Iridium Communications Inc. reported fourth‑quarter 2025 results that showed total revenue of $212.9 million, essentially flat year‑over‑year against $213.0 million in Q4 2024. Service revenue, the company’s core recurring business, reached $158.9 million, while equipment sales and engineering and support projects generated $54.0 million. The flat top line reflects a 3% decline in equipment revenue to $17.0 million from $21.6 million a year earlier, offset by a 3% rise in service revenue driven by commercial Internet‑of‑Things (IoT) growth.
Net income fell to $24.9 million, or $0.24 per diluted share, from $36.3 million, or $0.32 per diluted share, in the same quarter a year earlier. The decline is largely attributable to the lower equipment mix and a 31% year‑over‑year drop in government voice and data subscribers, which reduced the company’s high‑margin government segment. EPS of $0.24 beat the consensus estimate of $0.23, a beat of $0.01 or 4%, reflecting disciplined cost management amid the revenue miss.
The company’s subscriber base grew 3% to 2,537,000, a gain driven by commercial IoT. However, the 31% decline in government subscribers highlights a headwind in that segment. Full‑year 2025 revenue totaled $871.7 million, up 5% from $830.0 million in 2024, while full‑year net income rose to $114.4 million, or $1.06 per diluted share, from $112.8 million, or $0.94 per diluted share, a modest improvement.
Iridium reaffirmed its 2026 outlook, projecting flat to 2% service‑revenue growth and operating earnings before interest, taxes, depreciation and amortization (OEBITDA) of $480–$490 million. The guidance is lower than the $495.3 million OEBITDA reported in Q4 2025, largely because the company paid $17 million of incentive compensation entirely in cash. Management also reiterated its target to reduce net leverage to 3.0x OEBITDA or less by year‑end 2026, from 3.4x at the close of 2025.
Management emphasized that the company remains focused on growth opportunities in specialized segments. "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 CEO Matt Desch. He added, "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."
Investors reacted negatively in pre‑market trading, citing the revenue miss as a key concern, though the EPS beat expectations. The company also highlighted strategic initiatives such as its NTN Direct service, which aims to provide direct‑to‑device satellite connectivity, and its Position, Navigation, and Timing (PNT) services, both of which are expected to drive future growth. Share repurchases totaled $185 million in 2025, and dividends of $62.9 million were paid, leaving $245.3 million under the repurchase program through 2027. The company’s net leverage stood at 3.4x OEBITDA at the end of 2025, with a target of 3.0x or less by the end of 2026.
The guidance signals a cautious outlook, reflecting management’s focus on financial discipline and balance‑sheet improvement amid a revenue miss and declining net income. The company’s continued investment in NTN Direct and PNT, coupled with a strong commercial IoT base, provides tailwinds that may offset short‑term headwinds in government and equipment segments.
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