Iridium Announces Second Quarter 2026 Results

Rhea-AI Summary

Iridium (Nasdaq: IRDM) reported second quarter 2026 revenue of $225.2 million, up 4% year-over-year, with service revenue also rising 4% to $161.3 million, or 72% of total revenue. Net income fell to $9.7 million ($0.09 per diluted share) from $22.0 million, mainly due to higher transaction-related costs and compensation accruals, while Operational EBITDA declined slightly to $119.1 million from $121.3 million.

Iridium ended the quarter with 2.627 million billable subscribers, up 6% year-over-year, led by commercial IoT. The company highlighted growth in commercial service revenue to $133.7 million and U.S. government service revenue to $27.6 million. Iridium closed its acquisition of Aireon on July 2, 2026 for about $366.7 million, funded through cash, a seller loan, and a $100 million revolving credit draw, and assumed $154.7 million of Aireon debt. Capital expenditures were $21.8 million, net leverage was 3.3x trailing twelve-month OEBITDA, and a $0.15 per-share dividend (total $16.2 million) was paid on June 30, 2026. The company has a definitive agreement to be acquired by Rocket Lab, expected to close in mid‑2027, and will suspend quarterly earnings calls and guidance updates while the transaction is pending.

Positive

• Total revenue +4% YoY to $225.2 million in Q2 2026
• Service revenue +4% YoY to $161.3 million, 72% of total revenue
• Billable subscribers +6% YoY to 2.627 million, driven by commercial IoT
• Commercial service revenue +4% YoY to $133.7 million in Q2 2026
• Government service revenue +3% YoY to $27.6 million in Q2 2026
• Net leverage at 3.3x trailing twelve-month Operational EBITDA

Negative

• Net income down YoY to $9.7 million from $22.0 million
• Diluted EPS down to $0.09 from $0.20 year-over-year
• Operational EBITDA slightly lower at $119.1 million vs. $121.3 million
• Selling, general and administrative expenses up to $67.0 million from $44.6 million
• Higher transaction-related expenses of $14.3 million impacting profitability
• Additional leverage and obligations from $366.7 million Aireon purchase and $154.7 million assumed debt

Market Context

The earnings-tagged history averaged 3.8% across five events, adding a company-specific comparison t...

Analysis

The earnings-tagged history averaged 3.8% across five events, adding a company-specific comparison to this quarter's mixed revenue and profitability data. Low short positioning remains a sourced risk context; transaction execution and operating trends remain relevant.

Key Figures

Total revenue: $225.2 million Net income: $9.7 million Diluted EPS: $0.09 +5 more

8 metrics

Total revenue $225.2 million Second quarter 2026; up 4% versus the comparable 2025 period

Net income $9.7 million Second quarter 2026 versus $22.0 million in second quarter 2025

Diluted EPS $0.09 Second quarter 2026 versus $0.20 in second quarter 2025

Operational EBITDA $119.1 million Second quarter 2026 versus $121.3 million in the prior-year period

Billable subscribers 2,627,000 End of second quarter 2026; up 6% year over year

Expected service revenue contribution At least $100 million Annualized additional consolidated service revenue expected from Aireon acquisition

Expected OEBITDA contribution $30 million Annualized additional OEBITDA expected from Aireon acquisition

Aireon purchase price Approximately $366.7 million Aggregate purchase price; 50% paid in cash and 50% deferred

Previous Earnings Reports

5 past events · Latest: Jul 09 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 09	Q2 release date	Neutral	-1.1%	Release-date announcement preceded second-quarter financial results and omitted a conference call.
Apr 23	Q1 earnings report	Positive	+1.3%	Revenue growth, reaffirmed guidance, and higher subscriber count accompanied first-quarter results.
Apr 02	Q1 release date	Neutral	+15.2%	Release-date notice specified the first-quarter earnings publication and conference call schedule.
Jan 22	Q4 release date	Neutral	+11.1%	Release-date notice specified fourth-quarter and full-year results and conference call timing.
Oct 23	Q3 earnings report	Positive	-7.5%	Revenue growth and raised full-year OEBITDA guidance preceded a negative price reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings-tagged reactions varied: the Q1 2026 results aligned with a positive response, while Q3 2025 results diverged despite positive operating updates.

