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For the quarter ended June 2026, Iridium Communications (IRDM - Free Report) reported revenue of $225.24 million, up 3.8% over the same period last year. EPS came in at $0.19, compared to $0.20 in the year-ago quarter.

The reported revenue represents a surprise of +1.82% over the Zacks Consensus Estimate of $221.21 million. With the consensus EPS estimate being $0.26, the EPS surprise was -26.92%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Iridium performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Billable Subscribers - Total government voice and data and IoT data service: 118 thousand versus 117.44 thousand estimated by four analysts on average.Billable Subscribers - Total commercial voice and data, IoT data and Broadband service: 2.51 million compared to the 2.49 million average estimate based on four analysts.Total Billable Subscribers: 2.63 million compared to the 2.61 million average estimate based on four analysts.ARPU - Commercial - IoT data: $7.64 compared to the $7.80 average estimate based on four analysts.Revenue- Subscriber equipment: $20.77 million versus $19.67 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +6.7% change.Revenue- Service: $161.33 million versus $160.27 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.Revenue- Service- Commercial service revenue: $133.7 million versus $132.77 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.Revenue- Service- Government service revenue: $27.63 million versus $27.51 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.Revenue- Engineering and support service: $43.14 million versus the five-analyst average estimate of $41.27 million. The reported number represents a year-over-year change of +3%.Revenue- Service- Commercial service revenue- Hosted payload and other data service: $16.57 million versus $14.53 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.9% change.Revenue- Engineering and support service- Government: $41.45 million compared to the $39.54 million average estimate based on three analysts. The reported number represents a change of +5% year over year.Revenue- Engineering and support service- Commercial: $1.69 million versus $2.17 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -29.7% change.View all Key Company Metrics for Iridium here>>>

Shares of Iridium have returned +7% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Provides update on strategic initiatives; Pending acquisition by Rocket Lab expected to close in mid-2027

, /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium" or the "Company"), a leading provider of global voice, data, and PNT satellite services, today reported financial results for the second quarter of 2026.

Pending Transaction with Rocket Lab

On June 28, 2026, the Company entered into a definitive agreement with Rocket Lab Corporation under which Rocket Lab will acquire the Company. The transaction is expected to be completed in mid-2027, subject to approval by Iridium stockholders and the satisfaction of other customary closing conditions.

In light of the pending transaction, the Company does not intend to hold conference calls to discuss its quarterly financial results or to update or provide financial guidance.

Second Quarter 2026 Financial Results 

Iridium reported second quarter total revenue of $225.2 million, a 4% increase versus the comparable period of 2025. Service revenue, which primarily represents recurring revenue from Iridium's growing subscriber base, grew 4% from the year-ago period and was 72% of total revenue for the second quarter of 2026.

"Iridium's global network and expanding service portfolio continues to be the gold standard for mission critical applications," said Matt Desch, CEO, Iridium. "We believe vertically integrating with Rocket Lab's industry leading launch and satellite capabilities will allow the combined company to realize even greater ambitions to solve important connectivity challenges around the world."

Income from Operations

Net income was $9.7 million, or $0.09 per diluted share, for the second quarter of 2026, as compared to net income of $22.0 million, or $0.20 per diluted share, for the second quarter of 2025. The decrease was primarily the result of increases in transaction costs. Operational EBITDA ("OEBITDA")(1) for the second quarter of 2026 was $119.1 million, as compared to $121.3 million for the prior-year period. The year-over-year OEBITDA was lower due primarily to a $3.9 million increase in accrued expenses related to a change in practice to pay annual incentive compensation entirely in cash rather than a mix of equity and cash, which the Company previewed in prior quarters.

Subscribers

The Company ended the second quarter with 2,627,000 total billable subscribers, up from 2,483,000 for the year-ago period and 2,555,000 for the quarter ended March 31, 2026. Total billable subscribers grew 6% year-over-year, led by growth in commercial IoT.

Business Highlights

Service – Commercial

Commercial service remained the largest part of Iridium's business, representing 59% of the Company's total revenue during the second quarter. Commercial service revenue was $133.7 million, up 4% from the comparable period last year. Commercial IoT data revenue increased $2.3 million, or 5%, in the latest period, driven by a 9% increase in billable subscribers. Hosted payload and other data service revenue increased $2.0 million, or 14%, primarily due to increases in other data services contracts. Commercial voice and data revenue increased $1.6 million, or 3%, primarily due to higher average monthly revenue per unit ("ARPU") related to price actions implemented in the prior year. The increases in commercial services were partially offset by a decrease in commercial broadband revenue.

Service – U.S. Government

Government service revenue grew 3% to $27.6 million in the second quarter, reflecting contractual rate increases in the Enhanced Mobile Satellite Services contract (the "EMSS Contract") over the prior year. The U.S. government continues to be Iridium's largest single customer, representing 17% of service revenue and nearly all of engineering services and support business.

Iridium continues to expect a renewal of its EMSS Contract with the U.S. Space Force by March 2027.

Equipment

Equipment revenue was $20.8 million in the second quarter, up 7% compared to $19.5 million in the prior-year quarter.

Engineering & Support

Engineering and support revenue was $43.1 million during the second quarter, up 3% compared to $41.9 million in the prior-year quarter, primarily due to increasing activity with the U.S. government.

Strategic Growth Initiatives

In February 2026, Iridium announced four strategic initiatives that are driving new activity with business partners and designed to drive revenue growth and business expansion into new industries and applications. The Company remains focused on investing in and expanding its presence through the following initiatives:

Satellite IoT. Iridium continues to make progress on both proprietary and standards-based products and services to expand its IoT offering with key target markets. The introduction of the Iridium 9604, a new tri-mode module launched on June 23, 2026, combines Iridium Short Burst Data® (SBD®) satellite connectivity, LTE-M cellular, and GNSS positioning in a power efficient, small form factor module. The integrated architecture provides operational and economic benefits that are engineered to simplify device design, reduce costs, and allow the Iridium 9604 to serve as a next-generation platform for satellite IoT services.Iridium will also introduce its new standards-based service, Iridium NTN Direct, later this year. Live over-the-air demonstrations with mobile network operators, semiconductor companies, and existing business partners are underway to extend the reach of terrestrial services with satellite connectivity. These standardized services will provide direct-to-device (D2D) capabilities and support low-cost IoT applications, where reliability and coverage are critical, and even for connecting consumer devices from space.

Assured PNT. The recent announcement of the commercial availability of Iridium's new PNT ASIC, expands the potential applications and addressable market for Iridium's global PNT services. Designed to help protect GPS- and GNSS-dependent devices from growth jamming, spoofing, and other threats, Iridium PNT is used by commercial, civil, and government enterprises to ensure resilience for critical infrastructure, communications, and transportation. National Security Missions. Iridium continues to build off its successful history of providing mission critical communications under the EMSS program to develop and deploy efficient and resilient operations supporting the U.S. Space Force. Leveraging its ongoing work developing ground systems and managing the operations centers for the Space Development Agency's Proliferated Warfighter Space Architecture (PWSA), Iridium is positioned to expand its strategic relationship with the U.S. government. As new requirements and demand for systems take shape, additional opportunities to leverage Iridium's expertise and capabilities for other national security initiatives continue to emerge. Aviation Safety. Iridium's leadership position in aviation safety advanced further with the Company's acquisition of Aireon LLC, the world's only space-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic surveillance system, on July 2, 2026. This acquisition of Aireon accelerates Iridium's growth into services for airlines and air navigation service providers, while adding valuable commercial data services capabilities and incremental revenue streams.Iridium is actively developing new products that leverage Aireon's existing satellite-based aviation safety surveillance services and global high-fidelity data set to deliver greater value to the entire aviation industry. This acquisition is expected to result in at least an additional consolidated $100 million of service revenue and $30 million of OEBITDA on an annualized basis.

Capital Allocation

Capital expenditures were $21.8 million for the second quarter, including $1.6 million in capitalized interest. The Company ended the second quarter with gross Term Loan debt of $1.8 billion, and a cash and cash equivalents balance of $184.2 million, for a net debt balance of $1.6 billion. The Company ended the second quarter with net leverage of 3.3 times trailing twelve months OEBITDA.

Subsequent to the end of the second quarter, Iridium closed on its acquisition of Aireon LLC. The aggregate purchase price payable was approximately $366.7 million, of which 50% was paid in cash at the closing of the acquisition and the remaining 50% was deferred in the form of a $183.4 million loan from the sellers, bearing no interest, maturing one year following the closing. The Company drew down $100 million on its Revolving Facility as a source of cash paid at the closing. Additionally, Iridium assumed Aireon's existing credit facility with an aggregate principal balance of $154.7 million, with a scheduled maturity date of October 10, 2028.

Iridium paid its second quarter dividend of $0.15 per share of common stock on June 30, 2026, resulting in a total payment of $16.2 million to stockholders.

(1) Non-GAAP Financial Measures & Definitions

In addition to disclosing financial results that are determined in accordance with U.S. GAAP, the Company reports OEBITDA, which is a non-GAAP financial measure, as a supplemental measure to help investors evaluate the Company's fundamental operational performance. OEBITDA represents earnings before interest, income taxes, depreciation and amortization, gain (loss) on equity method investments, transaction related expenses, and share-based compensation expenses. The Company considers the loss on early extinguishment of debt to be financing-related costs associated with interest expense or amortization of financing fees, which by definition are excluded from OEBITDA. Management believes such charges are incidental to, but not reflective of, the Company's day-to-day operating performance. OEBITDA does not represent, and should not be considered, an alternative to U.S. GAAP measurements such as net income or loss. In addition, there is no standardized measurement of OEBITDA, and the Company's calculations thereof may not be comparable to similarly titled measures reported by other companies. The Company believes OEBITDA is a useful measure across time in evaluating its fundamental core operating performance. Management also uses OEBITDA to manage the business, including in preparing its annual operating budget, debt covenant compliance, financial projections and compensation plans. The Company believes that OEBITDA is also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, OEBITDA does not include interest expense on borrowed money, the payment of income taxes, amortization of the Company's definite-lived intangible assets, or depreciation expense on the Company's capital assets, which are necessary elements of the Company's operations. Since OEBITDA does not account for these and other expenses, its utility as a measure of the Company's operating performance has material limitations. Due to these limitations, the Company's management does not view OEBITDA in isolation, but also uses other measurements, such as net income, revenues and operating profit, to measure operating performance. Please refer to the schedule below for a reconciliation of consolidated GAAP net income to OEBITDA and Iridium's Investor Relations webpage at www.iridium.com for a discussion and reconciliation of this and other non-GAAP financial measures.

Iridium Communications Inc.

Supplemental Reconciliation of GAAP Net Income to Operational EBITDA

(In thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

GAAP net income

$           9,679

$         21,968

$         31,273

$         52,380

Interest expense, net

19,246

22,752

38,612

44,576

Income tax expense

3,125

3,807

11,952

9,626

Depreciation and amortization

53,863

52,837

107,604

104,504

Share-based compensation

17,359

19,089

28,741

30,837

Transaction related expenses(1)

14,325

—

15,024

—

Loss on equity method investments

1,510

860

2,242

1,508

Operational EBITDA

$       119,107

$       121,313

$       235,448

$       243,431

(1)

Represents direct costs incurred in connection with the evaluation, negotiation, consummation, financing and integration of strategic transactions, including, acquisitions, divestitures and investments, whether or not actually completed. These costs generally include legal and advisory fees, severance and other related costs.

About Iridium Communications Inc.

Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network. It serves as a platform for innovation, enabling voice, data, and messaging, positioning, navigation, and timing (PNT), and aircraft surveillance services anywhere on Earth. Through its satellite constellation and integrated capabilities like Aireon, the world's only space-based air traffic surveillance system, Iridium delivers services that support safety-focused operations across aviation, maritime, government, industrial, and consumer markets. The Company is a leader in satellite Internet of Things (IoT) connectivity and is advancing direct-to-device (D2D) communications based on open standards to expand access to satellite services.

Headquartered in McLean, Virginia, Iridium innovates through an ecosystem of more than 500 technology and distribution partners, serving millions of customers worldwide. For more information, visit www.iridium.com. 

