in our expanding engineering and support revenue and we expect to see in other aspects of our business going forward.

Matt Desch: Even as Iridium has been steadily returning capital back to shareholders through quarterly dividends and a robust buyback program.

Matt Desch: We have also continued to fuel customer growth and portfolio expansion by funding R&D and making meaningful capital investments.

Matt Desch: As I think about our many growth drivers over the next five years I really believe it will be three core pillars, TMT iridium NTN direct and our expanding Iot portfolio that will drive revenue and subscriber growth with our partners.

Matt Desch: And while it still feels early to be discussing our next generation network with the current constellation performing so well and expected to last through the next decade, we are starting to evaluate technologies and partnerships to make sure our future network is even more affordable and flexible enough to deliver new services.

Matt Desch: Let me provide some insights into our vision.

Matt Desch: We have decided that our next generation network will provide standards based services to serve all kinds of consumer products directly.

Matt Desch: Specifically, we plan to support <unk>, New radio as the architecture and approach, which will likely be called <unk> at the time, we deploy the service.

Matt Desch: No one in the satellite industry is actively implementing this next generation service those several have announced their interest <unk>.

Matt Desch: Implementing <unk> NR or <unk> standards will allow us to develop to deliver a richer user experience to cell phones and consumer products when beyond the reach of cell towers.

Matt Desch: We think our timing will be optimal as it will take time for devices with the standards to propagate widely across the market.

Matt Desch: Our follow on network will also host area on which continues to grow and thrive and we will add new space based VHF services, which we are working on with them.

Matt Desch: We believe the aviation industry is at the start of a transformation and cockpit data communications from ground based VHF towers to satellite and we want to lead that opportunity.

Matt Desch: We're also planning to enhance and extend our leadership as the global alternative for PMT for all critical infrastructure.

Matt Desch: We can we think we can build this new network in the 2000 and <unk>, while continuing to provide investors with meaningful shareholder capital returns.

Matt Desch: The passage of time will demonstrate the durability and strength of our business and provide investors more appreciation of iridium <unk> unique position, we occupy invest.

Matt Desch: Investors will continue to be well served by iridium spectrum experience broad partner ecosystems and focused business strategy.

Vince O'Neill: With that I'll turn the call over to Vince for a review of our financials.

Matt Desch: Matt and good morning, everyone.

Speaker Change: I'll start my remarks today by reviewing our financial results for the second quarter and some trends we're seeing in our major business lines. I'll also review this morning's update to our full year outlook and finish with a review of our liquidity position and capsule structure.

Speaker Change: Operational EBITDA was up 6% in the second quarter to $121 3 million driven by a combination of revenue from engineering and support and recurring services.

Speaker Change: On the commercial side of our business service revenue was up 2% to $128 8 million led by growth in Iot.

Speaker Change: Voice and data revenue rose, 1% from a year earlier to $56 8 million and subscribers remained consistent with the year ago period.

Speaker Change: We expect revenue growth to accelerate in the second half of the year now that previously announced price actions have been implemented.

Speaker Change: Commercial Iot revenue totaled $44 8 million in the second quarter up 8% from a year earlier.

Speaker Change: This growth continues to reflect broad based adoption of our it services for consumer and commercial applications.

Speaker Change: Revenue in commercial broadband was down 6% from the year ago period to $12 7 million.

Speaker Change: This year over year decline continues to reflect reflect a mix shift in customers from primary service to companion backup VSAT plans at a lower output.

Speaker Change: Hosting and other data services revenue was $14 5 million this quarter up 1% from last year's comparable quarter, reflecting a rise in P&C revenue.

Speaker Change: Which is partially offset by other data service contracts.

Speaker Change: We've continued to see strong interest in Iridium P&C following our acquisition of <unk> last year and remain optimistic about demand for these services as global organizations begin to address the vulnerabilities inherent to GPS and GNL space systems.

Speaker Change: Government service revenue was up modestly in the second quarter to $26 8 million, reflecting the step up in our MSS contracts with the USS with the U S government late last year.

Speaker Change: Subscriber equipment sales were $19 5 million in the second quarter down 15% from the prior year's quarter, but we continue to expect full year sales will be in line with 2024.

Speaker Change: Engineering and support revenue was $41 9 million in the second quarter as compared to $25 8 million in the prior year period.

Speaker Change: The strong increase from the prior year quarter continues to reflect growing work with the space development agency as well as new U S contract awards from the prior year.

Matt Desch: As Matt noted we are updating our full year guidance for service revenue from 5% to 7% growth to between three and 5% and reiterating our outlook for <unk> for 2025.

Speaker Change: Let me take a moment to discuss some of the changes that warrant the update to our service revenue forecast.

Speaker Change: To start we are seeing continued conversion of maritime vessels that had previously used iridium as their primary and often only communications to now use iridium exclusively as a companion service.

Speaker Change: This anticipated, but faster conversion rate is the single biggest factor in the revision to our service revenue outlook.

Speaker Change: Our updated guidance also reflects the timing of certain P&C revenue, which we now believe will extend into next year previously anticipated in 2025.

Speaker Change: Finally, the pace of revenue growth from commercial voice and data has been slower in the first half of the year than we had initially forecast in part due to a reduction in USA funding, which has resulted in higher subscription activations.

Speaker Change: Beyond these changes we continue to expect growth in commercial voice and data revenue will accelerate in the second half of the year with the implement with the implementation of price actions on certain services that went into effect on July one.

Speaker Change: We also continue to forecast double digit commercial Iot growth in 2025 with much of this growth driven by the step up in our contracts with our large Iot partner.

Speaker Change: We continue to forecast broadband offer declines this year.

Speaker Change: However over time, we believe subscriber gains from the adoption of new Iridium service <unk> plans will help to offset these pressures.

Speaker Change: Pressures and Iridium will remain an important player in the maritime sector.

Speaker Change: We continue to expect growth in P&C revenue as commercial uses integrate our satellite based time and location into their operations.

Speaker Change: As I've noted previously revenue growth from TNT is tied to monthly usage as P&C services are sold as burst where revenue is recognized as utilized during customers contracted periods.

Speaker Change: Our government business will generate $108 million in revenue and 25%, reflecting a final step up in our MSS contract. This September.

Speaker Change: We hope this color is helpful to you in modeling our revised forecast for the full year.

Speaker Change: Despite these changes to our 2025 guidance our long term outlook remains intact. We continue to have confidence in iridium <unk> ability to deliver approximately $1 billion in service revenue in 2030 and continue to return capital to shareholders.

Speaker Change: Moving to our capital position as of June 30, Iridium had cash and cash equivalents balance of $79 3 million and ended the quarter with a net leverage of three six times EBITDA.

Speaker Change: We think iridium naturally de levers over time and expect to exit 2030 below two times net leverage.

Speaker Change: Our cash flow remains ample to fund operations and support our ongoing payback buyback program. In addition to the payment of quarterly dividends.

Speaker Change: During the second quarter Iridium retired approximately two 6 million shares of common stock at an average price of $25 45.

Speaker Change: This left us with an outstanding balance of $295 million under our board approved authorization through December 31 27.

Speaker Change: We continue to believe that iridium stock trades at an attractive valuation and we will continue to execute on our buyback program balancing the desire to maximize return on investment with our long term objective for deleveraging.

Speaker Change: Over the preceding 12 months, we've retired more than 11% of our outstanding share count.

Speaker Change: On June 30, Iridium made a quarterly dividend payment of <unk> 14 per share to shareholders and as we have previously guided with our boards recent approval of an increase to the dividend rate Iridium will make a <unk> 15 per share dividend payment in the third quarter, representing an increase of approximately 5% over the full.

Matt Dash: We continue to believe that iridium stock trades at an attractive valuation and we will continue to execute on our buyback program balancing the desire to maximize return on investment with our long term objective for deleveraging.

Speaker Change: Year 2024.

Speaker Change: Our growing dividend and ongoing share repurchase activities continue to reflect our confidence in iridium <unk> business opportunities and prospects for continued strong free cash flow generation.

Matt Dash: Over the preceding 12 months, we've retired more than 11% of our outstanding share count.

Matt Dash: On June 30, Iridium made a quarterly dividend payment of 14 <unk> per share to shareholders and as we have previously guided with our boards recent approval of an increase to the dividend rate Iridium will make our 15 cents per share dividend payment in the third quarter, representing an increase of approximately 5% over.

Speaker Change: Capital expenditures in the second quarter was $20 7 million as we've noted previously we anticipate higher capital expenditures in 2025 to support our work with <unk> standards and to a lesser extent investment in corporate facilities.

Speaker Change: These expenses will moderate from here and through the end of the decade.

Matt Dash: Full year 2024.

Speaker Change: Turning to our pro forma free cash flow, if we use the midpoint of our 2025, <unk> EBITDA guidance and back off $92 million and net interest pro forma for our current debt structure approximately $90 million in capex for this year $6 million in cash taxes and $6 million in working capital inclusive of the appropriate <unk>.

Matt Dash: Our growing dividend and ongoing share repurchase activities continued to reflect our confidence in iridium <unk> business opportunities and prospects for continued strong free cash flow generation.

Matt Dash: Capital expenditures in the second quarter with $20 7 million as we've noted previously we anticipate higher capital expenditures in 2025 to support our work with five G standards and to a lesser extent investment in corporate facilities.

Speaker Change: <unk> payload adjustment were projected pro forma free cash flow of just over $300 million for 2025.

Speaker Change: These metrics represent a conversion rate of OE EBITDA to free cash flow of 61% and 25 any yield approaching 10%.

Matt Dash: These expenses will moderate from here and through the end of the decade.

Matt Dash: Turning to our pro forma free cash flow, if we use the midpoint of our 2025 of EBITDA guidance and back off $92 million and net interest pro forma for our current debt structure.

Speaker Change: A more detailed description of these cash flow metrics, along with a reconciliation to GAAP measures is available in our supplemental presentation under events on our Investor Relations website.

Matt Dash: Proximately $90 million in Capex for this year $6 million in cash taxes, and 6 million in working capital inclusive of the appropriate hosted payload adjustment.

Speaker Change: With that I'll turn things back to the operator and look forward to your questions.

Matt Dash: We're projected pro forma free cash flow of just over 300 million for 2025.

Speaker Change: Thank you.

Speaker Change: We will now begin the question and answer session.

Speaker Change: A question you May press Star and then one on your telephone keypad.

Matt Dash: These metrics represent a conversion rate of OE EBITDA to free cash flow up, 61% and 25 and a yield approaching 10%.

Speaker Change: Ladies and speaker phone.

Speaker Change: Thank you Mr <unk>.

Speaker Change: That anytime my question has been addressed and you would like to withdraw your question.

Matt Dash: A more detailed description of these cash flow metrics, along with a reconciliation to GAAP measures is available in our supplemental presentation under events on our Investor Relations website.

Speaker Change: Chris Star and then Q2, maybe self from the question queue.

