Iridium Launches Next Generation IoT Platform[Accessibility Statement] [Skip Navigation]Smaller, purpose- built, and designed for scale, the new Iridium 9604 unifies satellite, cellular, and GNSS in a single platform engineered for global IoTMCLEAN, Va., Feb. 24, 2026 /PRNewswire/ -- [Iridium Communications Inc.] (Nasdaq: [IRDM]), a leading provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, today unveiled the [Iridium 9604], a compact, three-in-one IoT module t ...

Performance Overview - Iridium Communications (IRDM) gained 15.85% weekly and 33.31% year-to-date (YTD) 2026, while AST SpaceMobile (ASTS) fell 18.94% weekly but is up 13.60% YTD [1] - Intuitive Machines (LUNR) shares declined by 7.93% weekly and are down 0.62% YTD, and Rocket Lab (RKLB) saw a decrease of 6.75% weekly and 3.33% YTD [1] - The overall trend indicates a rotation from 'risky' assets to safer blue-chip stocks, particularly in healthcare and consumer staples [1] M&A Activity - Intuitive Machines announced an $800 million acquisition of Lanteris Space Systems, expected to close in Q1 2026, positioning the company as a next-generation space prime [1] - The acquisition comes as Intuitive Machines has a backlog of $235.9 million and $622 million in cash, with positive sentiment reflected in Reddit discussions [1] Financing and Index Inclusion - AST SpaceMobile's week was marked by significant financing activity and engagement on social media, despite a 19% decline in shares [1] - The company is set to join the MSCI World Index effective February 27, 2026, which may lead to predictable passive fund buying pressure [1] Operational Highlights - Iridium Communications reaffirmed steady service revenue growth guidance and highlighted strong operational momentum in its IoT business, which differs from many other space stocks [1] - Rocket Lab secured a record number of launch contracts and is advancing its Neutron launch vehicle, with hopes for a first launch by mid-year [1] Market Sentiment and Future Outlook - The upcoming Artemis mission returning to the moon in March is anticipated to generate broader enthusiasm and potentially positive sentiment for space stocks [1]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. ...

Core Insights - Iridium Communications (IRDM) reported Q4 2025 EPS of 24 cents, exceeding the Zacks Consensus Estimate by 4.4%, but down from 32 cents in the prior year [1] - Total revenue for the quarter was $212.9 million, flat year over year, and missed consensus estimates by 3% [2] - Service revenue growth of 3% year over year to $158.9 million was driven by higher subscriber engagement, contributing 75% to total revenues in Q4 [3][10] Revenue Breakdown - Commercial service revenue increased by 3% year over year to $131.2 million, accounting for 62% of total revenue, supported by a 4% rise in voice and data revenue and an 11% increase in commercial IoT revenue [4] - Hosted payload and other data services revenue fell 13% year over year to $13.4 million, primarily due to a delay in a PNT deployment [5] - Government service revenue rose 3% to $27.6 million, driven by a contractual rate increase under the EMSS contract with the U.S. Space Force [5] Subscriber and Equipment Sales - Subscriber equipment sales declined 21% to $17 million, aligning with the company's outlook for normalized annual equipment sales of $80–$90 million [6] - Total billable subscribers reached 2,537,000, up 3% from the prior year, with commercial IoT representing 83% of commercial subscribers [12] Financial Performance - Total operating expenses were $157.7 million, down from $160.9 million in the prior year, mainly due to lower R&D costs [11] - Operational EBITDA (OEBITDA) was $115.3 million, down 2% year over year, impacted by a $3 million inventory charge [11] - Iridium expects 2026 OEBITDA of $480–$490 million, reflecting a $17 million cash compensation impact [16] Market Reaction - Following the earnings announcement, IRDM's shares rose 21.3% to close at $22.39 on February 12, despite a 30% decline over the past year compared to the Zacks Satellite and Communication industry's growth of 168% [7]