Forward-Looking Statements

Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Iridium has based these statements on its current expectations and the information currently available to it. Forward-looking statements in this press release include statements regarding Iridium's strategy and growth opportunities; expectations with respect to revenue growth, subscribers, and OEBITDA; Iridium's acquisition by Rocket Lab and the benefits and expected timing thereof; the anticipated timing of Iridium NTN Direct; and Iridium's future performance against its four strategic growth initiatives. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding customer demand for Iridium's products and services, including demand from the U.S. government; Iridium's ability to maintain the health, capacity and content of its satellite constellation; the development of and market for Iridium's products and services; increased competition; risks related to Iridium's pending acquisition by Rocket Lab, including potential litigation relating to the proposed transaction that could be instituted against Rocket Lab, Iridium or their respective directors, managers, or officers, including the effects of any outcomes related thereto, the risk that disruptions from the proposed transaction will harm Rocket Lab's or Iridium's businesses, including current plans and operations, or will otherwise divert management time from ongoing business operations on transaction-related issues, potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction, fluctuations in, and uncertainty as to the long-term value of, Rocket Lab or Iridium common stock (including as relating to the risk that any announcements related to the proposed transaction could have adverse effects on the market price of such stock), restrictions during the pendency of the proposed transaction that may impact Iridium's ability to pursue certain business opportunities or strategic transactions, and unexpected costs, charges or expenses resulting from the proposed transaction; and Iridium's recent acquisition of Aireon; changes in trade policy, including tariff rates, as well as general industry and economic conditions; and legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on February 12, 2026, and the Company's Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on July 22, 2026, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Iridium's forward-looking statements are based on information available to it as of the date of this press release and speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements, except as required by applicable law.

Iridium Communications Inc.

Condensed Consolidated Statements of Operations

(In thousands)

Three Months Ended June 30,

2026

2025

Revenue

Service revenue

Commercial

$          133,703

$          128,820

Government

27,625

26,750

Total service revenue

161,328

155,570

Subscriber equipment

20,767

19,455

Engineering and support service

43,142

41,881

Total revenue

225,237

216,906

Operating expenses

Cost of services (exclusive of depreciation and amortization)

51,314

53,603

Cost of subscriber equipment sales

13,478

11,302

Research and development

5,530

4,279

Selling, general and administrative

67,044

44,627

Depreciation and amortization

53,863

52,837

Total operating expenses

191,229

166,648

Operating income

34,008

50,258

Other expense, net

Interest expense, net

(19,246)

(22,752)

Other income, net

(448)

(871)

Total other expense, net

(19,694)

(23,623)

Income before income taxes and loss on equity method investments

14,314

26,635

Income tax expense

(3,125)

(3,807)

Loss on equity method investments

(1,510)

(860)

Net income

$              9,679

$            21,968

Operational EBITDA

$          119,107

$          121,313

Iridium Communications Inc.

Condensed Consolidated Statements of Operations

(In thousands)

Six Months Ended June 30,

2026

2025

Revenue

Service revenue

Commercial

$          264,107

$          256,362

Government

55,250

53,500

Total service revenue

319,357

309,862

Subscriber equipment

40,986

42,576

Engineering and support service

83,951

79,346

Total revenue

444,294

431,784

Operating expenses

Cost of services (exclusive of depreciation and amortization)

100,950

102,389

Cost of subscriber equipment sales

26,492

24,169

Research and development

11,704

9,696

Selling, general and administrative

112,823

80,380

Depreciation and amortization

107,604

104,504

Total operating expenses

359,573

321,138

Operating income

84,721

110,646

Other expense, net

Interest expense, net

(38,612)

(44,576)

Other expense, net

(642)

(2,556)

Total other expense, net

(39,254)

(47,132)

Income before income taxes and loss on equity method investments

45,467

63,514

Income tax expense

(11,952)

(9,626)

Loss on equity method investments

(2,242)

(1,508)

Net income

$            31,273

$            52,380

Operational EBITDA

$          235,448

$          243,431

Iridium Communications Inc.

Summary Revenue and OEBITDA Highlights

(In thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

% Change

2026

2025

% Change

Revenue

Service revenue(1)

Commercial service revenue

Voice and data

$       58,387

$      56,810

3 %

$   115,820

$  112,752

3 %

IoT data(2)

47,071

44,741

5 %

93,037

88,596

5 %

Broadband(3)

11,674

12,724

(8) %

23,896

25,600

(7) %

Hosted payload and other data service(4)

16,571

14,545

14 %

31,354

29,414

7 %

Total commercial service revenue

133,703

128,820

4 %

264,107

256,362

3 %

Government service revenue(5)

27,625

26,750

3 %

55,250

53,500

3 %

Total service revenue

161,328

155,570

4 %

319,357

309,862

3 %

Subscriber equipment

20,767

19,455

7 %

40,986

42,576

(4) %

Engineering and support(6)

Commercial

1,689

2,404

(30) %

3,032

4,041

(25) %

Government

41,453

39,477

5 %

80,919

75,305

7 %

Total engineering and support

43,142

41,881

3 %

83,951

79,346

6 %

Total revenue

$     225,237

$    216,906

4 %

$   444,294

$  431,784

3 %

Operational EBITDA

Operational EBITDA

$     119,107

$    121,313

(2) %

$   235,448

$  243,431

(3) %

Other

Capital expenditures(7)

$       21,836

$      20,710

$     51,791

$    45,256

Net debt(8)

$  1,590,507

$ 1,745,412

Cash, cash equivalents and marketable securities

$     184,214

$      79,309

Revolving Credit Facility

$              —

$      50,000

Term Loan, gross

$  1,774,721

$ 1,774,721

Deferred financing costs

(12,847)

(15,552)

Term Loan, net

$  1,761,874

$ 1,759,169

(1)

Service revenue consists primarily of subscription-based services which often generate a long-term recurring revenue stream from subscribers.

(2)

IoT data service provides a two-way short burst data transmission between Iridium's network and a telemetry unit, which may be located, for example, on a container in transit or a buoy monitoring oceanographic conditions.

(3)

Broadband is comprised of Iridium OpenPort® and Iridium Certus®.

(4)

Hosted payload and other services consist primarily of services that do not have traditional billable subscribers. Hosted payload services consist of hosting and data services to our payload customers, Aireon LLC and L3Harris Technologies, Inc. We acquired Aireon LLC on July 2, 2026. Other services include primarily Iridium's position, navigation and timing service.

(5)

Government service revenue consists of voice and IoT data subscription-based services provided to agencies of the U.S. government through prime contracts.

(6)

Engineering and support includes engineering services for the Space Development Agency contract and to assist commercial customers in developing new technologies for use on Iridium's satellite system, as well as maintenance services to the U.S. government's dedicated gateway.

(7)

Capital expenditures based on cash spent in the respective period.

(8)

Net debt is calculated by taking the gross Term Loan and Revolving Credit Facility amounts, less cash, cash equivalents and marketable securities.

Iridium Communications Inc.

Subscriber Highlights

(In thousands, except ARPU)

As of June 30,

2026

2025

% Change

Billable Subscribers (1) (2)

Commercial

Voice and data, IoT data and Broadband service

Voice and data

402

415

(3) %

IoT data

2,091

1,924

9 %

Broadband (3)

16.0

16.3

(2) %

Total commercial voice and data, IoT data
     and Broadband service

2,509

2,355

7 %

Government

Voice and data and IoT data service

Voice and data

42

49

(14) %

IoT data

76

79

(4) %

Total government voice and data and IoT
     data service

118

128

(8) %

Total billable subscribers

2,627

2,483

6 %

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net Billable Subscriber Additions

Commercial

Voice and data. IoT data and Broadband service

Voice and data

3

6

—

—

IoT data

72

39

93

37

Broadband

(0.1)

—

(0.1)

(0.3)

Total commercial voice and data, IoT data
     and Broadband service

75

45

93

37

Government

Voice and data and IoT data service

Voice and data

(1)

(5)

(1)

(13)

IoT data

(2)

—

(2)

—

Total government voice and data and IoT
     data service

(3)

(5)

(3)

(13)

Total net billable subscriber additions

72

40

90

24

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

% Change

2026

2025

% Change

 ARPU (2) (4)

Commercial

Voice and data

$          49

$          46

7 %

$          48

$          45

7 %

IoT data

$       7.64

$       7.83

(2) %

$       7.58

$       7.75

(2) %

Broadband

$        243

$        260

(7) %

$        248

$        260

(5) %

(1)

Subscribers as of the end of the respective period.

(2)

Billable subscriber and average monthly revenue per unit ("ARPU") data is not applicable for hosted payload and other data service revenue items and is excluded from presentation above.

(3)

Broadband is comprised of Iridium OpenPort and Iridium Certus.

(4)

ARPU is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period.

Investor Contact: 

Press Contact:

Kenneth Levy

Jordan Hassin

Iridium Communications Inc.

Iridium Communications Inc.

+1 (703) 287-7570

+1 (703) 287-7421

[email protected] 

[email protected] 

SOURCE Iridium Communications Inc.

Posted by Defense World Staff on Jul 20th, 2026

Bessemer Group Inc. raised its holdings in shares of Iridium Communications Inc (NASDAQ:IRDM – Free Report) by 54,682.1% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 217,485 shares of the technology company’s stock after purchasing an additional 217,088 shares during the quarter. Bessemer Group Inc. owned 0.21% of Iridium Communications worth $6,033,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Royal Bank of Canada grew its holdings in shares of Iridium Communications by 33.0% during the first quarter. Royal Bank of Canada now owns 48,325 shares of the technology company’s stock valued at $1,320,000 after buying an additional 11,985 shares during the last quarter. Amundi raised its holdings in shares of Iridium Communications by 1,243.0% in the 1st quarter. Amundi now owns 40,479 shares of the technology company’s stock worth $1,035,000 after acquiring an additional 37,465 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Iridium Communications by 16.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 232,231 shares of the technology company’s stock worth $6,345,000 after acquiring an additional 33,191 shares during the last quarter. United Services Automobile Association bought a new position in Iridium Communications in the 1st quarter valued at about $218,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Iridium Communications by 16.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 539,566 shares of the technology company’s stock valued at $14,741,000 after acquiring an additional 75,060 shares in the last quarter. Institutional investors own 84.36% of the company’s stock.

Iridium Communications Stock Performance Shares of IRDM stock opened at $46.68 on Monday. The company has a debt-to-equity ratio of 3.74, a quick ratio of 2.21 and a current ratio of 2.85. The company has a market capitalization of $4.94 billion, a price-to-earnings ratio of 47.15, a PEG ratio of 2.78 and a beta of 0.87. Iridium Communications Inc has a 52-week low of $15.65 and a 52-week high of $57.18. The company has a 50-day simple moving average of $47.59 and a two-hundred day simple moving average of $33.96.

Iridium Communications (NASDAQ:IRDM – Get Free Report) last posted its earnings results on Thursday, April 23rd. The technology company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.07). Iridium Communications had a return on equity of 22.76% and a net margin of 12.05%.The firm had revenue of $219.06 million for the quarter, compared to the consensus estimate of $218.39 million. During the same period in the prior year, the business earned $0.27 EPS. Iridium Communications’s quarterly revenue was up 2.0% compared to the same quarter last year. Research analysts anticipate that Iridium Communications Inc will post 1.05 EPS for the current fiscal year.

Iridium Communications Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Monday, June 15th. Iridium Communications’s dividend payout ratio (DPR) is presently 60.61%.

Analyst Ratings Changes A number of brokerages have commented on IRDM. Raymond James Financial reissued a “market perform” rating on shares of Iridium Communications in a report on Friday, April 24th. New Street Research assumed coverage on Iridium Communications in a report on Thursday, May 14th. They issued a “neutral” rating and a $40.00 target price on the stock. Morgan Stanley lifted their target price on Iridium Communications from $26.00 to $54.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 30th. Barclays upped their price target on Iridium Communications from $25.00 to $36.00 and gave the stock an “overweight” rating in a report on Thursday, April 9th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Iridium Communications in a research report on Friday, July 10th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $38.67.

View Our Latest Stock Report on Iridium Communications

About Iridium Communications (Free Report)

Iridium Communications Inc operates a global satellite communications network that delivers voice and data services across land, sea and air. The company’s unique architecture relies on a constellation of 66 low-Earth orbit satellites, enabling real-time connectivity in regions beyond the reach of terrestrial wireless networks. Iridium’s core offerings include satellite voice and messaging services, broadband data terminals, push-to-talk (PTT) interoperability and machine-to-machine (M2M) solutions for the Internet of Things (IoT).

Iridium serves a diverse range of markets, including maritime shipping, aviation, government and defense, energy, and enterprise.

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Key Takeaways Iridium is using strong free cash flow to invest in four growth areas while reducing net leverage.IRDM is advancing IoT, NTN Direct, PNT, aviation safety and government programs with new products.Iridium expects about $318M in 2026 pro forma free cash flow and $1.5B-$1.8B through the decade. Iridium Communications Inc. (IRDM - Free Report) continues to generate strong free cash flow, providing the financial flexibility to support its expansion strategy while maintaining a disciplined capital allocation approach. On the last earnings call, management highlighted that its cash generation allows it to reduce net leverage quickly while also preserving the flexibility to invest in business growth opportunities through product development or potential tuck-in acquisitions.

