Iridium Announces 2025 Results; Issues 2026 Outlook

Feb. 12, 2026 

 Iridium Communications Inc. reported financial results for the fourth quarter and full-year 2025 and issued its full-year 2026 guidance.

Iridium reported fourth-quarter 2025 total revenue of $212.9 million, which consisted of $158.9 million of service revenue and $54.0 million of revenue related to equipment sales and engineering and support projects. Total revenue was in line with last year's comparable period, in part due to an increase in total service revenue, which largely offset revenue declines in subscriber equipment. Service revenue, which primarily represents recurring revenue from Iridium's growing subscriber base, was 75% of total revenue for the fourth quarter of 2025.

"We drove strong cash flow in both the fourth quarter and full year and remain focused on growth opportunities in specialized segments that further differentiate our offering from other satellite operators" said Matt Desch, CEO of Iridium. "Revenue growth of 5% in 2025 was driven by ongoing demand for IoT and a deeper integration of Iridium technology into mission-critical applications. Our expanding roster of business partners and new services continue to demonstrate the resiliency of our growth opportunities and underscore Iridium's unique role in the satellite industry."

Income from Operations

Net income was $24.9 million, or $0.24 per diluted share, for the fourth quarter of 2025, as compared to net income of $36.3 million, or $0.32 per diluted share, for the fourth quarter of 2024. Operational EBITDA ("OEBITDA")⁽¹⁾ for the fourth quarter 2025 was $115.3 million, as compared to $117.1 million for the prior-year period, representing a year-over-year decrease of 2%.

Subscribers

The Company ended the quarter with 2,537,000 total billable subscribers, which is up from 2,460,000 for the year-ago period and compares to 2,542,000 for the quarter ended September 30, 2025. Total billable subscribers grew 3% year-over-year, driven by growth in commercial IoT.

Full-Year 2025 Iridium Business Highlights

The Company reported total revenue in 2025 of $871.7 million, which was up 5% from the prior year period. Total revenue included $634.0 million of service revenue, $156.6 million of engineering and support services revenue and $81.1 million of equipment sales revenue.

For full year 2025, Iridium reported net income of $114.4 million, compared to $112.8 million in 2024. Net income per diluted share increased 13% to $1.06, as compared to net income per diluted share of $0.94 in 2024, primarily as a result of a lower share count. Year-over-year net income was also impacted by the $19.8 million one-time gain on the acquisition of Satelles, Inc. in 2024.

OEBITDA for 2025 was $495.3 million, a 5% increase from $470.6 million in the prior year. Capital expenditures were $100.3 million in 2025, including $4.6 million in capitalized interest.

Fourth-Quarter Iridium Business Highlights

Service – Commercial

Commercial service remained the largest part of Iridium's business, representing 62% of the Company's total revenue during the fourth quarter. The Company's commercial customer base is diverse and includes markets such as maritime, aviation, oil and gas, mining, recreation, forestry, construction, transportation and emergency services. Iridium's products and services are critical to these customers' daily operations and integral to their communications and business infrastructure.

• Commercial service revenue was $131.2 million, up 3% from last year's comparable period due to increases in IoT data and voice and data service revenue.
  • Commercial voice and data: Revenue was $59.6 million, up 4% from the year-ago period. Subscribers fell 3% from the year-ago period to 402,000. Average revenue per user ("ARPU") increased to $49 during the fourth quarter, compared to $45 in last year's comparable period, driven primarily by price actions in the third quarter of 2025.
  • Commercial IoT data: Revenue was $46.1 million, up 11% from the year-ago period. Subscribers grew 6% from the year-ago period to 1,998,000. ARPU was $7.70 in the fourth quarter, compared to $7.29 in last year's comparable period.
  • Commercial broadband: Revenue was $12.2 million, down 9% from $13.4 million in the year-ago period, as subscribers declined 3% from the year-ago period to 16,100. ARPU was $250 during the fourth quarter, compared to $268 in last year's comparable period, reflecting the increased prevalence of Iridium's use in lower-priced companion plans.
  • Hosted payload and other data service: Revenue was $13.4 million, down 13% from $15.4 million in the year-ago period. The year-over-year change primarily reflects a delay in expected revenue from an existing customer, as previewed in the third quarter.
• Iridium's commercial business ended the quarter with 2,416,000 billable subscribers, which is up from 2,319,000 for the prior-year quarter and compares to 2,418,000 for the quarter ended September 30, 2025. IoT data subscribers represented 83% of billable commercial subscribers at the end of the quarter, an increase from 81% at the end of the prior-year period.