Speaker Change: And I would like to ask a question you May Press Star then.

Matt Dash: With that I'll turn things back to the operator and look forward to your questions.

Speaker Change: Good morning.

Speaker Change: Should we have is from Ric Prentiss of Raymond James. Please go ahead.

Matt Dash: Yeah.

Matt Dash: Thank you.

Speaker Change: Thanks, Good morning, everybody.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star and then one on your telephone keypad.

Speaker Change: Great.

Speaker Change: Couple of questions.

Speaker Change: On the on the service revenue reduction guidance, you mentioned that the maritime was the biggest portion of going from five to seven 3% to 5% growth.

Matt Dash: We are using a speaker phone.

Matt Dash: The stocky.

Matt Dash: But any time your question has been addressed and you would like to withdraw your question.

Speaker Change: Where do we think it's happening faster.

Matt Dash: Let me start and then Q2, you remove yourself from the question queue.

Speaker Change: Where do we think the <unk> for the maritime stabilizes out and obviously there is some seasonality to that but where are we thinking and stabilize that and will this impact continue into 'twenty six as well as you kind of get into the companion mode.

Matt Dash: Once again, we would like to ask a question you May Press Star then one.

Speaker Change: Should we have is from Ric Prentiss of Raymond James. Please go ahead.

Speaker Change: Thanks, Good morning, everybody.

Speaker Change: I don't know about exactly where <unk> ends up it's not a defined it's just a mixture of.

Matt Dash: Anyway.

Matt Dash: Hi couple of questions.

Matt Dash: On the on the service revenue reduction guidance.

Speaker Change: Rate plans that people select versus the the applications that they are using.

Matt Dash: You mentioned that the maritime was the biggest portion of going from five to seven to 3% to 5% growth.

Speaker Change: I don't.

Matt Dash: Where do we think shopping faster where.

Speaker Change: I think it will extend into 2026.

Matt Dash: Where do we think the ARPA for the maritime stabilizes out and obviously, there's some seasonality to that but where are we thinking and stabilize that and will this impact continue into 'twenty six as well as you kind of get into the companion mode.

Speaker Change: But I want to reiterate two I mean.

Speaker Change: Broadband is less than 10% of our business and was never as you remember in our Investor day of <unk>.

Speaker Change: Focus of growth for us So I guess you could say.

Matt Dash: I don't know about exactly where ARPA and drop it's not a defined it's a mixture of.

Speaker Change: Will it remain a solid foundation of our business as we grow to $1 billion and I would say, yes, I think it will be.

Matt Dash: Rate plans that people select versus the the applications that they are using.

Speaker Change: <unk>.

Speaker Change: It doesn't have much further to go for the conversion and <unk> declined to go.

Matt Dash: I don't.

Speaker Change: But we believe we will be growing around it in PMT.

Matt Dash: I think it will extend into 2026, but I want to reiterate too I mean broadband is less than 10% of our business and was never as you remember in our Investor day, our focus of growth for us. So I guess you could say you know will it remain a solid five.

Speaker Change: <unk>.

Speaker Change: In Iot in government and other areas.

Speaker Change: And that's really where we're it's always been so understand the focus on broadband because it's it's a highlight still as we get through this transition but.

Speaker Change: But.

Matt Dash: <unk> of our business as we grow to $1 billion and I would say, yes, I think it will be it.

Speaker Change: Given our role L band roll with GM DFS, given the fact that all partners are selling our GM DSS service.

Matt Dash: It doesn't have much further to go for the conversion and ARPA declined to go.

Speaker Change: I think it's going to be a solid <unk>.

Speaker Change: Foundation of revenue for us going forward and by the way.

Matt Dash: And but we believe we will be growing around it in PMT and D. D D.

Speaker Change: There is only like one or two service GM DSS terminals right now I think there's something like 5% to seven or so that are coming over the next couple of quarters and we really think that there is some wait for their for for those all in one companion terminals that provide GM DSS as well.

Matt Dash: In Iot and government and other areas.

Matt Dash: And that's really where that where it's always been so understand the focus on broadband because it's you know it's a highlight still as we get through this transition but.

Matt Dash: But.

Matt Dash: Given our role L band roll with G. M D. S US given the fact that all partners are selling our G. M DSS service.

Speaker Change: And that will shore up our our sort of revenue as well.

Speaker Change: As we go into 2006.

Speaker Change: The only thing Rick I would add to what Matt is saying is I think as you think about 25.

Matt Dash:

Matt Dash: I think it's going to be a solid foundation of revenue for us going forward and by the way you know, there's there's only like one or two sort of G. M. DSS terminals right now I think there's something like five to seven or so that are coming over the next couple of quarters and we really think that there is some wait for their for for those all in one.

Speaker Change: You should think about the trend in broadband revenue.

Speaker Change: Probably tracking similar to what you've seen in the first half of the year.

Matt Desch: I think to Matt's point as we start to proliferate with GM DSS over service terminals.

Matt Desch: We would expect that to be a help to 2026, that's certainly.

Matt Dash: Companion terminals that provide G M DSS as well and that will shore up our our sort of revenue as well.

Matt Desch: Sure.

Matt Desch: <unk> <unk>.

Matt Desch: Companion service.

Matt Desch: But we probably will.

Matt Dash: As we go into 'twenty six yeah.

Matt Desch: Counter to that continued to see some pressure as we go into 'twenty six.

Speaker Change: The only thing Rick I would add to what Matt was saying as I think as you think about 25.

Matt Desch: Obviously PMT has a much.

Matt Desch: <unk> part of the growth story.

Speaker Change: No you should think about the trend in broadband revenue is probably tracking similar to what you've seen in the first half of the year.

Matt Desch: But there was a little bit of timing in the 25, what can you kind of size that for us how much slipped out or is it like a $1 million or two.

Speaker Change: I think to Matt's point is as we start to proliferate with G. M. D. S S over service terminals.

Matt Desch: And what caused the slip and how are you doing I think you were trying to pace, so tell us to like $100 million by 2030.

Speaker Change: We would expect that to be a help too.

Speaker Change: 26, that's certainly R. R.

Matt Desch: Yes, it's a pretty small number.

Matt Desch: We're not going into detail on that yet, but we will we will before along when it does get to be sizeable.

Speaker Change: Competitive.

Speaker Change: <unk> service.

Speaker Change: But we probably will as a counter to that continue to see some upward pressure as we go into 'twenty six.

Matt Desch: As I said before the opportunities really expanding dramatically. It's just always early.

Speaker Change: Okay.

Speaker Change: Obviously P&C is a much stronger part of the growth story.

Matt Desch: Good example, you saw this this week.

Speaker Change: But there was a little bit of timing in the 25, what can you kind of size that for us how much slipped out or is it like a million or two.

Matt Desch: Announcement of the partnership on Shooty shipping along with SCM and Nal.

Matt Desch: The Red Sea.

Speaker Change: And what caused the slip and how are you doing I think you were trying to pace the tell us to like 100 million by 2030.

Matt Desch: Maritime insurance providers are starting to really see that this is an important thing and they've been driving we've been working with them and they've been driving what are the solutions possible to keep ships from running into each other running a ground.

Speaker Change: Yes, it's a pretty small number we're.

Speaker Change: We're not we're not going into detail on that yet, but we will we will before long win when it does get to be sizeable.

Speaker Change: As I've said before the the opportunity is really expanding dramatically. It's just always early I mean.

Matt Desch: Actually it's important with GM DSS that they get the right locations and whatnot and ship owners are asking for that but.

Speaker Change: A good example, you saw this this week.

Matt Desch: Theres always the trials that get started in a couple of ships to start with and it just doesn't go immediately to thousands of ships, but we see a really big opportunity there.

Speaker Change: Announcement of the partnership on Shooty shipping along with S. G M in Nal.

Speaker Change: In the Red Sea Maritime insurance providers are starting to really see that this is an important thing and they've been driving we've been working with them and they've been driving what are the solutions possible to keep ships from running into each other running a ground.

Matt Desch: Same thing with drone same thing with critical infrastructure data centers that sort of thing so.

Matt Desch: It's still in the early stages of kind of the growth there.

Matt Desch: Both with.

Matt Desch: With commercial and government, but we see a huge opportunity there and it's just.

Speaker Change: Actually it's important with G. M D. S S that they get the right locations and whatnot and ship owners are asking for that but you know theres always the trials that get started in a couple of ships to start with and it just doesn't go immediately to thousands of ships, but we see a really big opportunity there.

Matt Desch: We saw some revenue we thought was going to be in this year kind of clearly moving into next year and.

Matt Desch: I think it will become more meaningful next year and the year beyond significantly meaningful.

Matt Desch: Great and last one for me obviously, the FAA has been having some issues as well.

Speaker Change: Same thing withdrawn same thing with critical infrastructure data centers that sort of thing so.

Matt Desch: Update maybe a little bit on where early on in the FAA stand and where do you think.

Speaker Change: It's still in the early stages of kind of the growth there both with.

Matt Desch: Some big numbers being thrown about in Washington about finally, helping the FAA.

Speaker Change: With commercial and government, but we see a huge opportunity there.

Matt Desch: Yes, we are keeping an eye on that I mean <unk>.

Speaker Change: And it's just you know we saw some revenue we thought was going to be in this year kind of clearly moving into next year and.

Matt Desch: <unk>, keeping an eye on that and obviously, we as a partner of theirs.

Matt Desch: They do a lot of that money. That's initially been allocated is four <unk>.

Speaker Change: I think it will become more meaningful next year and the year beyond a significantly meaningful.

Matt Desch: Replacing old facilities. It appears things like radar systems, and data links and that sort of thing and so.

Speaker Change: Great and last one for me obviously, the FAA has been having some issues as well.

Matt Desch: Advancing the services to provide even better service as opposed to reliable service seems to be more phase II at this point.

Speaker Change: Maybe a little bit on where early on in the FAA stand and where do you think.

Speaker Change: Some big numbers being thrown out in Washington about finally, helping the FAA.

Matt Desch: Theres been some discussions around it and I know that.

Speaker Change: Yeah, we're keeping an eye on that I mean areas, keeping an eye on that and obviously, we as a partner of theirs.

Matt Desch: I think that there.

Matt Desch: They are using some of the areas data for safety information because they are very interested in this.

Speaker Change:

Speaker Change: They do a lot of that money. That's initially been allocated is for Rick.

Matt Desch: <unk> very rich data source that they have that they are using for all kinds of new applications.

Speaker Change: Replacing old facilities. It appears you know things like radar systems, and data links and that sort of thing and so.

Matt Desch: But in terms of deploying areas to better control oceanic airspace that seems to be kind of.

Matt Desch: Not the initial priority of that effort.

Speaker Change: You know advancing the services to provide even better service as opposed to reliable service seems to be more phase II at this point.

Matt Desch: So anyway, I think there is still a big opportunity with the FAA.

Matt Desch: Think ariane and will be.