As of March 31, Iridium had cash and cash equivalents of $111.6 million and ended the quarter with net leverage of 3.4x OEBITDA. The company also remains committed to an active and growing dividend program, having paid a quarterly dividend of 15 cents per share, while expecting its board to continue increasing the dividend in line with prior years. Capital expenditures totaled $30 million in the first quarter, and the company expects full-year CapEx to remain consistent with 2025 levels as it continues investing in Iridium NTN Direct. Iridium projects pro forma free cash flow of about $318 million in 2026 and expects to generate between $1.5 billion and $1.8 billion in free cash flow over the remainder of the decade.

The company plans to utilize this financial strength to advance its four key growth areas while continuing to support its legacy business. In IoT, Iridium is preparing to launch its Iridium 9604 TriMode module, which combines satellite IoT, cellular IoT and GPS into a compact, cost-effective solution. The module is expected to simplify the product portfolio, lower integration costs and support expansion into cost-sensitive applications such as automotive, smart meters, agriculture and asset tracking. The company is also progressing toward the commercial launch of Iridium NTN Direct later this year, while continuing to expand agreements with mobile network operators and working with chip and module manufacturers to enable future standards-based connectivity.

Iridium is also investing in its Assured Positioning, Navigation and Timing (PNT) business, where the rollout of its new ASIC is generating strong interest from more than 100 companies. The company believes the new chip will accelerate deployments and continues to expect PNT to contribute at least $100 million in annual revenue by 2030.

Beyond PNT, Iridium is prioritizing national security missions through its growing work with the U.S. government and the Space Development Agency, while also expanding engineering and support activities. Aviation safety remains another strategic focus, with progress on new Certus aviation safety services and differentiated products intended to create additional opportunities. Management stated that partner activity remains strong, and the company plans to continue investing the cash it generates into these long-term growth initiatives while maintaining its focus on execution.

Taking a Look at IRDM’s CompetitorsAST SpaceMobile (ASTS - Free Report) is gaining from its leadership in direct-to-smartphone satellite connectivity, supported by proprietary phased array technology and thousands of patent claims. The company has built a sizable liquidity base to fund satellite manufacturing, ground infrastructure and launch activity through early commercialization. As of March 31, 2026, the company reported approximately $3.5 billion in cash, cash equivalents and restricted cash. The balance sheet also reflects additional convertible financing completed in early 2026, which management expects to support constellation deployment, technology investment and debt management initiatives. While the company is still operating at a loss, this funding reduces near-term refinancing risk and provides flexibility to sustain the planned deployment cadence as service activation progresses.

Globalstar, Inc. (GSAT - Free Report) is generating positive adjusted free cash flow. During the first quarter of 2026, the company reported adjusted free cash flow of $28.9 million compared with $47.6 million in the prior-year quarter. The decrease was primarily due to the timing of cash receipts under the Updated Services Agreements, as the company received $7.5 million in accelerated service fees during the first quarter of 2026 compared with $22.5 million a year ago. During the quarter, net cash provided by operating activities totaled $35.2 million, while capital expenditures were primarily associated with the deployment of replacement satellites and the Extended MSS Network.

IRDM Price Performance, Valuation and EstimatesShares of IRDM have gained 144.2% in the past six months against the Zacks Satellite and Communication industry’s decline of 13.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, IRDM trades at a forward 12-month price-to-sales (P/S) of 5.39X, above the industry’s 2.8X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for IRDM earnings for 2026 has been marginally revised upward over the past 60 days.

Image Source: Zacks Investment Research

Iridium currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The market expects Iridium Communications (IRDM - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis satellite phone company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +30%.

Revenues are expected to be $221.21 million, up 2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Iridium?For Iridium, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.65%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Iridium will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Iridium would post earnings of $0.27 per share when it actually produced earnings of $0.20, delivering a surprise of -25.93%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Iridium appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Rocket Lab (RKLB 4.41%) is the second-most-used space launch company in the United States, trailing only Space Exploration Technologies (SPCX 3.85%), or SpaceX. Beyond launch services, Rocket Lab is building a business spanning diverse segments of the budding space economy, making it a top pure-play space stock for investors.

The company made headlines last month when it announced its plans to acquire Iridium Communications. The move builds on Rocket Lab's space systems business and gives it ownership of Iridium's satellite constellation. Here's why the acquisition could be a game changer for Rocket Lab today.

Image source: Getty Images.

Rocket Lab's $8 billion acquisition of Iridium adds satellites to its growing space business On June 29, Rocket Lab announced an agreement to acquire Iridium for roughly $8 billion in a cash-and-stock transaction valued at $54 per share. The acquisition helps Rocket Lab achieve a few goals. For one, the company further expands its vertically integrated business and couples its launch vehicles and satellite manufacturing with an active constellation.

Rocket Lab gains access to Iridium's 66 low-Earth-orbit (LEO) satellites, giving it an orbital network and bypassing the need to build one from scratch. Iridium's L-band spectrum, which penetrates clouds, foliage, and severe weather, enables devices to stay connected globally without needing large directional dishes.

Finally, the move helps Rocket Lab compete with SpaceX's Starlink business, which has been a big moneymaker for SpaceX so far. Iridium's business boasts 2.5 million paid subscribers and $871.7 million in revenue in 2025, at a 57% operational EBITDA margin.

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Rocket Lab's end-to-end space vision is becoming a reality The move marks another major deal for Rocket Lab as it evolves from a small-launch provider into a vertically integrated end-to-end space company.

Unlike traditional aerospace contractors that depend on third-party suppliers, Rocket Lab designs and manufactures many of the critical systems needed to accomplish space missions. Its wide-ranging space systems business encompasses propulsion systems, carbon-composite structures, avionics, flight software, reaction wheels, star trackers, solar power systems, separation mechanisms, radios, satellite buses, and launch vehicles.

The Iridium deal is just one of many moves Rocket Lab has made in recent years to build up its end-to-end space business. Earlier this year, it announced an agreement to acquire Motiv Space Systems, gaining control of advanced in-space robotics and motion control systems. It also closed on its acquisition of Mynaric AG earlier this year, which specializes in laser optical communication terminals.

Rocket Lab has carved out a niche in the small-launch market, and will expand its capabilities with its medium-lift Neutron rocket, which it hopes to launch later this year. In addition, it has done a stellar job building out its space systems business, and its Iridium acquisition signals a new era in which space companies become more vertically integrated space powerhouses to better compete with SpaceX as spending in the space economy picks up.

Rocket Lab stock is highly volatile as it continues to expand, and isn't for conservative investors looking to preserve capital or generate steady income. However, if you have a long-term outlook and can stomach volatility, Rocket Lab is an excellent pure-play space stock to buy right now.

There's no denying it. Since its mid-June IPO, Space Exploration Technologies (SPCX 0.99%) has been the market's most-discussed stock. And understandably so. Not only was it the biggest-ever public offering of one of the world's most valuable companies (as measured by market cap) companies, but the company has the potential to change the world. Cost-effective space launches, artificial intelligence (AI) data centers, and satellite-based broadband connectivity are all in its wheelhouse.

It's not the only name in any of these businesses, though. While it's the biggest on most fronts, a couple of other companies are nipping at SpaceX's heels, making their stocks interesting investment prospects. Here's a closer look at both.

Image source: Getty Images.

1. Rocket Lab You know it best as a space launch service provider, putting satellites of all sorts and sizes into low Earth orbit. It's also got rockets capable of ferrying cargo and personnel to the moon, if and when people begin making regular trips there.

SpaceX, however, isn't alone in this business. A company called Rocket Lab (RKLB 7.33%) has also developed a reusable rocket -- called Electron -- that can lift smaller satellites into orbit. To date, this launch vehicle has been utilized 91 times, successfully deploying over 262 satellites.

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It's not a perfect apples-to-apples comparison. With a maximum payload capacity of 660 pounds, the Electron design is meant for relatively small equipment. SpaceX can certainly match that, but its Falcon rockets can lift a little over 50,000 pounds into low Earth orbit or send over 18,000 pounds' worth of supplies, cargo, and personnel to the moon.

Rocket Lab is closing the gap. While not quite yet ready for commercialization, Rocket Lab's reusable Neutron rocket can put payloads of nearly 30,000 pounds into orbit or be used for lunar delivery trips. Neutron is expected to begin flights by the end of this year.

The world will need all of these options, and there may be plenty of business to go around for both. Precedence Research predicts the worldwide launch market will more than double in size by 2035, reaching $70 billion per year, likely led by the medium-lift segment of the industry.

Rocket Lab may still be the better industry bet among the two investment options. Not only is it a "pure play" on launch services, but its smaller size and wider array of offerings also make it a complete solutions provider. In addition to launches, the company makes satellite components and can even help construct a satellite for a customer. Moreover, the impending $8 billion acquisition of satellite-based communications specialist Iridium Communications (IRDM 2.16%) means it will be able to monetize its existing launch capabilities and satellite know-how in a whole new way.

2. AST SpaceMobile While rockets may be SpaceX's highest-profile business, it's not its biggest. Its Starlink arm, which provides satellite-based broadband internet service, is slightly bigger. As of the latest count, over 10,000 satellites are serving over 12 million residential and mobile customers worldwide, generating nearly $4.2 billion in revenue last year.

For perspective on where things may be going, however, at one point, founder and CEO Elon Musk has suggested that more than 40,000 Starlink satellites could be put into orbit, although the number's since been dialed back to a slightly less jaw-dropping 25,000.

Like its orbital launch arm, Starlink isn't the only name in this business. While much smaller right now, a company called AST SpaceMobile (ASTS 5.22%) could prove a serious competitive threat to Starlink's hold on the satellite-to-surface broadband business.

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It doesn't necessarily look that way at first blush. Starlink has a significant head start. Indeed, AST SpaceMobile currently has fewer than a dozen functioning satellites in orbit.

But AST has one thing that SpaceX's Starlink doesn't. That's developmental partnerships with wireless carriers Verizon Communications and AT&T. Starlink is working with T-Mobile to serve its customers when they're out of reach of T-Mobile's terrestrial broadband network. With two partners instead of just one -- both of whom want to disrupt their more advanced common rival -- AST SpaceMobile could grow surprisingly quickly. To this end, analysts expect AST's stop line to grow by 140% this year before accelerating to 340% next year, dramatically reducing its losses en route to a swing to profitability by 2028.

Also like Rocket Lab, AST SpaceMobile is a true "pure play" on the satellite-delivered broadband connectivity business that Precedence believes will grow at an average pace of 13.5% through 2035, when it will be worth over $40 billion per year.

Just bear in mind this is a holding that will require patience and a stomach for volatility.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Rocket Lab makes its biggest move… Louis’ top space stock right now… why the OpenAI delay is actually bullish for AI investors Space is suddenly having a moment again – and if you’ve been reading Brian Hunt, you knew it was coming and are up 102%.

Brian, editor of the free e-letter Money & Megatrends, laid out the bull case for the sector back in September 2025. His approach was simple: look past SpaceX (SPCX) mania.

From his September 22nd issue:

When people think of investing in space, they often go towards the business of launching rockets and Elon Musk’s SpaceX.

But many of the most promising “space stocks” are in the business of space-based communication platforms and equipment.

Think government surveillance, military communication, GPS, internet service, and cell service.

Among the names Brian flagged at the time were Rocket Lab (RKLB), BlackSky Technology (BKSY), Planet Labs PBC (PL), and AST SpaceMobile (ASTS). Since that issue, RKLB alone is up 102% – with a nice chunk of that coming yesterday.

RKLB popped 16% after announcing it would acquire a satellite communications company in a cash-and-stock deal valued at roughly $8 billion.

The logic is straightforward: Rocket Lab already builds and launches the vehicles. Now it owns the network those vehicles serve – a global L-band satellite constellation, licensed spectrum, and more than 2.5 million subscribers spanning government, defense, aviation, maritime and commercial markets.

Basically, it’s the same vertically integrated playbook SpaceX runs with Starlink – and Wall Street approved.

But the deal is also a sign of something bigger The commercial space industry is consolidating – and consolidation at this scale signals that serious capital now views space infrastructure as a generational asset class, not a speculative moonshot.

Which leads us to the part of the story that may sting a little if you weren’t paying attention…

The company that Rocket Lab just bought was Iridium Communications (IRDM) – a global satellite communications provider that Brian flagged back in his April 17th issue.

Yesterday, on the acquisition news, IRDM surged 25% in a single session.

If you missed it, there’s an easy fix – Brian writes Money & Megatrends every day the market is open, highlighting these kinds of opportunities before they become front-page news – and it’s 100% free.

His issues are loaded with trend analysis, actionable advice, and loads of specific tickers. You can sign up right here.

In the meantime, we’ll keep bringing you some of Brian’s top ideas here in the Digest.