Service – U.S. Government

Iridium's voice and data solutions improve situational awareness for military personnel and track critical assets in tough environments around the globe, providing a unique value proposition. Under Iridium's Enhanced Mobile Satellite Services contract (the "EMSS Contract"), a seven-year, $738.5 million fixed-price airtime contract with the U.S. Space Force signed in September 2019, Iridium provides specified satellite airtime services for an unlimited number of Department of War (formerly Department of Defense) and other federal government subscribers. Iridium also provides maintenance and support work for the U.S. government's dedicated Iridium^® gateway under two other contracts with the U.S. Space Force, the revenue of which is included in engineering and support services revenue. Iridium Certus^® airtime services are not included under these contracts and may be procured separately for an additional fee.

• Government service revenue grew 3% to $27.6 million in the fourth quarter, reflecting a contractual rate increase in the EMSS Contract over the prior year.
• Iridium's U.S. government business ended the quarter with 121,000 subscribers, which compares to 141,000 for the prior-year quarter and 124,000 for the quarter ended September 30, 2025. Government voice and data subscribers declined 31% as of December 31, 2025 to 43,000, which compares to 62,000 for the year-ago period. Government IoT data subscribers decreased 1% year-over-year and represented 64% of government subscribers at year-end.

Equipment

• Equipment revenue was $17.0 million in the fourth quarter, compared to $21.6 million in the prior-year quarter.
• Equipment revenue totaled $81.1 million in 2025, compared to $91.4 million in 2024. In 2026, the Company expects equipment sales to be in line with 2025.

Engineering and Support

• Engineering and support revenue was $37.1 million during the fourth quarter, compared to $37.4 million in the prior-year quarter.
• Engineering and support revenue totaled $156.6 million in 2025, compared to $124.4 million in 2024. In 2026, the Company expects engineering and support revenue to increase from 2025.

Capital Allocation

Capital expenditures were $33.5 million in the fourth quarter, including $1.4 million in capitalized interest. The Company ended the fourth quarter with gross debt under the Company's term loan of $1.8 billion and a cash and cash equivalents balance of $96.5 million, for a net debt balance of $1.7 billion. Iridium repaid all borrowings under its Revolving Facility in the fourth quarter and had no outstanding borrowings under the Revolving Facility as of December 31, 2025. The Company ended the year with net leverage of 3.4 times based upon 2025 OEBITDA.

Iridium paid its fourth quarter dividend of $0.15 per common share on December 31, 2025. Total dividends paid to stockholders during 2025 totaled $62.9 million.

During the year, Iridium repurchased approximately 6.8 million shares of common stock at a total purchase price of approximately $185.0 million. The Company did not repurchase any shares of common stock during the fourth quarter. As of December 31, 2025, $245.3 million remained available and authorized for repurchase under its share repurchase program through 2027.

2026 and Longer-Term Outlook

The Company issued its full-year 2026 outlook and reaffirmed its long-term guidance on cash taxes and net leverage:

• Total service revenue growth projected to be flat to 2% for full-year 2026. Total service revenue for 2025 was $634.0 million.
• OEBITDA for 2025 was $495.3 million. In 2026, the Company determined to pay incentive compensation entirely in cash, rather than a mix of equity and cash as has been the Company's prior practice. This change is projected to have a $17 million impact to OEBITDA, resulting in expected full-year 2026 OEBITDA of $480 million to $490 million. Without this change, OEBITDA would have been projected to be in a range of $497 million to $507 million.
• Cash taxes of less than $10 million per year through 2027. The Company's longer-term cash tax rate is expected to move closer to the statutory rate in 2029.
• Net leverage at or below 3.0 times OEBITDA by the end of 2026 and falling below 2.0 times OEBITDA by the end of the decade. Net leverage was 3.4 times OEBITDA at December 31, 2025.