Speaker Change: Theres been some discussions around it and I know that.

Matt Desch: A supplier of that service to them over time, but I don't think theyre.

Speaker Change: I think that there their.

Speaker Change: They are using some of the areas data for safety information because they are very interested in this very rich data source that they have that they're using for all kinds of new applications, but in terms of deploying areas to better control oceanic airspace that seems to be kind of.

Matt Desch: Theyre going to be able to kind of take advantage of this.

Matt Desch: This infusion of of funding for the next year or two necessarily.

Matt Desch: Okay. Thanks, guys.

Matt Desch: Yes.

Matt Desch: Rick.

Matt Desch: Next question, we have is from Wilton question Paul.

Speaker Change: Not the initial priority of the of that effort.

Speaker Change: Please go ahead.

Speaker Change: Anyway, I think there is still a big opportunity with the FAA.

Matt Desch: Thanks.

Speaker Change: Can you give a little bit more color on the Iot data line.

Speaker Change: I think ariane and will be.

Speaker Change: Could you dipped below 275% I know you reiterated the guidance for the year of double digit, but that obviously would show a lot more growth and then overall if you just look at the annual growth, it's really been decelerating pretty.

Speaker Change: A supplier of that service to them over time, but I don't think.

Speaker Change: They're going to be able to kind of take advantage of this.

Speaker Change: This infusion of of funding for the next year or two necessarily.

Speaker Change: Pretty consistently since Q1.

Speaker Change: Of last year, So I guess, what's going on there and for what happened in Q2 why are you still confident that youll see enough of an acceleration because youre basically going to Q3, and Q4 are going to have to be much faster than even what you did in Q1 to get to double digits and then how do we think about that opportunity.

Speaker Change: Okay. Thanks, guys.

Rick: Yes, she is Rick.

Speaker Change: [laughter].

Speaker Change: Next question, we have is from Wilton question Oh. Please.

Speaker Change: Please go ahead.

Speaker Change: Thanks can you give a little bit more color on the Iot data line.

Speaker Change: Could you dipped below 275% I know you reiterated the guidance for the year of double digit, but that obviously would show a lot more growth and then overall if you just look at the annual growth, it's really been decelerating.

Speaker Change: In 2026 and beyond.

Speaker Change: Yes, I think as you I think as you think about the <unk>.

Speaker Change: Rest of the year guide will in still double digit.

Speaker Change: Pretty consistently since Q1.

Speaker Change: I won't go into them exactly here, but there are specific things happening in both Q3 and Q4.

Speaker Change: Up last year, or so I guess, what's going on there and or what happened in Q2. Why are you still confident that youll see enough of an acceleration because youre basically going to Q3 and Q4 are going to have to be much faster than what you did in Q1 to get to double digits and then how do we think about that opportunity.

Speaker Change: That support our outlook for a double digit guide that is not reflected in the year to date run rate. So.

Speaker Change: So we're pretty confident that youll see a step up in Iot growth as you go through Q3 and Q4.

Speaker Change: In 2026 and beyond.

Speaker Change: And there is nothing going on in Iot, It's still remains quite robust in terms of activity Thats, where most of the activity like new partners development, New new product development those devices I talked about being certified a lot of those are in.

Speaker Change: Yeah, I think as you I think as you think about the rest of the year guide well and still double double digit.

Speaker Change: There you know I won't go into them exactly here, but they're there.

Speaker Change: Specific things happening in both Q3 and Q4.

Speaker Change: With our new 97% for device, which delivers faster service.

Speaker Change: That support our outlook for a double digit guide that is not reflected in the year to date run rate. So so we're pretty confident that you'll see a step up in Iot growth as you go through Q3 and Q4.

Speaker Change: More IP direct service those are.

Speaker Change: Those are just going into products right now we.

Speaker Change: We see the consumer product space.

Speaker Change: Robust I know, we didn't talk about that really in terms of subscribers.

Speaker Change: And there's nothing going on in Iot is still remains quite robust in terms of activity Thats, where most of the activity like new partners development, New new product development those devices I talked about being certified a lot of those are in.

Speaker Change: Really we see a very.

Speaker Change: Normal and robust summer in terms of.

Speaker Change: Consumer products going out.

Speaker Change: The door.

Activations underway net activations so.

Speaker Change: With our new 90, 704 device, which delivers faster service.

Speaker Change: Strong summer subscriber growth there kind of typical as what we would expect.

Speaker Change: More IP direct service those are.

Speaker Change: And so no I don't.

Speaker Change: Not see anything there there are new devices, yet to come but the revenue, but not the revenue growth was seven 5% last year lowest growth was $13 six.

Speaker Change: Those are just going into products right now.

Speaker Change: We see the consumer product space.

Speaker Change: Robust I know, we didn't talk about that really in terms of subscribers.

Speaker Change: But really we see a very.

Speaker Change: So youre basically half the growth rate of last year, and it's off pace for delivering on the guidance. So something is very different in Q2 than it was in all of 2024, and obviously even into the first quarter, where you had double digit growth.

Speaker Change: Normal and robust summer in terms of.

Speaker Change: Tumor products going out the door.

Speaker Change: Activations underway net activations so.

Speaker Change: Strong summer subscriber growth there.

Speaker Change: I think that will be corrected in the second half.

Speaker Change: Typical as what we would expect.

Speaker Change: And as the second half onetime type events or.

Speaker Change: And so no I don't I don't see anything there there are new devices, yet to come the ramp but the revenue, but not the revenue growth was seven 5% last year lowest growth was $13 six.

Speaker Change: Is this a business that can that can deliver double digit growth.

Speaker Change: Going forward.

Speaker Change: Those events would be ongoing.

Speaker Change: So you're basically half the growth rate of last year, and it's off pace for delivering on the guidance. So something is very different in Q2 than it was in all of 2024, and obviously even into the first quarter, where you had double digit growth.

Speaker Change: And we are getting larger and larger so it's hard to it's hard to keep double digit growth going though I do believe when we get into <unk> and our new Iridium NTN direct service that will.

Speaker Change: That will.

Speaker Change: Sort of expand that base.

Speaker Change: Which is.

Speaker Change: Yeah, I think that will be corrected in the second half.

Speaker Change: Later in 2026 and 2007 before that starts but that's also a thing that maybe you could get us back to that kind of level.

Speaker Change: And as the second half onetime type events or is is this a business that can that can deliver double digit growth.

Speaker Change: On it.

Speaker Change: <unk> been higher basis.

Speaker Change: Going forward no.

Speaker Change: And then just last question on the on the 2032.

Speaker Change: If I had to be ongoing.

Speaker Change: <unk>.

Speaker Change: <unk>.

Speaker Change: And we are getting larger and larger so it's hard to hard to keep double digit growth going though I do believe when we get into D. D.

Speaker Change: $1 billion and service revenue.

Speaker Change: If I look at forget about our estimates I look at consensus I don't think it's anywhere near that.

Speaker Change: Our new Iridium NTN direct service that will.

Speaker Change: I just wanted to confirm that.

Speaker Change: To get to $1 billion in 2030 that doesn't include any anticipated acquisitions thats.

Speaker Change: That will.

Speaker Change: Sort of expand that base.

Speaker Change: Which is.

Speaker Change: Later in 2026 and 27 before that starts but that's also a thing that maybe you could get us back to that kind of level on it.

Speaker Change: Organic from where you are today from the lines of businesses that you have today.

Speaker Change: No look we mentioned that some tuck in acquisitions, where possible for example, when we said the original $1 billion and kind of gave a lot of information during our Investor day, two years ago whenever it was.

Speaker Change: Higher basis.

Speaker Change: And then just last question on the on the 2030.

Speaker Change: Target of one.

Speaker Change: $1 billion and service revenue.

Speaker Change: Tuck in acquisitions, where possible as we were expecting for example, something like tell us would be possible at that point.

Speaker Change: If I look at forget about our estimates I look at consensus I don't think it's anywhere near that.

Speaker Change: I just wanted to confirm that.

Speaker Change: To get to $1 billion in 2030 that doesn't include any anticipated acquisitions thats organic from where you are today for the lines of businesses that you have today.

Speaker Change: But.

Speaker Change: Those that's still possible part of it anyway, but we have plans.

Speaker Change: Even internally they get us there without acquisitions, but that's not what we're committing to.

Speaker Change: No. We look we we mentioned that some tuck in acquisitions, where possible. For example, when we said the original $1 billion and kind of gave a lot of information during our Investor day, two years ago whenever it was.

Speaker Change: Got it thank you.

Speaker Change: Next question, we have is from Chris Quilty of Quilty analytics. Please go ahead.

Speaker Change: Tuck in acquisitions, where possible as we were expecting for example, something like tell us would be possible at that point.

Chris Quilty: Thanks, Matt not to beat the Iot dead horse, but service mid band and new products. I know you had talked about in the past is that perhaps something thats accretive in the back half.

Speaker Change: But.

Speaker Change: Those.

Speaker Change: That's still a possible part of it anyway, but we have plans.

Chris Quilty: That's part of it I mean, some of those some of those services are starting to really rollout those people are getting the devices out there with their with their new products and.

Speaker Change: Even internally to get us there without acquisitions, but that's not what we're committing to.

Speaker Change: Got it thank you.

Chris Quilty: That's certainly part of it.

Chris Quilty: And switching over to PMT.

Speaker Change: Okay.

Chris Quilty: Next question, we have is from Chris Quilty of Quilty analytics. Please go ahead.

Chris Quilty: I know thats sort of build on a monthly.

Chris Quilty: Service revenue, but.

Chris Quilty: Thanks, Matt no not to beat the Iot dead horse, but service mid band and new products. I know you had talked about in the past is that perhaps something that's accretive in the back half.

Speaker Change: Do we expect that the customer acquisition.

Speaker Change: The pipeline or are these.

Speaker Change: Large customers, where you might once you land emcee stepwise increase in both from there or what does that pattern look like over time.

Speaker Change: That's part of it I mean, some of those some of those services are starting to really roll out those people are getting their devices out there with their with their new products and.

Speaker Change: Yes.

Speaker Change: The pricing on PMT is evolving it's kind of <unk>.

Speaker Change: Diverse we go everywhere from packaging and sort of.

Chris Quilty: That's certainly part of it.

Speaker Change: Gotcha and switching over to P N T.

Speaker Change: The service together with the device the <unk>.

Speaker Change: I know that sort of build on a monthly type service revenue, but do we expect that the customer acquisition like you know the pipeline are these.

Speaker Change: <unk> on some things where people don't want to see us paying for they don't pay for GPS why pay for.

Speaker Change: The alternative to GPS so maybe in the device packaging in five years or 10 years of service sort of with it.

Speaker Change: Large customers, where you might once you land M. C step wise increase and then growth from there or what does that pattern look like over time.

Speaker Change: Two.

What I would call regional kind of approaching levels, if you want to.

Speaker Change: Yes.

Work in the Pacific Ocean will light up the Pacific Ocean there are certain.

