IRDM

It has been about a month since the last earnings report for Iridium Communications (IRDM). Shares have added about 1.7% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Iridium due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Iridium Communications Inc before we dive into how investors and analysts have reacted as of late. Iridium reported earnings per share (EPS) of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter's figure of 20 cents. Management attributed most of the decline to transaction costs related to the pending Rocket Lab Corporation acquisition and higher cash-based employee incentive compensation. Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million. The biggest headline remains Rocket Lab's planned acquisition of Iridium. Rather than operating independently, Iridium is likely to become part of a vertically integrated space company spanning satellite manufacturing, launch services, space systems, global communicationsand government space infrastructure. For Iridium, Rocket Lab provides direct access to satellite manufacturing expertise, launch capacity and potentially lower deployment costs for future constellation upgrades.Management believes this integration will accelerate innovation while improving operational efficiency over time. The most compelling aspect of the quarter is Iridium's progress across four major growth initiatives, which is likely to open new market avenues. Iridium introduced the Iridium 9604 tri-mode communication module, combining satellite connectivity, LTE-M cellular and GNSS positioning. This integrated approach simplifies hardware development while lowering deployment costs for enterprise customers. Later this year, it also plans to launch Iridium NTN Direct, enabling standards-based direct-to-device satellite connectivity. The recent commercial launch of Iridium's PNT ASIC significantly expands opportunities beyond communications. If adoption accelerates, Assured PNT could evolve into an entirely new recurring revenue platform. Iridium continues to strengthen its role within the U.S. defense infrastructure. Its work supporting the Space Development Agency's Proliferated Warfighter Space Architecture demonstrates that Iridium is becoming an increasingly strategic technology partner rather than simply a communications provider. As defense spending shifts toward space-based infrastructure, this business could generate substantial long-term opportunities. The major strategic move was completing the acquisition of Aireon LLC, operator of the world's only space-based ADS-B aircraft surveillance network. Management expects the acquisition to contribute approximately $100 million in annual service revenue and $30 million in annual OEBITDA. Total Service revenues rose 4% year over year to $161.3 million. Service revenues contributed 72% to total revenues in the second quarter. Our estimate for the metric was $159.9 million. Commercial services generated $133.7 million, representing 59% of total company revenue. Several business verticals contributed. Commercial IoT revenue increased 5%, hosted payload and data services rose 14% and voice and traditional data services grew 3%. Government services continue providing stability. Revenue from U.S. government customers increased 3% to $27.6 million, primarily due to contractual pricing increases under the Enhanced Mobile Satellite Services (EMSS) contract. The U.S. government remains Iridium's largest customer and represents nearly all engineering and support services revenue. Importantly, management expects renewal of the EMSS contract by March 2027. Given the increasing geopolitical tensions and growing military reliance on resilient satellite communications, this business should remain a dependable source of recurring revenue. Subscriber Equipment sales increased 7% to $20.8 million. We projected the figure to be $18.2 million. Engineering and support revenues jumped 3% to $43.1 million, led by Iridium’s expanding work with the Space Development Agency, reinforcing its emphasis on growth driven by national security programs. Our estimate was $42 million. Total operating expenses were 191.2 million compared with $166.6 million in the prior-year quarter, primarily due to higher depreciation and amortization costs and selling, general and administrative expenses. OEBITDA remained relatively stable at $119.1 million, only slightly below last-year quarter’s $121.3 million. The decline was largely due to a change in compensation structure, shifting to fully cash-based incentives. This added about $3.9 million in expenses for the quarter. Operating income came in at $34 million compared with $50.3 million reported in the year-ago quarter. The company ended the quarter with 2,627,000 billable subscribers, a 6% increase from the previous-year quarter. Commercial IoT remained the primary growth engine as enterprises continue deploying connected sensors and remote monitoring systems across industries such as logistics, agriculture, energy and environmental monitoring. The continued growth of commercial IoT subscribers, which increased 9%, is encouraging. Iridium continues investing aggressively. Capital expenditures totaled $21.8 million during the quarter. As of June 30, 2026, gross debt reached approximately $1.8 billion with cash balance of $184.2 million. As part of its capital