{"success":true,"data":{"pressRelease":{"id":"95000","rtpr_id":"nPn1N0rPta","ticker":"IRDM","exchange":"NASDAQ","all_tickers":["IRDM"],"title":"Iridium Announces Second Quarter 2026 Results","author":"PR Newswire","published_at":"2026-07-22T11:01:00.756Z","article_body":"Iridium Announces Second Quarter 2026 Results\n\nPR Newswire\n\nMCLEAN, Va., July 22, 2026\n\nProvides update on strategic initiatives; Pending acquisition by Rocket Lab\nexpected to close in mid-2027\n\nMCLEAN, Va., July 22, 2026 /PRNewswire/ -- Iridium Communications Inc.\n(Nasdaq: IRDM) (\"Iridium\" or the \"Company\"), a leading provider of global\nvoice, data, and PNT satellite services, today reported financial results for\nthe second quarter of 2026.\n\nPending Transaction with Rocket Lab\n\nOn June 28, 2026, the Company entered into a definitive agreement with Rocket\nLab Corporation under which Rocket Lab will acquire the Company. The\ntransaction is expected to be completed in mid-2027, subject to approval by\nIridium stockholders and the satisfaction of other customary closing\nconditions.\n\nIn light of the pending transaction, the Company does not intend to hold\nconference calls to discuss its quarterly financial results or to update or\nprovide financial guidance.\n\nSecond Quarter 2026 Financial Results\n\nIridium reported second quarter total revenue of $225.2 million, a 4%\nincrease versus the comparable period of 2025. Service revenue, which\nprimarily represents recurring revenue from Iridium's growing subscriber base,\ngrew 4% from the year-ago period and was 72% of total revenue for the second\nquarter of 2026.\n\n\"Iridium's global network and expanding service portfolio continues to be the\ngold standard for mission critical applications,\" said Matt Desch, CEO,\nIridium. \"We believe vertically integrating with Rocket Lab's industry leading\nlaunch and satellite capabilities will allow the combined company to realize\neven greater ambitions to solve important connectivity challenges around the\nworld.\"\n\nIncome from Operations\n\nNet income was $9.7 million, or $0.09 per diluted share, for the second\nquarter of 2026, as compared to net income of $22.0 million, or $0.20 per\ndiluted share, for the second quarter of 2025. The decrease was primarily the\nresult of increases in transaction costs. Operational EBITDA\n(\"OEBITDA\")((1)) for the second quarter of 2026 was $119.1 million, as\ncompared to $121.3 million for the prior-year period. The year-over-year\nOEBITDA was lower due primarily to a $3.9 million increase in accrued expenses\nrelated to a change in practice to pay annual incentive compensation entirely\nin cash rather than a mix of equity and cash, which the Company previewed in\nprior quarters.\n\nSubscribers\n\nThe Company ended the second quarter with 2,627,000 total billable\nsubscribers, up from 2,483,000 for the year-ago period and 2,555,000 for the\nquarter ended March 31, 2026. Total billable subscribers grew 6%\nyear-over-year, led by growth in commercial IoT.\n\nBusiness Highlights\n\nService – Commercial\n\nCommercial service remained the largest part of Iridium's business,\nrepresenting 59% of the Company's total revenue during the second quarter.\nCommercial service revenue was $133.7 million, up 4% from the comparable\nperiod last year. Commercial IoT data revenue increased $2.3 million, or 5%,\nin the latest period, driven by a 9% increase in billable subscribers. Hosted\npayload and other data service revenue increased $2.0 million, or 14%,\nprimarily due to increases in other data services contracts. Commercial voice\nand data revenue increased $1.6 million, or 3%, primarily due to higher\naverage monthly revenue per unit (\"ARPU\") related to price actions implemented\nin the prior year. The increases in commercial services were partially offset\nby a decrease in commercial broadband revenue.\n\nService – U.S. Government\n\nGovernment service revenue grew 3% to $27.6 million in the second quarter,\nreflecting contractual rate increases in the Enhanced Mobile Satellite\nServices contract (the \"EMSS Contract\") over the prior year. The U.S.\ngovernment continues to be Iridium's largest single customer, representing 17%\nof service revenue and nearly all of engineering services and support\nbusiness.\n\nIridium continues to expect a renewal of its EMSS Contract with the U.S. Space\nForce by March 2027.\n\nEquipment\n\nEquipment revenue was $20.8 million in the second quarter, up 7% compared to\n$19.5 million in the prior-year quarter.\n\nEngineering & Support\n\nEngineering and support revenue was $43.1 million during the second quarter,\nup 3% compared to $41.9 million in the prior-year quarter, primarily due to\nincreasing activity with the U.S. government.\n\nStrategic Growth Initiatives\n\nIn February 2026, Iridium announced four strategic initiatives that are\ndriving new activity with business partners and designed to drive revenue\ngrowth and business expansion into new industries and applications. The\nCompany remains focused on investing in and expanding its presence through the\nfollowing initiatives:\n\n * Satellite IoT. Iridium continues to make progress on both proprietary and\nstandards-based products and services to expand its IoT offering with key\ntarget markets. The introduction of the Iridium 9604, a new tri-mode module\nlaunched on June 23, 2026, combines Iridium Short Burst Data(®) (SBD(®))\nsatellite connectivity, LTE-M cellular, and GNSS positioning in a power\nefficient, small form factor module. The integrated architecture provides\noperational and economic benefits that are engineered to simplify device\ndesign, reduce costs, and allow the Iridium 9604 to serve as a next-generation\nplatform for satellite IoT services.\n\nIridium will also introduce its new standards-based service, Iridium NTN\nDirect, later this year. Live over-the-air demonstrations with mobile network\noperators, semiconductor companies, and existing business partners are\nunderway to extend the reach of terrestrial services with satellite\nconnectivity. These standardized services will provide direct-to-device (D2D)\ncapabilities and support low-cost IoT applications, where reliability and\ncoverage are critical, and even for connecting consumer devices from space.\n * Assured PNT. The recent announcement of the commercial availability of\nIridium's new PNT ASIC, expands the potential applications and addressable\nmarket for Iridium's global PNT services. Designed to help protect GPS- and\nGNSS-dependent devices from growth jamming, spoofing, and other threats,\nIridium PNT is used by commercial, civil, and government enterprises to ensure\nresilience for critical infrastructure, communications, and transportation.\n * National Security Missions. Iridium continues to build off its successful\nhistory of providing mission critical communications under the EMSS program to\ndevelop and deploy efficient and resilient operations supporting the U.S.\nSpace Force. Leveraging its ongoing work developing ground systems and\nmanaging the operations centers for the Space Development Agency's\nProliferated Warfighter Space Architecture (PWSA), Iridium is positioned to\nexpand its strategic relationship with the U.S. government. As new\nrequirements and demand for systems take shape, additional opportunities to\nleverage Iridium's expertise and capabilities for other national security\ninitiatives continue to emerge.