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.
Adjusted EBITDA grew $5.1 million or 21.9% to $28.4 million, driven by revenue growth and $2.4 million in lower operating expenses.
Adjusted EBITDA margins increased from 27.1% in Q2 2024 to 32.1% in Q2 2025, driven by high incremental margin from Glo Fiber subscriber additions and synergies from Horizon Telecom acquisition.
Closed a small tuck-in fiber-to-the-home acquisition adding 1,500 passings and approximately 700 customers for $5 million, with an implied purchase price multiple of about 8x 2026 pro forma adjusted EBITDA.
Glo Fiber incremental margin was 71% in Q2 2025 compared to Q2 2024, highlighting strong operating leverage of the fiber network.
Glo Fiber revenue growth was partially offset by declines in incumbent broadband markets and commercial fiber revenue of $1.4 million and $1.2 million, respectively.
Liquidity was $266.7 million on June 30, including $29 million in cash, $143 million in revolver capacity, and $94.6 million in remaining government grant reimbursements.
Outstanding debt was $513 million with the first material maturity in July 2027.
Revenue grew 3.2% to $88.6 million, driven by strong Glo Fiber markets revenue growth of $5.7 million or 40.5%, driven by an increase in subscribers.
Dafinchi