Iridium Announces Third Quarter 2026 Results

Aireon contributed to service revenue growth, while operating income declined and acquisition financing added debt obligations.

Rhea-AI Summary

Iridium Communications (IRDM) reported third-quarter 2026 revenue of $245.7 million, up 8% from the comparable period of 2025. Net income rose to $106.9 million, or $0.98 per diluted share, from $37.1 million, or $0.35 per diluted share, primarily reflecting a $103.9 million gain related to the Aireon acquisition. Operational EBITDA, a non-GAAP earnings measure excluding specified expenses and gains, fell to $135.6 million from $136.6 million.

Iridium completed the Aireon acquisition on July 2, 2026. Stockholders approved Rocket Lab's acquisition of Iridium; the company expects completion by mid-2027, subject to remaining regulatory approvals and closing conditions. Quarter-end gross debt was $2.2 billion, with $97.9 million in cash and cash equivalents. The board plans to raise the quarterly dividend to $0.16 per share starting in the fourth quarter.

17 points · 0 major

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0 major · 20 points

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Positive

• Moderate pointThird-quarter revenue increased 8% to $245.7 million year over year; nine-month revenue rose 5% to $690.027 million.
• Moderate pointThird-quarter net income rose to $106.9 million, or $0.98 per diluted share, from $37.1 million, or $0.35.
• Moderate pointTotal billable subscribers grew 6% year over year to 2,696,000, versus 2,627,000 at June 30, 2026.
• Moderate pointAireon acquisition completed July 2, 2026, adding its space-based air traffic surveillance business.
• Moderate pointRocket Lab acquisition received 99.6% of votes cast in favor, representing 81.4% of eligible outstanding shares.
• Moderate pointEMSS government services contract was extended through March 2027 at the same contractual rate.

11 minor points

• Minor pointNine-month net income increased to $138.169 million from $89.507 million in 2025.
• Minor pointCommercial service revenue rose 16% to $159.925 million in the quarter; nine-month revenue increased 7%.
• Minor pointHosted payload and other data revenue rose 121% to $41.432 million; nine-month revenue increased 51%.
• Minor pointInternet of Things data revenue increased 4% to $48.669 million in the quarter; nine-month revenue rose 5%.
• Minor pointGovernment service revenue grew 2% to $27.573 million in the quarter; nine-month revenue increased 3%.
• Minor pointGovernment engineering and support revenue increased 1% to $38.873 million; nine-month revenue rose 5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Quarterly dividend is planned to rise to $0.16 per share starting fourth-quarter 2026; full-year increase would be 5.2%.
• Minor pointCash, cash equivalents and marketable securities increased to $97.853 million from $88.533 million a year earlier.
• Minor pointThird-quarter equipment sales costs fell to $11.609 million from $12.661 million.
• Minor pointThird-quarter research and development expense declined to $4.810 million from $4.944 million.
• Minor pointNine-month net interest expense declined to $65.400 million from $67.169 million.

Negative

• Moderate pointThird-quarter operating income fell to $31.618 million from $70.085 million; nine-month income fell to $116.339 million from $180.731 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Rocket Lab acquisition remains subject to remaining regulatory approvals and closing conditions; completion is expected by mid-2027.
• Moderate pointGross debt rose to $2,159.458 million from $1,824.721 million a year earlier; net leverage was 4.2 times trailing OEBITDA.
• Moderate pointU.S. government customer concentration represented 15% of service revenue and nearly all engineering services and support business.
• Minor pointOperational EBITDA fell 1% to $135.621 million in the quarter and 2% to $371.069 million over nine months.

