Companies /Communication Services

Iridium Communications Inc

NASDAQ: IRDM Telecom Services
$46.61
▼ $1.03 (−2.17%) today
Markets open · 2:28pm ET

Q2 2025 Earnings

Reported Jul 24, 2025, 7:04am ET · SEC source
$0.20
Miss −15.79%
EPS · est. $0.24
$216.9M
Beat +1.28%
Revenue · est. $214.2M
−3.0%
Trailing market
IRDM vs S&P since report
3 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−18%−9%0+9%Jul 24Jul 25report 7:04am ETearnings+0.4%−17.9%
−18%−9%0+9%Jul 24Jul 25earnings+0.4%−17.9%
IRDM −17.9%S&P 500 +0.4%
−18%−9%0+9%Jul 24Jul 25report 7:04am ETearnings+0.3%−17.9%
−18%−9%0+9%Jul 24Jul 25earnings+0.3%−17.9%
IRDM −17.9%NASDAQ +0.3%
−20%−10%0+10%Jul 23Aug 1report 7:04am ETearnings−1.4%−21.9%
−20%−10%0+10%Jul 23Aug 1earnings−1.4%−21.9%
IRDM −21.9%S&P 500 −1.4%
−20%−10%0+10%Jul 23Aug 1report 7:04am ETearnings−1.3%−21.9%
−20%−10%0+10%Jul 23Aug 1earnings−1.3%−21.9%
IRDM −21.9%NASDAQ −1.3%
−22.09%
Day of report
+1.70%
Next session
−3.19%
One week
−1.72%
30 days

S&P 500 over the same 30 days: +1.27%.

Did IRDM Beat Earnings? Q2 2025 Results

Iridium Communications delivered a mixed second quarter, clearing the revenue bar while falling short on earnings — a result that sent shares tumbling more than 20% as investors absorbed both the bottom-line miss and a dimmer growth outlook. Revenue grew 7.9% year-over-year to $216.91 million, edging past the $214.16 million consensus, but earnings per diluted share of $0.20 missed the $0.2375 estimate by 15.79%, weighed down by the absence of a $19.80 million one-time gain from the Satelles acquisition that had inflated Q2 2024 net income. Operational EBITDA still grew 6% to $121.31 million, with Commercial IoT and a 62% surge in engineering and support revenue — fueled by rising U.S. government activity — providing meaningful offsets to weakness in commercial broadband. The headline concern, however, was the company's decision to lower full-year service revenue growth guidance to 3%-5% from its prior 5%-7% range, even as it held OEBITDA guidance steady at $490 million to $500 million, suggesting margin discipline remains intact even as top-line momentum moderates.

Key Takeaways
  • Commercial IoT data subscriber growth of 5% YoY to 1,924,000 subscribers driving 8% revenue growth
  • Engineering and support revenue surged 62% due to increasing U.S. government activity
  • Contractual EMSS rate increase contributing to government service revenue growth
  • Net income decline primarily due to non-recurrence of $19.8 million one-time Satelles acquisition gain in Q2 2024

“We're making great progress on our direct-to-device service with testing now underway and are also finding exciting, innovative applications for our new PNT service.”

Iridium Communications CEO, on the earnings call

Forward Guidance & Outlook

Iridium lowered its full-year 2025 service revenue growth guidance to 3%-5% (from 5%-7% previously), based on 2024 total service revenue of $614.9 million. Full-year 2025 OEBITDA guidance was maintained at $490-$500 million. Equipment sales are expected to be in line with 2024, and engineering and support revenue is expected to increase from 2024. Cash taxes are projected at less than $10 million per year through 2026, with cash tax rates moving closer to statutory rates by 2028. Net leverage is expected to remain below 4.0x OEBITDA through 2026 and fall below 2.0x by the end of the decade, assuming continued share repurchases and dividend payments. The EMSS contract fixed-price rate will increase to $110.5 million for the contract year beginning September 15, 2025.

IRDM YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$60.0M$120.0M$180.0M$201.1M$216.9MRevenue$43.6M$50.3MOperating Income$32.3M$22.0MNet Income
$0$60.0M$120.0M$180.0MRevenueOperating IncomeNet Income

IRDM Revenue by Segment

Commercial Voice and Data Service
Commercial Voice and Data$56.8M+1.0%
Commercial IoT Data Service
Commercial IoT Data$44.7M+8.0%
Engineering and Support$41.9M+62.0%
Engineering and Support - Government
Engineering and Support - Commercial
U.S. Government Service

Figures from SEC filings and company reports. Not investment advice.