Financial Data and Key Metrics Changes - Service revenue for 2025 grew by 3%, aligning with guidance, while operational EBITDA increased by 5% year-over-year to $495.3 million [22][23] - Pro forma free cash flow reached nearly $300 million, with a conversion rate of 60% from EBITDA to cash flow [5][22] - Total revenue for Q4 2025 was $212.9 million, reflecting year-over-year growth in service revenue but lower subscriber equipment sales [23] Business Line Data and Key Metrics Changes - Commercial IoT revenue grew by 11% in Q4 2025, supported by the addition of over 30 new IoT products certified during the year [23][24] - Voice and data revenue increased by 4% in Q4, benefiting from a price increase implemented earlier in the year [23] - Broadband revenue declined by 9% in Q4 and 10% for the full year, attributed to a shift towards lower-priced companion plans [24] Market Data and Key Metrics Changes - The government business revenue rose to $27.6 million in Q4, reflecting the final step-up in EMSS contracts with the U.S. government [25] - Engineering and support revenue was strong at $37.1 million, with significant milestones achieved in 2025 related to government contracts [26] Company Strategy and Development Direction - The company aims to expand its addressable markets through four key growth themes: narrowband IoT expansion, national security work, PNT services, and aviation industry disruption [12][19] - New services and products expected to generate over $200 million in revenue opportunities by the end of the decade [9][10] - The company is focusing on leveraging its unique spectrum assets and exploring potential business alliances to maximize shareholder value [11][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow and return capital to shareholders through dividends [6][21] - The outlook for 2026 includes flat to 2% growth in service revenue, with expectations for continued growth in IoT and government contracts [27][31] - Management acknowledged the competitive landscape but emphasized the company's strong position and growth potential in the satellite industry [80] Other Important Information - A change in management incentive compensation to be fully cash-based starting in 2026, aimed at aligning more closely with shareholder interests [26][40] - The company ended 2025 with a cash balance of approximately $96.5 million and no outstanding borrowings [35] Q&A Session Summary Question: Details on the decision to make incentive compensation entirely in cash - Management explained that the change aligns better with shareholder interests and reflects industry norms, while it will not impact GAAP financials [40][45] Question: Clarification on the $200 million revenue expectation from growth areas - Management clarified that the $200 million figure pertains to new growth products and does not directly correlate to the four growth themes discussed [46][49] Question: Insights on potential M&A opportunities in growth areas - Management indicated that while there are opportunities in PNT and IoT, the focus remains on internal growth and partnerships rather than acquisitions at this time [53][54] Question: Views on space data centers and their impact on the industry - Management expressed skepticism about the viability of space data centers, citing significant technical challenges and a preference to focus on current business themes [61][63] Question: Next milestones for D2D services - Management highlighted ongoing product testing and partner demonstrations as key milestones for the year [65] Question: Expected PNT revenue contribution for 2026 - Management noted that PNT revenue is incorporated into the flat 2% growth outlook, with potential upside as opportunities develop [67][69]

Iridium Communications (NasdaqGS:IRDM) Q4 2025 Earnings call February 12, 2026 08:30 AM ET Company ParticipantsKen Levy - VP of Investor RelationsMatt Desch - CEOVince O'Neill - CFOConference Call ParticipantsCaleb Henry - AnalystChris Quilty - AnalystColin Canfield - AnalystEdison Yu - AnalystGreg Mesniaeff - AnalystHamed Khorsand - AnalystLouie DiPalma - AnalystRic Prentiss - AnalystSimon Flannery - AnalystTim Horan - AnalystWalter Piecyk - AnalystOperatorGood morning, and welcome to the Iridium fourth qu ...