15 minor points

• Minor pointCash-only annual incentive compensation added $4.5 million in quarterly expenses year over year.
• Minor pointAssumed Aireon credit facility adds $154.7 million principal, with scheduled maturity October 10, 2028.
• Minor pointDeferred Aireon purchase consideration creates a $183.4 million interest-free seller loan, maturing one year after closing.
• Minor pointRevolving credit facility draw totaled $100.0 million before closing; $50.0 million remained outstanding September 30, 2026.
• Minor pointVoice and data revenue fell 3% to $58.002 million in the quarter, despite 1% nine-month growth.
• Minor pointBroadband revenue declined 9% to $11.822 million in the quarter and 7% over nine months.
• Minor pointEquipment revenue fell 11% to $19.045 million in the quarter and 6% over nine months.
• Minor pointCommercial engineering and support revenue fell 83% to $0.317 million in the quarter and 43% over nine months.
• Minor pointThird-quarter capital expenditures increased to $27.447 million from $21.535 million; nine-month spending rose to $79.238 million from $66.791 million.
• Minor pointSelling, general and administrative expenses rose to $74.936 million quarterly and $187.759 million over nine months.
• Minor pointCost of services increased to $60.666 million quarterly from $50.762 million; nine-month costs also increased.
• Minor pointDepreciation and amortization rose to $62.094 million quarterly from $52.975 million; nine-month expenses also increased.
• Minor pointThird-quarter net interest expense increased to $26.788 million from $22.593 million.
• Minor pointNine-month equipment sales costs rose to $38.101 million from $36.830 million.
• Minor pointNine-month research and development expense rose to $16.514 million from $14.640 million.

News Explained

The U.S. Space Force exercised its option to extend Iridium’s EMSS contract through March 2027 at the same contractual rate; the government represented 15% of third-quarter service revenue, and Iridium says it expects a renewal in 2027.

Key Figures

Total revenue: $245.7 million; up 8% Service revenue growth: 13% Net income: $106.9 million; $0.98 per diluted share +5 more

Total revenue

$245.7 million; up 8%

Third quarter 2026 versus the comparable 2025 period

Service revenue growth

13%

Third quarter 2026 versus the year-ago period

Net income

$106.9 million; $0.98 per diluted share

Third quarter 2026; the reported increase primarily reflected a $103.9 million Aireon-related gain

Operational EBITDA

$135.6 million

Third quarter 2026, versus $136.6 million in the prior-year period

Billable subscribers

2,696,000; up 6%

At the end of the third quarter, year over year

Stockholder approval

99.6% of votes cast; representing 81.4% of outstanding shares entitled to vote

Rocket Lab transaction approval

Expected transaction completion

Mid-2027

Subject to remaining regulatory approvals and closing conditions

Planned quarterly dividend

$0.16 per share; 5.2% full-year increase

Planned to start with the fourth-quarter 2026 dividend

Previous Earnings Reports

1 past event · Latest: Jul 22

Same Type 1 event

1. Jul 22

   2Q26 earnings

   24h Move

   -0.8%

   Prior quarter combined revenue growth with lower net income and slightly lower OEBITDA.

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

Key Terms

ads-b, internet of things, non-gaap financial measure

3 terms

ads-b technical

"Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic surveillance system"

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.

internet of things technical

"growth in commercial Internet of Things (IoT)"

A network of everyday objects—like appliances, machines, vehicles, and sensors—connected to the internet so they can send and receive information and act automatically, like a thermostat that learns your schedule or a factory machine that reports wear. Investors care because these connected devices create new revenue streams, recurring service and data opportunities, and efficiency gains, while also concentrating risks such as security vulnerabilities and ongoing maintenance costs.

non-gaap financial measure financial

"OEBITDA, which is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

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

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Completes acquisition of Aireon; Pending acquisition by Rocket Lab receives stockholder approval

MCLEAN, Va., Oct. 20, 2026 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium" or the "Company"), a leading provider of global voice, data, aircraft surveillance, and positioning, navigation, and timing (PNT) satellite services, today reported financial results for the third quarter of 2026.

Update on Pending Transaction with Rocket Lab

On June 28, 2026, the Company entered into a definitive agreement with Rocket Lab Corporation (Nasdaq: RKLB) ("Rocket Lab") under which Rocket Lab will acquire the Company. Iridium stockholders approved the transaction at a Special Meeting of Stockholders on September 24, 2026 with 99.6% of the votes cast voting in favor of the transaction, representing 81.4% of Iridium's outstanding shares of common stock entitled to vote. The transaction is expected to be completed by mid-2027, subject to the satisfaction of the remaining regulatory approvals and closing conditions.