What’s behind the recent bloodbath in the space sector Brian’s readers who acted on his issue are sitting on a 102% gain in RKLB. But if you’ve been watching the sector, you know it hasn’t been a straight line up – and more recently, it’s been a straight line down.

In late May, space stocks collapsed. It started with a Blue Origin rocket explosion during a prelaunch test – unsettling on its own, but manageable. What followed was less manageable.

When SpaceX went public earlier this month at a valuation exceeding $2 trillion, investors who’d been holding smaller space names as proxies rotated out fast, dumping RKLB, ASTS and others to chase the newly listed giant.

Then, as we covered in yesterday’s Digest, SPCX itself fell more than 30% from its post-IPO peak as Wall Street grew concerned over an unexpected $20 billion to $25 billion bond sale to fund Musk’s AI ventures. The whole sector came down with it.

Which brings us to an important issue – one worth asking before putting any money to work in space right now.

In every transformative technology cycle – the internet, genomics, clean energy – a handful of companies captured most of the gains while the rest eventually went to zero. Space is unlikely to be different.

The sector is real. The opportunity is real. But not every name with “space” in its pitch deck is going to make it.

So, how do you know which ones will survive and reward investors? In short, you watch the numbers, not the narrative.

And that dovetails into legendary investor Louis Navellier and his market approach.

Louis has spent 47 years building a quantitative system that cuts through the narrative and looks at what matters – earnings momentum, sales growth and institutional buying pressure.

Stories can win sprints, but only earnings win marathons.

So, which space stock does Louis like today?

Here he is:

Planet Labs is one worth looking at right now.

The company operates the world’s largest fleet of Earth-observation satellites — more than 200 satellites providing daily imaging of the entire planet.

Its customers include government agencies, defense contractors, agricultural companies, insurance firms, and financial institutions that use satellite imagery to make better decisions.

Louis notes that the stock got cut nearly in half in the sector crash. But the business didn’t change – its price tag just got cheaper.

Back to Louis for how it looks through his quantitative screeners today:

My Precursor Intelligence system currently rates Planet Labs an “A.”

That means both the fundamental grade — earnings momentum, sales growth, analyst revisions — and the quantitative grade, which measures institutional buying pressure, are strong.

If you’re less familiar, Louis’s Precursor Intelligence system tracks institutional money flows across 6,000 stocks – essentially reading where the smart money is moving before the pattern becomes visible to everyone else.

He just put together a research video that explains it in more detail. You can learn more about how it works right here.

Now, while Louis likes Planet Labs, his more intriguing space plays are one layer beneath the obvious – the materials companies, the semiconductor foundries, the picks-and-shovels businesses that the broader space buildout can’t function without, and that almost no retail investor is looking at right now.

He’s identified two of them in his new special report, The SpaceX Stampede Report. Both have real earnings and institutional buying pressure. Neither one looks like a space stock at all – which is exactly why Louis likes them. You can learn more here.

The OpenAI delay that isn’t really a delay Late last week, the New York Times reported that OpenAI is leaning toward pushing its IPO to 2027, citing concerns about broader market weakness and the volatility that followed SpaceX’s debut.

The headlines quickly spun this as a potential black eye for the AI trade. Here’s one example I ran across:

OpenAI Reportedly Considers Delaying Its IPO. Should You Worry About AI Stocks?

And, in fact, Oracle (ORCL) dropped 1.7% last Friday. CoreWeave (CRWV) fell nearly 4%. SoftBank closed down 13% in Tokyo – not surprising given that each has billions tied directly to OpenAI’s trajectory.

But is the IPO delay actually bad news?

Luke Lango, editor of Innovation Investor, doesn’t think so. From his Daily Notes:

On OpenAI: this is a rational decision by one of the most sophisticated management teams in tech, not a sign of trouble.

IPO-ing now would mean going public at significant losses, against Anthropic’s rapid progress and a market that just watched SPCX’s $1.75 trillion IPO produce more volatility than anyone wanted. 

Waiting buys a few more quarters of revenue growth, a possible path to profitability, ChatGPT 5.6 winning back share, and potentially the White House’s direct participation in the offering.

OpenAI goes public within the next twelve months, and the delay sets up a stronger event when it arrives. 

There’s also something worth noting that the headlines are mostly missing.

OpenAI reportedly held back the launch of ChatGPT 5.6 specifically to give the U.S. government time to test the model – a commercial company eating real competitive cost to satisfy a government approval process.

Meanwhile, the Pentagon recently updated its classified targeting doctrine to include more AI in combat decisions. Luke notes that once AI is embedded in defense doctrine, spending will stop following commercial ROI logic and start following strategic-necessity logic.

Here he is with the implications for the AI trade:

You don’t cut spending on a capability embedded in your targeting doctrine because your stock dropped for three weeks.

Commercial demand plus national-security backstop is what gives this capex cycle the durability bears keep underestimating.

Overall, Luke urges his readers to remain focused on real AI earnings growth and momentum – not shorter-term fears like an IPO delay.

Here’s his bottom line:

OpenAI waiting for a better IPO is not panic – it is strategy.

The AI boom is intact. The July earnings season will prove it. The window between today and mid-July is the buying opportunity.

Coming full circle As I write, we’re on pace to wrap up a strong first half of 2026, with the Nasdaq leading the three major indexes – up about 12% so far this year.

Despite these gains, there’s no shortage of headlines designed to make you nervous right now. Space stocks crash. OpenAI delays its IPO. The Fed floats a hike.

But zoom out…

Even after a nearly 50% haircut in May, Brian’s readers are up 102% on a space stock that just made one of the biggest acquisitions in commercial space history…

Louis’ system is finding “A”-rated opportunities as the post-SpaceX-IPO dust settles…

And Luke sees a buying window in AI opening, not closing…

As always, invest within your means and in line with your plan. But if the bears are telling you the AI trade is broken, today’s Digest tells a different story.

Have a good evening,

Jeff Remsburg

Shares of Iridium Communications (IRDM +25.44%) surged on Monday after the satellite-based network operator agreed to be acquired by Rocket Lab (RKLB +16.23%).

Image source: Getty Images.

A formidable new force in the rapidly expanding space economy Under the terms of the deal, Rocket Lab would purchase Iridium for $54 per share in cash and stock. That represents a 24% premium over Iridium's closing price on Friday and values the space stock at roughly $8 billion.

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The combination would marry Rocket Lab's satellite manufacturing and launch expertise with Iridium's proven communications network and valuable spectrum assets.

"Iridium has built the gold standard in secure, safety-critical global satellite connectivity," Rocket Lab CEO Peter Beck said in a press release. "It is relied upon by maritime fleets, the aviation industry, governments, and heavy industrial organizations who operate in the most remote off-the-grid locations."

The combined company would be able to design, build, launch, and operate its own satellite constellations. This vertical integration strategy should help to reduce costs and bolster profitability.

The deal is projected to close in mid-2027, subject to shareholder and regulatory approval.

Industry consolidation might accelerate Acquiring Iridium would place Rocket Lab in more direct competition with Space Exploration Technologies Corporation's popular Starlink satellite communications service.

SpaceX's blockbuster initial public offering (IPO) provided it with over $85 billion to fund its audacious growth initiatives. That's a lot of financial firepower to contend with.

Mergers and acquisitions could give smaller satellite and rocket companies a better chance at competing with the space titan.

Rocket Lab's acquisition of Iridium follows Amazon's purchase of Globalstar in April.

Investors can expect more deals to occur in the space industry in the months and years ahead.

Joe Tenebruso has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Rocket Lab. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2025 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating Iridium Communications Inc. (NASDAQ: IRDM) related to its sale to Rocket Lab Corporation. Under the terms of the proposed transaction, Iridium shareholders are expected to receive $27.00 in cash and a number of shares of Rocket Lab common stock calculated pursuant to an exchange ratio. Is it a fair deal?

Click here for more info https://monteverdelaw.com/case/iridium-communications-inc/. It is free and there is no cost or obligation to you.

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Do you file class actions and go to Court? When was the last time you recovered money for shareholders? What cases did you recover money in and how much? About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

No one is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at [email protected] or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
[email protected]
Tel: (212) 971-1341

Attorney Advertising. (C) 2026 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

SOURCE Monteverde & Associates PC

Are IRDM, TBPH, SYNA, TECH Obtaining Fair Deals for their Shareholders? PR Newswire NEW YORK, June 29, 2026

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Ademi LLP is investigating Iridium (NASDAQ: IRDM) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Rocket Lab.

Click here to learn how to join our investigation and obtain additional information or contact us at [email protected] or toll-free: 866-264-3995. There is no cost or obligation to you.

Iridium shareholders will receive $27.00 in cash and Rocket Lab common stock for each Iridium share, based on a notional value of $54.00 per share in a cash-and-stock transaction valued at approximately $8.0 billion. The stock exchange ratio is subject to a collar banded between $67.50 and $112.50.
Iridium insiders will receive substantial benefits as part of change of control arrangements.

The transaction agreement unreasonably limits competing transactions for Iridium by imposing a significant penalty if Iridium accepts a competing bid. We are investigating the conduct of the Iridium board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.

We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.

Contacts

Ademi LLP
Guri Ademi
Toll Free: (866) 264-3995
Fax: (414) 482-8001

SOURCE Ademi LLP

Also from this source

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating the sale of Iridium Communications Inc. (NASDAQ: IRDM) to Rocket Lab Corporation for $27.00 in cash and a number of shares of Rocket Lab common stock calculated pursuant to an exchange ratio for each share of Iridium.Halper Sadeh encourages Iridium shareholders to click here to learn more about their rights and options or contact Daniel Sadeh or Zachary Halper free of charge at (212) 763-0060 or sadeh@halp.

Mlink chipsets expand the ecosystem for Iridium's standards-based NB-IoT and D2D connectivity 

, /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM), a leading provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, today announced that Mlink Technology Inc. (Mlink), a leading fabless semiconductor company specializing in IoT and satellite communication chipsets, has begun live, on-air testing of its MS150-IR IoT-NTN chipset using Iridium NTN Direct℠. MS150-IR is a specialized version of the MS150 chipset family, developed specifically for Iridium NTN Direct as part of Mlink's global IoT-NTN product portfolio.

The Iridium Network Mlink joins a growing ecosystem of chipset providers supporting Iridium NTN Direct, Iridium's 3GPP standards-based non-terrestrial network (NTN) service. By integrating Iridium NTN Direct, Mlink's chipsets will help device manufacturers, module makers and mobile network operators (MNOs) extend low-power IoT connectivity beyond the reach of terrestrial networks through a single global satellite platform. The companies anticipate certification and product availability before the end of 2026.

"We're excited by Mlink's strong progress and the successful transition from lab testing to live on-orbit validation over the Iridium network," said Tim Last, Executive Vice President, Iridium. "This achievement demonstrates the technical maturity of both teams and the readiness of Iridium NTN Direct. We look forward to certification of the MS150-IR chipset later this year, giving our partners and customers additional high-quality, standards-compliant options for global NB-IoT and D2D connectivity."

"Having the opportunity to collaborate with Iridium in the emerging NTN field is a tremendous opportunity for Mlink," said Zhiping An, Co-Founder and Vice President, Mlink. "Our MS150-IR chipset platform has successfully completed Iridium's laboratory testing and has now progressed into the over-the-air (OTA) testing phase. We also have introduced a comprehensive reference design kit, enabling our customers to accelerate product development and commercialization. We look forward to leveraging Iridium NTN Direct to provide high-quality low Earth orbit (LEO) satellite communication services to customers around the world, enabling reliable and efficient global connectivity."

Iridium NTN Direct leverages Iridium's unique network of 66 cross-linked LEO satellites and 3GPP standards to deliver low-latency, reliable connectivity with excellent signal penetration on a truly global basis. The service is designed for IoT applications including asset tracking, logistics, utilities, agriculture, automotive, industrial monitoring and remote infrastructure, extending connectivity where terrestrial coverage is unavailable, limited or unreliable.

For chipset vendors, module manufacturers, OEMs, and MNOs, Iridium NTN Direct reduces the technical and commercial barriers to integrating satellite connectivity into existing products and networks without requiring additional terrestrial infrastructure. The service enables partners to expand coverage, improve resilience and support new connected-device applications using globally recognized standards.

Mlink's advancement adds to Iridium's expanding roster of chipset partners and reinforces growing momentum toward commercial availability of Iridium NTN Direct in 2026. Iridium NTN Direct is designed to deliver truly global, standards-based NB-IoT and D2D connectivity, enabling devices, sensors and assets to remain connected anywhere on Earth.

For more information on Iridium NTN Direct and how to join the ecosystem, visit: www.iridium.com/ntn-direct.

For more information about Iridium, visit: www.iridium.com

About Iridium Communications Inc.
Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network, delivering reliable voice, data, and positioning, navigation and timing (PNT) services anywhere on Earth. Iridium supports safety- and mission-critical operations for diverse markets such as aviation, maritime, government, emergency services, critical infrastructure, autonomous systems, and remote monitoring applications, where connectivity is essential.