\n * Aviation Safety. Iridium's leadership position in aviation safety advanced\nfurther with the Company's acquisition of Aireon LLC, the world's only\nspace-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic\nsurveillance system, on July 2, 2026. This acquisition of Aireon accelerates\nIridium's growth into services for airlines and air navigation service\nproviders, while adding valuable commercial data services capabilities and\nincremental revenue streams.\n\nIridium is actively developing new products that leverage Aireon's existing\nsatellite-based aviation safety surveillance services and global high-fidelity\ndata set to deliver greater value to the entire aviation industry. This\nacquisition is expected to result in at least an additional consolidated $100\nmillion of service revenue and $30 million of OEBITDA on an annualized basis.\nCapital Allocation\n\nCapital expenditures were $21.8 million for the second quarter, including\n$1.6 million in capitalized interest. The Company ended the second quarter\nwith gross Term Loan debt of $1.8 billion, and a cash and cash equivalents\nbalance of $184.2 million, for a net debt balance of $1.6 billion. The\nCompany ended the second quarter with net leverage of 3.3 times trailing\ntwelve months OEBITDA.\n\nSubsequent to the end of the second quarter, Iridium closed on its acquisition\nof Aireon LLC. The aggregate purchase price payable was approximately $366.7\nmillion, of which 50% was paid in cash at the closing of the acquisition and\nthe remaining 50% was deferred in the form of a $183.4 million loan from the\nsellers, bearing no interest, maturing one year following the closing. The\nCompany drew down $100 million on its Revolving Facility as a source of cash\npaid at the closing. Additionally, Iridium assumed Aireon's existing credit\nfacility with an aggregate principal balance of $154.7 million, with a\nscheduled maturity date of October 10, 2028.\n\nIridium paid its second quarter dividend of $0.15 per share of common stock on\nJune 30, 2026, resulting in a total payment of $16.2 million to stockholders.\n\n(1) Non-GAAP Financial Measures & Definitions\n\nIn addition to disclosing financial results that are determined in accordance\nwith U.S. GAAP, the Company reports OEBITDA, which is a non-GAAP financial\nmeasure, as a supplemental measure to help investors evaluate the Company's\nfundamental operational performance. OEBITDA represents earnings before\ninterest, income taxes, depreciation and amortization, gain (loss) on equity\nmethod investments, transaction related expenses, and share-based compensation\nexpenses. The Company considers the loss on early extinguishment of debt to be\nfinancing-related costs associated with interest expense or amortization of\nfinancing fees, which by definition are excluded from OEBITDA. Management\nbelieves such charges are incidental to, but not reflective of, the\nCompany's day-to-day operating performance. OEBITDA does not represent, and\nshould not be considered, an alternative to U.S. GAAP measurements such as net\nincome or loss. In addition, there is no standardized measurement of OEBITDA,\nand the Company's calculations thereof may not be comparable to similarly\ntitled measures reported by other companies. The Company believes OEBITDA is a\nuseful measure across time in evaluating its fundamental core operating\nperformance. Management also uses OEBITDA to manage the business, including in\npreparing its annual operating budget, debt covenant compliance, financial\nprojections and compensation plans. The Company believes that OEBITDA is also\nuseful to investors because similar measures are frequently used by securities\nanalysts, investors and other interested parties in their evaluation of\ncompanies in similar industries. As indicated, OEBITDA does not include\ninterest expense on borrowed money, the payment of income taxes, amortization\nof the Company's definite-lived intangible assets, or depreciation expense on\nthe Company's capital assets, which are necessary elements of the Company's\noperations. Since OEBITDA does not account for these and other expenses, its\nutility as a measure of the Company's operating performance has material\nlimitations. Due to these limitations, the Company's management does not view\nOEBITDA in isolation, but also uses other measurements, such as net income,\nrevenues and operating profit, to measure operating performance. Please refer\nto the schedule below for a reconciliation of consolidated GAAP net income to\nOEBITDA and Iridium's Investor Relations webpage at www.iridium.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4735502-1&h=3139273789&u=https%3A%2F%2Fwww.iridium.com%2F&a=www.iridium.com)\nfor a discussion and reconciliation of this and other non-GAAP financial\nmeasures.\n Iridium Communications Inc.\n Supplemental Reconciliation of GAAP Net Income to Operational EBITDA\n (In thousands)\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n GAAP net income $ 9,679 $ 21,968 $ 31,273 $ 52,380\n Interest expense, net 19,246 22,752 38,612 44,576\n Income tax expense 3,125 3,807 11,952 9,626\n Depreciation and amortization 53,863 52,837 107,604 104,504\n Share-based compensation 17,359 19,089 28,741 30,837\n Transaction related expenses((1)) 14,325 — 15,024 —\n Loss on equity method investments 1,510 860 2,242 1,508\n Operational EBITDA $ 119,107 $ 121,313 $ 235,448 $ 243,431\n\n ((1)) Represents direct costs incurred in connection with the evaluation,\n negotiation, consummation, financing and integration of strategic\n transactions, including, acquisitions, divestitures and investments, whether\n or not actually completed. These costs generally include legal and advisory\n fees, severance and other related costs.\n\nAbout Iridium Communications Inc.\n\nIridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly\nglobal mobile satellite network. It serves as a platform for innovation,\nenabling voice, data, and messaging, positioning, navigation, and timing\n(PNT), and aircraft surveillance services anywhere on Earth. Through its\nsatellite constellation and integrated capabilities like Aireon, the\nworld's only space-based air traffic surveillance system, Iridium delivers\nservices that support safety-focused operations across aviation, maritime,\ngovernment, industrial, and consumer markets. The Company is a leader in\nsatellite Internet of Things (IoT) connectivity and is advancing\ndirect-to-device (D2D) communications based on open standards to expand access\nto satellite services.\n\nHeadquartered in McLean, Virginia, Iridium innovates through an ecosystem of\nmore than 500 technology and distribution partners, serving millions of\ncustomers worldwide. For more information, visit www.iridium.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4735502-1&h=3139273789&u=https%3A%2F%2Fwww.iridium.com%2F&a=www.iridium.com)\n.\n\nForward-Looking Statements\n\nStatements in this press release that are not purely historical facts may\nconstitute forward-looking statements as defined in the Private Securities\nLitigation Reform Act of 1995. Iridium has based these statements on its\ncurrent expectations and the information currently available to it.