"Last month's stockholder approval for Rocket Lab's acquisition of Iridium was an important milestone in creating a next generation space powerhouse," said Matt Desch, CEO, Iridium. Desch continued, "The combination of these two leading space companies will unlock new innovation in the space industry and accelerate our growth in critical space-based missions."

Third Quarter 2026 Financial Results 

Iridium reported third quarter total revenue of $245.7 million, an 8% increase versus the comparable period of 2025. Service revenue grew 13% from the year-ago period, primarily due to the acquisition of Aireon, and was 76% of total revenue for the third quarter of 2026.

Income from Operations

Net income was $106.9 million, or $0.98 per diluted share, for the third quarter of 2026, as compared to net income of $37.1 million, or $0.35 per diluted share, for the third quarter of 2025. The increase was primarily the result of the $103.9 million gain related to the acquisition of Aireon, which is included in the Company's condensed consolidated statements starting in the third quarter. Operational EBITDA ("OEBITDA")⁽¹⁾ for the third quarter of 2026 was $135.6 million, as compared to $136.6 million for the prior-year period. The year-over-year change in OEBITDA was partly due to $4.5 million in higher expenses related to the previously disclosed change to pay annual incentive compensation solely in cash.

Subscribers

The Company ended the third quarter with 2,696,000 total billable subscribers, up from 2,542,000 for the year-ago period and 2,627,000 for the quarter ended June 30, 2026. Total billable subscribers grew 6% year-over-year, led by growth in commercial Internet of Things (IoT).

Business Highlights

Service – Commercial

Commercial service remained the largest part of Iridium's business, representing 65% of the Company's total revenue during the third quarter. Commercial service revenue was $159.9 million, up 16% from the comparable period last year, primarily due to the acquisition of Aireon. Hosted payload and other data service revenue increased $22.7 million, or 121%, in the third quarter, primarily due to the acquisition of Aireon.

Service – U.S. Government

Government service revenue grew 2% to $27.6 million in the third 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 15% of service revenue and nearly all of the Company's engineering services and support business.

On September 11, 2026, the U.S. Space Force exercised its option to extend the EMSS Contract with Iridium through March 2027, at the same contractual rate. Iridium continues to expect a renewal of the EMSS Contract in 2027.

Equipment

Equipment revenue was $19.0 million in the third quarter, compared to $21.5 million in the prior-year quarter.

Engineering & Support

Engineering and support revenue was $39.2 million during the third quarter, compared to $40.2 million in the prior-year quarter.

Closing of Aireon Acquisition

Iridium completed its acquisition of Aireon, operator of the world's only space-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic surveillance system, on July 2, 2026. The acquisition solidifies Iridium as the premier global provider of integrated communications, navigation, and surveillance solutions for airlines and air navigation service providers to enable a safer, more connected, and more efficient aviation ecosystem.

Capital Allocation

Capital expenditures were $27.4 million for the third quarter, including $2.2 million in capitalized interest. The Company ended the third quarter with gross debt of $2.2 billion, and a cash and cash equivalents balance of $97.9 million, for a net debt balance of $2.1 billion.

In conjunction with the Company's acquisition of Aireon, 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 and deferred 50% of the purchase price in the form of a $183.4 million loan from the sellers, bearing no interest and maturing one year following closing. The Company also drew $100.0 million on the Company's revolving credit facility in advance of closing and $50.0 million remained outstanding as of September 30, 2026. The Company ended the third quarter with net leverage of 4.2 times trailing twelve months OEBITDA.

Iridium paid its third quarter dividend of $0.15 per share of common stock on September 30, 2026, resulting in a total payment of $16.3 million to stockholders. The Company's Board of Directors plans to increase the quarterly dividend to $0.16 per share starting with the fourth quarter 2026 dividend, which would result in a full-year dividend increase of 5.2%.

