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Iridium Communications
(NASDAQ:IRDM)
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Rating:58Neutral
Price Target:
$46.00
▼(-2.34% Downside)
Action:Reiterated
Date:10/20/26
The score is driven primarily by solid fundamentals—improving profitability and strong cash generation—tempered by high leverage risk. Technicals are the largest near-term drag (bearish trend and weak momentum despite oversold readings). Valuation is also a headwind due to a high P/E with only a modest dividend yield, while corporate events are moderately supportive given merger progress but with litigation and regulatory execution risk.
Positive Factors
Recurring Network Revenue
Iridium’s satellite network generates recurring access fees and usage revenue across voice, data, and IoT services. This model can support durable customer relationships and more predictable cash generation, while certified devices and partners help expand the installed base over time.
Negative Factors
Elevated Leverage
High leverage leaves Iridium with less financial flexibility if growth slows or cash generation weakens. It also increases exposure to refinancing conditions and interest costs, while making returns appear stronger partly because a smaller equity base supports the capital structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Network Revenue
Iridium’s satellite network generates recurring access fees and usage revenue across voice, data, and IoT services. This model can support durable customer relationships and more predictable cash generation, while certified devices and partners help expand the installed base over time.
Read all positive factors
Iridium Communications Key Performance Indicators (KPIs)
Any
Revenue by Type
Separates recurring service revenue (airtime, subscriptions) from one-time items (equipment sales, installation) and other income, showing how predictable the company’s cash flow is. A larger share of recurring revenue signals steadier earnings and less vulnerability to lumpy hardware sales cycles.
Separates recurring service revenue (airtime, subscriptions) from one-time items (equipment sales, installation) and other income, showing how predictable the company’s cash flow is. A larger share of recurring revenue signals steadier earnings and less vulnerability to lumpy hardware sales cycles.
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The Fly
The FlyIridium Communications (IRDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.71B
Dividend Yield1.35%
Average Volume (3M)1.15M
Price to Earnings (P/E)29.0
Beta (1Y)1.09
Revenue Growth3.59%
EPS Growth33.15%
CountryUS
Employees975
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.53
Shares Outstanding106,158,480
10 Day Avg. Volume1,020,920
30 Day Avg. Volume1,148,123
Financial Highlights & Ratios
PEG Ratio1.29
Price to Book (P/B)4.03
Price to Sales (P/S)2.14
P/FCF Ratio6.22
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue8.04
Enterprise Value/Gross Profit10.59
Enterprise Value/Ebitda14.60
Forecast
1Y Price Target
$54.00Price Target Upside14.65% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.11
Revenue Forecast (FY)$922.47M
Iridium Communications Business Overview & Revenue Model
Company Description
Iridium Communications Inc. provides critical mobile voice and data communication services and products across the globe. The company serves a broad spectrum of clients, including businesses, both the United States and international governments, n...
How the Company Makes Money
Iridium makes money primarily by selling access to its satellite network and related services, with revenue generally coming from recurring service usage/subscriptions and from equipment and hosted network offerings.
Key revenue streams include:
...
Iridium Communications Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook driven by steady top-line growth (service revenue +2%), strong product pipeline momentum (Iridium 9604, PNT ASIC, NTN Direct) and improving ARPU in voice and data (+7%). Management reaffirmed full-year guidance, highlighted robust engineering and government revenue growth, and projected meaningful free cash flow over the decade. Headwinds include a 5% decline in Q1 OEBITDA (partly driven by a one-time compensation accounting change with a $17M FY impact), a 5% decline in commercial broadband, higher Q1 SG&A, and uncertainty on the timing of large PNT contract revenue. Overall, the positives — recurring revenue growth, product/standards progress, and cash flow outlook — outweigh the near-term operational and timing challenges.Positive Updates
Revenue and Service Revenue Growth
Total revenue and service revenue each grew 2% year-over-year. Service revenue reached $130.4 million in Q1 and management reiterated full-year service revenue guidance of flat to +2% for 2026.
Negative Updates
Quarterly OEBITDA Decline and Compensation Impact
OEBITDA declined 5% year-over-year to $116.3 million. The quarter included a $4.2 million hit from moving to annual cash-only incentive compensation; management expects a $17 million full-year OEBITDA impact from this change in 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Service Revenue Growth
Total revenue and service revenue each grew 2% year-over-year. Service revenue reached $130.4 million in Q1 and management reiterated full-year service revenue guidance of flat to +2% for 2026.
