Iridium Communications Inc (IRDM)
NASDAQ:IRDM
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Iridium Communications
(NASDAQ:IRDM)
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Rating:73Outperform
Price Target:
$37.00
▲(6.87% Upside)
Action:ReiteratedDate:04/04/26
IRDM scores well on durable profitability and cash generation and a constructive earnings outlook focused on free-cash-flow and deleveraging, supported by strong technical momentum. The main offsets are elevated leverage and moderated 2026 growth guidance (including ongoing broadband declines), while valuation is fair with only a modest dividend yield.
Positive Factors
Free Cash Flow Generation
Iridium's strong FCF (~$296M in 2025) and high OIBDA-to-cash conversion underpin durable internal funding for debt service, dividends and product investment. Consistent conversion and an articulated $1.5–$1.8B FCF target through 2030 provide multi-year cash visibility that supports deleveraging and capital returns.
Negative Factors
High Financial Leverage
Elevated leverage materially increases refinancing and interest-rate sensitivity, reducing financial flexibility. A smaller equity base amplifies returns but limits downside absorption; deleveraging targets (3.0x then <2.0x long-term) are constructive but execution risk remains if cash flow or refinancing conditions weaken.
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Positive Factors
Negative Factors
Free Cash Flow Generation
Iridium's strong FCF (~$296M in 2025) and high OIBDA-to-cash conversion underpin durable internal funding for debt service, dividends and product investment. Consistent conversion and an articulated $1.5–$1.8B FCF target through 2030 provide multi-year cash visibility that supports deleveraging and capital returns.
Read all positive factors
Iridium Communications (IRDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.63B
Dividend Yield3.3%
Average Volume (3M)2.03M
Price to Earnings (P/E)16.3
Beta (1Y)0.45
Revenue Growth7.30%
EPS Growth21.31%
CountryUS
Employees873
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding104,956,760
10 Day Avg. Volume2,088,135
30 Day Avg. Volume2,029,717
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 Cap1.46
Enterprise Value/Revenue6.08
Enterprise Value/Gross Profit11.04
Enterprise Value/Ebitda11.77
Forecast
1Y Price Target
$25.40Price Target Upside-26.63% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.35
Revenue Forecast (FY)$881.80M
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 Key Performance Indicators (KPIs)
Iridium Communications Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call balanced concrete operational and financial strength — meeting 2025 guidance, delivering 5% OIBDA growth, strong free cash flow (~$296M) and a clear deleveraging and dividend plan — with near-term headwinds (notably a 9%–10% decline in broadband revenue, lower equipment sales, a $3M inventory charge, and lumpy PNT timing). Management emphasized long-term growth themes (IoT/NTN Direct, PNT, national security, aviation) and product launches with meaningful revenue potential, but 2026 guidance moderates growth while carrying a one-time OIBDA adjustment for incentive comp changes. On balance the positives (cash generation, margin resilience, government contracts, new product pipeline and partner additions) outweigh the near-term operational and accounting headwinds, though investors should expect some revenue mix pressure and lumpiness in PNT timing.Positive Updates
Met 2025 Guidance and Financial Performance
Achieved 2025 guidance; service revenue grew 3% for the year; full-year operational EBITDA (OIBDA) was $495.3M, up 5% year-over-year; total Q4 revenue $212.9M and Q4 OIBDA $115.3M.
Negative Updates
Broadband Revenue Decline
Broadband revenue declined 9% year-over-year in Q4 and fell 10% for the full year 2025; company cites ARPU pressure from migration from primary to lower-priced companion/backup plans and expects broadband decline to continue in 2026 (but moderate vs 2025).
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Q4-2025 Updates
Positive
Negative
Met 2025 Guidance and Financial Performance
Achieved 2025 guidance; service revenue grew 3% for the year; full-year operational EBITDA (OIBDA) was $495.3M, up 5% year-over-year; total Q4 revenue $212.9M and Q4 OIBDA $115.3M.