return program, Iridium paid a second-quarter dividend of 15 cents per share on June 30, 2026, distributing $16.2 million to shareholders It turns out, estimates review flatlined during the past month. At this time, Iridium has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Iridium has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iridium Communications Inc (IRDM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rocket Lab Corp (NASDAQ:RKLB) achieved record Q2 revenue of $234 million, a 62% year-over-year increase, driven by strong performance in both launch and space systems segments. The company signed over $1 billion in new contracts across launch and space systems in Q2 and post-quarter, including a record $266 million Space Force contract for up to 18 suborbital missions, boosting total backlog to $2.36 billion. Rocket Lab Corp (NASDAQ:RKLB) announced the strategic acquisition of Iridium Communications, which will provide a self-launching, fully integrated space powerhouse with a 66-satellite constellation, over 2.5 million subscribers, and $870 million in annual revenue. The company demonstrated exceptional execution with the Victus Hayes mission, launching an Electron to orbit in a record 16 hours and 42 minutes, commissioning the satellite in 38 hours, and completing a non-cooperative rendezvous in under 59 hours. Rocket Lab Corp (NASDAQ:RKLB) secured significant new contracts, including a $397 million Space Force deal for Flatellite spacecraft and a $160 million contract for three geostationary satellites, expanding its product portfolio and market reach. Neutron development is progressing well, with over 400 Archimedes engine hot fires completed, full engine set for the first launch in production, and the vehicle on track for pad delivery in Q4 2026, with strong pre-launch demand from government and commercial customers. Rocket Lab Corp (NASDAQ:RKLB) reported a GAAP loss of $0.08 per share in Q2, a sequential decline from a $0.07 loss in Q1, partly due to amortization from the Monaric acquisition. The company's launch services segment revenue decreased 30% quarter-over-quarter to $44.6 million, despite a similar number of launches, due to a shift in revenue mix between Electron and Haste missions. Rocket Lab Corp (NASDAQ:RKLB) expects Q3 GAAP gross margin to decline to 29-31% and non-GAAP gross margin to 35-37%, down from Q2 levels, due to a shift in space systems mix and integration costs from recent acquisitions. The company's free cash flow is expected to remain negative and elevated in Q3, driven by ongoing Neutron development, production scaling, and inventory build-out for future launches, with cash flow positivity not expected until 18-24 months after the first Neutron flight. The pending Iridium acquisition is not expected to close until mid-2027, and the company is still in early integration planning stages, with no clear timeline for realizing synergies or accelerating Iridium's growth. Rocket Lab Corp (NASDAQ:RKLB) faces margin pressure from its satellite platforms business, which has lower gross margins (mid-30s) compared to its components business, and the Monaric acquisition is expected to take several quarters to reach target margin profiles. Warning! GuruFocus has detected 8 Warning Signs with SPG. Is RKLB fairly valued? Test your thesis with our free DCF calculator. Q: How quickly can Rocket Lab scale Neutron to 10 launches, and is there potential to increase ASPs for Neutron, Electron, and Haste given the constrained launch market? A: CEO Sir Peter Beck emphasized that while the first flight is critical, the focus is on reaching Flight 10 as quickly as possible, which is driven by reusability. The company is constantly trading timelines and qualification criteria to ensure they don't have to re-qualify systems later, aiming for a 1-3-5 ramp. CFO Adam Spice added that Neutron's ASP is targeted at $50-55 million with no significant discounting for early launches, and given the supply-demand dynamics, they see more upside than downside in pricing. Q: What new opportunities does the Iridium acquisition unlock, and how will Rocket Lab balance Neutron launch capacity between commercial, government, and internal needs? A: CEO Sir Peter Beck stated that the acquisition makes Rocket Lab a self-launching, fully integrated space company, allowing it to build and launch its own satellites. The cost to replace Iridium's constellation would be starkly lower today, creating significant growth opportunities. Regarding Neutron capacity, Beck noted it's a "juggling act" to serve commercial customers, government programs like NSSL, and reserve capacity for improving the Iridium constellation. Q: What are the lowest-hanging fruit to accelerate Iridium's top-line growth in the short to intermediate term? A: CEO Sir Peter Beck highlighted that Iridium brings profitability and a constellation that is good into 2035. Rocket Lab can supercharge existing growth initiatives, especially in PNT (Positioning, Navigation, and Timing), with modest tweaks to the constellation. The acquisition also gives Rocket Lab credibility to offer mission-critical, life-critical constellation services to government customers, a capability it previously lacked, opening a new set of opportunities. Q: What are the highest-risk milestones to getting Neutron to the pad in Q4 2026? A: CEO Sir