Key Terms

oebitda, arpu, gnss, ads-b

4 terms

oebitda financial

"Operational EBITDA ("OEBITDA") for the second quarter of 2026"

OEBITDA is a measure of a company’s core operating profit before interest, taxes, depreciation and amortization, often stripped of one-time or non-operational items to show recurring earnings. Investors use it like checking an engine’s steady horsepower — it helps compare underlying business performance across companies and periods by removing financing, tax differences and accounting quirks that can hide how well the business itself is running.

arpu financial

"higher average monthly revenue per unit ("ARPU") related to price actions"

ARPU, or Average Revenue Per User, measures how much money a company earns, on average, from each of its customers over a set period. It helps investors understand how effectively a business is generating income from its customer base, similar to calculating how much each customer spends at a store. Higher ARPU often indicates stronger sales per customer and better revenue performance.

gnss technical

"combines Iridium Short Burst Data®, LTE-M cellular, and GNSS positioning"

GNSS stands for Global Navigation Satellite System, a network of satellites that provide precise location and timing information anywhere on Earth, like a constantly available digital map and clock. It matters to investors because many industries—transportation, agriculture, telecom, finance and defense—rely on this positioning and timing for products, services and critical infrastructure; improvements or disruptions in GNSS can change costs, create new revenue streams, or introduce operational risk.

ads-b technical

"space-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic"

ADS‑B (Automatic Dependent Surveillance–Broadcast) is a system in which an aircraft uses GPS to determine its position and continuously broadcasts that location, speed and identification to nearby aircraft and ground stations. For investors, ADS‑B matters because regulatory mandates and airline modernization programs create steady demand for avionics equipment, air‑traffic infrastructure and data services—similar to how a smartphone network spurs hardware and app markets by sharing real‑time locations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

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.

Iridium Communications Inc.
Supplemental Reconciliation of GAAP Net Income to Operational EBITDA
(In thousands)
		Three Months Ended June 30,				Six Months Ended June 30,
		2026		2025		2026		2025
GAAP net income		$           9,679		$         21,968		$         31,273		$         52,380
Interest expense, net		19,246		22,752		38,612		44,576
Income tax expense		3,125		3,807		11,952		9,626
Depreciation and amortization		53,863		52,837		107,604		104,504
Share-based compensation		17,359		19,089		28,741		30,837
Transaction related expenses(1)		14,325		—		15,024		—
Loss on equity method investments		1,510		860		2,242		1,508
Operational EBITDA		$       119,107		$       121,313		$       235,448		$       243,431

(1)	Represents direct costs incurred in connection with the evaluation, negotiation, consummation, financing and integration of strategic transactions, including, acquisitions, divestitures and investments, whether or not actually completed. These costs generally include legal and advisory fees, severance and other related costs.

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.

Iridium Communications Inc.
Condensed Consolidated Statements of Operations
(In thousands)
		Three Months Ended June 30,
		2026		2025
Revenue
Service revenue
Commercial		$          133,703		$          128,820
Government		27,625		26,750
Total service revenue		161,328		155,570
Subscriber equipment		20,767		19,455
Engineering and support service		43,142		41,881
Total revenue		225,237		216,906
Operating expenses
Cost of services (exclusive of depreciation and amortization)		51,314		53,603
Cost of subscriber equipment sales		13,478		11,302
Research and development		5,530		4,279
Selling, general and administrative		67,044		44,627
Depreciation and amortization		53,863		52,837
Total operating expenses		191,229		166,648
Operating income		34,008		50,258
Other expense, net
Interest expense, net		(19,246)		(22,752)
Other income, net		(448)		(871)
Total other expense, net		(19,694)		(23,623)
Income before income taxes and loss on equity method investments		14,314		26,635
Income tax expense		(3,125)		(3,807)
Loss on equity method investments		(1,510)		(860)
Net income		$              9,679		$            21,968
Operational EBITDA		$          119,107		$          121,313

 

