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what it is
Iridium sells satellite phone and data connections to people and governments where normal cell networks do not reach.
how it gets paid
Last year Iridium Comm made $872M in revenue. Commercial service was the main engine at $491M, or 56% of sales.
why it's growing
Revenue grew 4.9% last year. The number that mattered was $212.9M in revenue.
what just happened
Quarterly revenue of $212.9M missed estimates by about 3%, while EPS came in at $0.24.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
21.9x trailing p/e — priced about right
3.5% dividend yield — cash in your pocket every quarter
13.0% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Iridium sells satellite phone and data connections to people and governments where normal cell networks do not reach.
Iridium’s edge is reach. Its 66 satellites covered the globe as of 12/31/25 and served 2,537,000 subscribers. When your ship, plane, or remote crew leaves cell range, coverage matters more than price. That shows up in a 27.1% operating margin (operating margin → profit left after running the network → so what: the network still earns real money).
How they make money
$872M
annual revenue · their business grew +4.9% last year
Commercial service
$491M
up
Government service
$127M
up
Subscriber equipment
$161M
dn
Engineering and support
$93M
flat
The products that matter
satellite voice connectivity
Mobile Voice
~$610M · 70% of revenue
It appears to account for about 70% of the $872M revenue base, or roughly $610M. That is the center of gravity, which means your downside is tied to one business line more than the headline revenue number suggests.
70% of revenue
satellite broadband services
Broadband
9% decline in the december period
This business fell 9% vs. prior year in the December quarter as competition from Starlink intensified. No segment revenue is provided here, which is the point — you know it is under pressure, but this snapshot does not tell you how large the hole is.
under pressure
Key numbers
27.1%
operating margin
This tells you the network is not just busy. It is profitable after paying to run the business.
$1.8B
long-term debt
Debt equals 42% of capital, which limits how much room management has if growth stalls.
2,537,000
subscribers
A larger installed base makes the network harder to replace and creates more recurring service revenue.
3.5%
dividend yield
You are getting paid to wait, but only if cash flow keeps covering both debt and payouts.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $1.8B (42% of capital)
- net profit margin 20.5% — keeps 20 cents of every dollar in revenue
- return on equity 29% — $0.29 profit for every $1 investors have put in
B+ — net profit margin looks solid but long-term debt needs watching.
Total return vs. market
You invested $10,000 in IRDM 3 years ago → it's now worth $3,880.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Quarterly revenue of $212.9M missed estimates by about 3%, while EPS came in at $0.24.
The quarter was soft. EPS matched consensus, but it was 25% below the year-ago period, and management said broadband competition continues to pressure the top line.
$212.9M
revenue
$0.24
eps
14.3%
eps surprise
the number that mattered
The number that mattered was $212.9M in revenue, because the business missed estimates and showed competition is hitting growth where investors expected steadiness.
-
iridium communications’ fourth-quarter earnings results were lackluster.
-
indeed, the company reported december-period profits of $0.24 a share, in line with the consensus estimate, but 25% below the previous year’s like-period tally.
-
revenues of $212.9 million were also uninspiring, missing the consensus by about 3%, while also declining marginally from a year ago.
-
competitive pressures in broadband continue to hurt the top line.
-
broadband revenues dropped 9% vs. prior year during the december period, hurt by increased competition from starlink.
source: company earnings report, 2026
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What could go wrong
the #1 risk is starlink-driven broadband share loss.
med
starlink-driven broadband share loss
Broadband revenue fell 9% vs. prior year in the December period. The problem is not abstract competition. The problem is that a larger rival is already showing up in your reported numbers.
If that pressure spreads, the market stops treating IRDM like a stable satellite utility and starts treating it like a niche operator losing its best incremental growth lane.
med
mobile voice concentration
Mobile voice accounts for 70% of total revenue, which implies roughly $610M of the $872M revenue base. That is concentration by any reasonable definition.
When one line of business carries most of the weight, even a modest slowdown can drag on the whole company. Diversification does not save you here because diversification is not what you own.
med
leverage on a moderate-growth business
Long-term debt is $1.8B, equal to 42% of capital, against a business that grew only 4.9% last year. That balance can work. It does not leave much room for operational slippage.
A slower revenue base plus a leveraged capital structure can turn an ordinary earnings miss into a multiple-compression story fast.
med
estimate volatility
Earnings predictability is 40/100, and the quarterly EPS path moved from $0.27 to $0.20 to $0.35 to $0.24. This company does not give you the smooth cadence the market pays up for.
That matters because the stock already trades at 21.9x trailing earnings and above the street's $20 midpoint target. There is not much cushion for surprise in the wrong direction.
Put it together and you get the real issue: a debt-carrying satellite operator with only 4.9% growth, a 9% broadband decline, and 70% revenue concentration cannot afford a broad slowdown in demand.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the key metric
whether revenue can clear $900M
Consensus only implies about 3.2% growth from $872M to $900M. If they cannot clear that bar, the recovery story gets thinner fast.
competitive risk
broadband stabilization
A second straight meaningful decline after the recent 9% drop would tell you Starlink pressure is not temporary noise.
earnings
whether EPS actually reaches $1.20
The market is looking for EPS to move from $1.06 to $1.20. That is the difference between a fair multiple and a stretched one.
ownership
whether institutions stop reducing exposure
They sold 2.1M shares last quarter while still holding 94.4M total. You want to see that base turn from passive holder to active buyer.
Analyst rankings
short-term outlook
top 20%
Momentum score 2 — analysts expect above-average price performance over the next 12 months. In human-speak, they like the setup more than the stock's recent chart would suggest.
risk profile
average
Stability score 3 — this lands near the middle of the pack. Not especially safe. Not the wildest thing in your watchlist either.
chart momentum
below average
Technical score 4 — the tape has been weaker than the fundamental rank. Welcome to a stock where the analysts and the chart are having different conversations.
earnings predictability
40 / 100
The numbers are harder to forecast here than at a steadier compounder. In plain English: expect earnings to wobble.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 116 buyers vs. 116 sellers in 4q2025. total institutional holdings: 94.4M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$9
$30
$23
current price
$20
target midpoint · 14% from current · 3-5yr high: $40 (+75% · 17% ann'l return)
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