Peter Beck identified stage testing as the biggest adrenaline-inducing milestone, involving fully fueled vehicles and first-time engine ignitions. He noted that when this doesn't go well for other space companies, it "really doesn't go well." Other milestones are a decreasing series of importance, but seeing finished hardware rolling out for tests is a good indicator of progress. Q: What drove the higher cash burden in Q2, and when will free cash flow reach its peak outflow? A: CFO Adam Spice explained that the significant cash consumption was driven by building out subsequent Neutron tails to scale to rate quickly, plus replenishing the supply chain for the Monaric acquisition. He reiterated that the first successful Neutron test launch is the turning point for adjusted EBITDA positivity, but cash flow positivity is likely 18-24 months after that, as they continue investing in a fleet of tails. The Iridium acquisition, once closed, would "reset the table" given its significant free cash flow generation. Q: Can you provide color on the product mix in Space Systems and the timing of SDA Tranche 2 and Tranche 3 contracts? A: CFO Adam Spice noted that margins vary widely across the Space Systems portfolio, from solar components in the 30s to product areas north of 70 points. The satellite platforms business, including SDA Tranche 2 and Tranche 3, is at the lower end (mid-30s) but represents the largest backlog composition. He suggested a 10-40-40-10 revenue recognition curve over the four-year program life for these government contracts. Q: Does Rocket Lab expect a surge of Neutron orders post-first flight, and is there concern about industry capacity from larger competitors? A: CEO Sir Peter Beck stated that Neutron demand is "just not a concern," noting they've had "absolutely zero issues" selling full-price Neutrons pre-test flight. He doesn't see the constrained launch market changing soon, as a significant portion of new competitor capacity is already spoken for by their own internal programs like internet or AI data centers. Q: What is the update on the Mars Telecommunications Orbiter program, and how soon can NSSL task orders be expected? A: CEO Sir Peter Beck said Rocket Lab is waiting for NASA to work through its procurement process, hoping for news "this month or thereabouts," and feels strongly positioned given its demonstrated capability. On NSSL, he noted the government has added more resources to the contract vehicle and releases task orders in set periods, with the government "hotly anticipating Neutron's arrival." Q: Are orbital data centers a real opportunity for Rocket Lab, and will the company remain active in M&A post-Iridium? A: CEO Sir Peter Beck confirmed it's a real opportunity, noting the release of new solar cells targeted at that application, but remains cautious on scale. On M&A, he encouraged viewing Iridium as "the starting point" not the end, stating intentions are "much grander" and that Iridium is not a "one and done" deal, with tuck-ins likely as opportunities arise. Q: When will Neutron customers feel as comfortable ordering as they do with Electron, and what are Flatellite's unique features? A: CEO Sir Peter Beck said it "almost feels like that now," given the limited supply of early Neutrons and high demand. CFO Adam Spice added that having a backlog for an unflown vehicle is a strong endorsement, but they are mindful not to sell all capacity early, reserving it for strategic internal use. On Flatellite, Beck highlighted it's designed for high-cadence, large-volume constellation building, and its first customer is a major US government program, which will also serve as the platform for Rocket Lab's own future needs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Iridium Communications (IRDM) is back in focus after reporting second quarter 2026 results that showed higher revenue but lower net income, along with the commercial launch of its Iridium PNT ASIC for GPS protection. See our latest analysis for Iridium Communications. Iridium Communications' recent earnings and the PNT ASIC launch come after a sharp re rating, with a 23.05% 90 day share price return and 84.64% 1 year total shareholder return, although the 3 year total shareholder return is slightly down. If this kind of GPS resilience story interests you, it could be a good time to look wider across the market and check out 35 power grid technology and infrastructure stocks Iridium Communications now sits at the crossroads of a strong GPS resilience story and a share price that has already moved sharply higher on it. How does that recent enthusiasm stack up against what you are actually paying today? The most followed Iridium Communications narrative pegs fair value at $45 per share, slightly below the latest close of $45.96. This suggests only a modest mismatch between price and projected fundamentals. Read the complete narrative. Want to see what is embedded in that fair value for Iridium Communications? The narrative leans on specific revenue growth, margin uplift and a richer future earnings multiple. Curious which assumptions really carry the valuation load and how sensitive they are if sentiment or execution shifts? The full story sits inside that narrative model. Result: Fair Value of $45 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Iridium Communications still faces pressure if IoT growth stays subdued or if new satellite and direct to device competitors squeeze its pricing and contract wins. Find out about the key risks to this Iridium Communications narrative. Analysts looking at Iridium Communications through the SWS DCF model reach a very different conclusion, with a fair value estimate of $74.23 per share versus the current $45.96. That implies the stock trades about 38.1% below this cash flow based view. This raises the question: which valuation story do you trust more? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Iridium Communications for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mixed signals around Iridium Communications, it makes sense to move quickly, review the data for yourself, and weigh both sides of the story. To see the full breakdown of the concerns and potential upsides that other investors are focused on, take a close look at the 2 key rewards and 1 important warning sign If Iridium Communications has sharpened your focus on where capital goes next, now is the moment to scan wider, compare opportunities, and pressure test your conviction. Spot potential mispricings early by checking companies that screen as 51 high quality undervalued stocks before the market fully reacts. Prioritise resilience and sleep easier at night with 84 resilient stocks with low risk scores that score well on both fundamentals and risk metrics. Get ahead of the crowd by researching a screener containing 20 high quality undiscovered gems list that most investors are not watching yet. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IRDM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In July 2026, Iridium Communications reported second-quarter 2026 results showing revenue rising to US$225.24 million while net income and earnings per share declined year-on-year, and it confirmed that no additional shares were repurchased in the latest quarter under its existing buyback program. Iridium also launched the commercially available Iridium PNT ASIC, a compact anti-jamming and anti-spoofing chip that has already attracted interest from more than 150 organizations seeking more resilient positioning, navigation, and timing solutions for critical infrastructure and transportation. We’ll now examine how the commercial launch of Iridium’s anti-jamming PNT ASIC could reshape the company’s investment narrative and growth outlook. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource. To own Iridium today you need to believe its niche in resilient satellite services, especially assured PNT and government-linked connectivity, can offset pressures in maritime ARPU, IoT growth and rising competition. The latest quarter showed modest revenue progress but weaker earnings, while the PNT ASIC launch directly targets one of Iridium’s key growth vectors. That said, revenue recognition for PNT remains a risk if commercial and government adoption continues to ramp more slowly than expected. The commercial launch of the Iridium PNT ASIC is the clearest link to this thesis. Management highlighted demand from more than 150 organizations across aviation, UXV, telecom and critical infrastructure, reinforcing the idea that secure timing and navigation could become a second pillar alongside traditional connectivity. How quickly these early engagements convert into recurring PNT revenue, and how lumpy that revenue remains, will be central to whether PNT meaningfully offsets slower growth in legacy segments. Yet beneath this opportunity, investors should be aware that uneven PNT adoption and revenue recognition could still... Read the full narrative on Iridium Communications (it's free!) Iridium Communications' narrative projects $941.7 million revenue and $139.3 million earnings by 2029. This requires 2.4% yearly revenue growth and about a $33.7 million earnings increase from $105.6 million today. Uncover how Iridium Communications' forecasts yield a $45.00 fair value, in line with its current price. Some of the most cautious analysts expected only about 1.9% annual revenue growth and US$145.2 million in earnings by 2029, so this PNT update may eventually challenge that much more pessimistic view. Explore 8 other fair value estimates on Iridium Communications - why the stock might be worth as much as 62% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Iridium Communications research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Iridium Communications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Iridium Communications' overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IRDM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Iridium Communications (IRDM) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -26.92%. A quarter ago, it was expected that this satellite phone company would post earnings of $0.27 per share when it actually produced earnings of $0.2, delivering a surprise of -25.93%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Iridium, which belongs to the Zacks Satellite and Communication industry, posted revenues of $225.