(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 operational 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. 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 September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
GAAP net income		$       106,896		$        37,127		$       138,169		$        89,507
Interest expense, net		26,788		22,593		65,400		67,169
Income tax expense		2,186		10,003		14,138		19,629
Depreciation and amortization		62,094		52,975		169,698		157,479
Share-based compensation		20,231		13,155		48,972		43,992
Transaction-related expenses(1)		21,294		—		36,318		—
(Gain) loss on equity method investments		(103,868)		734		(101,626)		2,242
Operational EBITDA		$       135,621		$       136,587		$       371,069		$       380,018

(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; Iridium's acquisition by Rocket Lab and the benefits and expected timing and completion thereof; the expected benefits of Iridium's acquisition of Aireon; expectations related to the renewal of the EMSS Contract and the expected timing thereof; and plans regarding Iridium's quarterly dividends. 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 the risk that regulatory approvals or other closing conditions may not be obtained, satisfied or waived, that the proposed transaction may be delayed or not completed, that the anticipated benefits of the proposed transaction may not be realized, the impact of pending or potential litigation relating to the proposed transaction 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; risks related to Iridium's recent acquisition of Aireon; the risk that the EMSS Contract may not be renewed on as favorable terms or at all; 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 September 30, 2026, filed with the SEC on October 20, 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 September 30,
		2026		2025
Revenue
Service revenue
Commercial		$          159,925		$          138,333
Government		27,573		26,910
Total service revenue		187,498		165,243
Subscriber equipment		19,045		21,507
Engineering and support service		39,190		40,185
Total revenue		245,733		226,935
Operating expenses
Cost of services (exclusive of depreciation and amortization)		60,666		50,762
Cost of subscriber equipment sales		11,609		12,661
Research and development		4,810		4,944
Selling, general and administrative		74,936		35,508
Depreciation and amortization		62,094		52,975
Total operating expenses		214,115		156,850
Operating income		31,618		70,085
Other expense, net
Interest expense, net		(26,788)		(22,593)
Other income, net		384		372
Total other expense, net		(26,404)		(22,221)
Income before income taxes and gain (loss) on equity method investments, net		5,214		47,864
Income tax expense		(2,186)		(10,003)
Gain (loss) on equity method investments, net		103,868		(734)
Net income		$          106,896		$           37,127
Operational EBITDA		$          135,621		$          136,587

 

Iridium Communications Inc. Condensed Consolidated Statements of Operations (In thousands)
		Nine Months Ended September 30,
		2026		2025
Revenue
Service revenue
Commercial		$          424,032		$          394,695
Government		82,823		80,410
Total service revenue		506,855		475,105
Subscriber equipment		60,031		64,083
Engineering and support service		123,141		119,531
Total revenue		690,027		658,719
Operating expenses
Cost of services (exclusive of depreciation and amortization)		161,616		153,152
Cost of subscriber equipment sales		38,101		36,830
Research and development		16,514		14,640
Selling, general and administrative		187,759		115,887
Depreciation and amortization		169,698		157,479
Total operating expenses		573,688		477,988
Operating income		116,339		180,731
Other expense, net
Interest expense, net		(65,400)		(67,169)
Other expense, net		(258)		(2,184)
Total other expense, net		(65,658)		(69,353)
Income before income taxes and gain (loss) on equity method investments, net		50,681		111,378
Income tax expense		(14,138)		(19,629)
Gain (loss) on equity method investments, net		101,626		(2,242)
Net income		$          138,169		$           89,507
Operational EBITDA		$          371,069		$          380,018

 

Iridium Communications Inc. Summary Revenue and OEBITDA Highlights (In thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026		2025		% Change		2026		2025		% Change
Revenue
Service revenue(1)
Commercial service revenue
Voice and data	$     58,002		$    59,930		(3) %		$   173,822		$  172,682		1 %
IoT data(2)	48,669		46,707		4 %		141,706		135,303		5 %
Broadband(3)	11,822		12,970		(9) %		35,718		38,570		(7) %
Hosted payload and other data service(4)	41,432		18,726		121 %		72,786		48,140		51 %
Total commercial service revenue	159,925		138,333		16 %		424,032		394,695		7 %
Government service revenue(5)	27,573		26,910		2 %		82,823		80,410		3 %
Total service revenue	187,498		165,243		13 %		506,855		475,105		7 %
Subscriber equipment	19,045		21,507		(11) %		60,031		64,083		(6) %
Engineering and support(6)
Commercial	317		1,852		(83) %		3,348		5,893		(43) %
Government	38,873		38,333		1 %		119,793		113,638		5 %
Total engineering and support	39,190		40,185		(2) %		123,141		119,531		3 %
Total revenue	$    245,733		$   226,935		8 %		$   690,027		$  658,719		5 %
Operational EBITDA
Operational EBITDA	$    135,621		$   136,587		(1) %		$   371,069		$  380,018		(2) %
Other
Capital expenditures(7)	$     27,447		$    21,535				$    79,238		$    66,791
Net debt(8)	$  2,061,605		$ 1,736,188
Cash, cash equivalents and marketable securities	$     97,853		$    88,533
Gross debt(9)	$  2,159,458		$ 1,824,721
Deferred financing costs	(20,130)		(14,878)
Debt, net	$  2,139,328		$ 1,809,843