\nForward-looking statements in this press release include statements regarding\nIridium's strategy and growth opportunities; expectations with respect to\nrevenue growth, subscribers, and OEBITDA; Iridium's acquisition by Rocket Lab\nand the benefits and expected timing thereof; the anticipated timing of\nIridium NTN Direct; and Iridium's future performance against its four\nstrategic growth initiatives. Forward-looking statements can be identified by\nthe words \"anticipates,\" \"may,\" \"can,\" \"believes,\" \"expects,\" \"projects,\"\n\"intends,\" \"likely,\" \"will,\" \"to be\" and other expressions that are\npredictions or indicate future events, trends or prospects. These\nforward-looking statements involve known and unknown risks, uncertainties, and\nother factors that may cause the actual results, performance, or achievements\nof Iridium to differ materially from any future results, performance or\nachievements expressed or implied by such forward-looking statements. These\nrisks and uncertainties include, but are not limited to, uncertainties\nregarding customer demand for Iridium's products and services, including\ndemand from the U.S. government; Iridium's ability to maintain the health,\ncapacity and content of its satellite constellation; the development of and\nmarket for Iridium's products and services; increased competition; risks\nrelated to Iridium's pending acquisition by Rocket Lab, including potential\nlitigation relating to the proposed transaction that could be instituted\nagainst Rocket Lab, Iridium or their respective directors, managers, or\nofficers, including the effects of any outcomes related thereto, the risk that\ndisruptions from the proposed transaction will harm Rocket Lab's or Iridium's\nbusinesses, including current plans and operations, or will otherwise divert\nmanagement time from ongoing business operations on transaction-related\nissues, potential adverse reactions or changes to business relationships\nresulting from the announcement or completion of the proposed transaction,\nfluctuations in, and uncertainty as to the long-term value of, Rocket Lab or\nIridium common stock (including as relating to the risk that any announcements\nrelated to the proposed transaction could have adverse effects on the market\nprice of such stock), restrictions during the pendency of the proposed\ntransaction that may impact Iridium's ability to pursue certain business\nopportunities or strategic transactions, and unexpected costs, charges or\nexpenses resulting from the proposed transaction; and Iridium's recent\nacquisition of Aireon; changes in trade policy, including tariff rates, as\nwell as general industry and economic conditions; and legal, governmental and\ntechnological factors. Other factors that could cause actual results to differ\nmaterially from those indicated by the forward-looking statements include\nthose factors listed under the caption \"Risk Factors\" in the Company's Form\n10-K for the year ended December 31, 2025, filed with the Securities and\nExchange Commission (\"SEC\") on February 12, 2026, and the Company's Form 10-Q\nfor the quarter ended June 30, 2026, filed with the SEC on July 22, 2026, as\nwell as other filings Iridium makes with the SEC from time to time. There is\nno assurance that Iridium's expectations will be realized. If one or more of\nthese risks or uncertainties materialize, or if Iridium's underlying\nassumptions prove incorrect, actual results may differ materially from those\nexpected, estimated or projected. Iridium's forward-looking statements are\nbased on information available to it as of the date of this press release and\nspeak only as of the date of this press release, and Iridium undertakes no\nobligation to update forward-looking statements, except as required by\napplicable law.\n Iridium Communications Inc.\n Condensed Consolidated Statements of Operations\n (In thousands)\n\n Three Months Ended June 30,\n 2026 2025\n Revenue\n Service revenue\n Commercial $ 133,703 $ 128,820\n Government 27,625 26,750\n Total service revenue 161,328 155,570\n Subscriber equipment 20,767 19,455\n Engineering and support service 43,142 41,881\n Total revenue 225,237 216,906\n Operating expenses\n Cost of services (exclusive of depreciation and amortization) 51,314 53,603\n Cost of subscriber equipment sales 13,478 11,302\n Research and development 5,530 4,279\n Selling, general and administrative 67,044 44,627\n Depreciation and amortization 53,863 52,837\n Total operating expenses 191,229 166,648\n Operating income 34,008 50,258\n Other expense, net\n Interest expense, net (19,246) (22,752)\n Other income, net (448) (871)\n Total other expense, net (19,694) (23,623)\n Income before income taxes and loss on equity method investments 14,314 26,635\n Income tax expense (3,125) (3,807)\n Loss on equity method investments (1,510) (860)\n Net income $ 9,679 $ 21,968\n Operational EBITDA $ 119,107 $ 121,313\n\n \n Iridium Communications Inc.\n Condensed Consolidated Statements of Operations\n (In thousands)\n\n Six Months Ended June 30,\n 2026 2025\n Revenue\n Service revenue\n Commercial $ 264,107 $ 256,362\n Government 55,250 53,500\n Total service revenue 319,357 309,862\n Subscriber equipment 40,986 42,576\n Engineering and support service 83,951 79,346\n Total revenue 444,294 431,784\n Operating expenses\n Cost of services (exclusive of depreciation and amortization) 100,950 102,389\n Cost of subscriber equipment sales 26,492 24,169\n Research and development 11,704 9,696\n Selling, general and administrative 112,823 80,380\n Depreciation and amortization 107,604 104,504\n Total operating expenses 359,573 321,138\n Operating income 84,721 110,646\n Other expense, net\n Interest expense, net (38,612) (44,576)\n Other expense, net (642) (2,556)\n Total other expense, net (39,254) (47,132)\n Income before income taxes and loss on equity method investments 45,467 63,514\n Income tax expense (11,952) (9,626)\n Loss on equity method investments (2,242) (1,508)\n Net income $ 31,273 $ 52,380\n Operational EBITDA $ 235,448 $ 243,431\n\n \n Iridium Communications Inc.\n Summary Revenue and OEBITDA Highlights\n (In thousands)\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 % Change 2026 2025 % Change\n Revenue\n Service revenue((1))\n Commercial service revenue\n Voice and data $ 58,387 $ 56,810 3 % $ 115,820 $ 112,752 3 %\n IoT data((2)) 47,071 44,741 5 % 93,037 88,596 5 %\n Broadband((3)) 11,674 12,724 (8) % 23,896 25,600 (7) %\n Hosted payload and other data service((4)) 16,571 14,545 14 % 31,354 29,414 7 %\n Total commercial service revenue 133,703 128,820 4 % 264,107 256,362 3 %\n Government service revenue((5)) 27,625 26,750 3 % 55,250 53,500 3 %\n Total service revenue 161,328 155,570 4 % 319,357 309,862 3 %\n Subscriber equipment 20,767 19,455 7 % 40,986 42,576 (4) %\n Engineering and support((6))\n Commercial 1,689 2,404 (30) % 3,032 4,041 (25) %\n Government 41,453 39,477 5 % 80,919 75,305 7 %\n Total engineering and support 43,142 41,881 3 % 83,951 79,346 6 %\n Total revenue $ 225,237 $ 216,906 4 % $ 444,294 $ 431,784 3 %\n Operational EBITDA\n Operational EBITDA $ 119,107 $ 121,313 (2) % $ 235,448 $ 243,431 (3) %\n Other\n Capital expenditures((7)) $ 21,836 $ 20,710 $ 51,791 $ 45,256\n Net debt((8)) $ 1,590,507 $ 1,745,412\n Cash, cash equivalents and marketable securities $ 184,214 $ 79,309\n Revolving Credit Facility $ — $ 50,000\n Term Loan, gross $ 1,774,721 $ 1,774,721\n Deferred financing costs (12,847) (15,552)\n Term Loan, net $ 1,761,874 $ 1,759,169\n\n ((1)) Service revenue consists primarily of subscription-based services which often\n generate a long-term recurring revenue stream from subscribers.