Speaker Change: The pricing on PMT is evolving it's kind of a diverse we go everywhere from packaging in sort of.

Speaker Change: Customers, who.

Speaker Change: Take sort of by the region, where they would use it so.

Speaker Change: The service together with the device that's the approach on some things where people don't want to see us paying for they don't pay for GPS why pay for the.

Speaker Change: It's been diverse.

Speaker Change: We're finding ways of providing the value to every one of the customer basis that we've been talking to and so hasnt been really an issue with sort of the pricing, but youre right.

Speaker Change: The alternative to GPS.

Speaker Change: So maybe in the device you package in five years or 10 years of service sort of with it.

Speaker Change: You mentioned like the shipping example, or the data Center example, we always end up starting with a customer who wants to trial. It and then put it into 10 things and then two things and they are ultimately a thousand things that they ultimately want and.

Speaker Change: Two.

Speaker Change: What I would call regional kind of approaching levels, if you want to.

Speaker Change: Work in the Pacific Ocean will light up the Pacific Ocean there are certain.

Speaker Change: Customers, who.

Speaker Change: So, we're giving them sort of pricing that reflects that kind of volume, but they got to get to the point, where they get they get to their sort of the rollout area. So.

Speaker Change: Hey, sort of by the region, where they would use it so it's a.

Speaker Change: It's been diverse.

Speaker Change: We're finding ways of providing the value to every one of the customer basis that we've been talking to and so hasnt been really an issue with sort of the pricing, but you're right.

Speaker Change: It's obviously, our guide, which we still believe.

Speaker Change: We can hit a $100 million in that business in 2030, it's certainly heavily weighted towards the end.

Speaker Change: Mentioned like the shipping example, or the datacenter example, we always end up starting with a customer who wants to trial. It and then put it into 10 things and then 'twenty things and they have ultimately a thousand things that they ultimately want and.

Speaker Change: Later in the years only because.

Speaker Change: And we have visibility to a number of things that really take a couple of years to kind of really really expand.

Speaker Change: Okay.

Speaker Change: You've sort of alluded that most of your customers are commercial but there's obviously a huge.

Speaker Change: So, we're giving them sort of pricing that reflects that kind of volume, but they got to get to the point where they.

Speaker Change: The military application of this technology, what do you expect that split.

Speaker Change: They get to their sort of rollout area. So.

Speaker Change: It's obviously, our guide, which we still believe.

Speaker Change: We will look like.

Speaker Change: Five years out or.

Speaker Change: We can hit $100 million in that business in 2030, it's it's certainly heavily weighted towards the end.

Speaker Change: Years out.

Speaker Change: And are there are government contract vehicles that you are pursuing.

Speaker Change: Later in the years, only because and we have visibility.

Speaker Change: I believe government, which could include civil infrastructure and stuff like that could be.

Speaker Change: <unk> ability to a number of things they really take a couple of years to kind of really really expand.

Speaker Change: At least half of our base.

Speaker Change: But you've.

Speaker Change: The commercial could be higher and could be significantly more. It's just takes there is a lot more entities you have to kind of sell to on the commercial front.

Speaker Change: You've sort of alluded that most of your customers are commercial but there's obviously a huge you know D. O D. Military application of this technology, what do you expect that split will look like.

Speaker Change: I mean, there is some big customers, who are interested in it and.

Speaker Change: However, five years out or two years out.

Speaker Change: And deploying it but those just take a long time for example, some of the drone manufacturers and stuff are quite interested in autonomous vehicles are expressing a lot of interest in it.

Speaker Change: And are there are government contract vehicles that you are pursuing.

Speaker Change:

Speaker Change: I believe government, which could include civil infrastructure and stuff like that could be.

Speaker Change: They can kind of see terrestrial solutions being regional aren't going to really scale for them. So they like what they see and how low cost. It is to put us into their devices, but those are markets that are going to take a couple of years to really really scale and get big So I'd say it's.

Speaker Change: At least half of our base.

Speaker Change: Commercial could be higher and could be significantly more it's just it takes theres a lot more entities you have to kind of sell to on the commercial front.

Speaker Change: Sort of figure 50, 50 is a nice <unk>.

Speaker Change: I mean, there's some big customers who are interested in it.

Speaker Change: Starting spot.

Speaker Change: Deploying it but those just take a long time you know for example, some of the drone manufacturers and stuff are quite interested in autonomous vehicles are expressing a lot of interest in it.

Speaker Change: One other nuanced government question.

Speaker Change: Voice and data subs have been declining there.

Speaker Change: The government doesn't pay I mean, it's a fixed price contract right. So I'm trying to figure out what's the rationale for why they've they've downsized the number of handsets by like a third over the past couple of years.

Speaker Change: They can kind of see terrestrial solutions being regional aren't going to really scale for them. So they like what they see and how low cost. It is to put us into their devices, but those are markets that are going to take a couple of years to really.

Speaker Change: Yes.

Speaker Change: Still tied up in an issue that we've talked about before it was the transition.

Speaker Change: Really scale and get big So I'd say it.

Speaker Change: Between 2019, and this year between <unk> and the space Force. Good news is that's all getting fixed.

Speaker Change: Sort of figure 50, 50 is a nice start.

Speaker Change: Starting spot.

Speaker Change: Got Ya one other nuanced government question, the voice and data to the subs have been declining there.

Speaker Change: <unk>.

Speaker Change: <unk>. The next fiscal year is all be part of the space Force.

Speaker Change: And the government doesn't pay I mean, it's a fixed price contract right. So I'm trying to figure out what's the rationale for why they've they've downsized the number of handsets by like a third over the past couple of years.

Speaker Change: And there'll be a lot more control over how the building goes out for the individual services. So we've seen.

Speaker Change: Different services kind of jockeying to sort of clean up their area to get less of the building attached to them, particularly when they get sort of budgetary issues, which you know they are all going through as a.

Speaker Change: Yeah, I mean, that's still tied up in an issue that we've talked about before it was the transition.

Speaker Change: Transition.

Speaker Change: Between 2019, and and this year between this and the space Force. Good news is that's all getting fixed at the actually the next fiscal year. It will all be part of the space Force.

Speaker Change: It has nothing to do with the strategic value of our service with them.

Speaker Change: It's really pricing today in pricing in the future it doesn't relate to how many devices. They are.

Speaker Change: The impact of the devices. They do use and the service is actually I think increased over the last five years during that time, so while it doesn't correlate in services like ours.

Speaker Change: There'll be a lot more control over how the billing goes out for the individual services. So we've seen.

Speaker Change: Different services kind of jockeying to sort of clean up their area to get less of the building attached to them, particularly when they get sort of budgetary issues, which you know, they're all going through as a.

Speaker Change: Commercial service does.

Speaker Change: I don't I think thats really irrelevant that subscriber numbers, which is why we don't we don't really talk about our dwell upon them in our comments.

Speaker Change: Transition.

Speaker Change: It has nothing to do with the strategic value of our service with them.

Speaker Change: Where are you moving the headquarters to.

Speaker Change: About three blocks away.

Speaker Change: Really pricing today in pricing in the future it doesn't relate to how many devices. They are.

Speaker Change: We're not we're not moving very fire, but.

Speaker Change: Time too.

Speaker Change: The impact of the devices. They do use and the service is actually I think increased over the last five years during that time, so while it doesn't correlate in services like ours like our commercial service does.

Speaker Change: We've we're kind of busting at the seams given all the all the.

Speaker Change: Growth, we've expanded into new services, we've deployed things like SBA. It is time to spread the spread out slightly and this is not a bad time to move either as you can imagine.

Speaker Change:

Speaker Change: I don't I think that's really irrelevant the subscriber numbers, which is why we don't we don't really talk about our dwell upon them in our comments.

Speaker Change: Okay, great. Thanks.

Speaker Change: Thanks, guys alright.

Speaker Change: Alright, thanks, Thanks, Chris.

Speaker Change: Gotcha, where are you moving the headquarters to.

Speaker Change: How should we have is from Tim Horan of Oppenheimer. Please go ahead.

Speaker Change: About three blocks away.

Speaker Change: We're not we're not moving very far, but it's time to.

Tim Horan: Thanks, guys can you give us a sense of the pace of revenue growth for the third quarter and fourth quarter.

Speaker Change: We've we're kind of busting at the seams given all the all the growth.

Tim Horan: May be into next year also do you think you can do over 5% revenue growth next year or I guess is this the bottom.

Speaker Change: Growth, we've expanded into new services, we've deployed things like SBA. Its just time to spread the spread out slightly and this is not a bad time to move either as you can imagine.

Tim Horan: And just a little bit more color, what's going to drive revenue growth next year. Thank you.

Tim Horan: Well you can do the math on the pace because you have the first half and you've got the guide for the second half so I think that.

Speaker Change: Very good thanks.

Speaker Change: Thanks, guys.

Speaker Change: Alright, thanks, Thanks, Chris.

Tim Horan: That's directly tells you what the paper will be for the second half.

Speaker Change: How should we have is from Tim Horan of Oppenheimer. Please go ahead.

Tim Horan: I don't.

Tim Horan: I think again next year will be about.

Tim Horan: Hi, Thanks, guys can you give us a sense of the pace of revenue growth for the third quarter and fourth quarter.

Tim Horan: Building on the growth from this year, we're still going to work out the details on what that looks like.

Tim Horan: Maybe into next year also do you think you can do over 5% revenue growth next year or I guess is this a bottom.

Tim Horan: As I said I don't it's not necessarily entered growth between now and 2030 I think it's.

Tim Horan: And just a little bit more color, what's going to drive revenue growth next year. Thank you.

Tim Horan: A little later weighted because <unk> only start coming in next year PMT again is still.

Tim Horan: Well you can do the math on the pace because you have the first half and you've got the guide for the second half so I think that.

Tim Horan: And it's early but.

Tim Horan: Very positive growth state.

Tim Horan: We have government the MSS renewal is still more of a 'twenty seven activity. So I think we think 'twenty seven is going to be bigger than 2006, but we're going to see growth in 2006 two.

Tim Horan: That's directly tells you what the patient will be for the second half.

Speaker Change: I don't.

Speaker Change: I think again next year will be about building on the growth from this year.

Speaker Change: We're still going to work out the details on what that looks like.

Speaker Change: Got it I guess I was getting at fourth quarter be stronger than third quarter growth.

Speaker Change: As I said I don't it's not necessarily the inner growth between now and 2030 I think its a little later weighted because D. D. Only start coming in next year PMT again is still.

Speaker Change: Or is it pretty linear for the year and on the maritime on the companion service.

Speaker Change: Can you talk about what percentage of customers are dropping the primary and taking companion like if I drop primary what percentage of cubic companion. Thank you.

Speaker Change: And it's early but but very positive growth states.

Speaker Change: Yes, I think we've talked about this over the last year.

Speaker Change: We have government the MSS renewal is still more of a 'twenty seven activity. So you know I think I think 27 is going to be bigger than 26, but we're going to see growth in 2006 two.