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.82%. This compares to year-ago revenues of $216.91 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Iridium shares have added about 171.8% since the beginning of the year versus the S&P 500's gain of 9.7%. While Iridium has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Iridium was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $228.78 million in revenues for the coming quarter and $1.02 on $895.01 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Satellite and Communication is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Satellogic Inc. (SATL), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Satellogic Inc.'s revenues are expected to be $9.33 million, up 110.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iridium Communications Inc (IRDM) : Free Stock Analysis Report Satellogic Inc. (SATL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Iridium Communications Inc. (NASDAQ:IRDM) reported second-quarter 2026 results on Wednesday that topped revenue expectations but fell short on earnings, as costs related to its pending acquisition by Rocket Lab weighed on profitability. The satellite communications company posted adjusted earnings per share of $0.09, below the analyst consensus estimate of $0.28. Revenue increased 4% year over year to $225.2 million, exceeding Wall Street’s forecast of $220.6 million. Despite the earnings miss, Iridium shares rose 1.80% in premarket trading following the announcement. Net income declined to $9.7 million, or $0.09 per diluted share, compared with $22.0 million, or $0.20 per diluted share, in the same quarter last year. The company attributed the decline primarily to higher transaction costs associated with its proposed acquisition by Rocket Lab Corporation. Service revenue, which accounted for approximately 72% of total revenue during the quarter, increased 4% to $161.3 million. Commercial service revenue rose 4% to $133.7 million, while government service revenue increased 3% to $27.6 million. Iridium ended the quarter with 2.627 million billable subscribers, representing a 6% increase from a year earlier. Growth continued to be led by the company’s commercial Internet of Things (IoT) business. “Iridium’s global network and expanding service portfolio continues to be the gold standard for mission critical applications,” said Matt Desch, CEO. “We believe vertically integrating with Rocket Lab’s industry leading launch and satellite capabilities will allow the combined company to realize even greater ambitions to solve important connectivity challenges around the world.” Operational EBITDA totaled $119.1 million, compared with $121.3 million in the second quarter of 2025. The slight decline was mainly attributed to a $3.9 million increase in accrued expenses following changes to the company’s annual incentive compensation programme. Iridium completed its acquisition of Aireon LLC on July 2, 2026, in a transaction valued at approximately $366.7 million. Management expects the acquisition to contribute at least $100 million in annual service revenue and approximately $30 million in annual operational EBITDA. The company’s planned acquisition by Rocket Lab is expected to close in mid-2027, subject to shareholder approval. While the transaction remains pending, Iridium said it will not issue financial guidance or host quarterly earnings conference calls. Iridium Communications stock price

Provides update on strategic initiatives; Pending acquisition by Rocket Lab expected to close in mid-2027 MCLEAN, Va., July 22, 2026 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium" or the "Company"), a leading provider of global voice, data, and PNT satellite services, today reported financial results for the second quarter of 2026. Pending Transaction with Rocket Lab On June 28, 2026, the Company entered into a definitive agreement with Rocket Lab Corporation under which Rocket Lab will acquire the Company. The transaction is expected to be completed in mid-2027, subject to approval by Iridium stockholders and the satisfaction of other customary closing conditions. In light of the pending transaction, the Company does not intend to hold conference calls to discuss its quarterly financial results or to update or provide financial guidance. Second Quarter 2026 Financial Results Iridium reported second quarter total revenue of $225.2 million, a 4% increase versus the comparable period of 2025. Service revenue, which primarily represents recurring revenue from Iridium's growing subscriber base, grew 4% from the year-ago period and was 72% of total revenue for the second quarter of 2026. "Iridium's global network and expanding service portfolio continues to be the gold standard for mission critical applications," said Matt Desch, CEO, Iridium. "We believe vertically integrating with Rocket Lab's industry leading launch and satellite capabilities will allow the combined company to realize even greater ambitions to solve important connectivity challenges around the world." Income from Operations Net income was $9.7 million, or $0.09 per diluted share, for the second quarter of 2026, as compared to net income of $22.0 million, or $0.20 per diluted share, for the second quarter of 2025. The decrease was primarily the result of increases in transaction costs. Operational EBITDA ("OEBITDA")(1) for the second quarter of 2026 was $119.1 million, as compared to $121.3 million for the prior-year period. The year-over-year OEBITDA was lower due primarily to a $3.9 million increase in accrued expenses related to a change in practice to pay annual incentive compensation entirely in cash