Capital expenditures were $20.7 million in Q2, with higher CapEx expected in 2025 to support 5G standards and corporate facilities investment.
Cash and cash equivalents stood at $79.3 million with net leverage at 3.6x OEBITDA, expected to reduce below 2x by 2030.
Commercial broadband revenue declined 6% to $12.7 million due to a shift from primary service to companion backup VSAT plans with lower ARPU.
Commercial IoT revenue grew 8% to $44.8 million, reflecting broad adoption across consumer and commercial applications.
Commercial service revenue increased 2% to $128.8 million, led by IoT growth, while voice and data revenue rose 1% to $56.8 million with stable subscribers.
Engineering and support revenue rose significantly to $41.9 million from $25.8 million, driven by work with the Space Development Agency and new U.S. contracts.
Government service revenue increased modestly to $26.8 million, reflecting a step-up in the EMSS contract with the U.S. government.
Operational EBITDA was up 6% in the second quarter to $121.3 million, driven by revenue from engineering and support and recurring services.
Posting and other data services revenue was $14.5 million, up 1%, driven by rising PNT revenue offset by other data service contracts.
Pro forma free cash flow for 2025 is projected at just over $300 million, representing a 61% conversion rate of OEBITDA to free cash flow and a yield approaching 10%.
Subscriber equipment sales declined 15% to $19.5 million but full-year sales are expected to be in line with 2024.
Cash and cash equivalents totaled $336.8 million at quarter end, up from $325.5 million.
CPG and manufacturing combined were 10.5% of revenue, flat sequentially and up 7.7% year-over-year.
CPG and manufacturing represented 10.5% of revenue, flat sequentially and up 7.7% year-over-year due to acquisitions.
Customer count declined to 194 from 204 due to portfolio rationalization.
Financial services was the second largest vertical at 25.1%, doubling year-over-year and growing 1.4% sequentially.
Financial services was the second largest vertical at 25.1%, doubling year-over-year and growing 1.4% sequentially, driven by fintech and acquisitions.
GAAP gross profit was $34.5 million or 34.1%, down from 36.8% in the prior quarter, impacted by FX and fixed price contract timing.
GAAP net income was $5.3 million or $0.06 per diluted share, up from $2.9 million in the prior quarter and a net loss in the year-ago quarter.
Healthcare and pharma made up 2.5% of revenue.
Non-GAAP EBITDA was $12.7 million or 12.6% of revenues, within guidance but down sequentially from $14.6 million due to FX headwinds and increased engineering headcount.
Non-GAAP net income was $8.3 million or $0.10 per diluted share, slightly down from $10 million in the prior quarter but up year-over-year.
Other verticals contributed 7.8% of revenue, growing 10.1% sequentially and 4.6% year-over-year.
Retail was the largest vertical at 29.2% of revenue, growing 10.4% year-over-year but declining 6.2% sequentially.
Retail was the largest vertical at 29.2% of revenue, growing 10.4% year-over-year but down 6.2% sequentially.
Second quarter revenue was $101.1 million, a record high, representing 21.7% year-over-year growth and 6.3% organic growth excluding acquisitions.
TMT vertical contributed 24.9% of revenue with 6.7% sequential and 8.4% year-over-year growth.
Top 5 and top 10 customers accounted for 37.5% and 57.3% of revenue respectively.
Total headcount increased to 5,013 from 4,926 in the prior quarter and 3,961 year-over-year, with 92.8% outside the U.S.
Total headcount was 5,013, up from 4,926 in Q1 and 3,961 in prior year quarter, with 92.8% non-U.S. headcount.
Book Publishing revenues increased 3% to $2.1 billion with EBITDA up 10%, though Q4 saw a 4% revenue decline and 12% EBITDA decline due to softer market conditions.
Digital Real Estate Services revenues grew 9% for the year with EBITDA up 18%, supported by growth in realtor.com and REA, despite a sluggish U.S. housing market.
Dow Jones segment revenues increased 4% for the year and 7% in Q4, with EBITDA up 8% annually and 10% in Q4, driven by strong growth in Professional Information Business and digital circulation revenues.
In Q4 2025, revenues rose 1% to $2.1 billion, total segment EBITDA grew 5% to $322 million, and net income from continuing operations increased 28% to $86 million.
Net income from continuing operations increased 71% to $648 million for the full year, with profit margins improving by 170 basis points to 16.7%.
News Corp reported fiscal 2025 revenues of nearly $8.5 billion, a 2% increase year-over-year, with total segment EBITDA rising 14% to over $1.4 billion, marking a record for the company on a continuing operations basis.
News Media profitability improved 15% for the year despite a challenging advertising environment, though Q4 revenues declined 4% and EBITDA fell 13%.
Dafinchi