Iridium Communications (IRDM) AI Stock Analysis

• Market Cap: $0.00
• Dividend Yield: 2.32%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.00
• Revenue Growth: 7.56%
• EPS Growth: 38.78%
• Country: US
• Employees: 873
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): 0.20
• Shares Outstanding: 0
• 10 Day Avg. Volume: 2,876,375
• 30 Day Avg. Volume: 1,823,174
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $33.17
• Price Target Upside: 33.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $27.00 ▲(8.48% Upside)

Iridium Communications' overall score reflects strong financial performance and strategic corporate moves. However, technical indicators suggest short-term challenges, and valuation is moderate. The earnings call revealed mixed guidance, highlighting areas of growth and concern. Focus on maintaining financial health and strategic execution is crucial for future performance.

Positive Factors

Financial Performance

Iridium Communications is making progress with its new non-terrestrial-network (NTN) offering, which is expected to enhance future revenue streams.

Free Cash Flow

Iridium reaffirmed its expectation to generate $302 million in free cash flow this year, which represents 13% of the company’s market cap.

Strategic Partnerships

Iridium’s partnerships with Garmin and the U.S. Department of Defense will continue to expand, strengthening its market position.

Negative Factors

Competition

The main downside risk to shares is intensifying competition from SpaceX and Apple.

Revenue Outlook

Shares of Iridium are trading down 20% after the company reported second-quarter financials below consensus and lowered its full-year services revenue outlook.

Subscriber Shifts

Maritime customers have been shifting from using Iridium’s satellite network as their primary broadband connection to using SpaceX instead.

Iridium Communications Business Overview & Revenue Model

Company Description

Iridium Communications Inc. provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services. It also provides hosted payload and other data services, such as satellite time and location services, and inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence agencies, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the United States government's dedicated gateway. Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. was founded in 2000 and is headquartered in McLean, Virginia.

How the Company Makes Money

Iridium Communications generates revenue primarily through the sale of satellite communication services and equipment. Key revenue streams include service revenue from voice and data communication plans, which are offered to individual customers, businesses, and government agencies. Additionally, the company earns revenue by selling satellite phones, modems, and other communication devices. Iridium also partners with various service providers and resellers to extend its market reach, further enhancing its revenue potential. The company's strategic focus on niche markets such as maritime, aviation, and defense, where reliable communication is critical, helps sustain its earnings. Furthermore, Iridium's network of interlinked satellites provides a unique coverage advantage, contributing to its competitive position and financial performance.

Iridium Communications Financial Statement Overview

Summary

Iridium Communications demonstrates strong financial performance with robust profitability and effective cash management. The high debt-to-equity ratio presents some financial risk, but is mitigated by strong return on equity and cash flow generation. Continued cost and debt management are essential for sustained financial health.

Income Statement

Iridium Communications has demonstrated strong profitability with a robust gross profit margin of 74.4% TTM. The net profit margin increased to 13.2% TTM, indicating improved operational efficiency. Revenue growth is sound at 3.2% TTM, although it has slowed compared to historical growth rates. EBIT and EBITDA margins are healthy, reflecting effective cost management. However, the decrease in gross profit compared to the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet reveals a relatively high debt-to-equity ratio of 3.82 TTM, suggesting a leveraged position which could pose risks in volatile markets. However, the return on equity is strong at 23.9% TTM, showing efficient use of shareholder funds to generate profits. The equity ratio stands at 18.4% TTM, indicating a moderate reliance on equity financing.