rather than a mix of equity and cash, which the Company previewed in prior quarters. Subscribers The Company ended the second quarter with 2,627,000 total billable subscribers, up from 2,483,000 for the year-ago period and 2,555,000 for the quarter ended March 31, 2026. Total billable subscribers grew 6% year-over-year, led by growth in commercial IoT. Business Highlights Service – Commercial Commercial service remained the largest part of Iridium's business, representing 59% of the Company's total revenue during the second quarter. Commercial service revenue was $133.7 million, up 4% from the comparable period last year. Commercial IoT data revenue increased $2.3 million, or 5%, in the latest period, driven by a 9% increase in billable subscribers. Hosted payload and other data service revenue increased $2.0 million, or 14%, primarily due to increases in other data services contracts. Commercial voice and data revenue increased $1.6 million, or 3%, primarily due to higher average monthly revenue per unit ("ARPU") related to price actions implemented in the prior year. The increases in commercial services were partially offset by a decrease in commercial broadband revenue. Service – U.S. Government Government service revenue grew 3% to $27.6 million in the second quarter, reflecting contractual rate increases in the Enhanced Mobile Satellite Services contract (the "EMSS Contract") over the prior year. The U.S. government continues to be Iridium's largest single customer, representing 17% of service revenue and nearly all of engineering services and support business. Iridium continues to expect a renewal of its EMSS Contract with the U.S. Space Force by March 2027. Equipment Equipment revenue was $20.8 million in the second quarter, up 7% compared to $19.5 million in the prior-year quarter. Engineering & Support Engineering and support revenue was $43.1 million during the second quarter, up 3% compared to $41.9 million in the prior-year quarter, primarily due to increasing activity with the U.S. government. Strategic Growth Initiatives In February 2026, Iridium announced four strategic initiatives that are driving new activity with business partners and designed to drive revenue growth and business expansion into new industries and applications. The Company remains focused on investing in and expanding its presence through the following initiatives: Satellite IoT. Iridium continues to make progress on both proprietary and standards-based products and services to expand its IoT offering with key target markets. The introduction of the Iridium 9604, a new tri-mode module launched on June 23, 2026, combines Iridium Short Burst Data® (SBD®) satellite connectivity, LTE-M cellular, and GNSS positioning in a power efficient, small form factor module. The integrated architecture provides operational and economic benefits that are engineered to simplify device design, reduce costs, and allow the Iridium 9604 to serve as a next-generation platform for satellite IoT services.Iridium will also introduce its new standards-based service, Iridium NTN Direct, later this year. Live over-the-air demonstrations with mobile network operators, semiconductor companies, and existing business partners are underway to extend the reach of terrestrial services with satellite connectivity. These standardized services will provide direct-to-device (D2D) capabilities and support low-cost IoT applications, where reliability and coverage are critical, and even for connecting consumer devices from space. Assured PNT. The recent announcement of the commercial availability of Iridium's new PNT ASIC, expands the potential applications and addressable market for Iridium's global PNT services. Designed to help protect GPS- and GNSS-dependent devices from growth jamming, spoofing, and other threats, Iridium PNT is used by commercial, civil, and government enterprises to ensure resilience for critical infrastructure, communications, and transportation. National Security Missions. Iridium continues to build off its successful history of providing mission critical communications under the EMSS program to develop and deploy efficient and resilient operations supporting the U.S. Space Force. Leveraging its ongoing work developing ground systems and managing the operations centers for the Space Development Agency's Proliferated Warfighter Space Architecture (PWSA), Iridium is positioned to expand its strategic relationship with the U.S. government. As new requirements and demand for systems take shape, additional opportunities to leverage Iridium's expertise and capabilities for other national security initiatives continue to emerge. Aviation Safety. Iridium's leadership position in aviation safety advanced further with the Company's acquisition of Aireon LLC, the world's only space-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic surveillance system, on July 2, 2026. This acquisition of Aireon accelerates Iridium's growth into services for airlines and air navigation service providers, while adding valuable commercial data services capabilities and incremental revenue streams.Iridium is actively developing new products that leverage Aireon's existing satellite-based aviation safety surveillance services and global high-fidelity data set to deliver greater value to the entire aviation industry. This acquisition is expected