Speaker Change: Primary was only like 25% of our service.

Speaker Change: So that was the part that has to convert that we've seen the conversion.

Speaker Change: Got it I guess I was getting at fourth quarter be stronger than third quarter growth.

Speaker Change: There has been also a little bit of I'd say <unk> pressure as some people take lower lower level plans as they kind of go into evolve through that so even even I call. The the companion service.

Speaker Change:

Speaker Change: Or is it pretty linear for the year and on the maritime and the companion service.

Speaker Change: Can you talk about what percentage of customers are dropping the primary taking companion like if I draw primary you know what percentage of keeping the companion. Thank you.

Speaker Change: As a little lower revenue.

Speaker Change: I think that will shore up as we get to where GM DSS and service companion servicer, our combination service. It makes us critical to be on the ship and they're sort of a baseline value for doing that.

Speaker Change: Yes, I think we talked about this over the last year.

Speaker Change: Primary was only like 25% of our service.

Speaker Change: So that was the part that has to convert that we've seen the conversion.

Speaker Change: There's been also a little bit of.

Speaker Change: Thats, even before we add PMT and other things into it so.

Speaker Change: I would say our <unk> pressure as some people take lower lower level plans as they kind of go into evolve through that so even even I called the the companion service.

Speaker Change: I don't know if that gives you a little sense of how that.

Speaker Change: That transition has been but that's.

Speaker Change: What's caused that.

Speaker Change: Yes, that's helpful and on the pace of revenue growth for the second half.

Speaker Change: It's a little lower revenue.

Speaker Change: Yes, we don't guide quarter by quarter. So I really think that thats, something youre going to have to kind of take a look at it I mean.

Speaker Change: I think that will shore up as we get to where G. M DSS and service companion service or our combination service. It makes us critical to be on the ship and they're sort of a baseline value for doing that.

Speaker Change: There is not so much specificity going forward, we have a lot of visibility into our 500 partners and how they they operate in so.

Speaker Change: We have a pretty good idea of how the second half looks but I don't want to get down to trying to call third quarter and fourth quarter for you.

Speaker Change: And that's even before we add PMT and other things into it so.

Speaker Change: I don't know if that gives you a little sense of how that.

Speaker Change: Got it and then on the new constellation.

Speaker Change: That transition has been but that's what's caused that.

Speaker Change: The demand is there and the services are there.

Speaker Change: Yeah, that's helpful and on the pace of revenue growth for the second half.

Speaker Change: You build the tandem constellation that to leverage existing spectrum that they can work together or will it really be more about a replacement of eventually.

Speaker Change: Yeah, We don't guide quarter by quarter. So I really think that thats something that youre going to have to kind of take a look at it I mean, yeah.

Speaker Change: What happens.

Speaker Change: There is not so much specificity going forward, we have a lot of visibility into our 500 partners and how they they operate in so.

Speaker Change: In terms of next generation network.

Speaker Change: And the 2013.

Speaker Change: We're actually looking at both alternatives right now.

Speaker Change: We have a pretty good idea of how the second half looks but I don't want to get down to trying to call third quarter and fourth quarter for you.

Speaker Change: A replacement network could be there, but it may make actually more sense to build sort of a.

Speaker Change: An overlay network on it and there's a lot of discussions underway in the industry right now about about that we have a couple of alternatives. We can build it within sort of our own spectrum, but theres a lot of discussions about.

Speaker Change: Got it and then on the new constellation.

Speaker Change: If the demand is there and the services are there.

Speaker Change: Could you build the tandem constellation that to leverage existing spectrum that they can work together or will it really be more about a replacement essentially no matter what happens.

Speaker Change: Obtaining new spectrum, and how we might even partner with others to do that including.

Speaker Change: Oh in terms of next generation network.

Speaker Change: Some interesting companies, who want to who want a partner on that who have.

Speaker Change: In the 23rd yes.

Speaker Change: We're actually looking at both alternatives right now a replacement network could be there, but it may make actually more sense to build sort of a.

Speaker Change: Large consumer footprints and stuff, so I think it's going to be.

Speaker Change: Dynamic couple of years as we evolve our plans there, but yes. There is a couple of new approaches I just wanted to talk today to give a little idea.

Speaker Change: An overlay network on it and you know Theres a lot of discussions underway in the industry right now about about that we have a couple of alternatives. We can build it within sort of our own spectrum, but theres a lot of discussions about.

Speaker Change: About what.

Speaker Change: Network with provide and.

Speaker Change: And how we see that is.

Speaker Change: And an exciting future for the future.

Speaker Change: Obtaining new spectrum, and how we might even partner with others to do that including.

Speaker Change: And lastly, a T mobile launching DDT service yesterday do you see that as competitive at all.

Speaker Change: Some interesting companies, who want to who want a partner on that who have.

Speaker Change: Or the potential to be competitive over time with your services. Thanks.

Speaker Change: Large consumer footprints and stuff. So I think it's going to be a dynamic couple of years as we evolve our plans there, but yeah theres a theres a couple of new approaches. So I just wanted to talk today to give a little idea.

Speaker Change: Well.

Speaker Change: I think a little bit and we think around the edges I think people.

Speaker Change: It will be interesting to see what the adoption of what I think these regional services or like that's never been our value proposition people don't as I said by our service to operate in and.

Speaker Change: About what that network would provide and.

Speaker Change: And how we see that as.

Speaker Change: In rural Wyoming, I use that example, a number of times, it's not where satellite phones are using us because they can use all over the world and that's not what the T mobile services.

Speaker Change: Being an exciting future for the future.

Speaker Change: And lastly, a T mobile launching <unk> services are yesterday do you see that as competitive at all or the potential to be competitive over time with your services. Thanks.

Speaker Change: I think our iridium NTN direct service is going to be a complement to those services, whether that'd be from star linker Asps year anybody else, who kind of uses cellular frequencies, they're going to want.

Speaker Change: Well I I.

Speaker Change: A little bit I think around the edges I think people.

Speaker Change: Interesting to see what the adoption of what I think these regional services or like that's never been our value proposition people don't as I said by our service to operate in.

Speaker Change: Our messaging service and the same device or in the same watch or in the in the in an Iot service that can show up anywhere in the world and Thats going to be what our value is and Thats. What we are building that.

Speaker Change: In rural Wyoming, I use that example, a number of times, it's not where satellite phones are using your used because they can use all over the world and that's not what the T mobile services.

Speaker Change: So all of our growth profile in that area around.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: I think our iridium NTN direct service is going to be a complement to those services, whether they'd be from star linker, Asti or anybody else, who kind of use a cellular frequencies, they're going to want a messaging service and the same device or in the same watch or in the in the in an Io.

Speaker Change: Should we have is from Greg Mcdowell.

Speaker Change: Great.

Speaker Change: Yes, good morning, Matt.

Speaker Change: Matt I just have one question for you can you hear me okay.

Speaker Change: Yep Yep.

Good good.

Speaker Change: You had mentioned in your.

Speaker Change: <unk> service that can show up anywhere in the world and that's going to be what our value is and Thats what were building that.

Speaker Change: Prepared remarks that you are focusing on attracting new partners.

Speaker Change: So all of our growth profile in that area around.

Speaker Change: For our service for both consumer and commercial services, you mentioned 50, new business relationships so far in 2025.

Speaker Change: Thank you.

Tim Horan: Thanks, Tim.

Tim Horan: The next question, we have is from Greg Mcmanus.

Speaker Change: Can you give us a little more color as to how.

Speaker Change: Capital Partners. Please go ahead.

Speaker Change: How you plan to broaden your.

Speaker Change: Yes, good morning, Matt.

Speaker Change: Partner network, if you will.

Speaker Change: Matt I just have one question for you can you hear me.

Speaker Change: Across different verticals.

Matt Dash: Yep Yep good good good.

Speaker Change: Kind of goals you have set for that and.

Speaker Change: You'd mentioned in your.

Speaker Change: As you roll those in.

Speaker Change: Prepared remarks that you are focusing on attracting new partners.

Speaker Change: This should hopes out what kind of impact to SG&A that might have thanks.

Speaker Change: For server for both consumer and commercial services mentioned 50, new business relationships so far in 2025.

Speaker Change: Yes, I think we can do it within <unk>.

Speaker Change: Pretty much the SG&A envelope that we have but we're we've been restructuring our.

Speaker Change: Our partner <unk>.

Speaker Change: Can you give us a little more color as to how.

Speaker Change: Development teams focused on larger partners.

Speaker Change: How you plan to broaden your.

Speaker Change: We've been going after mobile network operators over the last year and as I said, we we've been already even signing.

Speaker Change: Partner network, if you will across different verticals.

Speaker Change: The goals you've set for that and.

Speaker Change: Relationships there.

Speaker Change: As you roll those.

Speaker Change: Haven't announced any of those but theres a lot of interest in what our new Iridium NTN direct services will be.

Speaker Change: Initiatives out what kind of impact to SG&A that might have thanks.

Speaker Change: Yeah.

Speaker Change: We've had.

Speaker Change: Yes, I think we can do it within.

Speaker Change: I will say I've been prioritizing some bigger relationships that I think would move the needle.

Speaker Change: Pretty much the SG&A envelope that we have but we're we've been restructuring our.

Speaker Change: You can imagine.

Speaker Change: Partner <unk>.

Speaker Change: Development teams focused on larger partners.

Speaker Change: In the new autonomous space. There are some bigger players that are getting a lot of funding right now all who see the need for PMT or communication services. So I think it's more about our about the type type of companies we are addressing.

Speaker Change: We've been going after mobile network operators over the last year and as I said, we we've been already been signing.

Speaker Change: Relationships there.

Speaker Change: The other.

Speaker Change: We haven't announced any of those but theres a lot of interest in what our new Iridium NTN direct services will be.

Speaker Change: The whole timing and location space is a very different ones. So the kind of partners. We're pursuing in the P&C space are quite different we haven't Ah.

Speaker Change: We've had.

Speaker Change: I will say I've been prioritizing some bigger relationships that I think would move the needle.

Speaker Change: Number of partners there, but.

Speaker Change: Finding people, who are already well trusted in that in that space.

Speaker Change: So you can imagine.

Speaker Change: In the new autonomous space. There are some bigger players that are getting a lot of funding right now all who see the need for PMT or communication services. So I think it's more about her about the type of companies where we're addressing.

Speaker Change: To deliver trusted timing source or to <unk>.

Speaker Change: Our GPS jamming alternative is a little different than the kind of companies, we've been with before but.

Speaker Change: Our whole partner base is very interested in that technology and you are seeing also announcements I saw one this week again from somebody in that space.

Speaker Change: The other.

Speaker Change: You know the whole timing and location space is a very different ones. So the kind of partners. We're pursuing in the P&C space are quite different we have been a number of partners there but.

