Iridium Communications (IRDM)
NASDAQ:IRDM
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Iridium Communications
(NASDAQ:IRDM)
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Rating:73Outperform
Price Target:
$49.00
▲(17.08% Upside)
Action:Reiterated
Date:05/21/26
IRDM’s score is driven primarily by strong financial execution (improving profitability and robust free cash flow) and favorable technical momentum. These positives are tempered by elevated leverage and a relatively rich valuation, with earnings-call and corporate-event updates supportive but containing near-term margin/broadband and leverage-related risks.
Positive Factors
Free Cash Flow
Consistent, sizable free cash flow provides durable funding for dividends, capex, debt paydown and strategic M&A. A ~0.75x cash conversion of net income indicates earnings are backed by cash, supporting multi-year investments and financial flexibility amid product rollouts.
Negative Factors
Elevated Leverage
Higher leverage materially reduces balance-sheet flexibility, increasing refinancing, interest-rate and covenant risk. Temporary rise toward ~4x after Aireon constrains capacity for discretionary investment or bolt-on deals and raises sensitivity to cyclical cash-flow swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow
Consistent, sizable free cash flow provides durable funding for dividends, capex, debt paydown and strategic M&A. A ~0.75x cash conversion of net income indicates earnings are backed by cash, supporting multi-year investments and financial flexibility amid product rollouts.
Read all positive factors
Iridium Communications Key Performance Indicators (KPIs)
Iridium Communications (IRDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.79B
Dividend Yield3.3%
Average Volume (3M)2.50M
Price to Earnings (P/E)34.0
Beta (1Y)0.67
Revenue Growth4.05%
EPS Growth-6.99%
CountryUS
Employees873
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.99
Shares Outstanding105,727,745
10 Day Avg. Volume2,062,198
30 Day Avg. Volume2,502,261
Financial Highlights & Ratios
PEG Ratio1.29
Price to Book (P/B)4.03
Price to Sales (P/S)2.14
P/FCF Ratio6.22
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue5.35
Enterprise Value/Gross Profit8.55
Enterprise Value/Ebitda10.61
Forecast
1Y Price Target
$34.00Price Target Upside-18.76% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.13
Revenue Forecast (FY)$885.17M
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 mo...
How the Company Makes Money
Iridium primarily makes money by selling recurring satellite connectivity services delivered over its LEO network, complemented by equipment sales and certain hosted-payload/data services. The core revenue model is subscription and usage based: cu...
Iridium Communications Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook driven by steady top-line growth (service revenue +2%), strong product pipeline momentum (Iridium 9604, PNT ASIC, NTN Direct) and improving ARPU in voice and data (+7%). Management reaffirmed full-year guidance, highlighted robust engineering and government revenue growth, and projected meaningful free cash flow over the decade. Headwinds include a 5% decline in Q1 OEBITDA (partly driven by a one-time compensation accounting change with a $17M FY impact), a 5% decline in commercial broadband, higher Q1 SG&A, and uncertainty on the timing of large PNT contract revenue. Overall, the positives — recurring revenue growth, product/standards progress, and cash flow outlook — outweigh the near-term operational and timing challenges.Positive Updates
Revenue and Service Revenue Growth
Total revenue and service revenue each grew 2% year-over-year. Service revenue reached $130.4 million in Q1 and management reiterated full-year service revenue guidance of flat to +2% for 2026.
Negative Updates
Quarterly OEBITDA Decline and Compensation Impact
OEBITDA declined 5% year-over-year to $116.3 million. The quarter included a $4.2 million hit from moving to annual cash-only incentive compensation; management expects a $17 million full-year OEBITDA impact from this change in 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Service Revenue Growth
Total revenue and service revenue each grew 2% year-over-year. Service revenue reached $130.4 million in Q1 and management reiterated full-year service revenue guidance of flat to +2% for 2026.