Financial Data and Key Metrics Changes - Service revenue for 2025 grew by 3%, aligning with guidance, while operational EBITDA increased by 5% year-over-year to $495.3 million [22][23] - Pro forma free cash flow reached nearly $300 million, with a conversion rate of EBITDA to cash flow at 60% [5][22] - Total revenue for Q4 2025 was $212.9 million, reflecting year-over-year growth in service revenue but lower subscriber equipment sales [23] Business Line Data and Key Metrics Changes - Commercial IoT revenue grew by 11% in Q4 2025, supported by the addition of over 30 new IoT products certified during the year [23][24] - Voice and data revenue increased by 4% in Q4, benefiting from a price increase implemented earlier in the year [23] - Broadband revenue declined by 9% in Q4 and 10% for the full year, attributed to a shift towards lower-priced companion plans [24] Market Data and Key Metrics Changes - The government business revenue rose to $27.6 million in Q4, reflecting the final step-up in EMSS contracts with the U.S. government [25] - Engineering and support revenue was strong at $37.1 million, with significant milestones achieved in 2025 related to government contracts [26] Company Strategy and Development Direction - The company is focusing on four key growth areas: narrowband IoT expansion, assured PNT services, national security work with the U.S. government, and aviation industry disruption [12][19] - New services and products expected to generate over $200 million in revenue opportunities by the end of the decade [9][10] - The company plans to leverage its unique spectrum assets and explore future business alliances to maximize shareholder value [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow and return capital to shareholders through dividends [5][21] - The company anticipates a slower growth trajectory in 2026 but remains optimistic about long-term value creation [21][22] - Management highlighted the importance of adapting to competitive pressures while maintaining a focus on core business strengths [80] Other Important Information - A change in management incentive compensation to be fully cash-based starting in 2026, expected to reduce equity issuance and align more closely with shareholder interests [26][34] - The company ended 2025 with a cash balance of approximately $96.5 million and no outstanding borrowings under its revolving facility [35] Q&A Session Summary Question: Details on the decision to make incentive compensation entirely in cash - Management explained that the change aligns better with shareholder interests and reflects industry norms, while it will not impact GAAP financials [40][45] Question: Clarification on the $200 million revenue expectation from growth areas - Management clarified that the $200 million figure pertains to new growth products and does not directly correlate to the four growth themes discussed [46][48] Question: Ranking of growth areas and potential for M&A - Management indicated that while national security and PNT are promising, IoT and aviation safety also present significant opportunities, with potential for partnerships rather than acquisitions [53][54] Question: Viability of space data centers and potential involvement - Management expressed skepticism about the feasibility of space data centers, emphasizing a focus on current business themes rather than speculative ventures [62][63] Question: Next milestones for D2D services - Management outlined that product introduction and partner testing are key milestones to watch for in the upcoming year [64][65] Question: Expected PNT revenue contribution for 2026 - Management noted that PNT is included in the flat 2% growth outlook for 2026, with potential upside as opportunities develop [66][69]

Iridium Communications (IRDM) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.72%. A quarter ago, it was expected that this satellite phone company would post earnings of $0.26 per share when it actually produced earnings of $0.35, delivering a surprise of +34.62%.Over the last fou ...