Read all positive updates
Company Guidance
Iridium reaffirmed 2026 guidance calling for service revenue to be flat to up 2% and operational EBITDA of $480–$490 million (or $497–$507 million excluding the $17 million OEBITDA hit from switching annual incentive compensation to cash); management also projects pro forma free cash flow of about $318 million for 2026 and $1.5–$1.8 billion of free cash flow over the balance of the decade. In Q1 the company reported OEBITDA of $116.3 million (down 5% YoY), total service revenue of $130.4 million (up 2%), voice & data $57.4 million (up 3%) with ARPU roughly $48 (up 7% YoY), commercial IoT $46.0 million (up 5%), engineering & support $40.8 million, government services $27.6 million, equipment sales $20.2 million, Q1 CapEx $30 million, cash and cash equivalents $111.6 million, net leverage 3.4x OEBITDA, an expected EMSS revenue of $110.5 million for the year, full‑year equipment sales target of ~$80–$90 million, and mid‑single‑digit growth expected for IFC/IoT revenue.Iridium Communications Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 902.97M | 871.66M | 830.68M | 790.72M | 721.03M | 614.50M |
| Gross Profit | 685.32M | 674.08M | 396.99M | 283.10M | 216.40M | 158.67M |
| EBITDA | 497.21M | 440.45M | 415.67M | 380.07M | 386.08M | 350.45M |
| Net Income | 163.03M | 114.37M | 112.78M | 15.41M | 8.72M | -9.32M |
Balance Sheet | ||||||
| Total Assets | 3.08B | 2.53B | 2.67B | 2.66B | 2.95B | 3.18B |
| Cash, Cash Equivalents and Short-Term Investments | 97.85M | 96.50M | 93.53M | 71.87M | 168.77M | 320.91M |
| Total Debt | 2.14B | 1.76B | 1.81B | 1.50B | 1.51B | 1.62B |
| Total Liabilities | 2.51B | 2.07B | 2.09B | 1.77B | 1.83B | 1.89B |
| Stockholders Equity | 576.96M | 462.60M | 576.64M | 888.10M | 1.13B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | 277.57M | 299.79M | 306.06M | 241.43M | 273.46M | 260.73M |
| Operating Cash Flow | 390.30M | 400.07M | 375.95M | 314.91M | 344.73M | 302.87M |
| Investing Cash Flow | -292.53M | -100.28M | -180.60M | -83.49M | -121.27M | -36.38M |
| Financing Cash Flow | -87.85M | -299.91M | -170.48M | -327.05M | -374.98M | -182.47M |
Iridium Communications Technical Analysis
Negative
47.10
Price Trends
47.21
Negative
47.49
Negative
38.94
Positive
Market Momentum
-1.03
Positive
36.85
Neutral
21.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRDM, the sentiment is Negative. The current price of 47.1 is above the 20-day moving average (MA) of 46.54, below the 50-day MA of 47.21, and above the 200-day MA of 38.94, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 21.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRDM.
Iridium Communications Risk Analysis
Iridium Communications disclosed 51 risk factors in its most recent earnings report. Iridium Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iridium Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.00B | 15.59 | 29.94% | 5.94% | 15.79% | 15.69% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $4.71B | 29.02 | 32.93% | 1.35% | 3.59% | 33.15% | |
55 Neutral | $10.69B | -161.01 | -17.64% | ― | 7.66% | -30.55% | |
48 Neutral | $15.48B | -18.42 | -35.08% | ― | 2256.89% | -12.66% | |
44 Neutral | $25.91B | -4.48 | -69.71% | ― | -5.17% | -1670.60% | |
41 Neutral | $294.05M | -328.79 | -0.76% | ― | 30.03% | -113.24% |
* Communication Services Sector Average
IRDM
Iridium Communications
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ITRN
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GOGO
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2.19
-7.21
-76.70%
ASTS
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39.45
-40.00
-50.35%
Iridium Communications Corporate Events
Business Operations and StrategyM&A TransactionsShareholder Meetings
Iridium Stockholders Approve Rocket Lab Merger Agreement
Positive
Sep 24, 2026
On September 24, 2026, Iridium Communications Inc. held a special meeting at which stockholders voted on proposals tied to its previously announced merger agreement with Rocket Lab Corporation. Approximately 81% of Iridium’s outstanding shar...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Iridium Faces Shareholder Lawsuits Over Rocket Lab Merger
Negative
Sep 18, 2026
Iridium Communications has filed a definitive proxy statement with the U.S. Securities and Exchange Commission ahead of a special shareholders’ meeting on September 24, 2026, to vote on its planned merger with Rocket Lab Corporation. Under t...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings
Iridium Updates Credit Terms Ahead Rocket Lab Merger
Neutral
Sep 15, 2026
On June 28, 2026, Iridium Communications Inc. agreed to be acquired by Rocket Lab Corporation through a two‑step merger that will ultimately place Iridium under Rocket Lab’s Merger Sub II as the surviving entity. On August 26, 2026, Ro...
Business Operations and StrategyDividends
Iridium Communications Updates Bylaws and Declares Cash Dividend
Positive
Aug 10, 2026
At its August 10, 2026 Board meeting, Iridium Communications Inc. adopted amended and restated bylaws that introduce a forum selection clause governing where certain legal actions related to Delaware corporate law and the company’s internal ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.