\n ((2)) IoT data service provides a two-way short burst data transmission between\n Iridium's network and a telemetry unit, which may be located, for example, on\n a container in transit or a buoy monitoring oceanographic conditions.\n ((3)) Broadband is comprised of Iridium OpenPort(®) and Iridium Certus(®).\n ((4)) Hosted payload and other services consist primarily of services that do not\n have traditional billable subscribers. Hosted payload services consist of\n hosting and data services to our payload customers, Aireon LLC and L3Harris\n Technologies, Inc. We acquired Aireon LLC on July 2, 2026. Other services\n include primarily Iridium's position, navigation and timing service.\n ((5)) Government service revenue consists of voice and IoT data subscription-based\n services provided to agencies of the U.S. government through prime contracts.\n ((6)) Engineering and support includes engineering services for the Space\n Development Agency contract and to assist commercial customers in developing\n new technologies for use on Iridium's satellite system, as well as maintenance\n services to the U.S. government's dedicated gateway.\n ((7)) Capital expenditures based on cash spent in the respective period.\n ((8)) Net debt is calculated by taking the gross Term Loan and Revolving Credit\n Facility amounts, less cash, cash equivalents and marketable securities.\n\n \n Iridium Communications Inc.\n Subscriber Highlights\n (In thousands, except ARPU)\n\n As of June 30,\n 2026 2025 % Change\n Billable Subscribers ((1) (2))\n Commercial\n Voice and data, IoT data and Broadband service\n Voice and data 402 415 (3) %\n IoT data 2,091 1,924 9 %\n Broadband( (3)) 16.0 16.3 (2) %\n Total commercial voice and data, IoT data 2,509 2,355 7 %\n and Broadband service\n Government\n Voice and data and IoT data service\n Voice and data 42 49 (14) %\n IoT data 76 79 (4) %\n Total government voice and data and IoT 118 128 (8) %\n data service\n Total billable subscribers 2,627 2,483 6 %\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n Net Billable Subscriber Additions\n Commercial\n Voice and data. IoT data and Broadband service\n Voice and data 3 6 — —\n IoT data 72 39 93 37\n Broadband (0.1) — (0.1) (0.3)\n Total commercial voice and data, IoT data 75 45 93 37\n and Broadband service\n Government\n Voice and data and IoT data service\n Voice and data (1) (5) (1) (13)\n IoT data (2) — (2) —\n Total government voice and data and IoT (3) (5) (3) (13)\n data service\n Total net billable subscriber additions 72 40 90 24\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 % Change 2026 2025 % Change\n ARPU ((2) (4))\n Commercial\n Voice and data $ 49 $ 46 7 % $ 48 $ 45 7 %\n IoT data $ 7.64 $ 7.83 (2) % $ 7.58 $ 7.75 (2) %\n Broadband $ 243 $ 260 (7) % $ 248 $ 260 (5) %\n\n ((1)) Subscribers as of the end of the respective period.\n ((2)) Billable subscriber and average monthly revenue per unit (\"ARPU\") data is not\n applicable for hosted payload and other data service revenue items and is\n excluded from presentation above.\n ((3)) Broadband is comprised of Iridium OpenPort and Iridium Certus.\n ((4)) ARPU is calculated by dividing revenue in the respective period by the average\n of the number of billable subscribers at the beginning of the period and the\n number of billable subscribers at the end of the period and then dividing the\n result by the number of months in the period.\n\n \n Investor Contact: Press Contact:\n\n Kenneth Levy Jordan Hassin\n Iridium Communications Inc. Iridium Communications Inc.\n +1 (703) 287-7570 +1 (703) 287-7421\n ken.levy@iridium.com (mailto:ken.levy@iridium.com) jordan.hassin@iridium.com (mailto:jordan.hassin@iridium.com)\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/iridium-announces-second-quarter-2026-results-302831462.html\n(https://www.prnewswire.com/news-releases/iridium-announces-second-quarter-2026-results-302831462.html)\n\nSOURCE Iridium Communications Inc.\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS941942/IRIDIUM-Logo.jpg?id=OA2773300\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn1N0rPta","title":"Iridium Announces Second Quarter 2026 Results","author":"PR Newswire","ticker":"IRDM","created":"2026-07-22T11:01:00.756Z","tickers":["IRDM"],"exchange":"NASDAQ","article_body":"Iridium Announces Second Quarter 2026 Results\n\nPR Newswire\n\nMCLEAN, Va., July 22, 2026\n\nProvides update on strategic initiatives; Pending acquisition by Rocket Lab\nexpected to close in mid-2027\n\nMCLEAN, Va., July 22, 2026 /PRNewswire/ -- Iridium Communications Inc.\n(Nasdaq: IRDM) (\"Iridium\" or the \"Company\"), a leading provider of global\nvoice, data, and PNT satellite services, today reported financial results for\nthe second quarter of 2026.\n\nPending Transaction with Rocket Lab\n\nOn June 28, 2026, the Company entered into a definitive agreement with Rocket\nLab Corporation under which Rocket Lab will acquire the Company. The\ntransaction is expected to be completed in mid-2027, subject to approval by\nIridium stockholders and the satisfaction of other customary closing\nconditions.\n\nIn light of the pending transaction, the Company does not intend to hold\nconference calls to discuss its quarterly financial results or to update or\nprovide financial guidance.\n\nSecond Quarter 2026 Financial Results\n\nIridium reported second quarter total revenue of $225.2 million, a 4%\nincrease versus the comparable period of 2025. Service revenue, which\nprimarily represents recurring revenue from Iridium's growing subscriber base,\ngrew 4% from the year-ago period and was 72% of total revenue for the second\nquarter of 2026.\n\n\"Iridium's global network and expanding service portfolio continues to be the\ngold standard for mission critical applications,\" said Matt Desch, CEO,\nIridium. \"We believe vertically integrating with Rocket Lab's industry leading\nlaunch and satellite capabilities will allow the combined company to realize\neven greater ambitions to solve important connectivity challenges around the\nworld.\"\n\nIncome from Operations\n\nNet income was $9.7 million, or $0.09 per diluted share, for the second\nquarter of 2026, as compared to net income of $22.0 million, or $0.20 per\ndiluted share, for the second quarter of 2025. The decrease was primarily the\nresult of increases in transaction costs. Operational EBITDA\n(\"OEBITDA\")((1)) for the second quarter of 2026 was $119.1 million, as\ncompared to $121.3 million for the prior-year period. The year-over-year\nOEBITDA was lower due primarily to a $3.9 million increase in accrued expenses\nrelated to a change in practice to pay annual incentive compensation entirely\nin cash rather than a mix of equity and cash, which the Company previewed in\nprior quarters.\n\nSubscribers\n\nThe Company ended the second quarter with 2,627,000 total billable\nsubscribers, up from 2,483,000 for the year-ago period and 2,555,000 for the\nquarter ended March 31, 2026. Total billable subscribers grew 6%\nyear-over-year, led by growth in commercial IoT.