Speaker Change: An existing partner so I don't think its going to affect SG&A that much I really do think though that it's more about who we're going after.

Speaker Change: Finding people, who are already well trusted in that in that space.

Speaker Change: <unk>.

Speaker Change: And I think the other reason.

Speaker Change: When I mentioned that 50 is that.

Speaker Change: To deliver trusted timing source or to drew.

Speaker Change: Our pace of business has not changed if anything its.

Speaker Change: Our GPS jamming alternative is a little different than the kind of companies, we've been with before but.

Speaker Change: As hot as it's been if not hotter.

Speaker Change: Because of the growing new areas. So it's quite busy here I know the service revenue got a little lower than we expected this year, but I think.

Speaker Change: Our whole partner base is very interested in that technology and you're seeing also announcements I saw one this week again from somebody in that space.

Speaker Change: We have a lot of activity to turn that around.

Speaker Change: An existing partner so I don't think its going to affect SG&A that much I really do think though that it's more about who we're going after.

Speaker Change: Thank you for that and just as a quick follow up can you expand a little bit on the <unk> partnership that you mentioned.

And I think the other reason I just wanted to mention that 50 is that the.

Speaker Change: Yes, we are building this new iridium NTN direct service requires.

Speaker Change: Our pace of business has not changed if anything it.

Speaker Change: Being able to connect to the failure infrastructure of today.

Speaker Change: As hot as it's been if not harder.

Speaker Change: You could build out you.

Speaker Change: You could build out.

Speaker Change: Because of the growing new areas. So it's quite busy here I know the service revenues got a little lower than we expected this year, but I think.

Speaker Change: That pipeline, if you will between the satellite and the cellular to manage debt, including one building relationship with everyone or you can just sort of plug into a central hub that.

Speaker Change: We have a lot of activity to turn that around.

Speaker Change: That's how I kind of view center versus their this trusted billing and roaming hub that manages all the relationship between cellular operators and they are increasingly I think going to become the bridge between the.

Speaker Change: Thank you for that and just as a quick follow up can you expand a little bit on the sooner versus partnership that you mentioned.

Speaker Change: Yes, we are building this new iridium NTN direct service requires being able to connect to the cellular infrastructure of today.

Speaker Change: Threshold networks in the satellite networks.

Speaker Change: Thank goodness for them.

Speaker Change: You could build out you.

Speaker Change: It just eliminates the big piece that we had to do a lot of times on the satellite front when we build out new services. We don't have to do that as we build out a say a roaming onto Iot for iridium <unk> indirect so.

Speaker Change: You could build out.

Speaker Change: That pipeline, if you will between the satellite and cellular to manage that including one building relationship with everyone or you can just sort of plug into a central hub. That's that's how I kind of view center versus their this trusted billing and roaming hub that manages all the relationship between cellular operators.

Speaker Change: That's that's a great relationship.

Speaker Change: Thank you.

Speaker Change: Great.

Speaker Change: And they are increasingly I think going to become the bridge between the.

Speaker Change: The question, we have is from Colin Canfield of Cantor. Please go ahead.

Speaker Change: Threshold networks in the satellite networks.

Speaker Change: Okay. Thanks for the question.

Speaker Change: Maybe asking the commercial question a little bit more directly how do you think about kind of tying iridium commercial growth into the Amazon constellation. It sounds like just kind of the messaging you are giving here on big customer consumer bases.

Speaker Change: Thank goodness for them.

Speaker Change: It just eliminates a big piece that we had to do a lot of times on the <unk>.

Speaker Change: <unk> front, when we build out new services, we don't have to do that as we build out a say a roaming onto Iot for iridium NTN direct so.

Speaker Change: Obviously kind of a telco folks are probably less of a natural partner, but <unk> got a lot of opportunity ahead of you in terms of industrial and mobility. So maybe talk through kind of how you think about that partnership that will driver for commercial growth.

Speaker Change: That's that's a great relationship.

Speaker Change: Thank you.

Speaker Change: Thanks, Greg.

Speaker Change: Next question, we have is from Colin Canfield of counsel. Please go ahead.

Speaker Change: What the sort of cadence might look like on the dam or the other undisclosed big commercial partner.

Speaker Change: Okay. Thanks for the question.

Speaker Change: So you were talking about iridium NTN direct or our <unk> service is that what you are mentioning.

Speaker Change: Maybe asking the commercial question a little bit more directly how do you think about kind of tying iridium commercial growth into the Amazon constellation. It sounds like just kind of the messaging you you've given here on a big customer consumer bases, and obviously kind of a telco folks are probably less of a natural partner, but <unk> got a lot of opportunity ahead of you in terms of industrial and mobile.

Speaker Change: I mean across all of your product lines right. If we think about kind of a use case with what theyre going after today that is one element right.

Speaker Change: But there's obviously a lot more in the transports and consumer market you can do with your Iot NTN data.

Speaker Change: So maybe talk through kind of how you think about that partnership as a driver for commercial growth.

Speaker Change: So just maybe kind of how we think about alleviating some of the pressure downward if it's another large kind of commercial tech tech back effort.

Speaker Change: What the sort of cadence might look like on the Bam or the other undisclosed big commercial partner.

Speaker Change: So our growth model in the commercial space has always been about.

Speaker Change: So you were talking about Iridium NTN direct R. R. R. <unk> service is that what you are mentioning.

Speaker Change: New services put it in the hands of more more partners.

Speaker Change: I mean across all of your product lines right.

Speaker Change: And more industries.

Speaker Change: They take us to market almost exclusively on that go to market work very well.

Speaker Change: I'll kind of use cases, what they're going after it today that is one element right.

Speaker Change: So there's obviously a lot more in the transports and consumer market you can do with your Iot NTN data.

Speaker Change: It continues to work well.

Speaker Change: New services were being provided are our lower cost Iot capabilities with devices going really even down to the chips.

Speaker Change: So just maybe kind of how we think about alleviating some of the pressures.

Speaker Change: If it's another large kind of commercial tech tech back effort.

Speaker Change: It makes it very easy to people to go into.

Speaker Change: So our growth model in the commercial space has always been about <unk>.

Speaker Change: Very easy deployment for them than going into new industries things like autonomous systems drones.

Speaker Change: New services put it in the hands of more more partners.

Speaker Change: Heavy equipment energy transportation.

Speaker Change: And more industries and they take us to market.

Speaker Change: Maritime drawn maritime.

Speaker Change: Exclusively in that go to market work very well.

Speaker Change: All different types of buoys and sensors.

Speaker Change: It continues to work well.

Speaker Change: The new services are being provided are our lower cost Iot capabilities with devices going really even down to the chips.

Speaker Change: There is a whole.

Speaker Change: Dod and military space, we're seeing growing interest as I said recently in the energy industry and power line monitoring we're seeing things.

Speaker Change: It makes it very easy to people to go into.

Speaker Change: It's just as we've gotten larger and our brand has grown and our and our solutions have gotten even easier to deploy.

Speaker Change: Very easy deployment for them than going into new industries things like autonomous systems drones.

Speaker Change: Thats expanded the big New change here is that we're going to standards based products.

Speaker Change: Heavy equipment energy transportation.

Speaker Change: I think thats going to dramatically expand the number of applications and industries that maybe you didn't think of satellite is being affordable didn't think of it as being easy because the devices that they were tracking.

Speaker Change: Maritime drawn at maritime.

Speaker Change: All different types of buoys and sensors.

Speaker Change: Theres a whole.

Speaker Change: D O D and military space.

Speaker Change: We're seeing growing interest as I said recently in the energy industry and power line monitoring we're seeing things.

Speaker Change: Maybe in agriculture.

Speaker Change: It's just as we've gotten larger and our brand has grown and our and our solutions have gotten even easier to deploy.

Speaker Change: And in many other spaces, many industries, who are afraid of going to a proprietary satellite solution because there. They were so widespread that they were worried that they pick the wrong. One are going to be very comfortable just expanding into five <unk>, which are already doing and being able to roam onto our network.

Speaker Change: That's expanded the big New change here is that we're going to standards based products.

Speaker Change: And I think that's going to dramatically expand the number of applications and industries that maybe you didn't think of satellite is being affordable.

Speaker Change: So that's what's led us to both mobile network operators, but I think a lot of other partners, who were already deploying Iot in the terrestrial space, which is far far larger it's probably.

Speaker Change: Think of it as being easy because the devices that they were tracking.

Speaker Change: Maybe in agriculture.

Speaker Change: 95% of the overall Iot, maybe 99% is really terrestrial base satellite.

Speaker Change: And in many other spaces, many industries, who are afraid of going to a proprietary satellite solution because there. They were so widespread that they were worried that they pick the wrong. One are going to be very comfortable just expanding into five G or <unk>, which are already doing and being able to roam onto our network.

Speaker Change: Satellite has been really small in Iot, so we're going to be able to move into that much broader commercial space.

Speaker Change: Opens up and the great thing about standards as we don't have to go through this whole development and transferring technology to them and and.

Speaker Change: So that's what's led us to both mobile network operators, but I think a lot of other partners, who were already deploying Iot in the terrestrial space, which is far far larger probably.

Speaker Change: Teaching them how to use our technology. It will just roam onto our network using a partner like center versus which I just explained so.

Speaker Change: That's kind of the changing nature of sort of the.

Speaker Change: 95% of the overall Iot, maybe 99% is really terrestrial base.

Speaker Change: The commercial space.

Speaker Change: That what you were looking for a call.

Speaker Change: Sure.

Speaker Change: Satellite has been really small in Iot, so we're going to be able to move into that much broader commercial space.

Speaker Change: On the house.

Speaker Change: <unk>.

Speaker Change: Maybe drilling into the government stuff.

Speaker Change: Government budget outlook, when you combine Vod and military intelligence, probably the best that it's been in 20 years kind of near peak ish.

Speaker Change: Opens up and the great thing about standards as we don't have to go through this whole development and transferring technology to them and and.

Speaker Change: I think a lot of folks kind of.

Speaker Change: Difficulty drilling down into drilling budgets, which are probably a walk to double.

Speaker Change: Teaching them how to use our technology. It will just roam onto our network using a partner like center versus which I just explained so.

Speaker Change: As we think of that.

Speaker Change: Rone.

Speaker Change: Algorithm.

Speaker Change: That's kind of the changing nature of sort of the.

Speaker Change: Can you maybe talk us through the waterfall of growth that we should see through.

Speaker Change: The commercial space.

Speaker Change: Our P&C business and specifically talking to.

Speaker Change: Got it.

Speaker Change: Sure.

Speaker Change: Like the criticism arrows, Andrew <unk> of the World and folks who said either on or adjacent to the alternative Pnp Board.

Speaker Change: Yes.

Speaker Change: <unk>.

Speaker Change: Maybe drilling into the government stuff government budget outlook, when you combine Vod and military intelligence, probably the best that it's been in 20 years kind of near peak ish.

Speaker Change: The growth algorithm that we should consider there.

