IRDM · Iridium Communications Inc.

Iridium Communications Inc. delivered a solid start to 2026 with Q1 total revenue of $219.1 million, up 2% from the prior year, driven by 2% service revenue growth to $158.0 million, which comprised 72% of total revenue. Service growth was led by commercial segments, with commercial service revenue at $130.4 million (up 2%), including 3% growth in voice and data to $57.4 million despite a 2% subscriber decline, offset by higher ARPU of $48 from 2025 price actions. Commercial IoT data revenue rose 5% to $46.0 million with 7% subscriber growth to 2,019,000, representing 83% of commercial subscribers. U.S. government service revenue increased 3% to $27.6 million due to EMSS Contract rate hikes, with fixed-price rate at $110.5 million for the year starting September 15, 2025. Equipment sales fell 13% to $20.2 million, but engineering and support rose 9% to $40.8 million from U.S. government activity. Profitability dipped with net income at $21.6 million ($0.20/share) versus $30.4 million ($0.27/share) last year, and OEBITDA declined to $116.3 million from $122.1 million, primarily due to a $4.2 million increase in cash incentive compensation expenses as previewed. Total billable subscribers hit 2,555,000, up 5% YoY and sequentially from 2,537,000. CEO Matt Desch highlighted growth in IoT, PNT, national security, and aviation, with new next-generation IoT platform launches. The company reiterated FY2026 guidance, projecting service revenue flat to +2% on 2025's $634.0 million base, OEBITDA of $480-$490 million (adjusted for $17 million incentive shift), equipment sales in line with 2025, and engineering/support growth. Balance sheet shows $111.6 million cash, $1.8 billion gross debt (net $1.7 billion), and 3.4x net leverage, targeting ≤3.0x by year-end and <2.0x by decade's end. Q1 dividend of $0.15/share was paid, continuing annual increases since 2023.