to result in at least an additional consolidated $100 million of service revenue and $30 million of OEBITDA on an annualized basis. Capital Allocation Capital expenditures were $21.8 million for the second quarter, including $1.6 million in capitalized interest. The Company ended the second quarter with gross Term Loan debt of $1.8 billion, and a cash and cash equivalents balance of $184.2 million, for a net debt balance of $1.6 billion. The Company ended the second quarter with net leverage of 3.3 times trailing twelve months OEBITDA. Subsequent to the end of the second quarter, Iridium closed on its acquisition of Aireon LLC. The aggregate purchase price payable was approximately $366.7 million, of which 50% was paid in cash at the closing of the acquisition and the remaining 50% was deferred in the form of a $183.4 million loan from the sellers, bearing no interest, maturing one year following the closing. The Company drew down $100 million on its Revolving Facility as a source of cash paid at the closing. Additionally, Iridium assumed Aireon's existing credit facility with an aggregate principal balance of $154.7 million, with a scheduled maturity date of October 10, 2028. Iridium paid its second quarter dividend of $0.15 per share of common stock on June 30, 2026, resulting in a total payment of $16.2 million to stockholders. (1) Non-GAAP Financial Measures & Definitions In addition to disclosing financial results that are determined in accordance with U.S. GAAP, the Company reports OEBITDA, which is a non-GAAP financial measure, as a supplemental measure to help investors evaluate the Company's fundamental operational performance. OEBITDA represents earnings before interest, income taxes, depreciation and amortization, gain (loss) on equity method investments, transaction related expenses, and share-based compensation expenses. The Company considers the loss on early extinguishment of debt to be financing-related costs associated with interest expense or amortization of financing fees, which by definition are excluded from OEBITDA. Management believes such charges are incidental to, but not reflective of, the Company's day-to-day operating performance. OEBITDA does not represent, and should not be considered, an alternative to U.S. GAAP measurements such as net income or loss. In addition, there is no standardized measurement of OEBITDA, and the Company's calculations thereof may not be comparable to similarly titled measures reported by other companies. The Company believes OEBITDA is a useful measure across time in evaluating its fundamental core operating performance. Management also uses OEBITDA to manage the business, including in preparing its annual operating budget, debt covenant compliance, financial projections and compensation plans. The Company believes that OEBITDA is also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, OEBITDA does not include interest expense on borrowed money, the payment of income taxes, amortization of the Company's definite-lived intangible assets, or depreciation expense on the Company's capital assets, which are necessary elements of the Company's operations. Since OEBITDA does not account for these and other expenses, its utility as a measure of the Company's operating performance has material limitations. Due to these limitations, the Company's management does not view OEBITDA in isolation, but also uses other measurements, such as net income, revenues and operating profit, to measure operating performance. Please refer to the schedule below for a reconciliation of consolidated GAAP net income to OEBITDA and Iridium's Investor Relations webpage at www.iridium.com for a discussion and reconciliation of this and other non-GAAP financial measures. About Iridium Communications Inc. Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network. It serves as a platform for innovation, enabling voice, data, and messaging, positioning, navigation, and timing (PNT), and aircraft surveillance services anywhere on Earth. Through its satellite constellation and integrated capabilities like Aireon, the world's only space-based air traffic surveillance system, Iridium delivers services that support safety-focused operations across aviation, maritime, government, industrial, and consumer markets. The Company is a leader in satellite Internet of Things (IoT) connectivity and is advancing direct-to-device (D2D) communications based on open standards to expand access to satellite services. Headquartered in McLean, Virginia, Iridium innovates through an ecosystem of more than 500 technology and distribution partners, serving millions of customers worldwide. For more information, visit www.iridium.com. Forward-Looking Statements Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Iridium has based these statements on its current expectations and the information currently available to it. Forward-looking statements in this press release include statements regarding Iridium's strategy and growth opportunities; expectations with respect to revenue growth, subscribers, and OEBITDA; Iridium's acquisition by Rocket Lab and the benefits and expected timing thereof; the anticipated timing of Iridium NTN Direct; and Iridium's future performance against its four strategic growth initiatives. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding customer demand for Iridium's products and services, including demand from the U.S. government; Iridium's ability to maintain the health, capacity and content of its satellite constellation; the development of and market for Iridium's products and services; increased competition; risks related to Iridium's pending acquisition by Rocket Lab, including potential litigation relating to the proposed transaction that could be instituted against Rocket Lab, Iridium or their respective directors, managers, or officers, including the effects of any outcomes related thereto, the risk that disruptions from the proposed transaction will harm Rocket Lab's or Iridium's businesses, including current plans and operations, or will otherwise divert management time from ongoing business operations on transaction-related issues, potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction, fluctuations in, and uncertainty as to the long-term value of, Rocket Lab or Iridium common stock (including as relating to the risk that any announcements related to the proposed transaction could have adverse effects on the market price of such stock), restrictions during the pendency of the proposed transaction that may impact Iridium's ability to pursue certain business opportunities or strategic transactions, and unexpected costs, charges or expenses resulting from the proposed transaction; and Iridium's recent acquisition of Aireon; changes in trade policy, including tariff rates, as well as general industry and economic conditions; and legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on February 12, 2026, and the Company's Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on July 22, 2026, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Iridium's forward-looking statements are based on information available to it as of the date of this press release and speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements, except as required by applicable law. View original content to download multimedia:https://www.prnewswire.com/news-releases/iridium-announces-second-quarter-2026-results-302831462.html

For the quarter ended June 2026, Iridium Communications (IRDM) reported revenue of $225.24 million, up 3.8% over the same period last year. EPS came in at $0.19, compared to $0.20 in the year-ago quarter. The reported revenue represents a surprise of +1.82% over the Zacks Consensus Estimate of $221.21 million. With the consensus EPS estimate being $0.26, the EPS surprise was -26.92%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Iridium performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Billable Subscribers - Total government voice and data and IoT data service: 118 thousand versus 117.44 thousand estimated by four analysts on average. Billable Subscribers - Total commercial voice and data, IoT data and Broadband service: 2.51 million compared to the 2.49 million average estimate based on four analysts. Total Billable Subscribers: 2.63 million compared to the 2.61 million average estimate based on four analysts. ARPU - Commercial - IoT data: $7.64 compared to the $7.80 average estimate based on four analysts. Revenue- Subscriber equipment: $20.77 million versus $19.67 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +6.7% change. Revenue- Service: $161.33 million versus $160.27 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change. Revenue- Service- Commercial service revenue: $133.7 million versus $132.77 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change. Revenue- Service- Government service revenue: $27.63 million versus $27.51 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change. Revenue- Engineering and support service: $43.14 million versus the five-analyst average estimate of $41.27 million. The reported number represents a year-over-year change of +3%. Revenue- Service- Commercial service revenue- Hosted payload and other data service: $16.57 million versus $14.53 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.9% change. Revenue- Engineering and support service- Government: $41.45 million compared to the $39.54 million average estimate based on three analysts. The reported number represents a change of +5% year over year. Revenue- Engineering and support service- Commercial: $1.69 million versus $2.17 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -29.7% change. View all Key Company Metrics for Iridium here>>> Shares of Iridium have returned +7% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iridium Communications Inc (IRDM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Iridium Communications (IRDM) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This satellite phone company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +30%. Revenues are expected to be $221.21 million, up 2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Iridium, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.65%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Iridium will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Iridium would post earnings of $0.27 per share when it actually produced earnings of $0.20, delivering a surprise of -25.93%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Iridium appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iridium Communications Inc (IRDM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research