Iridium Communications (IRDM) investor relations material

Business overview and market positioning

• Operates a global low earth orbit satellite network, covering 100% of the planet, with a focus on IoT, land, maritime, aviation, and a significant government segment.

• Second generation network launched in 2019-2020, enabling continued growth, profitability, and shareholder returns through buybacks and dividends.

• Services are complementary to other satellite providers, leveraging unique L-band spectrum for reliable, mobile, and global coverage.

• Maintains long-term relationships with major partners and the US government, with government business representing less than 20% of revenue.

• Focuses on mission-critical communications, especially for IoT and voice, with a reputation for reliability and no service compromises.

Technology evolution and product development

• Transitioning to standards-based IoT services, enabling consumer devices to roam globally on the network, with commercial availability expected in 2026.

• New IoT solutions require minimal additional cost or hardware, leveraging software upgrades and partnerships with chipmakers.

• Devices are becoming smaller and more efficient, with near-instantaneous messaging and flexible data capabilities for applications like agriculture and unmanned vehicles.

• Certus brand offers higher speed services for small devices, supporting features like voice notes and picture messaging.

• Integration with 3GPP standards is attracting interest from automotive and other industries seeking global, non-proprietary solutions.

Growth strategy and financial outlook

• Nearly 2 million IoT devices connected, with potential for dramatic growth as a standard solution, though ARPU may decrease as device count rises.

• Incremental devices add revenue with minimal capital investment, supporting strong cash flow and profitability.

• Service revenue is approaching $700 million, with a target of $1 billion in five years, driven by IoT, PNT, DOD, and other new services.

• High-margin service revenue is prioritized, with additional contributions from equipment and engineering services.

• Expects continued shareholder-friendly capital returns and excess cash flow, even with future network upgrades.