Headquartered in McLean, Virginia, Iridium provides its products and services through an ecosystem of 500-plus partner companies around the world. For more information, visit www.iridium.com.

About Mlink Technology Inc.
Mlink Technology Inc, founded in 2013, is a leading innovator in semiconductor solutions for satellite and cellular communications. Mlink has launched SatCom chipsets covering multiple standards such as IoT-NTN, NR-NTN, and GMR, as well as cellular communication chips for 5G RedCap and NB-IoT. Mlink's MS150 series IoT-NTN chipsets and MS340 series NR-NTN chipsets have successfully completed extensive LEO and GEO satellite testing across multiple countries and regions worldwide. Today, they are recognized as among the industry's most widely adopted NTN chipset platforms.

Headquartered in Beijing, the company has established research and development centers in Shanghai, Hefei, and Xiamen. For more information about Mlink, visit: www.mlink-tech.cn.

Forward-Looking Statements Disclosure
Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The Company has based these statements on its current expectations and the information currently available to us. Forward-looking statements in this press release include statements regarding the capabilities, benefits and availability of the Iridium NTN Direct service. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding the timing of commercial availability of the Iridium NTN Direct service, the company's ability to maintain the health, capacity and content of its satellite constellation, general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 12, 2026, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Iridium's forward-looking statements speak only as of the date of this press release, and Iridium undertakes no obligation to update or revise any forward-looking statements.

Press Contact:     

Investor Contact:

Jordan Hassin     

Kenneth Levy

Iridium Communications Inc.                

Iridium Communications Inc.

[email protected]                                

[email protected]

+1 (703) 287-7421     

+1 (703) 287-7570

X: @Iridiumcomm

SOURCE Iridium Communications Inc.

The Iridium 9604 Module and Development Kit streamline global IoT development with integrated satellite, cellular, and GNSS connectivity

, /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM), a leading provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, today announced commercial availability of the Iridium® 9604 module and Development Kit, giving developers, OEMs, and solution providers a faster path to build and scale connected IoT solutions worldwide.

Iridium 9604 Module and Development Kit Combining Iridium Short Burst Data® (SBD®) satellite connectivity, LTE-M cellular, and GNSS positioning, the Iridium 9604 module delivers a compact, integrated solution for global IoT deployments. Alongside the Iridium 9604 Development Kit, developers can rapidly prototype, test, and validate hybrid satellite, cellular, and GNSS applications with resources that simplify integration and streamline deployment workflows.

Built on the u-blox SARA-R5 platform, the Iridium 9604 is designed to reduce hardware complexity, lower integration costs, and accelerate time to market for connected solutions operating across industrial, infrastructure, transportation, mobility, utilities, maritime, and remote monitoring applications. The integrated design helps reduce board space requirements by 60 percent or more while simplifying RF routing, power architecture, and firmware development.

"The Iridium 9604 module and Development Kit represent a major milestone in making truly global IoT connectivity more accessible and easier to deploy," said Tim Last, executive vice president, Iridium. "By replacing three separate components with one integrated solution, developers can simplify device design, reduce costs, and create smarter, location-aware products capable of staying connected far beyond terrestrial coverage."

Early developers and beta participants reported significant operational and economic benefits from the platform's integrated architecture.

"The Iridium 9604 has enabled us to develop a truly global asset tracking solution without relying on terrestrial network infrastructure. Its reliable coverage, compact form factor, and straightforward integration have significantly accelerated our development process and allowed us to focus on optimizing the end-user experience," said Askar Gabit, CEO, GPSOne. "For applications in remote and challenging environments, the Iridium network provides the confidence that critical data can be delivered when it matters most."

The Iridium 9604 gives developers independent control over satellite, LTE-M, and GNSS subsystems, enabling flexible implementation of failover logic, location-aware connectivity decisions, and application-specific routing strategies. A unified AT command set and comprehensive SDK resources further simplify development and integration.

Built for scalable and power-sensitive IoT applications, the Iridium 9604 features a compact 16 mm x 26 mm x 2.4 mm form factor optimized for deployments where size, resiliency, and efficiency are critical. The platform supports GPS, GLONASS, Galileo, and BeiDou GNSS services alongside LTE-M (Cat-M1) and Iridium's 100% global L-band satellite network.

The Iridium 9604 represents the next evolution of Iridium's broader IoT strategy, expanding beyond traditional satellite-only hardware to support unified, multi-mode connectivity architectures. The Iridium network now supports multiple IoT pathways, including dedicated Iridium SBD modules, Iridium NTN DirectSM standards-based direct-to-device capabilities, and larger payload connectivity through the Iridium Certus® 9704 module.

Operating on the world's only truly global mobile satellite network, the Iridium 9604 delivers reliable connectivity across remote land areas, oceans, airways, and polar regions where other networks are unavailable or unreliable.

To learn more about the Iridium 9604 IoT module, visit: www.iridium.com/9604

To order the Iridium 9604 Development Kit, visit: www.iridium.com/9604-devkit

For more information about Iridium, visit: www.iridium.com

About Iridium Communications Inc.

Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network, delivering reliable voice, data, and positioning, navigation and timing (PNT) services anywhere on Earth. Iridium supports safety- and mission-critical operations for diverse markets such as aviation, maritime, government, emergency services, critical infrastructure, autonomous systems, and remote monitoring applications, where connectivity is essential. Headquartered in McLean, Virginia, Iridium provides its products and services through an ecosystem of 500-plus partner companies around the world. For more information, visit www.iridium.com.

Forward-Looking Statements Disclosure

Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The Company has based these statements on its current expectations and the information currently available to us. Forward-looking statements in this press release include statements regarding the capabilities, benefits and availability of the Iridium 9604, expected demand by developers and the suitability of the Iridium 9604 for dual-mode IoT deployments across industrial, infrastructure, and mobility applications. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding the company's ability to maintain the health, capacity and content of its satellite constellation, general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 12, 2026, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Iridium's forward-looking statements speak only as of the date of this press release, and Iridium undertakes no obligation to update or revise any forward-looking statements.

Press Contact:

Investor Contact:

Jordan Hassin

Kenneth Levy

Iridium Communications Inc.

Iridium Communications Inc.

[email protected]

[email protected]

+1 (703) 287-7421

+1 (703) 287-7570

X: @Iridiumcomm

SOURCE Iridium Communications Inc.

In its upcoming report, Iridium Communications (IRDM - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.27 per share, reflecting no change compared to the same period last year. Revenues are forecasted to be $220.18 million, representing a year-over-year increase of 2.5%.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Iridium metrics that are commonly tracked and forecasted by Wall Street analysts.

The combined assessment of analysts suggests that 'Revenue- Subscriber equipment' will likely reach $22.47 million. The estimate points to a change of -2.8% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- Service' should arrive at $158.42 million. The estimate suggests a change of +2.7% year over year.

Analysts expect 'Revenue- Engineering and support service' to come in at $39.17 million. The estimate points to a change of +4.6% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Revenue- Service- Commercial service revenue' of $131.67 million. The estimate indicates a year-over-year change of +3.2%.

According to the collective judgment of analysts, 'Billable Subscribers - Total commercial voice and data, IoT data and Broadband service' should come in at 2.42 million. Compared to the current estimate, the company reported 2.31 million in the same quarter of the previous year.

The consensus among analysts is that 'Total Billable Subscribers' will reach 2.54 million. The estimate is in contrast to the year-ago figure of 2.44 million.

The consensus estimate for 'ARPU - Commercial - IoT data' stands at $7.74 . The estimate compares to the year-ago value of $7.75 .

The average prediction of analysts places 'Billable Subscribers - Total government voice and data and IoT data service' at 119.71 thousand. The estimate compares to the year-ago value of 133.00 thousand.

Analysts predict that the 'ARPU - Commercial - Voice and data' will reach $48.20 . The estimate compares to the year-ago value of $45.00 .

Analysts forecast 'ARPU - Commercial - Broadband' to reach $245.00 . The estimate compares to the year-ago value of $261.00 .

Analysts' assessment points toward 'Billable Subscribers - Commercial Service - Broadband' reaching 16.07 thousand. Compared to the current estimate, the company reported 16.30 thousand in the same quarter of the previous year.

It is projected by analysts that the 'Billable Subscribers - Commercial Service - IoT data' will reach 2.00 million. The estimate compares to the year-ago value of 1.89 million.

View all Key Company Metrics for Iridium here>>>

Over the past month, shares of Iridium have returned +60% versus the Zacks S&P 500 composite's +8.6% change. Currently, IRDM carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

, /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium" or the "Company"), a leading provider of global voice, data, and PNT satellite services, today reported financial results for the first quarter of 2026 and reiterated its full-year 2026 outlook.

Iridium reported first quarter total revenue of $219.1 million, which consisted of $158.0 million of service revenue and $61.0 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 2% versus the comparable period of 2025. Service revenue, which primarily represents recurring revenue from Iridium's growing subscriber base, grew 2% from the year-ago period and was 72% of total revenue for the first quarter of 2026.

"2026 is off to a solid start, as we continue to grow service revenue and introduce new products, like our next-generation IoT platform," said Matt Desch, CEO, Iridium. "We continue to invest in key areas of differentiation, which offer attractive opportunities for growth, including IoT, PNT, national security missions and aviation safety services."

Income from Operations

Net income was $21.6 million, or $0.20 per diluted share, for the first quarter of 2026, as compared to net income of $30.4 million, or $0.27 per diluted share, for the first quarter of 2025. Operational EBITDA ("OEBITDA")(1) for the first quarter was $116.3 million, as compared to $122.1 million for the prior-year period. The year-over-year OEBITDA decline was driven by a $4.2 million increase in accrued expenses related to a change in practice to pay annual incentive compensation entirely in cash rather than a mix of equity and cash, which the Company previewed on its fourth quarter earnings call.

Subscribers

The Company ended the first quarter with 2,555,000 total billable subscribers, up from 2,443,000 for the year-ago period and 2,537,000 for the quarter ended December 31, 2025. Total billable subscribers grew 5% year-over-year, led by growth in commercial IoT.

Business Highlights

Service – Commercial

Commercial service remained the largest part of Iridium's business, representing 60% of the Company's total revenue during the first quarter. The Company's commercial customer base is diverse and includes the aviation, construction, emergency services, forestry, maritime, mining, oil and gas, recreation, and transportation markets, among others. Iridium's products and services are critical to these customers' daily operations and integral to their communications and business infrastructure.

Commercial service revenue was $130.4 million, up 2% from the comparable period last year. Commercial voice and data: Revenue was $57.4 million, up 3% from the year-ago period. Subscribers fell 2% from the year-ago period to 399,000. Average revenue per user ("ARPU") increased to $48 during the first quarter, compared to $45 in last year's comparable period, driven primarily by price actions implemented during the third quarter of 2025. Commercial IoT data: Revenue was $46.0 million, up 5% from the year-ago period. Subscribers grew 7% from the year-ago period to 2,019,000. ARPU was $7.63 in the first quarter, compared to $7.75 in last year's comparable period. Commercial broadband: Revenue was $12.2 million, down 5% from the year-ago period. Subscribers declined 1% from the year-ago period to 16,100. ARPU was $254 during the first quarter, compared to $261 in last year's comparable period, reflecting the increased prevalence of Iridium's use in lower-priced companion plans. Hosted payload and other data service: Revenue was $14.8 million, down 1% from the year-ago period. Iridium's commercial business ended the quarter with 2,434,000 billable subscribers, which is up from 2,310,000 for the prior-year quarter and compares to 2,416,000 for the quarter ended December 31, 2025. IoT data subscribers represented 83% of billable commercial subscribers at the end of the first quarter, an increase from 82% at the end of the prior-year period. Service – U.S. Government

Iridium's voice and data solutions improve situational awareness for military personnel and track critical assets in tough environments around the globe, providing a unique value proposition. Under Iridium's Enhanced Mobile Satellite Services contract (the "EMSS Contract"), a seven-year, $738.5 million fixed-price airtime contract with the U.S. Space Force signed in September 2019, Iridium provides specified satellite airtime services for an unlimited number of Department of War (formerly Department of Defense) and other federal government subscribers. Iridium also provides maintenance and support work for the U.S. government's dedicated Iridium® gateway under two other contracts with the U.S. Space Force, the revenue of which is included in engineering and support services revenue. Iridium Certus® airtime services are not included under these contracts and may be procured separately for an additional fee.