Financial Risks - The Board of Directors may reduce, suspend, or terminate planned dividends based on various factors, which could impact the value of the common stock [204]. - Adverse changes in credit ratings or withdrawal of ratings by agencies could restrict access to capital markets and increase borrowing costs, limiting financial flexibility [205]. - The company's ability to utilize net operating loss carryforwards may be limited by ownership changes, potentially affecting profitability [227]. - Adverse determinations by taxing authorities could negatively impact the company's operating results and financial condition [228]. - Changes in tax laws could increase the company's worldwide tax rate, adversely affecting its financial position and results of operations [230]. - The company’s credit agreement contains cross-default provisions, which could trigger immediate repayment demands under certain conditions, increasing financial vulnerability [201]. Market and Operational Risks - The market price of the common stock has experienced substantial fluctuations, which may continue due to various industry and market factors [206]. - The company faces risks related to the performance of satellites and variations in operating results, including potential contract terminations [207]. - Extensive government regulation affects operations and may increase costs, potentially slowing expansion into new markets [208]. - The company is subject to product liability claims and recalls as it expands consumer-oriented offerings, which could adversely affect financial performance [214]. - Evolving privacy laws and regulations regarding user data could impose additional costs and risks on the company [215]. - The company may face intellectual property claims that could disrupt operations and divert management's attention [219]. - Regulatory requirements in certain regions may limit the company's ability to offer services, impacting growth potential [220]. - The company is subject to numerous governmental regulations, including those from the U.S. Department of Commerce, U.S. Treasury, and U.S. State Department, which may affect its ability to operate and expand into new markets [221]. - The company faces potential liabilities from third parties, including significant royalties and damages, which could impact its operations and financial results [222]. - Compliance with U.S. and foreign regulations may limit or delay the company's ability to offer products and services, potentially leading to substantial fines or sanctions [223]. - Regulatory scrutiny regarding wireless devices' radio frequency emissions could lead to new regulations and potential liabilities, impacting revenue and subscriber demand [226]. Insurance and Liability Risks - The company is required to maintain an in-orbit liability insurance policy for Block 1 satellites, which may not cover all liabilities and could increase costs due to fluctuating insurance terms [224]. - The company may face challenges in renewing insurance coverage for potential liabilities related to its first-generation satellites, increasing exposure to risks [225]. - The company is required to maintain liability insurance for its satellites, which may become more expensive or difficult to obtain in the future [224]. Legal and Regulatory Challenges - Ligado is currently involved in ongoing litigation against the U.S. government regarding the unlawful prevention of using its FCC authorized spectrum, seeking damages for its inability to deploy ATC services [211]. - In January 2025, Ligado filed for voluntary reorganization under Chapter 11 and agreed to lease its satellites and spectrum to AST SpaceMobile, while retaining the ability to deploy ATC services pending litigation outcomes [212]. - The FCC licenses held by Ligado, including those for its satellite constellation, are subject to revocation or modification, with the satellite license expiring on February 23, 2032 [213]. - Ligado's expansion into consumer-oriented devices may expose the company to product liability claims, recalls, or litigation, potentially impacting financial performance [214]. - The company faces evolving legal obligations regarding the collection and use of personal information, which could increase operational costs and risks [215]. - Compliance with varying privacy and data protection laws across jurisdictions may lead to additional costs and operational changes for Ligado [216]. - Ligado's ability to operate in certain regions may be limited by local regulatory requirements, which could hinder growth opportunities [220]. - Export control and sanctions regulations may affect Ligado's operations and market expansion efforts [221].

Core Viewpoint - Iridium Communications Inc. reported stable financial performance for Q4 2025 and full-year 2025, with a total revenue of $212.9 million in Q4 and $871.7 million for the year, reflecting a 5% year-over-year growth driven by demand for IoT services and a diverse commercial customer base [1][2][4]. Financial Performance - Q4 2025 total revenue was $212.9 million, comprising $158.9 million in service revenue and $54.0 million from equipment sales and engineering projects, consistent with the previous year [1][2]. - Full-year 2025 revenue reached $871.7 million, a 5% increase from 2024, with service revenue accounting for $634.0 million [1][4]. - Net income for Q4 2025 was $24.9 million ($0.24 per diluted share), down from $36.3 million ($0.32 per diluted share) in Q4 2024 [1][4]. - Full-year net income was $114.4 million, up from $112.8 million in 2024, with net income per diluted share increasing by 13% to $1.06 [1][4]. Subscriber Growth - Total billable subscribers reached 2,537,000 by the end of Q4 2025, a 3% increase from 2,460,000 in the previous year [1][2]. - The commercial subscriber base grew to 2,416,000, with IoT data subscribers representing 83% of this total [2][4]. Revenue Breakdown - Commercial service revenue in Q4 2025 was $131.2 million, a 3% increase year-over-year, driven by IoT data and voice services [1][4]. - Government service revenue grew by 3% to $27.6 million in Q4 2025, reflecting a contractual rate increase [2][4]. - Equipment revenue for 2025 totaled $81.1 million, down from $91.4 million in 2024, with expectations for 2026 to align with 2025 levels [2][4]. Operational Metrics - Operational EBITDA for Q4 2025 was $115.3 million, a slight decrease of 2% from the previous year [1][4]. - Full-year Operational EBITDA was $495.3 million, representing a 5% increase from 2024 [1][4]. Capital Allocation - Capital expenditures for Q4 2025 were $33.5 million, with a total of $100.3 million for the year [2][4]. - The company ended Q4 2025 with gross debt of $1.8 billion and a cash balance of $96.5 million, resulting in a net debt of $1.7 billion [2][4]. 2026 Outlook - Iridium expects total service revenue growth to be flat to 2% for full-year 2026, with projected Operational EBITDA of $480 million to $490 million [2][4]. - The company aims to reduce net leverage to at or below 3.0 times OEBITDA by the end of 2026 [2][4].