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Iridium Communications Inc (IRDM)
NASDAQ:IRDM

Iridium Communications (IRDM) AI Stock Analysis

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IRDM

Iridium Communications

(NASDAQ:IRDM)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$19.50
▲(15.59% 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.

Iridium Communications (IRDM) vs. SPDR S&P 500 ETF (SPY)

Iridium Communications Business Overview & Revenue Model

Company DescriptionIridium Communications Inc. (IRDM) is a global satellite communications company that provides voice and data services through its satellite network, which consists of a constellation of 66 satellites in low Earth orbit. The company serves various sectors including maritime, aviation, government, and emergency services, offering products such as satellite phones, broadband data services, and IoT solutions. Iridium's unique positioning allows it to offer reliable communications in remote areas where traditional networks are unavailable, making it a vital provider in critical communications and connectivity solutions.
How the Company Makes MoneyIridium 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 Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with several positive aspects, such as growth in operational EBITDA and new partnerships, being offset by challenges like a decline in broadband revenue and increased competition in the satellite market.
Q3-2025 Updates
Positive Updates
Operational EBITDA Growth
Operational EBITDA increased by 10% in the third quarter to $136.6 million, driven by revenue from recurring services and engineering support.
Service Revenue Increase
Commercial service revenue rose by 4% to $138.3 million, with growth in commercial IoT, PNT, and voice and data.
Strong Cash Flow Projections
Iridium expects to generate $1.5 billion to $1.8 billion in cash flows from 2026 through 2030.
New Partnerships and Growth
Iridium signed over 70 new technology and distribution partners to its ecosystem since the beginning of the year.
Positive Developments in PNT
Hosting and other data services revenue increased by 14% to $18.7 million, highlighting an increase in PNT services.
Negative Updates
Broadband Revenue Decline
Commercial Broadband revenue decreased by 17% compared to the previous year, due to a non-maritime contract not being renewed.
Challenges from Increased Competition
Iridium faces potential increased competition from the acquisition of EchoStar Spectrum by Starling, which may disrupt the status quo and introduce global D2D capabilities.
Share Repurchase Program Paused
Iridium decided to pause its share repurchase program to focus on strategic growth initiatives and deleveraging the balance sheet.
Delayed PNT Revenue
Projected PNT revenue has been delayed, impacting the growth of hosted payload and other data services in the fourth quarter.
Company Guidance
During Iridium's Third Quarter 2025 Earnings Call, the company provided guidance on several key financial metrics and strategic initiatives. Operational EBITDA increased by 10% to $136.6 million, driven by recurring service revenue and engineering support. The company expects full-year 2025 service revenue growth of approximately 3% and has narrowed its OEBITDA guidance to between $495 million and $500 million. Iridium projects generating total cash flows between $1.5 billion and $1.8 billion from 2026 through 2030. In response to evolving competitive dynamics, Iridium announced a pause in its share repurchase program to emphasize strategic growth initiatives and plans to continue its quarterly dividend program. The company also highlighted its focus on developing Iridium NTN Direct, a standards-based D2D service, and exploring acquisitions to enhance its position in regulated applications and the growing autonomous systems market.

Iridium Communications Financial Statement Overview

Summary
Income Statement
75
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Iridium Communications Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.87
Price Trends
50DMA
17.53
Negative
100DMA
19.59
Negative
200DMA
23.23
Negative
Market Momentum
MACD
0.18
Negative
RSI
44.88
Neutral
STOCH
39.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRDM, the sentiment is Negative. The current price of 16.87 is below the 20-day moving average (MA) of 16.97, below the 50-day MA of 17.53, and below the 200-day MA of 23.23, indicating a bearish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 39.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRDM.

Iridium Communications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.77B14.7622.59%3.50%7.30%21.31%
70
Outperform
$1.32B16.4127.94%0.45%2.52%10.02%
63
Neutral
$2.42B5.10-0.97%
58
Neutral
$8.08B-123.83-12.45%8.54%-59.63%
53
Neutral
$629.12M-91.98-6.63%102.05%-110.74%
41
Neutral
$1.13B-5.55-136.94%13.23%-6.48%-588.01%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRDM
Iridium Communications
16.59
-11.88
-41.73%
CCOI
Cogent Comms
22.68
-46.98
-67.44%
GSAT
Globalstar
56.91
29.16
105.08%
IDT
IDT
52.79
5.78
12.30%
GOGO
Gogo
4.70
-3.22
-40.66%
IHS
IHS Holding
7.11
3.96
125.71%

Iridium Communications Corporate Events

Executive/Board ChangesDividends
Iridium Communications Appoints New Independent Director
Positive
Dec 4, 2025

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.

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.Date of analysis: Dec 09, 2025