Speaker Change: So I think it's sort of a step function as we continue to expand sort of the footprint on behalf of.

Speaker Change: But I think a lot of folks kind of.

Speaker Change: Drilling down into drilling budgets, which are probably a walk to double.

Speaker Change: But as we think of that round.

Speaker Change: Government customers in the same way the commercial customers.

Speaker Change: Algorithm.

Speaker Change: It's a tricky area to kind of talk about.

Speaker Change: Can you maybe talk us through the waterfall of growth that we should see through.

Speaker Change: Because it really depends on.

Speaker Change: The all P&C business, specifically talking to kind of like the credits is arrow as Andrew also the world and folks who said either on or adjacent to the alternative of PNG Board.

Speaker Change: People, who don't usually talked about how theyre going to use the service, but I can assure you we are.

Speaker Change: <unk> discussing all of those things with them, but it's probably I would call it a stepwise function as.

Speaker Change: I'm just thinking the growth algorithm that we should consider there.

Speaker Change: Those are not probably one by one kind of sales as opposed to kind of.

Speaker Change: Well I think it's a sort of step function.

Speaker Change: Regional sort of provide capabilities over a wide wide area of the Earth.

Speaker Change: We continue to expand sort of the footprint on behalf of <unk>.

Speaker Change: And it gets used more and more.

Speaker Change: Government customers in the same way the commercial customers.

Speaker Change: Okay. Okay, and then just one comment you made five years ahead of any other players maybe talk about how you think about the moats that iridium has across spectra.

Speaker Change: It's a tricky area to kind of talk about you know.

Speaker Change: It really depends on.

Speaker Change: People, who don't usually talk about how theyre going to use the service, but I can assure you were.

Speaker Change: Spectrum payload design, and then maybe some sort of kind of like relevant metric of cost per berth like cost per propagated.

Speaker Change: Deeply discussing all of those things with them, but it's probably I would call it a stepwise function as.

Speaker Change: Or just kind of how you think about keeping that as well.

Speaker Change: Those are not probably one by one kind of sales as opposed to kind of.

Speaker Change: Well the good thing about PMT is it doesn't use any capacity so as the more you can have a 1 billion users taking.

Speaker Change: Regional sort of provide capabilities over a wide wide area of the Earth.

Speaker Change: And it gets used more and more.

Speaker Change: Taking advantage of our PMT service and so the cost for whatever you want to call that is infinitesimally small long term, that's why we're kind of <unk>.

Speaker Change: Okay. Okay, and then just one comment you made five years ahead of any other players maybe talk about how you think about the moats that iridium has across spectra.

Speaker Change: Going to become the global alternate PNT service to protect critical infrastructure and.

Speaker Change: Spectrum payload design, and then and then maybe some sort of kind of like relevant metric not cost per berth, but like cost per propagated.

Speaker Change: The service has been demonstrated over and over to provide the necessary quality, it's competing really only against regional solution terrestrial based solutions that may be only kind of scale to a city or a.

Speaker Change: Or just kind of how you think about keeping that as well.

Speaker Change: Well the good thing about you know PNT is that it doesn't use any capacity. So as the more you can have a 1 billion users taken.

Speaker Change: Locality.

Speaker Change: There is really nothing when people start looking for solutions either in remote environments are the operate around the world to us. So there is no snow.

Speaker Change: Taking advantage of our PMT service and so the cost for whatever you want to call that is infinitesimally small long term, that's why we're kind of <unk>.

Speaker Change: So competition.

Speaker Change: Going to become the global alternate TNT service to protect critical infrastructure and.

Speaker Change: Got it.

Speaker Change: And and the advantages we have been in L band to make antennas really small.

Speaker Change: Being a Leo which is a natural advantage all of those are things that have given us a great.

Speaker Change: The service has been demonstrated over and over to provide the necessary quality, it's competing really only against regional solution terrestrial based solutions that may be only kind of scaled to a city or too.

Speaker Change: Right.

Speaker Change: Advantage here. So that's why we say, we don't see anyone showing up to rfps or our skus.

Speaker Change: Locality.

Speaker Change: Theres really nothing when people start looking for solutions either in remote environments are the operate around the world to us. So there is no.

Speaker Change: And it's really more of our problem is explaining that this service even exists.

Speaker Change: Finding the partners that can take us into <unk>.

Speaker Change: There's no competition.

Speaker Change: Got it.

Speaker Change: Into new opportunities.

Speaker Change: And you know and the advantages we have been in L band to make antennas really small.

Speaker Change: Where people didn't even realize there was protection possible. So.

Speaker Change: Leo which is a natural advantage all of those are things that have given us a great.

Speaker Change: And Thats, a good problem to have and we're solving it overtime.

Speaker Change: Great.

Speaker Change: Advantage here. So that's why we say, we don't see anyone showing up to rfps or our skus.

Speaker Change: Got it thanks for the questions.

Speaker Change: Okay. Thanks.

Speaker Change: Thank you we have Vishal Matthew.

Speaker Change: And it's really more of our problem is explaining that this service even exists.

Speaker Change: For vignette of Barclays. Please go ahead.

Speaker Change: Yes. Good morning, Thank you for the presentation.

Speaker Change: Finding the partners that can take us into <unk>.

Speaker Change: Had a question about the SG&A I may have missed some comments at the beginning of the call but.

Speaker Change: Into new opportunities.

Speaker Change: Where people didn't even realize there was protection possible. So.

Speaker Change: The previous results you talked about.

Speaker Change: The sharp decline or an important declining R&D expenses in the low single digit growth in SG&A. So a slowdown from previous years, which is what <unk> been delivering.

Speaker Change: And that's a good that's a good problem to have and we're solving it overtime.

Speaker Change: Yeah.

Speaker Change: Got it thanks for the questions Okay.

Speaker Change: Okay. Thanks.

Speaker Change: Q1, Q2, I was wondering if the guidance for the indication still spent on those two lines.

Speaker Change: Next question is from.

Speaker Change: Matthew Robby.

Speaker Change: Yes. It does it does Matthew we hedged.

Speaker Change: Vignette of Barclays. Please go ahead.

Speaker Change: Yes. Good morning, Thank you for the presentation.

Speaker Change: Previously guided on R&D that it would be down in 'twenty five versus 24, primarily because some of the major programs that we've undertaken.

Speaker Change: I had a question about the SG&A I may have missed some comments at the beginning of the call but.

Speaker Change: In the previous results you talked about the sharp decline or an accordant declining R&D expenses in the low single digit growth in SG&A. So a slowdown from previous years. This is what <unk> been delivering.

Speaker Change: Moving into the capsule investment cycle.

Speaker Change: So that remains the same that hasnt changed in the profile, we're seeing on our R&D spend is very much in line with expectations.

Speaker Change: I would say on the SG&A side.

Speaker Change: Q1, Q2 was wondering if the guidance or the indication still spent on those two lines.

Speaker Change: <unk> have been a little bit lower than we have anticipated and so our view our view on SGA SG&A through the end of the year and for the full year would be like flat to low single digit grower, that's how we'd characterize that.

Speaker Change: Yeah. It does it does Matthew we had.

Speaker Change: Previously guided on R&D that it would be down in 'twenty five versus 24.

Speaker Change: Primarily because some of the major programs that we'd undertaken where we're moving into the capsule investment cycle.

Speaker Change: Great. That's very helpful. And then one question on Maritime Matt talked about.

Speaker Change: So that remains the same that hasnt changed in the profile, we're seeing on our R&D spend is very much in line with expectations.

Speaker Change: Sort of.

Jim: Jim Yes.

Speaker Change: Services I was just wanted to clarify you get revenues out of Jim sorry.

Speaker Change: I would say on the SG&A side.

Speaker Change: Or is it only if there is.

Speaker Change: Surface attached to it.

Speaker Change: Expenses have been a little bit lower than we have anticipated and so our view our view on SGA SG&A through the end of the year and for the full year. It would be like flat to low single digit grower, that's how I would characterize that.

Speaker Change: If you do get revenues from GM Joseph can you give us a sense of Dr. Bruce for this service.

Speaker Change: Yes, Theres no typically.

Speaker Change: Typically not price for GM DSS.

Speaker Change: It's a free service, but it's.

Speaker Change: It's on a terminal that provides other services.

Speaker Change: Great. That's very helpful. And then one question on maritime.

Speaker Change: Even our Standalone GM DSS service can be used for other things and their revenue that are produced by that just not by the GM DSS function.

Speaker Change: You talked about <unk>.

Speaker Change: <unk> and <unk>.

Speaker Change: <unk> services I was just wanted to clarify you get revenues out of Jim.

Speaker Change: We believe we will have a very unique product and a combined.

Speaker Change: Or is it only if there is.

Speaker Change: Service attached to it and if you do get revenues from GM. Just first can you give us a sense of the ARPA for this service.

Speaker Change: Companion GM DSS LOI.

Speaker Change: In other other mandated services a terminal that has to be on every ship at least over a certain weight and is being being put onto increasing more and more ships for security and it being provided so for one price. If you will all of those functions would be would be in AR.

Speaker Change: Yes. It is there is no typically not price for G M DSS.

Speaker Change: A free service, but.

Speaker Change: It's on a terminal that provides other services.

Speaker Change: Even a standalone GM DSS service can be used for other things and their revenue that are produced by that just not by the GM DSS function.

Speaker Change: Cost effective terminal that works anywhere on the planet so.

Speaker Change: We believe we will have a very unique product and a combined.

Speaker Change: That's kind of the value proposition. That's what are the maritime partner base likes they are in the transition kind of to it there's a little bit of wait for because there is some great manufacturers coming with additional terminals that.

Speaker Change: Companion G M D. S. S L R I T.

Speaker Change: In other other mandated services a terminal that has to be on every ship at least over a certain weight and it's being being put onto increasing more and more ships for security and it being provided so for one price. If you will all of those functions would be would be in our cost.

Speaker Change: Maybe more desirable in certain parts of the world.

Speaker Change: For example Asian manufacturers.

Speaker Change: Often kind of like Asian <unk>.

Speaker Change: Asian.

Speaker Change: Fleets like Asian manufacturers and those terminals are still still coming over the next couple of quarters. So that's a little bit why we're we're pretty confident that that will that will stabilize.

Speaker Change: Effective terminal works anywhere on the planet so.

Speaker Change: That's kind of the value proposition, that's what are the maritime partner base likes there in the transition kind of to it there's a little bit of wait for because there's some great manufacturers coming with additional terminals that maybe more desirable in certain parts of the world.

Speaker Change: Okay.

Speaker Change: The antenna, it's not only youll services that can be provided it's third parties that can be put on all of those would be two different antennas.

Speaker Change: When you see when we announce one of our partners has put a terminal at only has our service in it but okay. It's put on the ship and unusually the.

Speaker Change: For example Asian manufacturers.

Speaker Change: Often kind of like Asian <unk>.

Speaker Change: Asian.

Speaker Change: On the service.