Cash Flow

Iridium Communications exhibits a strong operating cash flow to net income ratio of 3.66 TTM, highlighting efficient cash generation from operations. The free cash flow growth rate is solid at 6.5% TTM, providing flexibility for investments and debt repayment. The company's free cash flow to net income ratio of 2.88 TTM underscores effective cash management, although the capital expenditure increase may impact future liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	830.68M	790.72M	721.03M	614.50M	583.44M
Gross Profit	652.54M	565.60M	519.88M	464.10M	440.75M
EBITDA	404.05M	380.07M	380.16M	351.75M	338.66M
Net Income	112.78M	15.41M	8.72M	-9.32M	-56.05M
Balance Sheet
Total Assets	2.67B	2.66B	2.95B	3.18B	3.36B
Cash, Cash Equivalents and Short-Term Investments	93.53M	71.87M	168.77M	320.91M	244.73M
Total Debt	1.79B	1.48B	1.49B	1.60B	1.61B
Total Liabilities	2.09B	1.77B	1.83B	1.89B	1.94B
Stockholders Equity	576.64M	888.10M	1.13B	1.29B	1.42B
Cash Flow
Free Cash Flow	306.06M	241.43M	273.46M	260.73M	211.08M
Operating Cash Flow	375.95M	314.91M	344.73M	302.87M	249.77M
Investing Cash Flow	-180.60M	-83.49M	-121.27M	-36.38M	-46.47M
Financing Cash Flow	-170.48M	-327.05M	-374.98M	-182.47M	-188.19M

Iridium Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRDM, the sentiment is Negative. The current price of 24.89 is below the 20-day moving average (MA) of 28.70, below the 50-day MA of 28.53, and below the 200-day MA of 28.15, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 10.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRDM.

Iridium Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	78 Outperform	$0.00	14.71	13.78%	6.07%	-7.99%	2.16%
VEON	73 Outperform	$3.40B	8.02	43.53%	―	9.75%	―
IRDM	72 Outperform	$0.00	24.63	17.96%	2.32%	7.56%	38.78%
GSAT	59 Neutral	$3.16B	―	-18.66%	―	14.55%	-81.21%
TDS	57 Neutral	$4.08B	―	-0.97%	0.44%	-5.14%	78.63%
Sector *	56 Neutral	HK$63.39B	-0.68	-4.21%	5.27%	-2.16%	-18.87%
LUMN	51 Neutral	$3.85B	―	-78.94%	―	-6.50%	43.47%

Iridium Communications Corporate Events

Iridium Communications Increases Quarterly Dividend to $0.15

On July 23, 2025, Iridium Communications announced a quarterly cash dividend increase to $0.15 per share, payable on September 30, 2025, continuing its trend of annual dividend increases since 2023. The company reported a net income of $22 million for Q2 2025, a decrease from the previous year due to a non-recurring gain in 2024, with a total revenue increase of 8% year-over-year. Iridium’s service revenue grew by 2%, driven by a 3% increase in billable subscribers, particularly in commercial IoT. The company also updated its full-year 2025 outlook, adjusting service revenue growth expectations to between 3% and 5% and maintaining its OEBITDA guidance.

The most recent analyst rating on (IRDM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Iridium Communications stock, see the IRDM Stock Forecast page.

Iridium Communications Expands Board with New Appointment

On June 17, 2025, Iridium Communications Inc. announced the appointment of Monique S. Shivanandan to its Board of Directors, expanding the board to eleven members. Shivanandan, an independent director, brings extensive experience from senior roles in cybersecurity and telecommunications, and will serve on the Compensation Committee. Her appointment is expected to enhance Iridium’s strategic capabilities, leveraging her expertise in data analytics and information security to strengthen the company’s industry positioning.

The most recent analyst rating on (IRDM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Iridium Communications stock, see the IRDM Stock Forecast page.

Iridium Communications Holds Annual Meeting, Approves Key Proposals

At the Annual Meeting held virtually on May 14, 2025, Iridium Communications‘ stockholders approved several key proposals, including the election of ten directors for one-year terms, the compensation of executive officers, and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, the stockholders approved an amendment to the company’s certificate of incorporation to limit the liability of certain officers and the amended and restated 2015 Equity Incentive Plan. The Board of Directors also declared a cash dividend of $0.14 per share, payable on June 30, 2025, to stockholders of record as of June 13, 2025.

The most recent analyst rating on (IRDM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Iridium Communications stock, see the IRDM Stock Forecast page.