Iridium Communications Inc.
Condensed Consolidated Statements of Operations
(In thousands)
		Six Months Ended June 30,
		2026		2025
Revenue
Service revenue
Commercial		$          264,107		$          256,362
Government		55,250		53,500
Total service revenue		319,357		309,862
Subscriber equipment		40,986		42,576
Engineering and support service		83,951		79,346
Total revenue		444,294		431,784
Operating expenses
Cost of services (exclusive of depreciation and amortization)		100,950		102,389
Cost of subscriber equipment sales		26,492		24,169
Research and development		11,704		9,696
Selling, general and administrative		112,823		80,380
Depreciation and amortization		107,604		104,504
Total operating expenses		359,573		321,138
Operating income		84,721		110,646
Other expense, net
Interest expense, net		(38,612)		(44,576)
Other expense, net		(642)		(2,556)
Total other expense, net		(39,254)		(47,132)
Income before income taxes and loss on equity method investments		45,467		63,514
Income tax expense		(11,952)		(9,626)
Loss on equity method investments		(2,242)		(1,508)
Net income		$            31,273		$            52,380
Operational EBITDA		$          235,448		$          243,431

 

Iridium Communications Inc.
Summary Revenue and OEBITDA Highlights
(In thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
	2026		2025		% Change		2026		2025		% Change
Revenue
Service revenue(1)
Commercial service revenue
Voice and data	$       58,387		$      56,810		3 %		$   115,820		$  112,752		3 %
IoT data(2)	47,071		44,741		5 %		93,037		88,596		5 %
Broadband(3)	11,674		12,724		(8) %		23,896		25,600		(7) %
Hosted payload and other data service(4)	16,571		14,545		14 %		31,354		29,414		7 %
Total commercial service revenue	133,703		128,820		4 %		264,107		256,362		3 %
Government service revenue(5)	27,625		26,750		3 %		55,250		53,500		3 %
Total service revenue	161,328		155,570		4 %		319,357		309,862		3 %
Subscriber equipment	20,767		19,455		7 %		40,986		42,576		(4) %
Engineering and support(6)
Commercial	1,689		2,404		(30) %		3,032		4,041		(25) %
Government	41,453		39,477		5 %		80,919		75,305		7 %
Total engineering and support	43,142		41,881		3 %		83,951		79,346		6 %
Total revenue	$     225,237		$    216,906		4 %		$   444,294		$  431,784		3 %
Operational EBITDA
Operational EBITDA	$     119,107		$    121,313		(2) %		$   235,448		$  243,431		(3) %
Other
Capital expenditures(7)	$       21,836		$      20,710				$     51,791		$    45,256
Net debt(8)	$  1,590,507		$ 1,745,412
Cash, cash equivalents and marketable securities	$     184,214		$      79,309
Revolving Credit Facility	$              —		$      50,000
Term Loan, gross	$  1,774,721		$ 1,774,721
Deferred financing costs	(12,847)		(15,552)
Term Loan, net	$  1,761,874		$ 1,759,169

(1)	Service revenue consists primarily of subscription-based services which often generate a long-term recurring revenue stream from subscribers.
(2)	IoT data service provides a two-way short burst data transmission between Iridium's network and a telemetry unit, which may be located, for example, on a container in transit or a buoy monitoring oceanographic conditions.
(3)	Broadband is comprised of Iridium OpenPort® and Iridium Certus®.
(4)	Hosted payload and other services consist primarily of services that do not have traditional billable subscribers. Hosted payload services consist of hosting and data services to our payload customers, Aireon LLC and L3Harris Technologies, Inc. We acquired Aireon LLC on July 2, 2026. Other services include primarily Iridium's position, navigation and timing service.
(5)	Government service revenue consists of voice and IoT data subscription-based services provided to agencies of the U.S. government through prime contracts.
(6)	Engineering and support includes engineering services for the Space Development Agency contract and to assist commercial customers in developing new technologies for use on Iridium's satellite system, as well as maintenance services to the U.S. government's dedicated gateway.
(7)	Capital expenditures based on cash spent in the respective period.
(8)	Net debt is calculated by taking the gross Term Loan and Revolving Credit Facility amounts, less cash, cash equivalents and marketable securities.

