Q1 26 EPS
$0.20
MISS 28.57%
Est. $0.28
Q1 26 Revenue
$219.1M
MISS 0.06%
Est. $219.2M
vs S&P Since Q1 26
+31.8%
BEATING MARKET
IRDM +37.2% vs S&P +5.4%
Market Reaction
Did IRDM Beat Earnings? Q1 2026 Results
Iridium Communications Inc. Delivered a softer-than-expected first quarter for 2026, missing on both earnings and revenue as a deliberate shift in compensation structure weighed on the bottom line. The satellite operator posted earnings of $0.20 per … Read more Iridium Communications Inc. Delivered a softer-than-expected first quarter for 2026, missing on both earnings and revenue as a deliberate shift in compensation structure weighed on the bottom line. The satellite operator posted earnings of $0.20 per diluted share, falling short of the $0.28 consensus estimate by 28.57%, while revenue of $219.06 million came in just fractionally below the $219.18 million Wall Street had anticipated, representing 1.9% growth year-over-year. The primary culprit was a spike in SG&A expenses to $45.78 million, up from $35.75 million a year ago, as Iridium elected to pay annual incentive compensation entirely in cash rather than a blend of cash and equity, a decision that will shave approximately $17 million from full-year OEBITDA. Operational EBITDA declined 5% to $116.34 million as a result. On a brighter note, the total subscriber base expanded 5% to 2.56 million, with IoT data subscribers leading the way. Iridium reaffirmed its 2026 outlook, targeting OEBITDA of $480 million to $490 million and net leverage at or below 3.0x by year-end, even as spectrum monetization prospects continue to capture investor attention.
Key Takeaways
- • Commercial IoT data subscriber growth of 7% year-over-year
- • Price actions on commercial voice and data driving ARPU increase to $48 from $45
- • Contractual rate increases under the EMSS Contract supporting government service revenue growth
- • Increasing engineering and support activity with U.S. government
IRDM Forward Guidance & Outlook
Iridium reiterated its full-year 2026 outlook: total service revenue projected flat to 2% growth (2025 service revenue was $634.0 million); full-year OEBITDA of $480 million to $490 million (reflecting the ~$17 million impact from the shift to all-cash incentive compensation; without this change OEBITDA would have been $497 million to $507 million); equipment sales expected in line with 2025; engineering and support revenue expected to increase from 2025. Cash taxes are projected at less than $10 million per year through 2027, with the longer-term cash tax rate expected to move closer to the statutory rate in 2029. Net leverage is targeted at or below 3.0x OEBITDA by end of 2026 and below 2.0x by end of the decade.
IRDM YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
IRDM Revenue by Segment
With YoY comparisons, source: SEC Filings
“2026 is off to a solid start, as we continue to grow service revenue and introduce new products, like our next-generation IoT platform.”
— Matt Desch, Q1 2026 Earnings Press Release
IRDM Earnings Trends
IRDM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IRDM EPS Trend
Earnings per share: estimate vs actual
IRDM Revenue Trend
Quarterly revenue: estimate vs actual
IRDM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.28 | $0.20 | -28.57% | $219.1M | -0.06% |
| Q4 25 MISS FY | $0.25 | $0.24 | -4.00% | $212.9M | -2.83% |
| FY Full Year | $1.08 | $1.06 | -1.49% | $871.7M | -0.73% |
| Q3 25 BEAT | $0.25 | $0.35 | +41.13% | $226.9M | +2.16% |
| Q2 25 MISS | $0.24 | $0.20 | -15.79% | $216.9M | +1.28% |
| Q1 25 MISS | $0.28 | $0.27 | -3.57% | $214.9M | +1.45% |