\n\nBusiness Highlights\n\nService – Commercial\n\nCommercial service remained the largest part of Iridium's business,\nrepresenting 59% of the Company's total revenue during the second quarter.\nCommercial service revenue was $133.7 million, up 4% from the comparable\nperiod last year. Commercial IoT data revenue increased $2.3 million, or 5%,\nin the latest period, driven by a 9% increase in billable subscribers. Hosted\npayload and other data service revenue increased $2.0 million, or 14%,\nprimarily due to increases in other data services contracts. Commercial voice\nand data revenue increased $1.6 million, or 3%, primarily due to higher\naverage monthly revenue per unit (\"ARPU\") related to price actions implemented\nin the prior year. The increases in commercial services were partially offset\nby a decrease in commercial broadband revenue.\n\nService – U.S. Government\n\nGovernment service revenue grew 3% to $27.6 million in the second quarter,\nreflecting contractual rate increases in the Enhanced Mobile Satellite\nServices contract (the \"EMSS Contract\") over the prior year. The U.S.\ngovernment continues to be Iridium's largest single customer, representing 17%\nof service revenue and nearly all of engineering services and support\nbusiness.\n\nIridium continues to expect a renewal of its EMSS Contract with the U.S. Space\nForce by March 2027.\n\nEquipment\n\nEquipment revenue was $20.8 million in the second quarter, up 7% compared to\n$19.5 million in the prior-year quarter.\n\nEngineering & Support\n\nEngineering and support revenue was $43.1 million during the second quarter,\nup 3% compared to $41.9 million in the prior-year quarter, primarily due to\nincreasing activity with the U.S. government.\n\nStrategic Growth Initiatives\n\nIn February 2026, Iridium announced four strategic initiatives that are\ndriving new activity with business partners and designed to drive revenue\ngrowth and business expansion into new industries and applications. The\nCompany remains focused on investing in and expanding its presence through the\nfollowing initiatives:\n\n * Satellite IoT. Iridium continues to make progress on both proprietary and\nstandards-based products and services to expand its IoT offering with key\ntarget markets. The introduction of the Iridium 9604, a new tri-mode module\nlaunched on June 23, 2026, combines Iridium Short Burst Data(®) (SBD(®))\nsatellite connectivity, LTE-M cellular, and GNSS positioning in a power\nefficient, small form factor module. The integrated architecture provides\noperational and economic benefits that are engineered to simplify device\ndesign, reduce costs, and allow the Iridium 9604 to serve as a next-generation\nplatform for satellite IoT services.\n\nIridium will also introduce its new standards-based service, Iridium NTN\nDirect, later this year. Live over-the-air demonstrations with mobile network\noperators, semiconductor companies, and existing business partners are\nunderway to extend the reach of terrestrial services with satellite\nconnectivity. These standardized services will provide direct-to-device (D2D)\ncapabilities and support low-cost IoT applications, where reliability and\ncoverage are critical, and even for connecting consumer devices from space.\n * Assured PNT. The recent announcement of the commercial availability of\nIridium's new PNT ASIC, expands the potential applications and addressable\nmarket for Iridium's global PNT services. Designed to help protect GPS- and\nGNSS-dependent devices from growth jamming, spoofing, and other threats,\nIridium PNT is used by commercial, civil, and government enterprises to ensure\nresilience for critical infrastructure, communications, and transportation.\n * National Security Missions. Iridium continues to build off its successful\nhistory of providing mission critical communications under the EMSS program to\ndevelop and deploy efficient and resilient operations supporting the U.S.\nSpace Force. Leveraging its ongoing work developing ground systems and\nmanaging the operations centers for the Space Development Agency's\nProliferated Warfighter Space Architecture (PWSA), Iridium is positioned to\nexpand its strategic relationship with the U.S. government. As new\nrequirements and demand for systems take shape, additional opportunities to\nleverage Iridium's expertise and capabilities for other national security\ninitiatives continue to emerge.\n * Aviation Safety. Iridium's leadership position in aviation safety advanced\nfurther with the Company's acquisition of Aireon LLC, the world's only\nspace-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic\nsurveillance system, on July 2, 2026. This acquisition of Aireon accelerates\nIridium's growth into services for airlines and air navigation service\nproviders, while adding valuable commercial data services capabilities and\nincremental revenue streams.\n\nIridium is actively developing new products that leverage Aireon's existing\nsatellite-based aviation safety surveillance services and global high-fidelity\ndata set to deliver greater value to the entire aviation industry. This\nacquisition is expected to result in at least an additional consolidated $100\nmillion of service revenue and $30 million of OEBITDA on an annualized basis.\nCapital Allocation\n\nCapital expenditures were $21.8 million for the second quarter, including\n$1.6 million in capitalized interest. The Company ended the second quarter\nwith gross Term Loan debt of $1.8 billion, and a cash and cash equivalents\nbalance of $184.2 million, for a net debt balance of $1.6 billion. The\nCompany ended the second quarter with net leverage of 3.3 times trailing\ntwelve months OEBITDA.\n\nSubsequent to the end of the second quarter, Iridium closed on its acquisition\nof Aireon LLC. The aggregate purchase price payable was approximately $366.7\nmillion, of which 50% was paid in cash at the closing of the acquisition and\nthe remaining 50% was deferred in the form of a $183.4 million loan from the\nsellers, bearing no interest, maturing one year following the closing. The\nCompany drew down $100 million on its Revolving Facility as a source of cash\npaid at the closing. Additionally, Iridium assumed Aireon's existing credit\nfacility with an aggregate principal balance of $154.7 million, with a\nscheduled maturity date of October 10, 2028.\n\nIridium paid its second quarter dividend of $0.15 per share of common stock on\nJune 30, 2026, resulting in a total payment of $16.2 million to stockholders.