Government service revenue grew 3% to $27.6 million in the first quarter, reflecting contractual rate increases in the EMSS Contract over the prior year. Under the terms of the multi-year EMSS Contract, Iridium's fixed-price rate increased to $110.5 million for the contract year beginning September 15, 2025. Iridium's U.S. government business ended the quarter with 121,000 subscribers, which compares to 133,000 for the prior-year quarter and 121,000 for the quarter ended December 31, 2025. Government voice and data subscribers declined 20% from the year-ago period to 43,000 as of March 31, 2026. Government IoT data subscribers remained relatively flat year-over-year and represented 64% of government subscribers at the end of the first quarter. Equipment

Equipment revenue was $20.2 million in the first quarter, down 13% compared to $23.1 million in the prior-year quarter. For the full-year 2026, the Company expects equipment sales will be in line with 2025. Engineering & Support

Engineering and support revenue was $40.8 million during the first quarter, up 9% compared to $37.5 million in the prior-year quarter, primarily due to increasing activity with the U.S. government. For the full-year 2026, the Company expects engineering and support revenue to increase from 2025. Capital Allocation

Capital expenditures were $30.0 million for the first quarter, including $1.4 million in capitalized interest. The Company ended the first quarter with gross debt of $1.8 billion, and a cash and cash equivalents balance of $111.6 million, for a net debt balance of $1.7 billion. The Company ended the first quarter with net leverage of 3.4 times trailing twelve months OEBITDA.

Iridium paid its first quarter dividend of $0.15 per share of common stock on March 31, 2026, resulting in a total payment of $16.5 million to stockholders. The Company's Board of Directors has increased the dividend paid per share each year since initiating a dividend in 2023.

2026 and Longer-Term Outlook

The Company reiterated its full-year 2026 outlook and reaffirmed its long-term guidance on cash taxes and net leverage:

Total service revenue projected to be flat to 2% for full-year 2026. Total service revenue for 2025 was $634.0 million. Net income for 2025 was $114.4 million and OEBITDA for 2025 was $495.3 million. In 2026, the Company determined to pay annual incentive compensation entirely in cash, rather than a mix of equity and cash as has been the Company's prior practice. This change is projected to have a $17 million impact to OEBITDA, resulting in expected full-year 2026 OEBITDA of $480 million to $490 million. Without this change, OEBITDA would have been projected to be in a range of $497 million to $507 million. Cash taxes of less than $10 million per year through 2027. The Company's longer-term cash tax rate is expected to move closer to the statutory rate in 2029. Net leverage at or below 3.0 times OEBITDA by the end of 2026 and falling below 2.0 times OEBITDA by the end of the decade. Net leverage was 3.4 times OEBITDA at December 31, 2025. (1) Non-GAAP Financial Measures & Definitions

In addition to disclosing financial results that are determined in accordance with U.S. GAAP, the Company reports OEBITDA, which is a non-GAAP financial measure, as a supplemental measure to help investors evaluate the Company's fundamental operational performance. OEBITDA represents earnings before interest, income taxes, depreciation and amortization, gain (loss) on equity method investments, transaction related expenses, and share-based compensation expenses. The Company considers the loss on early extinguishment of debt to be financing-related costs associated with interest expense or amortization of financing fees, which by definition are excluded from OEBITDA. Management believes such charges are incidental to, but not reflective of, the Company's day-to-day operating performance. OEBITDA does not represent, and should not be considered, an alternative to U.S. GAAP measurements such as net income or loss. In addition, there is no standardized measurement of OEBITDA, and the Company's calculations thereof may not be comparable to similarly titled measures reported by other companies. The Company believes OEBITDA is a useful measure across time in evaluating its fundamental core operating performance. Management also uses OEBITDA to manage the business, including in preparing its annual operating budget, debt covenant compliance, financial projections and compensation plans. The Company believes that OEBITDA is also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, OEBITDA does not include interest expense on borrowed money, the payment of income taxes, amortization of the Company's definite-lived intangible assets, or depreciation expense on the Company's capital assets, which are necessary elements of the Company's operations. Since OEBITDA does not account for these and other expenses, its utility as a measure of the Company's operating performance has material limitations. Due to these limitations, the Company's management does not view OEBITDA in isolation, but also uses other measurements, such as net income, revenues and operating profit, to measure operating performance. Please refer to the schedule below for a reconciliation of consolidated GAAP net income to OEBITDA and Iridium's Investor Relations webpage at www.iridium.comfor a discussion and reconciliation of this and other non-GAAP financial measures. The Company does not provide a forward-looking reconciliation of expected full year 2026 OEBITDA guidance as the amount and significance of certain items such as share-based compensation, transaction related expenses and gain/loss on equity method investments, that are required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts.

Iridium Communications Inc.

Supplemental Reconciliation of GAAP Net Income to Operational EBITDA

(In thousands)

Three Months Ended March 31,

Year Ended December 31,

2026

2025

2025

GAAP net income

$        21,594

$        30,412

$              114,372

Interest expense, net

19,366

21,824

88,252

Income tax expense

8,827

5,819

27,618

Depreciation and amortization

53,741

51,667

210,207

Share-based compensation

11,382

11,748

51,579

Transaction related expenses(1)

699

—

479

Loss on equity method investments

732

648

2,823

Operational EBITDA

$       116,341

$       122,118

$              495,330

(1)

Represents direct costs incurred in connection with the evaluation, negotiation, consummation, financing and integration of strategic transactions, including, acquisitions, divestitures and investments, whether or not actually completed. These costs generally include legal and advisory fees, severance and other related costs.

Conference Call Information

As previously announced, the Company will host a conference call to discuss its results at 8:30 a.m. Eastern Time on Thursday, April 23, 2026. Callers should dial 1-412-902-6740 to access the call. The conference call will also be simultaneously webcast on Iridium's Investor Relations webpage at www.iridium.com. An archive of the webcast will be available following the live conference call.

About Iridium Communications Inc.

Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network, delivering reliable voice, data, and positioning, navigation and timing (PNT) services anywhere on Earth. Iridium supports safety- and mission-critical operations for diverse markets such as aviation, maritime, government, emergency services, critical infrastructure, autonomous systems, and remote monitoring applications, where connectivity is essential.

Headquartered in McLean, Va., Iridium provides its products and services through an ecosystem of 500-plus partner companies around the world. For more information, visit www.iridium.com. 

Forward-Looking Statements

Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding Iridium's strategy and growth opportunities; expectations with respect to total service revenue growth, subscribers, OEBITDA, cash taxes and net leverage for 2026; cash taxes and net leverage over the long term; anticipated equipment sales and engineering and support service revenue for 2026; the payment of dividends, and expected revenue from the EMSS Contract with the U.S. government. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding customer demand for Iridium's products and services, including demand from the U.S. government; Iridium's ability to maintain the health, capacity and content of its satellite constellation; the development of and market for Iridium's products and services; increased competition; changes in trade policy, including tariff rates, as well as general industry and economic conditions; and legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on February 12, 2026, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Iridium's forward-looking statements are based on information available to it as of the date of this press release and speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements, except as required by applicable law.

Iridium Communications Inc.

Condensed Consolidated Statements of Operations

(In thousands)

Three Months Ended March 31,

2026

2025

Revenue

Service revenue

Commercial

$          130,404

$          127,542

Government

27,625

26,750

Total service revenue

158,029

154,292

Subscriber equipment

20,219

23,121

Engineering and support service

40,809

37,465

Total revenue

219,057

214,878

Operating expenses

Cost of services (exclusive of depreciation and amortization)

49,636

48,787

Cost of subscriber equipment sales

13,014

12,867

Research and development

6,174

5,417

Selling, general and administrative

45,779

35,752

Depreciation and amortization

53,741

51,667

Total operating expenses

168,344

154,490

Operating income

50,713

60,388

Other expense, net

Interest expense, net

(19,366)

(21,824)

Other expense, net

(194)

(1,685)

Total other expense, net

(19,560)

(23,509)

Income before income taxes and loss on equity method investments

31,153

36,879

Income tax expense

(8,827)

(5,819)

Loss on equity method investments

(732)

(648)

Net income

$            21,594

$            30,412

Operational EBITDA

$          116,341

$          122,118

Iridium Communications Inc.

Summary Revenue and OEBITDA Highlights

(In thousands)

Three Months Ended March 31,

2026

2025

% Change

Revenue

Service revenue(1)

Commercial service revenue

Voice and data

$       57,433

$      55,942

3 %

IoT data(2)

45,966

43,856

5 %

Broadband(3)

12,222

12,876

-5 %

Hosted payload and other data service(4)

14,783

14,868

-1 %

Total commercial service revenue

130,404

127,542

2 %

Government service revenue(5)

27,625

26,750

3 %

Total service revenue

158,029

154,292

2 %

Subscriber equipment

20,219

23,121

-13 %

Engineering and support(6)

Commercial

1,344

1,638

-18 %

Government

39,465

35,827

10 %

Total engineering and support

40,809

37,465

9 %

Total revenue

$     219,057

$    214,878

2 %

Operational EBITDA

Operational EBITDA

$     116,341

$    122,118

-5 %

Other

Capital expenditures(7)

$       29,955

$      24,546

Net debt(8)

$  1,663,077

$ 1,772,281

Cash, cash equivalents and marketable securities

$     111,644

$      50,899

Revolving Credit Facility

$              —

$      20,000

Term Loan, gross

$  1,774,721

$ 1,803,180

Deferred financing costs

(13,537)

(16,213)

Term Loan, net

$  1,761,184

$ 1,786,967

(1)

Service revenue consists of primarily subscription-based services which often generate a long-term recurring revenue stream from subscribers.

(2)

IoT data service provides a two-way short burst data transmission between Iridium's network and a telemetry unit, which may be located, for example, on a container in transit or a buoy monitoring oceanographic conditions.

(3)

Broadband is comprised of Iridium OpenPort® and Iridium Certus.

(4)

Hosted payload and other services consist primarily of services that do not have traditional billable subscribers. Hosted payload services consist of hosting and data services to our payload customers, Aireon LLC and L3Harris Technologies, Inc. Other services include primarily Iridium's one-way satellite timing, location, and authentication services (STL) which provides position, navigation and timing technology.

(5)

Government service revenue consists of voice and IoT data subscription-based services provided to agencies of the U.S. government through prime contracts.

(6)

Engineering and support includes engineering services for the Space Development Agency contract and to assist commercial customers in developing new technologies for use on Iridium's satellite system, as well as maintenance services to the U.S. government's dedicated gateway.

(7)

Capital expenditures based on cash spent in the respective period.

(8)

Net debt is calculated by taking the gross Term Loan and Revolving Credit Facility amounts, less cash, cash equivalents and marketable securities.

Iridium Communications Inc.

Subscriber Highlights

(In thousands, except ARPU)

As of March 31,

2026

2025

% Change

Billable Subscribers (1) (2)

Commercial

Voice and data, IoT data and Broadband service

Voice and data

399

409

-2 %

IoT data

2,019

1,885

7 %

Broadband (3)

16.1

16.3

-1 %

Total commercial voice and data, IoT data and Broadband service

2,434

2,310

5 %

Government

Voice and data and IoT data service

Voice and data

43

54

-20 %

IoT data

78

79

-1 %

Total government voice and data and IoT data service

121

133

-9 %

Total billable subscribers

2,555

2,443

5 %

Three Months Ended March 31,

2026

2025

Net Billable Subscriber Additions

Commercial

Voice and data. IoT data and Broadband service

Voice and data

(3)

(6)

IoT data

21

(2)

Broadband

—

(0.3)

Total commercial voice and data, IoT data and Broadband service

18

(8)

Government

Voice and data and IoT data service

Voice and data

—

(8)

IoT data

—

—

Total government voice and data and IoT data service

—

(8)

Total net billable subscriber additions

18

(16)

Three Months Ended March 31,

2026

2025

% Change

 ARPU (2) (4)

Commercial

Voice and data

$           48

$           45

7 %

IoT data

$        7.63

$        7.75

-2 %

Broadband

$         254

$         261

-3 %

(1)

Subscribers as of the end of the respective period.

(2)

Billable subscriber and average monthly revenue per unit ("ARPU") data is not applicable for Hosted payload and other data service revenue items and is excluded from presentation above.

(3)

Broadband is comprised of Iridium OpenPort® and Iridium Certus.

(4)

ARPU is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period.

Investor Contact:

Press Contact: 

Kenneth Levy

Jordan Hassin

Iridium Communications Inc.

Iridium Communications Inc.

+1 (703) 287-7570

+1 (703) 287-7421

[email protected]

[email protected] 

SOURCE Iridium Communications Inc.