 

Iridium Communications Inc.
Subscriber Highlights
(In thousands, except ARPU)
	As of June 30,
	2026		2025		% Change
Billable Subscribers (1) (2)
Commercial
Voice and data, IoT data and Broadband service
Voice and data	402		415		(3) %
IoT data	2,091		1,924		9 %
Broadband (3)	16.0		16.3		(2) %
Total commercial voice and data, IoT data      and Broadband service	2,509		2,355		7 %
Government
Voice and data and IoT data service
Voice and data	42		49		(14) %
IoT data	76		79		(4) %
Total government voice and data and IoT      data service	118		128		(8) %
Total billable subscribers	2,627		2,483		6 %
	Three Months Ended June 30,						Six Months Ended June 30,
	2026		2025				2026		2025
Net Billable Subscriber Additions
Commercial
Voice and data. IoT data and Broadband service
Voice and data	3		6				—		—
IoT data	72		39				93		37
Broadband	(0.1)		—				(0.1)		(0.3)
Total commercial voice and data, IoT data      and Broadband service	75		45				93		37
Government
Voice and data and IoT data service
Voice and data	(1)		(5)				(1)		(13)
IoT data	(2)		—				(2)		—
Total government voice and data and IoT      data service	(3)		(5)				(3)		(13)
Total net billable subscriber additions	72		40				90		24
	Three Months Ended June 30,						Six Months Ended June 30,
	2026		2025		% Change		2026		2025		% Change
ARPU (2) (4)
Commercial
Voice and data	$          49		$          46		7 %		$          48		$          45		7 %
IoT data	$       7.64		$       7.83		(2) %		$       7.58		$       7.75		(2) %
Broadband	$        243		$        260		(7) %		$        248		$        260		(5) %

(1)	Subscribers as of the end of the respective period.
(2)	Billable subscriber and average monthly revenue per unit ("ARPU") data is not applicable for hosted payload and other data service revenue items and is excluded from presentation above.
(3)	Broadband is comprised of Iridium OpenPort and Iridium Certus.
(4)	ARPU is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period.

 

Investor Contact:	Press Contact:
Kenneth Levy	Jordan Hassin
Iridium Communications Inc.	Iridium Communications Inc.
+1 (703) 287-7570	+1 (703) 287-7421
ken.levy@iridium.com	jordan.hassin@iridium.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/iridium-announces-second-quarter-2026-results-302831462.html

SOURCE Iridium Communications Inc.

FAQ

What were Iridium (NASDAQ: IRDM) key financial results for Q2 2026?

Iridium reported Q2 2026 revenue of $225.2 million, up 4% year-over-year, and net income of $9.7 million. According to Iridium, service revenue reached $161.3 million, representing 72% of total revenue, while Operational EBITDA was $119.1 million for the quarter.

How did Iridium’s subscriber base change in the second quarter of 2026 (IRDM)?

Iridium ended Q2 2026 with 2.627 million billable subscribers, up from 2.483 million a year earlier. According to Iridium, total subscribers grew 6% year-over-year, led by commercial IoT, and increased from 2.555 million at March 31, 2026.

What is the status of Rocket Lab’s planned acquisition of Iridium (IRDM) announced in 2026?

Iridium entered a definitive agreement on June 28, 2026 for Rocket Lab to acquire the company. According to Iridium, the transaction is expected to close in mid‑2027, subject to stockholder approval and customary conditions, and Iridium will suspend quarterly calls and guidance meanwhile.

What are the terms of Iridium’s acquisition of Aireon announced in July 2026 (IRDM)?

Iridium closed its acquisition of Aireon on July 2, 2026 for about $366.7 million. According to Iridium, 50% was paid in cash and 50% via a $183.4 million seller loan, and Iridium also assumed Aireon’s $154.7 million credit facility.

How did government and commercial service revenues perform for Iridium in Q2 2026 (IRDM)?

In Q2 2026, commercial service revenue reached $133.7 million, up 4% year-over-year, and government service revenue was $27.6 million, up 3%. According to Iridium, commercial services represented 59% of total revenue and the U.S. government remained its largest single customer.

What is Iridium’s leverage and capital spending position after Q2 2026 (IRDM)?

Iridium reported capital expenditures of $21.8 million in Q2 2026 and net leverage of 3.3x trailing twelve-month Operational EBITDA. According to Iridium, it ended the quarter with $1.8 billion gross term loan debt and $184.2 million in cash and cash equivalents.

Did Iridium (IRDM) pay a dividend in the second quarter of 2026?

Yes. Iridium paid a quarterly dividend of $0.15 per share on June 30, 2026. According to Iridium, this distribution totaled $16.2 million to stockholders, reflecting the company’s ongoing capital return policy alongside its strategic investments and acquisitions.