Companies /Communication Services

Iridium Communications Inc

NASDAQ: IRDM Telecom Services
$46.61
▼ $1.03 (−2.16%) today
Markets open · 2:46pm ET

Q1 2026 Earnings

Reported Apr 23, 2026, 7:00am ET · SEC source
$0.20
Miss −28.57%
EPS · est. $0.28
$219.1M
Miss −0.06%
Revenue · est. $219.2M
+16.6%
Beating market
IRDM vs S&P since report
3 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
0+4%+8%Apr 23Apr 24report 7:00am ETearnings+0.7%+3.4%
0+4%+8%Apr 23Apr 24earnings+0.7%+3.4%
IRDM +3.4%S&P 500 +0.7%
0+4%+8%Apr 23Apr 24report 7:00am ETearnings+1.6%+3.4%
0+4%+8%Apr 23Apr 24earnings+1.6%+3.4%
IRDM +3.4%NASDAQ +1.6%
−6%0+6%+12%Apr 22May 1report 7:00am ETearnings+1.4%+0.5%
−6%0+6%+12%Apr 22May 1earnings+1.4%+0.5%
IRDM +0.5%S&P 500 +1.4%
−6%0+6%+12%Apr 22May 1report 7:00am ETearnings+2.1%+0.5%
−6%0+6%+12%Apr 22May 1earnings+2.1%+0.5%
IRDM +0.5%NASDAQ +2.1%
+1.31%
Day of report
−4.81%
Next session
−4.54%
One week
+22.55%
30 days

S&P 500 over the same 30 days: +5.95%.

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 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

“2026 is off to a solid start, as we continue to grow service revenue and introduce new products, like our next-generation IoT platform.”

Iridium Communications CEO, on the earnings call

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 · SEC filings Q1 2025 Q1 2026
$0$70.0M$140.0M$210.0M$214.9M$219.1MRevenue$60.4M$50.7MOperating Income$30.4M$21.6MNet Income
$0$70.0M$140.0M$210.0MRevenueOperating IncomeNet Income

IRDM Revenue by Segment

Commercial Voice and Data Service$57.4M+3.0%
Commercial Voice and Data
Commercial IoT Data Service$46.0M+5.0%
Commercial IoT Data
Engineering and Support
Engineering and Support - Government$39.5M+10.0%
Engineering and Support - Commercial$1.3M−18.0%
U.S. Government Service$27.6M+3.0%

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