For the quarter ended March 2026, Iridium Communications (IRDM - Free Report) reported revenue of $219.06 million, up 1.9% over the same period last year. EPS came in at $0.20, compared to $0.27 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $220.18 million, representing a surprise of -0.51%. The company delivered an EPS surprise of -26.15%, with the consensus EPS estimate being $0.27.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Iridium performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

ARPU - Commercial - IoT data: $7.63 versus $7.74 estimated by four analysts on average.Total Billable Subscribers: 2.56 million versus the four-analyst average estimate of 2.54 million.Billable Subscribers - Total commercial voice and data, IoT data and Broadband service: 2.43 million compared to the 2.42 million average estimate based on four analysts.Billable Subscribers - Total government voice and data and IoT data service: 121 thousand versus the four-analyst average estimate of 119.71 thousand.Revenue- Subscriber equipment: $20.22 million versus $22.47 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -12.6% change.Revenue- Service: $158.03 million versus $158.42 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +2.4% change.Revenue- Engineering and support service: $40.81 million compared to the $39.17 million average estimate based on six analysts. The reported number represents a change of +8.9% year over year.Revenue- Service- Commercial service revenue: $130.4 million versus $131.67 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +2.2% change.Revenue- Service- Government service revenue: $27.63 million compared to the $27.24 million average estimate based on five analysts. The reported number represents a change of +3.3% year over year.Revenue- Service- Commercial service revenue- Hosted payload and other data service: $14.78 million compared to the $15.2 million average estimate based on four analysts. The reported number represents a change of -0.6% year over year.Revenue- Engineering and support service- Government: $39.47 million compared to the $37.17 million average estimate based on three analysts. The reported number represents a change of +10.2% year over year.Revenue- Engineering and support service- Commercial: $1.34 million versus the three-analyst average estimate of $2.66 million. The reported number represents a year-over-year change of -18%.View all Key Company Metrics for Iridium here>>>

Shares of Iridium have returned +36.1% over the past month versus the Zacks S&P 500 composite's +9.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Key Takeaways Iridium reported Q1 EPS of 20 cents, missing estimates and declining year over year.IRDM revenue rose 2% to $219.1M, driven by service growth and strong commercial IoT demand.IRDM maintained 2026 outlook, projecting flat to 2% service revenue growth and steady cash flow. Iridium Communications (IRDM - Free Report) reported earnings per share (EPS) of 20 cents for the first quarter of 2026, missing the Zacks Consensus Estimate by 25.9%. The bottom line also compared unfavorably with the prior-year quarter's figure of 27 cents.

Quarterly revenues reached $219.1 million, representing a 2% increase from the previous year, driven by rising demand for Iridium’s mission-critical services. Management emphasized that the company is investing in next-generation IoT platforms, PNT, aviation safety and national security—all high-value segments with long growth runways. The Zacks Consensus Estimate was pegged at $220.2 million.

The standout element remains Service revenue, which contributed $158 million (72% of total revenue), a strong indicator of the company’s recurring revenue model. This recurring nature is critical. Satellite communications businesses benefit from long-term contracts and the use of embedded infrastructure, making their revenue streams more predictable. Iridium’s consistent service growth highlights resilience in a competitive and capital-intensive industry.

The commercial segment remains Iridium’s main source of revenue, accounting for 60%. Commercial service revenue increased 2% to $130.4 million, meeting IRDM’s forecast, driven by growth in commercial IoT along with voice and data services during the quarter. Government service revenue increased slightly in the first quarter to $27.6 million, primarily due to the final phase of the EMSS contract, which was implemented last September.

Commercial broadband declined 5% year over year, reflecting ongoing customer migration to backup services. Revenue from hosting and other data services decreased about 1% to $14.8 million, primarily because of the timing of payments from an existing non-PNT customer. Our estimates for total commercial and government service revenues were $129.9 million and $26.4 million, respectively.

Subscriber equipment sales totaled $20.2 million in the first quarter, broadly in line with expectations, down 12.6% year over year. The drop in equipment sales reflects cyclical demand, which management expects to normalize over the full year. We projected the figure to be $21.5 million.

Engineering and support revenues surged 9% to $40.8 million, led by Iridium’s expanding work with the Space Development Agency, reinforcing its emphasis on growth driven by national security programs. Our estimate was $42.4 million.

In the past year, shares have gained 77.7% compared with the Zacks Satellite and Communication industry's growth of 347%.

Image Source: Zacks Investment Research

Other DetailsTotal operating expenses were $168.3 million compared with $154.5 million in the prior-year quarter, primarily due to higher depreciation and amortization costs and selling, general and administrative expenses.

Operational EBITDA (OEBITDA) decreased 5% year over year to $116.3 million. The decline was largely due to a change in compensation structure, shifting to fully cash-based incentives. This added about $4.2 million in expenses for the quarter. 

Operating income came in at $50.7 million compared with $60.4 million reported in the year-ago quarter.

Iridium ended the first quarter with 2,555,000 billable subscribers, up 5% year over year, driven primarily by commercial IoT growth. Commercial IoT now represents 83% of commercial subscribers, reinforcing Iridium’s strategy of serving industrial, maritime, aviation, oil & gas, mining and asset-tracking markets.

LiquidityAs of March 31, 2026, total cash and cash equivalents were $111.6 million, with $1.7 billion of net debt. Capital expenditures were $30 million in the quarter under review.

On March 31, 2026, Iridium paid a 15-cent dividend per share, continuing its track record of annual dividend increases since 2023, a positive signal for income-focused investors.

2026 Outlook: Stability With Strategic InvestmentsIridium reiterated its full-year guidance. For 2026, service revenue is expected to be flat to up 2%, reflecting continued IoT growth offset by moderation elsewhere, following 2025 service revenue of $634 million.

Iridium expects 2026 OEBITDA of $480–$490 million compared with $495.3 million reported in 2025. The guidance includes a roughly $17 million hit from paying incentive compensation fully in cash rather than a mix of cash and equity. Excluding this accounting change, 2026 OEBITDA is likely to be $497–$507 million, indicating no underlying operational deterioration.

IRDM projects a pro forma free cash flow of about $318 million for 2026.

IRDM’s Zacks RankIridium currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Recent Performance of Other CompaniesBadger Meter, Inc. (BMI - Free Report) reported EPS of 93 cents for first-quarter 2026, which missed the Zacks Consensus Estimate by 22.5%. The bottom line compared unfavorably with the year-ago quarter’s EPS of $1.30. Quarterly net sales were $202.3 million, down 9% from $222.2 million in the year-ago quarter due to delayed project deployments and weaker-than-expected short-cycle order activity. The Zacks Consensus Estimate was pegged at $230.1 million.

Simulations Plus, Inc. (SLP - Free Report)  reported second-quarter fiscal 2026 adjusted earnings of 35 cents per share, surpassing the Zacks Consensus Estimate by 29%. The bottom line also compared favorably with the prior-year quarter’s 31 cents. Simulations Plus reported quarterly revenue of $24.3 million, marking an 8% year-over-year increase. This growth reflects continued demand for its core offerings, especially in drug discovery and development.

BlackBerry Limited (BB - Free Report)  reported fourth-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 6 cents. The figure beat the company’s estimate of 3-5 cents. In the year-ago quarter, it reported a non-GAAP EPS of 3 cents. The Zacks Consensus Estimate was pegged at 5 cents per share. BlackBerry reported quarterly revenue of $156 million, surpassing the top end of its guidance ($138-$148 million), driven by stronger-than-expected sales across both its QNX and Secure Communications divisions. Revenue also increased 10% year over year.

Iridium Communications is upgraded to Hold as catalysts emerge, despite a 135% stock rally since the prior Sell rating. Q1 2026 results were weak: revenue up 2%, OEBITDA down 4.8%, and EPS down 26%, with commercial IoT as the primary growth driver. IRDM stock surge was driven by insider buying, institutional accumulation, and the SITH contract extension, not fundamental outperformance.

The Procure Space ETF (NYSEARCA:UFO) was built to give investors a single ticket to a fragmented industry: rocket builders, satellite operators, ground-segment vendors, and direct-to-device communications upstarts that rarely fit cleanly into a sector ETF. The prospectus is direct about the design, requiring at least 80% of index weight in companies that derive a majority... UFO ETF Faces a Critical Test: Can Pre-Profit Space Stocks Deliver on $1.85B Backlog

© Vladi333 / Shutterstock.com

The Procure Space ETF (NYSEARCA:UFO) was built to give investors a single ticket to a fragmented industry: rocket builders, satellite operators, ground-segment vendors, and direct-to-device communications upstarts that rarely fit cleanly into a sector ETF. The prospectus is direct about the design, requiring at least 80% of index weight in companies that derive a majority of revenues from space-related industries tracked against the S-Network Space Index.

Performance lately has rewarded that thesis. UFO trades around $50, up 29% year to date and 123% over the past year, although the fund slipped 7% in the past week. Bulls cite the defense backlog forming behind names like Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) and AST SpaceMobile (NASDAQ:ASTS). Skeptics point to a 0.75% expense ratio and modest $174.6M in net assets, which leaves UFO small relative to broader thematic peers.

The Macro Factor: U.S. National Security Space Spending The single biggest force pushing UFO holdings is the federal procurement cycle for proliferated low-earth-orbit constellations. Rocket Lab booked an $816 million Space Development Agency contract for 18 satellites in the Tracking Layer Tranche 3 program, the largest deal in its history, lifting backlog to $1.85 billion (+73% YoY). AST SpaceMobile holds prime contractor status on the $30 million Space Development Agency HALO Europa Track 2 award, and Viasat (NASDAQ:VSAT) sits inside the $150 billion MDA SHIELD IDIQ vehicle. Roughly 51% of UFO is industrials and 37% media and communications, sectors where defense satellite work translates directly into revenue.

What to watch: the Department of Defense FY2027 budget request, expected this summer, and recurring SDA contract awards. The 10-year Treasury near 4.4% sets the cost-of-capital backdrop for these capex-heavy programs. If Congress trims SDA Tranche 3 funding or delays Golden Dome, UFO’s industrial weight loses its strongest tailwind. Bookmark the SDA contracts page and the GAO’s annual defense acquisition report.

The Micro Factor: Execution Risk Inside a Concentrated Pre-Profit Book UFO’s top 10 holdings represent 48% of net assets, and several are still burning cash. Rocket Lab posted a FY2025 net loss of $198 million with free cash flow of negative $322 million. AST SpaceMobile lost $342 million for the year against full-year revenue of just $71 million. That structure means specific milestones move the NAV.

Three milestones dominate the next 12 months. Rocket Lab’s Neutron debut was pushed to Q4 2026 after a stage-1 tank test failure. ViaSat-3 F2 is expected to enter service May 2026, doubling fleet bandwidth. AST SpaceMobile is targeting 45 to 60 satellites in orbit by year-end 2026, with launches every one to two months. Each slip has cascading effects: a Neutron delay constrains the SDA delivery schedule, while ViaSat-3 F3 timing affects the strategic review committee evaluating separation of government and commercial businesses.

Reddit traders are tracking these catalysts in real time. A widely upvoted r/wallstreetbets post titled "$RKLB CEO Peter Beck reduces his salary to 1$ and cancels all his stock plans" drove sentiment scores to 88 (very bullish) in mid-April, the kind of retail conviction that amplifies both upside and drawdowns in a thinly held thematic fund.

Where to look: the issuer fact sheet at procureetfs.com, RKLB and ASTS 8-K filings for launch updates, and Viasat’s quarterly capex disclosure. The next index reconstitution will reveal whether weight shifts away from launchers toward operators with recurring revenue, like Iridium Communications (NASDAQ:IRDM), which generated $219 million in Q1 2026 revenue with 2.6 million subscribers.

What Will Decide UFO’s Next Leg If U.S. defense space awards keep flowing through Q3 2026, UFO’s industrial-heavy book stays bid; watch Rocket Lab’s Neutron debut window and AST SpaceMobile’s monthly BlueBird launch cadence, because any slip in either will pull the fund’s most-owned growth names lower regardless of how the SDA budget prints.

The transaction unifies the world's only space-based air traffic surveillance system with the satellite network it was built on and extends commercial partnerships with NAV CANADA and NATS through 2035 and beyond.

, /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM), a leading provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, today announced that it has entered into a definitive agreement to acquire Aireon LLC, operator of the world's only space-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic surveillance system. The acquisition of Aireon is a defining step in Iridium's strategy to provide the foundational architecture for global aviation safety, bringing space-based surveillance, safety communications, PNT, and operational data together on a single network.

Iridium has announced it is acquiring Aireon as a key step in its strategy to lead the future of aviation safety. "Aireon has always been part of Iridium's aviation safety strategy. We founded it in partnership with the world's leading Air Navigation Service Providers (ANSPs), because we believed space-based aviation safety was a generational opportunity," said Matt Desch, CEO, Iridium. "The aviation industry is now entering an era of growing air traffic, denser airspace, autonomous aircraft, and greater expectations for safety and resiliency. Bringing Aireon fully inside Iridium better positions us to build what's needed to support the future of aviation, including more innovations like the future introduction of space-based VHF communications."

