Iridium Communications (IRDM) investor relations material

Executive summary

• Total revenue for Q1 2026 was $219.1 million, up 2% year-over-year, driven by growth in commercial and government services and engineering support, partially offset by a decline in equipment sales.

• Net income was $21.6 million ($0.20 per diluted share), down 29% from $30.4 million ($0.27 per share) in Q1 2025, mainly due to higher SG&A and increased income tax expense.

• Subscriber base grew 5% year-over-year to 2,555,000, led by strong IoT and voice/data service growth.

• New products, including the Iridium 9604 tri-mode IoT module and a new PNT ASIC, are on track for commercial launch in mid-2026, generating strong partner interest.

• Four prioritized growth vectors—IoT, PNT, national security missions, and aviation safety—are driving investment and business development.

Financial highlights

• Service revenue increased 2% year-over-year to $158.0 million, representing 72% of total revenue.

• Operational EBITDA (OIBDA/OEBITDA) was $116.3 million, down 5% year-over-year, mainly due to a shift to cash-based incentive compensation, impacting OIBDA by $4.2 million in Q1 and $17 million for the year.

• Commercial IoT revenue increased 5% to $46 million, with subscriber growth stabilizing after prior volatility.

• Equipment revenue declined 13% to $20.2 million; engineering/support revenue rose 9% to $40.8 million.

• Government service revenue was $27.6 million, reflecting a contract step-up.

Outlook and guidance

• Full-year 2026 service revenue expected to be flat to up 2% versus 2025 ($634.0 million), with OIBDA projected at $480–$490 million, reflecting a $17 million impact from all-cash incentive compensation.

• IoT revenue is projected to grow in the mid-single digits, and ARPU for voice/data is expected to remain at $48.

• Equipment sales for 2026 expected to be in line with 2025; engineering/support revenue projected to increase.

• Government MSS revenue is forecast at $110.5 million for 2026, with a likely six-month contract extension.

• Pro forma free cash flow is projected at $318 million for 2026, with $1.5–$1.8 billion expected over the decade.