	(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 data services consist primarily of services that do not have traditional billable subscribers, including hosting and other data services to Iridium's payload customers, Aireon (through the acquisition date of July 2, 2026), and L3Harris Technologies, Inc. After the Aireon acquisition date, hosted payload services also include revenue associated with Iridium's space-based ADS-B, air traffic surveillance system, and related data services. Other data services primarily include Iridium's positioning, 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 as gross debt less cash, cash equivalents, and marketable securities.
	(9)	Gross debt includes amounts outstanding under Iridium's Term Loan and Revolving Credit Facility, Aireon's existing credit facility assumed in the acquisition, and the loan from the Aireon sellers.

 

Iridium Communications Inc. Subscriber Highlights (In thousands, except ARPU)
	As of September 30,
	2026		2025		% Change
Billable Subscribers (1) (2)
Commercial
Voice and data, IoT data and Broadband service
Voice and data	396		411		(4) %
IoT data	2,163		1,991		9 %
Broadband (3)	16.0		16.3		(2) %
Total commercial voice and data, IoT data and Broadband service	2,575		2,418		6 %
Government
Voice and data and IoT data service
Voice and data	44		45		(2) %
IoT data	77		79		(2) %
Total government voice and data and IoT data service	121		124		(2) %
Total billable subscribers	2,696		2,542		6 %
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026		2025				2026		2025
Net Billable Subscriber Additions
Commercial
Voice and data. IoT data and Broadband service
Voice and data	(6)		(4)				(6)		(4)
IoT data	72		67				165		104
Broadband	—		—				(0.1)		(0.3)
Total commercial voice and data, IoT data and Broadband service	66		63				159		100
Government
Voice and data and IoT data service
Voice and data	2		(4)				1		(17)
IoT data	1		—				(1)		—
Total government voice and data and IoT data service	3		(4)				—		(17)
Total net billable subscriber additions	69		59				159		83
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026		2025		% Change		2026		2025		% Change
ARPU (2) (4)
Commercial
Voice and data	$         48		$         48		— %		$         48		$         46		4 %
IoT data	$       7.63		$       7.95		(4) %		$       7.57		$       7.75		(2) %
Broadband	$       246		$       265		(7) %		$       248		$       261		(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

 

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SOURCE Iridium Communications Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What drove Iridium's third-quarter 2026 earnings increase?

Iridium's net income increase primarily reflected a $103.9 million gain related to the Aireon acquisition. Net income reached $106.9 million, or $0.98 per diluted share, compared with $37.1 million, or $0.35 per diluted share, a year earlier.

When is Rocket Lab's acquisition of Iridium expected to close?

Iridium expects Rocket Lab's acquisition to close by mid-2027, subject to remaining regulatory approvals and closing conditions. Iridium stockholders approved the transaction at the September 24, 2026 special meeting.

How did Iridium finance the Aireon acquisition?

Iridium assumed Aireon's $154.7 million credit facility, deferred 50% of the purchase price through a $183.4 million interest-free seller loan, and drew $100.0 million on its revolving credit facility before closing. The assumed facility matures October 10, 2028; the seller loan matures one year after closing. Revolver borrowings outstanding were $50.0 million at September 30, 2026.

What is the status of Iridium's EMSS government contract?

The U.S. Space Force exercised its option on September 11, 2026 to extend the EMSS Contract through March 2027 at the same contractual rate. Iridium continues to expect a renewal in 2027.