Iridium Communications (IRDM) AI Stock Analysis

• Market Cap: $2.62B
• Dividend Yield: 2.24%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.65
• Revenue Growth: 7.56%
• EPS Growth: 38.78%
• Country: US
• Employees: 873
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 0.20
• Shares Outstanding: 106,113,914
• 10 Day Avg. Volume: 1,406,267
• 30 Day Avg. Volume: 1,949,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 5.82
• Enterprise Value/Gross Profit: 7.82
• Enterprise Value/Ebitda: 11.68
• 1Y Price Target: $34.40
• Price Target Upside: 37.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $26.00 ▲(3.92% Upside)

Iridium Communications' strong financial performance and moderate valuation are offset by bearish technical indicators and mixed earnings call sentiment. The company's high debt levels and downward adjustments in revenue growth guidance present risks, while its dividend yield and strategic partnerships offer some upside potential.

Positive Factors

Engineering Revenue

Iridium’s engineering services revenue was significantly above expectations, driven by rapid growth for its Space Development Agency ground station services contract.

Free Cash Flow and Valuation

The valuation is considered undemanding with a current free cash flow yield of approximately 10.3% for 2026.

Government and Defense Sector

Iridium Communications is seen as an underappreciated defense play due to its significant government exposure and potential opportunities in areas like drones and Golden Dome.

Negative Factors

Broadband Subscriber Shift

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

Competition

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

Service Revenue and Market Reaction

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

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 generates revenue primarily through the provision of satellite services, which include subscription-based voice and data plans for individual and enterprise customers. The company's key revenue streams consist of service revenues from its satellite communications services, equipment sales, and value-added services such as tracking and monitoring solutions. Additionally, Iridium has partnerships with various organizations and companies, including government contracts and collaborations with technology firms, which significantly contribute to its earnings. The company's revenue model is augmented by the sale of satellite terminals and devices that enable connectivity to its network, as well as fees from bulk services provided to businesses and organizations in sectors that rely on remote communications.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	857.55M	830.68M	790.72M	721.03M	614.50M	583.44M
Gross Profit	638.33M	652.54M	565.60M	519.88M	464.10M	440.75M
EBITDA	427.73M	404.05M	380.07M	380.16M	351.75M	312.81M
Net Income	113.17M	112.78M	15.41M	8.72M	-9.32M	-56.05M
Balance Sheet
Total Assets	2.57B	2.67B	2.66B	2.95B	3.18B	3.36B
Cash, Cash Equivalents and Short-Term Investments	79.31M	93.53M	71.87M	168.77M	320.91M	244.73M
Total Debt	1.81B	1.79B	1.50B	1.51B	1.62B	1.64B
Total Liabilities	2.09B	2.09B	1.77B	1.83B	1.89B	1.94B
Stockholders Equity	473.62M	576.64M	888.10M	1.13B	1.29B	1.42B
Cash Flow
Free Cash Flow	325.97M	306.06M	241.43M	273.46M	260.73M	211.08M
Operating Cash Flow	414.11M	375.95M	314.91M	344.73M	302.87M	249.77M
Investing Cash Flow	-88.14M	-180.60M	-83.49M	-121.27M	-36.38M	-46.47M
Financing Cash Flow	-310.24M	-170.48M	-327.05M	-374.98M	-182.47M	-188.19M

Iridium Communications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 25.02 is above the 20-day moving average (MA) of 24.49, below the 50-day MA of 27.72, and below the 200-day MA of 27.75, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 68.87 is Neutral, 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
TIMB	79 Outperform	$10.19B	16.22	13.78%	5.61%	-7.99%	2.16%
VEON	70 Outperform	$3.90B	3.97	89.94%	―	8.66%	―
IRDM	67 Neutral	$2.62B	24.80	17.96%	2.24%	7.56%	38.78%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
TDS	55 Neutral	$4.23B	―	-0.81%	0.40%	-5.62%	80.09%
LUMN	51 Neutral	$4.81B	―	-78.94%	―	-6.50%	43.47%
GSAT	49 Neutral	$3.54B	―	-10.33%	―	14.85%	6.91%

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.

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.