Iridium Communications (IRDM) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: 3.33%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.53
• Revenue Growth: 7.30%
• EPS Growth: 21.31%
• Country: US
• Employees: 873
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.35
• Shares Outstanding: 104,745,680
• 10 Day Avg. Volume: 2,091,463
• 30 Day Avg. Volume: 2,131,022
• PEG Ratio: 0.04
• Price to Book (P/B): 5.97
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 11.24
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 7.96
• 1Y Price Target: $25.71
• Price Target Upside: 36.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): $878.14M

• Rating: 71 Outperform
• Price Target: $19.50 ▲(3.67% Upside)

Iridium Communications' solid financial performance and reasonable valuation are the most significant factors contributing to its overall score. The company's strong profitability and cash generation capabilities are offset by high leverage. Technical indicators suggest a mixed trend, while the earnings call highlights both growth opportunities and competitive challenges. The recent corporate event of appointing a new director and maintaining dividends adds a positive note.

Positive Factors

Strategic Partnerships

The partnership with Vodafone enhances Iridium's market reach and strengthens its IoT service offerings, supporting long-term growth.

Government Contracts

Securing a long-term government contract provides stable revenue and reinforces Iridium's position as a trusted provider in critical communications.

Cash Flow Projections

Strong future cash flow projections indicate robust financial health and the ability to fund strategic initiatives and debt reduction.

Negative Factors

High Leverage

Significant leverage may limit financial flexibility and increase risk, potentially impacting long-term financial stability.

Broadband Revenue Decline

Declining broadband revenue highlights challenges in maintaining growth in this segment, affecting overall revenue diversification.

Increased Competition

Rising competition could pressure margins and market share, challenging Iridium's competitive position in the satellite communications industry.

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 service subscriptions, equipment sales, and value-added services. Its key revenue streams include monthly service fees from customers using satellite phones and data services, as well as one-time sales from satellite communication equipment. The company also earns revenue from partnerships with various organizations, including government contracts and collaborations with telecom companies that integrate Iridium's services into their offerings. Additionally, Iridium benefits from the growth of the IoT market, leveraging its satellite network to provide connectivity solutions for IoT devices, which further diversifies its earnings.

Iridium Communications Financial Statement Overview

Summary

Iridium Communications demonstrates solid financial health with strong profitability and cash generation capabilities. However, the high leverage poses a potential risk, and the decline in free cash flow growth could impact future investments.

Income Statement

Iridium Communications shows strong profitability with a consistent increase in gross profit margin and net profit margin over the years, reaching 75.52% and 14.44% respectively in TTM. Revenue growth is positive, albeit modest at 1.65% in TTM. The company has improved its EBIT and EBITDA margins, indicating efficient cost management and operational performance.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 4.02 in TTM, indicating significant leverage, which could pose financial risk. However, the return on equity has improved to 24.93%, showcasing better utilization of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis reveals a robust operating cash flow to net income ratio of 3.84, indicating strong cash generation relative to net income. However, free cash flow growth has declined by 6.37% in TTM, which could impact future investments. The free cash flow to net income ratio remains healthy at 0.77, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	871.71M	830.68M	790.72M	721.03M	614.50M	583.44M
Gross Profit	412.59M	396.99M	283.10M	216.40M	158.67M	137.57M
EBITDA	449.69M	415.67M	380.07M	386.08M	350.45M	312.81M
Net Income	125.85M	112.78M	15.41M	8.72M	-9.32M	-56.05M
Balance Sheet
Total Assets	2.55B	2.67B	2.66B	2.95B	3.18B	3.36B
Cash, Cash Equivalents and Short-Term Investments	88.53M	93.53M	71.87M	168.77M	320.91M	244.73M
Total Debt	1.81B	1.81B	1.50B	1.51B	1.62B	1.64B
Total Liabilities	2.10B	2.09B	1.77B	1.83B	1.89B	1.94B
Stockholders Equity	450.50M	576.64M	888.10M	1.13B	1.29B	1.42B
Cash Flow
Free Cash Flow	305.21M	306.06M	241.43M	273.46M	260.73M	211.08M
Operating Cash Flow	396.27M	375.95M	314.91M	344.73M	302.87M	249.77M
Investing Cash Flow	-91.06M	-180.60M	-83.49M	-121.27M	-36.38M	-46.47M
Financing Cash Flow	-376.75M	-170.48M	-327.05M	-374.98M	-182.47M	-188.19M

Iridium Communications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRDM, the sentiment is Neutral. The current price of 18.81 is above the 20-day moving average (MA) of 16.91, above the 50-day MA of 17.75, and below the 200-day MA of 23.62, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 67.92 is Neutral, neither overbought nor oversold. The STOCH value of 83.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IRDM.

Iridium Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRDM	71 Outperform	$1.98B	16.50	22.59%	3.33%	7.30%	21.31%
IDT	70 Outperform	$1.26B	15.64	27.94%	0.47%	2.52%	10.02%
IHS	63 Neutral	$2.51B	5.56	―	―	-0.97%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GSAT	58 Neutral	$8.66B	―	-12.45%	―	8.54%	-59.63%
GOGO	54 Neutral	$730.84M	―	-6.63%	―	102.05%	-110.74%
CCOI	41 Neutral	$1.05B	―	-136.94%	12.80%	-6.48%	-588.01%

Iridium Communications Corporate Events

Iridium Communications Appoints New Independent Director

On December 4, 2025, Iridium Communications Inc. announced the appointment of Louis M. Alterman as an independent director, expanding its Board of Directors to twelve members. Alterman’s extensive experience in leadership roles across the communications and technology sectors is expected to significantly contribute to Iridium’s strategic vision and shareholder value. Additionally, the Board declared a cash dividend of $0.15 per share, payable on December 31, 2025, to stockholders of record as of December 15, 2025.