Read all positive updates
Company Guidance
Management said it achieved 2025 guidance with service revenue up 3%, full‑year operational EBITDA of $495.3M (+5%) and an OIBDA‑to‑cash conversion of 60% resulting in pro forma free cash flow of $296M; Q4 revenue was $212.9M and Q4 OIBDA $115.3M. For 2026 they guided service revenue flat to +2% and operational EBITDA of $480–$490M (reflecting a $17M headwind from moving annual incentive comp to cash and ~1ppt less equity issuance; absent that change OIBDA would be $497–$507M), and—using midpoint OIBDA less ~$82M net interest, ~$90M CapEx, $6M cash taxes and $11M working capital—project pro forma free cash flow of $318M (66% conversion) and a ~16% free cash flow yield, supporting a $1.5–$1.8B FCF target through 2030. Other key metrics: Q4 commercial voice & data +4%, commercial IoT +11%, broadband Q4 $12.2M (‑9% YoY; FY broadband ‑10%), commercial subs +4% (Q4), hosted payloads & other Q4 $13.4M (+13%), government Q4 $27.6M, Q4 equipment sales $17M (normalized FY equipment sales $80–$90M), engineering & support Q4 $37.1M, cash $96.5M at Dec‑2025, FY CapEx $100.3M (Q4 $33.5M), net leverage 3.4x OIBDA (target ~3x by YE‑2026, <2x long‑term), paid $62.9M dividends in 2025 (3.3% yield) with an expected increase in 2026, paused buybacks but retired ~6.8M shares at $27.07 average in 2025.Iridium Communications Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 871.66M | 830.68M | 790.72M | 721.03M | 614.50M |
| Gross Profit | 674.08M | 396.99M | 283.10M | 216.40M | 158.67M |
| EBITDA | 446.19M | 415.67M | 380.07M | 386.08M | 350.45M |
| Net Income | 114.37M | 112.78M | 15.41M | 8.72M | -9.32M |
Balance Sheet | |||||
| Total Assets | 2.53B | 2.67B | 2.66B | 2.95B | 3.18B |
| Cash, Cash Equivalents and Short-Term Investments | 96.50M | 93.53M | 71.87M | 168.77M | 320.91M |
| Total Debt | 1.76B | 1.81B | 1.50B | 1.51B | 1.62B |
| Total Liabilities | 2.07B | 2.09B | 1.77B | 1.83B | 1.89B |
| Stockholders Equity | 462.60M | 576.64M | 888.10M | 1.13B | 1.29B |
Cash Flow | |||||
| Free Cash Flow | 299.79M | 306.06M | 241.43M | 273.46M | 260.73M |
| Operating Cash Flow | 400.07M | 375.95M | 314.91M | 344.73M | 302.87M |
| Investing Cash Flow | -100.28M | -180.60M | -83.49M | -121.27M | -36.38M |
| Financing Cash Flow | -299.91M | -170.48M | -327.05M | -374.98M | -182.47M |
Iridium Communications Technical Analysis
Positive
34.62
Price Trends
24.41
Positive
21.03
Positive
21.83
Positive
Market Momentum
2.49
Negative
77.34
Negative
91.20
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 34.62 is above the 20-day moving average (MA) of 27.92, above the 50-day MA of 24.41, and above the 200-day MA of 21.83, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 77.34 is Negative, neither overbought nor oversold. The STOCH value of 91.20 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 | $1.24B | 14.58 | 26.17% | 0.47% | 2.52% | 10.02% | |
73 Outperform | $3.63B | 16.30 | 24.01% | 3.30% | 7.30% | 21.31% | |
64 Neutral | $9.63B | -894.38 | -3.18% | ― | 8.54% | -59.63% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $2.77B | 17.41 | -56.86% | ― | -0.97% | ― | |
52 Neutral | $564.32M | 48.21 | 13.13% | ― | 102.05% | -110.74% | |
47 Neutral | $988.02M | -8.36 | -842.48% | 13.93% | -6.48% | -588.01% |
* Communication Services Sector Average
IRDM
Iridium Communications
34.62
10.64
44.35%
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IDT
IDT
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GOGO
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4.19
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IHS
IHS Holding
8.26
3.65
79.18%
Iridium Communications Corporate Events
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.