\n\n(1) Non-GAAP Financial Measures & Definitions\n\nIn addition to disclosing financial results that are determined in accordance\nwith U.S. GAAP, the Company reports OEBITDA, which is a non-GAAP financial\nmeasure, as a supplemental measure to help investors evaluate the Company's\nfundamental operational performance. OEBITDA represents earnings before\ninterest, income taxes, depreciation and amortization, gain (loss) on equity\nmethod investments, transaction related expenses, and share-based compensation\nexpenses. The Company considers the loss on early extinguishment of debt to be\nfinancing-related costs associated with interest expense or amortization of\nfinancing fees, which by definition are excluded from OEBITDA. Management\nbelieves such charges are incidental to, but not reflective of, the\nCompany's day-to-day operating performance. OEBITDA does not represent, and\nshould not be considered, an alternative to U.S. GAAP measurements such as net\nincome or loss. In addition, there is no standardized measurement of OEBITDA,\nand the Company's calculations thereof may not be comparable to similarly\ntitled measures reported by other companies. The Company believes OEBITDA is a\nuseful measure across time in evaluating its fundamental core operating\nperformance. Management also uses OEBITDA to manage the business, including in\npreparing its annual operating budget, debt covenant compliance, financial\nprojections and compensation plans. The Company believes that OEBITDA is also\nuseful to investors because similar measures are frequently used by securities\nanalysts, investors and other interested parties in their evaluation of\ncompanies in similar industries. As indicated, OEBITDA does not include\ninterest expense on borrowed money, the payment of income taxes, amortization\nof the Company's definite-lived intangible assets, or depreciation expense on\nthe Company's capital assets, which are necessary elements of the Company's\noperations. Since OEBITDA does not account for these and other expenses, its\nutility as a measure of the Company's operating performance has material\nlimitations. Due to these limitations, the Company's management does not view\nOEBITDA in isolation, but also uses other measurements, such as net income,\nrevenues and operating profit, to measure operating performance. Please refer\nto the schedule below for a reconciliation of consolidated GAAP net income to\nOEBITDA and Iridium's Investor Relations webpage at www.iridium.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4735502-1&h=3139273789&u=https%3A%2F%2Fwww.iridium.com%2F&a=www.iridium.com)\nfor a discussion and reconciliation of this and other non-GAAP financial\nmeasures.\n Iridium Communications Inc.\n Supplemental Reconciliation of GAAP Net Income to Operational EBITDA\n (In thousands)\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n GAAP net income $ 9,679 $ 21,968 $ 31,273 $ 52,380\n Interest expense, net 19,246 22,752 38,612 44,576\n Income tax expense 3,125 3,807 11,952 9,626\n Depreciation and amortization 53,863 52,837 107,604 104,504\n Share-based compensation 17,359 19,089 28,741 30,837\n Transaction related expenses((1)) 14,325 — 15,024 —\n Loss on equity method investments 1,510 860 2,242 1,508\n Operational EBITDA $ 119,107 $ 121,313 $ 235,448 $ 243,431\n\n ((1)) Represents direct costs incurred in connection with the evaluation,\n negotiation, consummation, financing and integration of strategic\n transactions, including, acquisitions, divestitures and investments, whether\n or not actually completed. These costs generally include legal and advisory\n fees, severance and other related costs.\n\nAbout Iridium Communications Inc.\n\nIridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly\nglobal mobile satellite network. It serves as a platform for innovation,\nenabling voice, data, and messaging, positioning, navigation, and timing\n(PNT), and aircraft surveillance services anywhere on Earth. Through its\nsatellite constellation and integrated capabilities like Aireon, the\nworld's only space-based air traffic surveillance system, Iridium delivers\nservices that support safety-focused operations across aviation, maritime,\ngovernment, industrial, and consumer markets. The Company is a leader in\nsatellite Internet of Things (IoT) connectivity and is advancing\ndirect-to-device (D2D) communications based on open standards to expand access\nto satellite services.\n\nHeadquartered in McLean, Virginia, Iridium innovates through an ecosystem of\nmore than 500 technology and distribution partners, serving millions of\ncustomers worldwide. For more information, visit www.iridium.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4735502-1&h=3139273789&u=https%3A%2F%2Fwww.iridium.com%2F&a=www.iridium.com)\n.\n\nForward-Looking Statements\n\nStatements in this press release that are not purely historical facts may\nconstitute forward-looking statements as defined in the Private Securities\nLitigation Reform Act of 1995. Iridium has based these statements on its\ncurrent expectations and the information currently available to it.\nForward-looking statements in this press release include statements regarding\nIridium's strategy and growth opportunities; expectations with respect to\nrevenue growth, subscribers, and OEBITDA; Iridium's acquisition by Rocket Lab\nand the benefits and expected timing thereof; the anticipated timing of\nIridium NTN Direct; and Iridium's future performance against its four\nstrategic growth initiatives. Forward-looking statements can be identified by\nthe words \"anticipates,\" \"may,\" \"can,\" \"believes,\" \"expects,\" \"projects,\"\n\"intends,\" \"likely,\" \"will,\" \"to be\" and other expressions that are\npredictions or indicate future events, trends or prospects. These\nforward-looking statements involve known and unknown risks, uncertainties, and\nother factors that may cause the actual results, performance, or achievements\nof Iridium to differ materially from any future results, performance or\nachievements expressed or implied by such forward-looking statements. These\nrisks and uncertainties include, but are not limited to, uncertainties\nregarding customer demand for Iridium's products and services, including\ndemand from the U.S. government; Iridium's ability to maintain the health,\ncapacity and content of its satellite constellation; the development of and\nmarket for Iridium's products and services; increased competition; risks\nrelated to Iridium's pending acquisition by Rocket Lab, including potential\nlitigation relating to the proposed transaction that could be instituted\nagainst Rocket Lab, Iridium or their respective directors, managers, or\nofficers, including the effects of any outcomes related thereto, the risk that\ndisruptions from the proposed transaction will harm Rocket Lab's or Iridium's\nbusinesses, including current plans and operations, or will otherwise divert\nmanagement time from ongoing business operations on transaction-related\nissues, potential adverse reactions or changes to business relationships\nresulting from the announcement or completion of the proposed transaction,\nfluctuations in, and uncertainty as to the long-term value of, Rocket Lab or\nIridium common stock (including as relating to the risk that any announcements\nrelated to the proposed transaction could have adverse effects on the market\nprice of such stock), restrictions during the pendency of the proposed\ntransaction that may impact Iridium's ability to pursue certain business\nopportunities or strategic transactions, and unexpected costs, charges or\nexpenses resulting from the proposed transaction; and Iridium's recent\nacquisition of Aireon; changes in trade policy, including tariff rates, as\nwell as general industry and economic conditions; and legal, governmental and\ntechnological factors. Other factors that could cause actual results to differ\nmaterially from those indicated by the forward-looking statements include\nthose factors listed under the caption \"Risk Factors\" in the Company's Form\n10-K for the year ended December 31, 2025, filed with the Securities and\nExchange Commission (\"SEC\") on February 12, 2026, and the Company's Form 10-Q\nfor the quarter ended June 30, 2026, filed with the SEC on July 22, 2026, as\nwell as other filings Iridium makes with the SEC from time to time. There is\nno assurance that Iridium's expectations will be realized. If one or more of\nthese risks or uncertainties materialize, or if Iridium's underlying\nassumptions prove incorrect, actual results may differ materially from those\nexpected, estimated or projected. Iridium's forward-looking statements are\nbased on information available to it as of the date of this press release and\nspeak only as of the date of this press release, and Iridium undertakes no\nobligation to update forward-looking statements, except as required by\napplicable law.