Speaker Change: Fleets like Asian manufacturers and those terminals are still still coming over the next couple of quarters. So that's a little bit why we're we're pretty confident that that will that will stabilize.

Speaker Change: Provider will integrate that terminal into a full solution, which includes usually K in ku band service et cetera. So.

Speaker Change: There may even be multiple.

Speaker Change: Okay.

Speaker Change: Terminals of different types, but it's usually a combined package provided to the <unk>.

Speaker Change: The antenna, it's not only youll services that can be provided it's third parties that can be put on all of those would be two different antennas.

Speaker Change: End users so that they can use us when it fails over and rain or in part or in places, where you can't use that VSAT terminal.

Speaker Change: I don't know when you see our when we announce one of our partners has put a terminal is it only has our service and it but it okay. It's put on the ship and usually the the the.

Speaker Change: And obviously it can be used in an emergency anytime or to provide navigation information et cetera.

Speaker Change: The service provider will integrate that terminal into a full solution, which includes usually K in ku band service et cetera. So.

Speaker Change: Okay, very clear and lastly, just on the <unk>.

Speaker Change: Comments, you were making about.

Speaker Change: Doug.

Speaker Change: Sure on the new constellation you talked about having a constellation that.

Speaker Change: There may even be multiple.

Speaker Change: Terminals of different types, but it's usually a combined kind of package provided to the <unk>.

Speaker Change: Operates on <unk> standards and that can deliver a rich richer experience to cell phones consumer products et cetera, we still only talking here basically molecule.

Speaker Change: End users so that they can use us when it fails over and rain or in part or in places, where you can't use that VSAT terminal.

Speaker Change: And obviously it can be used in an emergency anytime or to provide navigation information et cetera.

Speaker Change: We're only talking about Iot slush messaging right.

Speaker Change: There was no suggestion that go beyond that in terms of the services you may be able to provide new constellation and I realize it's five years down the line.

Speaker Change: Okay, very clear and lastly, just on the comments you were making about.

Speaker Change: The.

Speaker Change:

Speaker Change: Sure sure on the new constellation you talked about having a constellation that.

Speaker Change: I actually am going beyond messaging and other services the <unk> New radio standards requires more spectrum, but also provides really a complete level of service so the kinds of.

Speaker Change: Hum.

Speaker Change: <unk> standards and that can deliver a rich richer experience two to cell phones consumer products et cetera, we still only talking here basically molecule.

Speaker Change: Breath that you get from say a cell phone or other consumer product is able to connect.

Speaker Change: We only talking about Iot slush messaging right.

Speaker Change: With a richer data experience, we we are looking to offer.

Speaker Change: There was no suggestion that it go beyond that in terms of the services.

Speaker Change: To build that kind of network and in the 2030 and Thats why.

Speaker Change: <unk> be able to provide in the new constellation and I realize it's five years down the line.

Speaker Change: Looking to use utilize our spectrum, our partner spectrum or additional spectrum being provided by regulators, which is being discussed and looked at sort of our vision and future.

Speaker Change: No I actually am going beyond messaging and other services the <unk> New radio standards requires more spectrum, but also provides really a complete level of service so the kinds of breath.

Speaker Change: And as I mentioned I really want to also continue to provide hosted payload services as well because thats been a big success for us and we have some great ideas.

Speaker Change: Breath that you get from say a cell phone or or other consumer product is able to connect.

Speaker Change: With a richer data experience. We we are looking to offer we want to build that kind of network and in the 2030 and Thats why <unk>.

Speaker Change: Given the partnerships we've had in the past.

Speaker Change: Okay, so presumably that quick.

Speaker Change: Broadband services to.

Speaker Change: Mobile services to mobile customers, if you have the spectrum and the capacity eventually.

Speaker Change: Looking to use utilize our spectrum, our partner spectrum or additional spectrum being provided by regulators, which is being discussed and looked at as sort of our vision and future.

Speaker Change: In the right direction.

Speaker Change: We are in the right direction.

Matt Desch: Thanks, Matt.

Speaker Change: Thanks Matthew.

Speaker Change: And as I mentioned I really want to also continue to provide hosted payload services as well because thats been a big success for us and we have some great ideas.

Speaker Change: Final question is from Joseph Wang of Morgan Stanley. Please go ahead.

Joseph Wang: Hi, good morning, Thanks for taking the question.

Speaker Change: Given the partnerships we've had in the past.

Joseph Wang: Just maybe two quick ones, Matt coming back to government opportunities you mentioned Golden dome at the top of the call. Obviously, a lot of focus on funding to the effort. It looks like the government wants to move pretty fast.

Speaker Change: Okay, so presumably that could.

Speaker Change: Broadband services.

Speaker Change: Mobile search suits tumor.

Speaker Change: Our customers if you have the spectrum and the capacity eventually.

Speaker Change: To get a sense of how youre thinking about address ability an impact here.

Speaker Change: I grew up in the right direction, Yeah, that's you're in you're in the right direction.

Speaker Change: Discussions with partners or customers kicked off yet in any meaningful way.

Matt Dash: Thanks, Matt.

Speaker Change: Yeah. Thanks Matthew.

Speaker Change: We do see Golden Dome is an opportunity, we given our relationships and.

Speaker Change: Final question is from Justin <unk> of Morgan Stanley.

Speaker Change: The fact that our technology is being used so broadly.

Speaker Change: Hi, good morning, Thanks for taking the question.

Speaker Change: We think we can contribute.

Speaker Change: Just maybe two quick ones, Matt coming back to government opportunities you mentioned Golden dome at the top of the call. Obviously, a lot of focus in funding tied to the effort. It looks like the government wants to move pretty fast.

Speaker Change: We think there is important components like PMT to that.

Speaker Change: In addition to sort of communication as well.

Speaker Change: Theres nothing specific yet, but I know we are in discussions I would say.

Speaker Change: Get a sense of how youre thinking about addressing dougherty an impact here.

Speaker Change: Discussions with partners or customers kicked off yet in any meaningful way.

Speaker Change: We also have a lot of experience.

Speaker Change: And I think was a good move that we won the space development agency contract a couple of years ago.

Speaker Change: We do see Golden Dome is an opportunity, we given our relationships and.

Speaker Change: Certainly driving some engineered service revenues, but.

Speaker Change: The fact that our technology is being used so broadly.

Speaker Change: More importantly, it's just.

Speaker Change: Further our relationship.

Speaker Change: We think we can contribute.

Speaker Change: <unk> to sort of be.

Speaker Change: We think there is important components like PNT you did that.

Speaker Change: Be part of future government space Force networks.

Speaker Change: In addition to sort of communication as well.

Speaker Change: <unk>.

Speaker Change: Our hope and that was to both help us as we were looking at technologies for our future constellations, which I was talking about here and its done that but I think it is just further our relationship with an important customer as they sought to.

Speaker Change: Theres nothing specific yet, but I know we're in discussions I would say.

Speaker Change: We also have a lot of experience.

Speaker Change: And I think it was a good move that we won the space development agency contract a couple years ago.

Speaker Change: Expand and run these networks, which are not going to be government only networks theyre going to be kind of a combination.

Speaker Change: Certainly driving some engineering service revenues, but.

Speaker Change: More importantly, it's just.

Ross: Ross the industry of a lot of a lot of partnerships I think.

Speaker Change: Further our relationship.

Speaker Change: <unk> to sort of be.

Ross: Got it great and then just last quick one on tariffs any updated expectations around impact there and can you just remind us what's baked into the guide currently thanks.

Speaker Change: Be part of future government space worse networks. So.

Speaker Change: <unk>.

Speaker Change: Our hope and that was both help us as we were looking at technologies for our future constellations, which I was talking about here and its done that but I think it just further our relationship with an important customer as they sought to.

Ross: Yeah. Thanks for thanks for reminding us we didn't talk about it because it's kind of become a small thing for this year is more of a 26 well we'll.

Ross: We'll see how it is but given the fact that they've delayed and that we've mitigated so much.

Speaker Change: Expand and run these networks, which are not going to be government only network, they're going to be kind of a combination.

Vince O'Neill: But vince maybe less than $1 million.

Vince O'Neill: Kind of a hit for this year, we had guided sort of best case III in worst case seven seven.

Speaker Change: Ross the industry of a lot of a lot of partnerships I think.

Speaker Change: Got it great and then last quick one on tariffs any updated expectations around impact there and can you just remind us what's baked into the guide currently.

Vince O'Neill: And it's certainly not going to be that this year, thank goodness, but who knows.

Vince O'Neill: We'll see how it evolves to the end of the year, it's still not a huge number I mean those those are numbers you can kind of look and think about for maybe 26 26.

Speaker Change: Yeah. Thanks for thanks for reminding us we didn't talk about it because it's kind of become a small thing for this year is more of a 'twenty six well, we'll see how it is but given the fact that they've delayed and that we've mitigated so much.

Vince O'Neill: We're trying to think about sort of impact, which we someday could guide for it but I'm hopeful that.

Speaker Change: What Vince maybe less than $1 million.

Vince O'Neill: Given our mitigation that would certainly more at the lower end of that and at worst case, so not a big deal overall right now.

Speaker Change: Kind of a hit for this year at most we had guided sort of best case three in worst case seven seven.

And it's certainly not going to be that this year.

Vince O'Neill: Perfect. Thanks.

Jonathan: Thanks, Jonathan.

Speaker Change: Goodness, but who knows we'll see how it evolves through the end of the year, it's still not a huge number I mean those those are numbers you can kind of look and think about for maybe 26 26, if you're trying to think about sort of impact, which we someday could guide for it but I'm hopeful that.

Speaker Change: Thank you we have reached the end of the question and answer session and I would like to hand back to management for any closing remarks.

Speaker Change: Great questions.

Speaker Change: No.

Speaker Change: Not the perfect quarter, but frankly is I think <unk> got were still enthusiastic and excited about the future and.

Speaker Change:

Speaker Change: Given our mitigation that would certainly more at the lower end of that and at worst case, so not a big deal overall right now.

Speaker Change: With all the activity I think we have.

Speaker Change: Good reason to be and I look forward to.

Speaker Change: <unk> in the next quarter.

Speaker Change: Perfect. Thanks.

Jonathan: Thanks, Jonathan.

Speaker Change: Ladies and gentlemen that concludes today's conference.

Speaker Change: Thank you we have reached the end of the question and answer session and I would like to hand back to management for any closing remarks.

Speaker Change: Joining us you may now disconnect.

Speaker Change: <unk>.

Speaker Change: Well great questions I know.

Speaker Change: Not the perfect quarter, but frankly is I think <unk> got were still enthusiastic and excited about the future and.

Speaker Change: With all the activity I think we have.

Speaker Change: A good reason to be and I look forward to updating you in the next quarter.

Speaker Change: Okay.

Speaker Change: Ladies and gentlemen that concludes today's conference. Thank you for joining US you may now.

Speaker Change: John.

Speaker Change: [music].