A Combined Platform for Aviation Safety
The acquisition unites Aireon's surveillance and data services, including GPS jamming and spoofing detection, with Iridium's global satcom network and PNT services that help keep GPS-dependent systems working in contested environments. This combination creates one company providing four critical aviation industry capabilities: knowing where every aircraft is, communicating with the pilots flying them, providing the navigation and timing integrity those aircraft rely on, and translating that information into operational insights that make airspace safer and more efficient. No other satellite operator delivers this combination of capabilities on a global scale.

Today, the Aireon system, which is certified by the European Union Aviation Safety Agency (EASA), flies as a payload on the Iridium satellite constellation and tracks an average of 190,000 flights per day. Commercial aircraft broadcast information such as an aircraft's identity, location, altitude, speed, and heading. Aireon's space-based ADS-B payload captures this information in real time, with 100% global coverage. ANSPs covering more than 50% of the global airspace rely on Aireon data to create safer and more efficient airspace.

The world's leading ANSPs and investors in Aireon, including NAV CANADA and NATS (United Kingdom), AirNav Ireland, ENAV (Italy), and Naviair (Denmark), each played a vital role in launching the Aireon service, proving its reliability, and establishing it as a critical part of the global air traffic control infrastructure. NAV CANADA and NATS, which together manage the most heavily trafficked oceanic airspace in the world – the North Atlantic Tracks between Europe and North America, were the first to go live with the service. In connection with the acquisition, both ANSPs will sign extended data services agreements through 2035 and beyond, with provisions for continued cooperative development of space-based VHF communications and other new capabilities.

"Aireon and Iridium have been partners since day one, and that partnership is the reason we have been able to build the world's only space-based air traffic surveillance system and a fast-growing aviation data services business alongside it," said Don Thoma, CEO of Aireon. "Becoming part of Iridium is a natural next step for our team, our customers, and our roadmap, particularly as our data products expand into new areas like turbulence detection and aviation data analytics. Together, we are building the foundation for the future of global aviation."

"NAV CANADA is proud of our foundational role in establishing Aireon's world-first technology," said Mark Cooper, President and CEO, NAV CANADA. "This sale sharpens our focus on our core expertise: keeping Canada's skies safe. As a fellow founding partner, Iridium is the ideal owner to guide Aireon's continued commercial growth. We wish the entire team continued success and look forward to our ongoing relationship as a customer."

"We have been proud to be a part of Aireon's successes, most notably making real-time aircraft surveillance over the Atlantic a reality for the first time in history, enabling even safer operations across the North Atlantic," said Martin Rolfe, CEO, NATS. "As a shareholder for the past eight years, it is now the right time for us to divest. We are confident Aireon is well positioned for the future and wish the team every success in the next stage of its development."

The Next Transition: Space-Based VHF
Space-based VHF communications represent a major opportunity in air traffic management, extending pilot-to-controller VHF services into oceanic and remote airspace where ground infrastructure cannot reach, without the need for additional aircraft equipment. The model is similar to how aircraft already carry ADS-B transceivers, which enables Aireon to deliver space-based ADS-B surveillance without requiring fleet retrofits.

Aireon's Growing Data Services Business
Beyond surveillance for ANSPs, Aireon operates a fast-expanding aviation data services business that sells real-time and historical aviation data to airlines, airports, OEMs, governments, and aerospace operators. Product lines already available or launching this year include turbulence detection, GPS jamming and spoofing detection, and safety and efficiency analytics. Additional applications are also in development to support the rapidly evolving airspace environment.

Aireon's data business is one of its highest-growth areas today and is expected to be a meaningful contributor to the combined company's aviation growth.

Terms of the Transaction and Financial Insights
Iridium is an existing owner of Aireon and will acquire the remaining 61% of equity interests of Aireon in the transaction for a purchase price of approximately $366.7 million from the other owners, NAV CANADA, AirNav Ireland, ENAV, NATS and Naviair. The purchase price will be paid 50% at closing and 50% on the one-year anniversary. Iridium will also assume Aireon's outstanding debt, expected to be approximately $155 million at closing.

The acquisition of Aireon is accretive to Iridium's growth outlook; over the past three years, Aireon's total revenue has grown at a compound annual growth rate (CAGR) of 10%. Iridium expects the acquisition will result in at least an additional consolidated $100 million of service revenue and $30 million of OEBITDA on an annualized basis.

Iridium expects to pay the purchase price with current liquidity, including borrowings under its revolving credit facility, and future cash from operations. After closing the transaction, Iridium expects net leverage to increase to approximately 4.0 times OEBITDA during Q3 2026, with net leverage planned to return to the current levels over the subsequent twelve months. Iridium's long-term net leverage guide of 2.0 times OEBITDA by the end of the decade remains unchanged and assumes no change in its paused share buyback program.

Aireon will continue business-as-usual operations in the near term, with no planned changes to business strategy. The transaction is targeted to close in early July.

Evercore served as financial advisor and Cooley and Milbank served as legal counsel to Iridium. PJT Partners served as financial advisor and Hogan Lovells served as legal counsel to Aireon.

Note for Media:
A briefing for reporters will be held today, at 9 a.m. EDT. Reporters interested in attending should email the designated contacts for this release to receive an access link.

For more information about Iridium, visit: www.iridium.com

For more information about Aireon, visit: www.aireon.com

Non-GAAP Financial Measures & Definitions

In addition to disclosing financial results that are determined in accordance with U.S. GAAP, Iridium reports OEBITDA, which is a non-GAAP financial measure, as a supplemental measure to help investors evaluate Iridium's fundamental operational performance. OEBITDA represents earnings before interest, income taxes, depreciation and amortization, gain (loss) on equity method investments, transaction related expenses, and share-based compensation expenses. Iridium considers the loss on early extinguishment of debt to be financing-related costs associated with interest expense or amortization of financing fees, which by definition are excluded from OEBITDA. Management believes such charges are incidental to, but not reflective of, Iridium's day-to-day operating performance. OEBITDA does not represent, and should not be considered, an alternative to U.S. GAAP measurements such as net income or loss. In addition, there is no standardized measurement of OEBITDA, and Iridium's calculations thereof may not be comparable to similarly titled measures reported by other companies. Iridium believes OEBITDA is a useful measure across time in evaluating its fundamental core operating performance. Management also uses OEBITDA to manage the business, including in preparing its annual operating budget, debt covenant compliance, financial projections and compensation plans. Iridium believes that OEBITDA is also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, OEBITDA does not include interest expense on borrowed money, the payment of income taxes, amortization of Iridium's definite-lived intangible assets, or depreciation expense on Iridium's capital assets, which are necessary elements of Iridium's operations. Since OEBITDA does not account for these and other expenses, its utility as a measure of Iridium's operating performance has material limitations. Due to these limitations, Iridium's management does not view OEBITDA in isolation, but also uses other measurements, such as net income, revenues and operating profit, to measure operating performance. Iridium does not provide a forward-looking reconciliation of Aireon's expected contribution to OEBITDA as the amount and significance of certain items such as share-based compensation, transaction-related expenses and gain/loss on equity method investments, that are required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts.

About Iridium Communications Inc.

Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network, delivering reliable voice, data, and positioning, navigation, and timing (PNT) services anywhere on Earth. Iridium supports safety- and mission-critical operations for diverse markets such as aviation, maritime, government, emergency services, critical infrastructure, autonomous systems, and remote monitoring applications, where connectivity is essential.

Headquartered in McLean, Virginia, Iridium provides its products and services through an ecosystem of 500-plus partner companies around the world. For more information, visit www.iridium.com.

About Aireon LLC

Aireon has deployed a space-based air traffic surveillance system for Automatic Dependent Surveillance-Broadcast (ADS-B) equipped aircraft throughout the entire globe. Aireon is harnessing next-generation aviation surveillance technologies that were formerly ground-based and, for the first time ever, is extending their reach globally to significantly improve efficiency, enhance safety, reduce emissions, and provide cost savings benefits to all stakeholders. Space-based ADS-B surveillance covers oceanic, polar, and remote regions, and augments existing ground-based systems that are limited to terrestrial airspace. In partnership with leading ANSPs from around the world, like NAV CANADA, AirNav Ireland, ENAV, NATS and Naviair, as well as Iridium Communications, Aireon is providing a global, real-time, space-based air traffic surveillance system, available to all aviation stakeholders. For more information, please visit www.aireon.com.

Forward-Looking Statements Disclosure

Statements in this press release that are not purely historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Iridium has based these statements on its current expectations and the information currently available to it. Forward-looking statements include statements regarding, among other things, the closing and financing of the acquisition of Aireon, including the timing thereof; the future capabilities of, benefits of, availability of, and market demand for the Aireon system and Aireon's services; the benefits of Aireon's acquisition to Iridium, including its expected contribution to Iridium's revenue and OEBITDA, its ability to foster innovation at Iridium, and its future growth; and future indebtedness and net leverage. Forward-looking statements can be identified by words such as "anticipates," "may," "can," "believes," "expects," "plans," "projects," "targets," "positions," "will," "to be," "future," "forward," "roadmap," "wish,"  and similar expressions that predict or indicate future events, trends or prospects.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Iridium to differ materially from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, uncertainties regarding the timing and completion of the acquisition; the development, availability and market acceptance of Aireon system and services; and general industry and economic conditions, as well as competitive, legal, governmental and technological factors. Additional factors that could cause actual results to differ materially are described under the caption "Risk Factors" in Iridium's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on February 12, 2026, as well as in other filings Iridium makes with the SEC from time to time.

There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Forward-looking statements speak only as of the date of this press release, and Iridium undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Press Contact: 

Investor Contact:

Jordan Hassin 

Kenneth Levy

Iridium Communications Inc. 

Iridium Communications Inc.

[email protected]

[email protected]

+1 (703) 287-7421 

+1 (703) 287-7570

SOURCE Iridium Communications Inc.

On May 22, 2026, Iridium Communications Inc IRDM shares rose 6.9% today, bringing the current price to $48.84. Over the past 52 weeks, the stock has fluctuated between a low of $15.65 and a high of $48.94.

GF Value™ verdict indicates that the current price is $48.84, which is 34.5% above the GF Value™ of $36.32.GF Score™ stands at 71/100, suggesting the company is above average in terms of its overall performance metrics.Insiders have sold $0.2 million worth of shares in the last three months, indicating a lack of buying activity. Is IRDM Overvalued or Undervalued? According to the GF Value™, Iridium Communications Inc is currently overvalued. The stock price of $48.84 is significantly above the GF Value™ of $36.32, representing a 34.5% margin of overvaluation. This classification as "Significantly Overvalued" indicates that the current market price may not be justified by the company's fundamentals, potentially exposing investors to downside risk. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The substantial gap between the current price and GF Value™ suggests that the stock could be vulnerable to price corrections. Investors may want to exercise caution, as purchasing at these elevated levels could lead to diminished returns if the market adjusts to align with intrinsic values.

How Does IRDM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 49.5x 35.9x Forward P/E 44.0x - The current P/E ratio of 49.5x is 38% above its 5-year median P/E of 35.9x, indicating that the stock is trading well above its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the conclusion that IRDM is overvalued at its current price levels.

What Does IRDM's GF Score™ Tell Us? Metric Rating GF Score™ 71 Financial Strength 4/10 Profitability 7/10 Growth 6/10 Valuation 5/10 Momentum 3/10 The GF Score™ of 71/100 indicates that while Iridium Communications has strengths in profitability (7/10) and growth (6/10), it exhibits weaknesses in financial strength (4/10) and momentum (3/10). The varying scores suggest that while the company may be performing well in generating profits, its overall financial health and momentum may not be as robust, contributing to the concerns surrounding its current valuation.

What Are Insiders Doing with IRDM Stock? Recent insider activity shows that insiders have sold $0.2 million worth of shares in the last three months, with no reported buying activity. This pattern suggests a lack of confidence from those within the company regarding its current valuation or future prospects. Insiders typically have valuable insights into their company's performance, and their selling could indicate they believe the stock is overvalued at current levels.

What This Means for Investors Based on the GF Value™, Iridium Communications Inc is currently overvalued. The significant discrepancy between the stock's market price and its intrinsic value suggests that caution may be warranted for potential investors considering entering at this price point.

For the complete analysis, visit the Iridium Communications Inc IRDM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is IRDM's GF Score™?

IRDM's GF Score™ is 71/100, indicating above-average performance across various metrics that can lead to higher long-term returns.

Is IRDM overvalued or undervalued?

IRDM is currently overvalued, with a GF Value™ of $36.32 compared to its market price of $48.84, suggesting a significant overvaluation.

What is IRDM's P/E ratio?

IRDM's P/E ratio is 49.5x, which is 38% higher than its 5-year median P/E of 35.9x, indicating that the stock is trading above its historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].