\n Iridium Communications Inc.\n Condensed Consolidated Statements of Operations\n (In thousands)\n\n Three Months Ended June 30,\n 2026 2025\n Revenue\n Service revenue\n Commercial $ 133,703 $ 128,820\n Government 27,625 26,750\n Total service revenue 161,328 155,570\n Subscriber equipment 20,767 19,455\n Engineering and support service 43,142 41,881\n Total revenue 225,237 216,906\n Operating expenses\n Cost of services (exclusive of depreciation and amortization) 51,314 53,603\n Cost of subscriber equipment sales 13,478 11,302\n Research and development 5,530 4,279\n Selling, general and administrative 67,044 44,627\n Depreciation and amortization 53,863 52,837\n Total operating expenses 191,229 166,648\n Operating income 34,008 50,258\n Other expense, net\n Interest expense, net (19,246) (22,752)\n Other income, net (448) (871)\n Total other expense, net (19,694) (23,623)\n Income before income taxes and loss on equity method investments 14,314 26,635\n Income tax expense (3,125) (3,807)\n Loss on equity method investments (1,510) (860)\n Net income $ 9,679 $ 21,968\n Operational EBITDA $ 119,107 $ 121,313\n\n \n Iridium Communications Inc.\n Condensed Consolidated Statements of Operations\n (In thousands)\n\n Six Months Ended June 30,\n 2026 2025\n Revenue\n Service revenue\n Commercial $ 264,107 $ 256,362\n Government 55,250 53,500\n Total service revenue 319,357 309,862\n Subscriber equipment 40,986 42,576\n Engineering and support service 83,951 79,346\n Total revenue 444,294 431,784\n Operating expenses\n Cost of services (exclusive of depreciation and amortization) 100,950 102,389\n Cost of subscriber equipment sales 26,492 24,169\n Research and development 11,704 9,696\n Selling, general and administrative 112,823 80,380\n Depreciation and amortization 107,604 104,504\n Total operating expenses 359,573 321,138\n Operating income 84,721 110,646\n Other expense, net\n Interest expense, net (38,612) (44,576)\n Other expense, net (642) (2,556)\n Total other expense, net (39,254) (47,132)\n Income before income taxes and loss on equity method investments 45,467 63,514\n Income tax expense (11,952) (9,626)\n Loss on equity method investments (2,242) (1,508)\n Net income $ 31,273 $ 52,380\n Operational EBITDA $ 235,448 $ 243,431\n\n \n Iridium Communications Inc.\n Summary Revenue and OEBITDA Highlights\n (In thousands)\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 % Change 2026 2025 % Change\n Revenue\n Service revenue((1))\n Commercial service revenue\n Voice and data $ 58,387 $ 56,810 3 % $ 115,820 $ 112,752 3 %\n IoT data((2)) 47,071 44,741 5 % 93,037 88,596 5 %\n Broadband((3)) 11,674 12,724 (8) % 23,896 25,600 (7) %\n Hosted payload and other data service((4)) 16,571 14,545 14 % 31,354 29,414 7 %\n Total commercial service revenue 133,703 128,820 4 % 264,107 256,362 3 %\n Government service revenue((5)) 27,625 26,750 3 % 55,250 53,500 3 %\n Total service revenue 161,328 155,570 4 % 319,357 309,862 3 %\n Subscriber equipment 20,767 19,455 7 % 40,986 42,576 (4) %\n Engineering and support((6))\n Commercial 1,689 2,404 (30) % 3,032 4,041 (25) %\n Government 41,453 39,477 5 % 80,919 75,305 7 %\n Total engineering and support 43,142 41,881 3 % 83,951 79,346 6 %\n Total revenue $ 225,237 $ 216,906 4 % $ 444,294 $ 431,784 3 %\n Operational EBITDA\n Operational EBITDA $ 119,107 $ 121,313 (2) % $ 235,448 $ 243,431 (3) %\n Other\n Capital expenditures((7)) $ 21,836 $ 20,710 $ 51,791 $ 45,256\n Net debt((8)) $ 1,590,507 $ 1,745,412\n Cash, cash equivalents and marketable securities $ 184,214 $ 79,309\n Revolving Credit Facility $ — $ 50,000\n Term Loan, gross $ 1,774,721 $ 1,774,721\n Deferred financing costs (12,847) (15,552)\n Term Loan, net $ 1,761,874 $ 1,759,169\n\n ((1)) Service revenue consists primarily of subscription-based services which often\n generate a long-term recurring revenue stream from subscribers.\n ((2)) IoT data service provides a two-way short burst data transmission between\n Iridium's network and a telemetry unit, which may be located, for example, on\n a container in transit or a buoy monitoring oceanographic conditions.\n ((3)) Broadband is comprised of Iridium OpenPort(®) and Iridium Certus(®).\n ((4)) Hosted payload and other services consist primarily of services that do not\n have traditional billable subscribers. Hosted payload services consist of\n hosting and data services to our payload customers, Aireon LLC and L3Harris\n Technologies, Inc. We acquired Aireon LLC on July 2, 2026. Other services\n include primarily Iridium's position, navigation and timing service.\n ((5)) Government service revenue consists of voice and IoT data subscription-based\n services provided to agencies of the U.S. government through prime contracts.\n ((6)) Engineering and support includes engineering services for the Space\n Development Agency contract and to assist commercial customers in developing\n new technologies for use on Iridium's satellite system, as well as maintenance\n services to the U.S. government's dedicated gateway.\n ((7)) Capital expenditures based on cash spent in the respective period.\n ((8)) Net debt is calculated by taking the gross Term Loan and Revolving Credit\n Facility amounts, less cash, cash equivalents and marketable securities.\n\n \n Iridium Communications Inc.\n Subscriber Highlights\n (In thousands, except ARPU)\n\n As of June 30,\n 2026 2025 % Change\n Billable Subscribers ((1) (2))\n Commercial\n Voice and data, IoT data and Broadband service\n Voice and data 402 415 (3) %\n IoT data 2,091 1,924 9 %\n Broadband( (3)) 16.0 16.3 (2) %\n Total commercial voice and data, IoT data 2,509 2,355 7 %\n and Broadband service\n Government\n Voice and data and IoT data service\n Voice and data 42 49 (14) %\n IoT data 76 79 (4) %\n Total government voice and data and IoT 118 128 (8) %\n data service\n Total billable subscribers 2,627 2,483 6 %\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 2026 2025\n Net Billable Subscriber Additions\n Commercial\n Voice and data. IoT data and Broadband service\n Voice and data 3 6 — —\n IoT data 72 39 93 37\n Broadband (0.1) — (0.1) (0.3)\n Total commercial voice and data, IoT data 75 45 93 37\n and Broadband service\n Government\n Voice and data and IoT data service\n Voice and data (1) (5) (1) (13)\n IoT data (2) — (2) —\n Total government voice and data and IoT (3) (5) (3) (13)\n data service\n Total net billable subscriber additions 72 40 90 24\n\n Three Months Ended June 30, Six Months Ended June 30,\n 2026 2025 % Change 2026 2025 % Change\n ARPU ((2) (4))\n Commercial\n Voice and data $ 49 $ 46 7 % $ 48 $ 45 7 %\n IoT data $ 7.64 $ 7.83 (2) % $ 7.58 $ 7.75 (2) %\n Broadband $ 243 $ 260 (7) % $ 248 $ 260 (5) %\n\n ((1)) Subscribers as of the end of the respective period.