Read all positive updates
Company Guidance
Iridium reaffirmed 2026 guidance calling for service revenue to be flat to up 2% and operational EBITDA of $480–$490 million (or $497–$507 million excluding the $17 million OEBITDA hit from switching annual incentive compensation to cash); management also projects pro forma free cash flow of about $318 million for 2026 and $1.5–$1.8 billion of free cash flow over the balance of the decade. In Q1 the company reported OEBITDA of $116.3 million (down 5% YoY), total service revenue of $130.4 million (up 2%), voice & data $57.4 million (up 3%) with ARPU roughly $48 (up 7% YoY), commercial IoT $46.0 million (up 5%), engineering & support $40.8 million, government services $27.6 million, equipment sales $20.2 million, Q1 CapEx $30 million, cash and cash equivalents $111.6 million, net leverage 3.4x OEBITDA, an expected EMSS revenue of $110.5 million for the year, full‑year equipment sales target of ~$80–$90 million, and mid‑single‑digit growth expected for IFC/IoT revenue.Iridium Communications Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 875.84M | 871.66M | 830.68M | 790.72M | 721.03M | 614.50M |
| Gross Profit | 547.64M | 674.08M | 396.99M | 283.10M | 216.40M | 158.67M |
| EBITDA | 441.51M | 446.19M | 415.67M | 380.07M | 386.08M | 350.45M |
| Net Income | 105.55M | 114.37M | 112.78M | 15.41M | 8.72M | -9.32M |
Balance Sheet | ||||||
| Total Assets | 2.53B | 2.53B | 2.67B | 2.66B | 2.95B | 3.18B |
| Cash, Cash Equivalents and Short-Term Investments | 111.64M | 96.50M | 93.53M | 71.87M | 168.77M | 320.91M |
| Total Debt | 7.97M | 1.76B | 1.81B | 1.50B | 1.51B | 1.62B |
| Total Liabilities | 2.06B | 2.07B | 2.09B | 1.77B | 1.83B | 1.89B |
| Stockholders Equity | 468.35M | 462.60M | 576.64M | 888.10M | 1.13B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | 304.92M | 299.79M | 306.06M | 241.43M | 273.46M | 260.73M |
| Operating Cash Flow | 410.61M | 400.07M | 375.95M | 314.91M | 344.73M | 302.87M |
| Investing Cash Flow | -105.69M | -100.28M | -180.60M | -83.49M | -121.27M | -36.38M |
| Financing Cash Flow | -245.19M | -299.91M | -170.48M | -327.05M | -374.98M | -182.47M |
Iridium Communications Technical Analysis
Positive
41.85
Price Trends
35.26
Positive
28.03
Positive
23.54
Positive
Market Momentum
2.35
Negative
67.37
Neutral
82.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRDM, the sentiment is Positive. The current price of 41.85 is above the 20-day moving average (MA) of 40.80, above the 50-day MA of 35.26, and above the 200-day MA of 23.54, indicating a bullish trend. The MACD of 2.35 indicates Negative momentum. The RSI at 67.37 is Neutral, neither overbought nor oversold. The STOCH value of 82.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRDM.
Iridium Communications Risk Analysis
Iridium Communications disclosed 43 risk factors in its most recent earnings report. Iridium Communications reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iridium Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.32B | 14.58 | 26.17% | 0.47% | 3.31% | 2.91% | |
73 Outperform | $4.79B | 33.97 | 22.76% | 3.30% | 4.05% | -6.99% | |
66 Neutral | $10.60B | -122.41 | -3.21% | ― | 11.47% | 75.70% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $2.77B | 9.11 | -87.55% | ― | -10.11% | ― | |
51 Neutral | $550.42M | 10.42 | 13.03% | ― | 58.84% | ― | |
45 Neutral | $889.88M | -5.69 | 422.83% | 13.93% | -4.83% | 11.31% |
* Communication Services Sector Average
IRDM
Iridium Communications
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Iridium Communications Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsShareholder Meetings
Iridium Communications Holds Annual Meeting and Declares Dividend
Positive
May 20, 2026
Iridium Communications held its virtual annual meeting on May 20, 2026, at which shareholders elected eleven directors to one-year terms ending at the 2027 annual meeting and approved, on an advisory basis, the compensation of the company’s ...
Business Operations and StrategyM&A Transactions
Iridium to Fully Acquire Aireon, Expanding Aviation Capabilities
Positive
May 14, 2026
On May 13, 2026, Iridium agreed to acquire the remaining 61% of Aireon for about $366.7 million, to be paid half at closing and half one year later via a seller loan, and will assume roughly $155 million of Aireon debt. The deal, announced publicl...
Dividends
Iridium Communications Declares Quarterly Cash Dividend to Shareholders
Positive
Mar 5, 2026
On March 5, 2026, Iridium Communications Inc.’s board declared a cash dividend of $0.15 per share on its common stock, payable on March 31, 2026, to stockholders of record as of March 16, 2026. The move underscores the company’s ongoin...
Business Operations and StrategyExecutive/Board Changes
Iridium Adopts New Executive Bonus and Severance Plans
Positive
Feb 27, 2026
On February 26, 2026, Iridium Communications Inc.’s compensation committee approved a new Annual Performance Bonus Plan for employees and certain consultants, including top executives, covering performance periods beginning January 1, 2026. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.