\n ((2)) Billable subscriber and average monthly revenue per unit (\"ARPU\") data is not\n applicable for hosted payload and other data service revenue items and is\n excluded from presentation above.\n ((3)) Broadband is comprised of Iridium OpenPort and Iridium Certus.\n ((4)) ARPU is calculated by dividing revenue in the respective period by the average\n of the number of billable subscribers at the beginning of the period and the\n number of billable subscribers at the end of the period and then dividing the\n result by the number of months in the period.\n\n \n Investor Contact: Press Contact:\n\n Kenneth Levy Jordan Hassin\n Iridium Communications Inc. Iridium Communications Inc.\n +1 (703) 287-7570 +1 (703) 287-7421\n ken.levy@iridium.com (mailto:ken.levy@iridium.com) jordan.hassin@iridium.com (mailto:jordan.hassin@iridium.com)\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/iridium-announces-second-quarter-2026-results-302831462.html\n(https://www.prnewswire.com/news-releases/iridium-announces-second-quarter-2026-results-302831462.html)\n\nSOURCE Iridium Communications Inc.\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS941942/IRIDIUM-Logo.jpg?id=OA2773300\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-07-22T11:01:00.945433923Z","server_sent_at_ms":1784718060945},"received_at":"2026-07-22T11:01:01.096Z","source_url":"https://www.prnewswire.com/news-releases/iridium-announces-second-quarter-2026-results-302831462.html"},"analysis":{"id":"84045","press_release_id":"95000","analysis_json":{"industry":{"label":"Communications Equipment","sector":"Information Technology"},"redFlags":["Net income decreased by more than 50% year-over-year due to transaction costs","Pending acquisition by Rocket Lab introduces integration and execution risk"],"eventType":"earnings","narrative":"Iridium reported Q2 2026 revenue of $225.2 million, up 4% year-over-year, with total billable subscribers growing 6% to 2.6 million. Operational EBITDA was $119.1 million, slightly down from the prior year due to transaction costs and changes in compensation practices.\n\nNet income fell to $9.7 million, or $0.09 per share, compared to $22.0 million a year ago, primarily due to increased transaction costs related to strategic initiatives.\n\nThe company remains focused on its pending acquisition by Rocket Lab, expected to close in mid-2027, and recently closed the acquisition of Aireon LLC for $366.7 million to expand its aviation safety services portfolio.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Revenue growth offsets income decline; focus shifts to Rocket Lab merger and Aireon integration."},"keyFigures":{"eps":0.09,"revenue":225237000,"revenueYoy":"4%","customDimensions":{"oevida":119107000,"net_debt":1590507000,"net_income":9679000,"equipment_revenue":20800000,"dividend_per_share":0.15,"capital_expenditures":21836000,"cash_and_equivalents":184214000,"aireon_purchase_price":366700000,"commercial_service_revenue":133703000,"government_service_revenue":27625000,"total_billable_subscribers":2627000}},"quotedText":"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.","namedEntities":{"people":[{"name":"Matt Desch","role":"CEO"}],"products":["Iridium 9604","Iridium NTN Direct","Iridium PNT","Iridium OpenPort","Iridium Certus"],"companies":[{"name":"Iridium Communications Inc.","ticker":"IRDM"},{"name":"Rocket Lab Corporation","relationship":"acquirer"},{"name":"Aireon LLC","relationship":"acquired"}],"dollarAmounts":[{"amount":"$225.2 million","context":"Q2 2026 total revenue"},{"amount":"$9.7 million","context":"Q2 2026 net income"},{"amount":"$119.1 million","context":"Q2 2026 Operational EBITDA"},{"amount":"$366.7 million","context":"aggregate purchase price for Aireon LLC"},{"amount":"$183.4 million","context":"deferred loan from sellers for Aireon acquisition"},{"amount":"$100 million","context":"draw down on Revolving Facility for Aireon acquisition"},{"amount":"$0.15 per share","context":"Q2 2026 dividend"},{"amount":"$16.2 million","context":"total Q2 2026 dividend payment"}]},"materialImpact":{"score":4,"reasoning":"Revenue grew 4% year-over-year to $225.2 million and subscribers increased 6%, but net income fell more than 50% due to transaction costs. The pending acquisition by Rocket Lab and the completed Aireon purchase are material strategic events."},"tickerRelevance":{"others":[],"primary":"IRDM"},"globalImportance":30,"audienceRelevance":40,"eventTypeSecondary":["m_and_a"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings_plus_m_a","sectorWeight":"IT/Satellite","mergerSpeculation":"Rocket Lab acquisition"}},"event_type":"earnings","event_type_secondary":["m_and_a"],"sentiment":"mixed","material_impact_score":4,"narrative":"Iridium reported Q2 2026 revenue of $225.2 million, up 4% year-over-year, with total billable subscribers growing 6% to 2.6 million. Operational EBITDA was $119.1 million, slightly down from the prior year due to transaction costs and changes in compensation practices.\n\nNet income fell to $9.7 million, or $0.09 per share, compared to $22.0 million a year ago, primarily due to increased transaction costs related to strategic initiatives.\n\nThe company remains focused on its pending acquisition by Rocket Lab, expected to close in mid-2027, and recently closed the acquisition of Aireon LLC for $366.7 million to expand its aviation safety services portfolio.","key_figures":{"eps":0.09,"revenue":225237000,"revenueYoy":"4%","customDimensions":{"oevida":119107000,"net_debt":1590507000,"net_income":9679000,"equipment_revenue":20800000,"dividend_per_share":0.15,"capital_expenditures":21836000,"cash_and_equivalents":184214000,"aireon_purchase_price":366700000,"commercial_service_revenue":133703000,"government_service_revenue":27625000,"total_billable_subscribers":2627000}},"named_entities":{"people":[{"name":"Matt Desch","role":"CEO"}],"products":["Iridium 9604","Iridium NTN Direct","Iridium PNT","Iridium OpenPort","Iridium Certus"],"companies":[{"name":"Iridium Communications Inc.","ticker":"IRDM"},{"name":"Rocket Lab Corporation","relationship":"acquirer"},{"name":"Aireon LLC","relationship":"acquired"}],"dollarAmounts":[{"amount":"$225.2 million","context":"Q2 2026 total revenue"},{"amount":"$9.7 million","context":"Q2 2026 net income"},{"amount":"$119.1 million","context":"Q2 2026 Operational EBITDA"},{"amount":"$366.7 million","context":"aggregate purchase price for Aireon LLC"},{"amount":"$183.4 million","context":"deferred loan from sellers for Aireon acquisition"},{"amount":"$100 million","context":"draw down on Revolving Facility for Aireon acquisition"},{"amount":"$0.15 per share","context":"Q2 2026 dividend"},{"amount":"$16.2 million","context":"total Q2 2026 dividend payment"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-22T12:22:49.692Z","global_importance":30,"audience_relevance":40,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings_plus_m_a","sectorWeight":"IT/Satellite","mergerSpeculation":"Rocket Lab acquisition"}},"durationMs":98718,"modelName":"glm-4.7"}}