Iridium Communications (IRDM) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 8% YoY to $245.7M, while operating income fell to $31.6M; net income reached $106.9M, primarily due to the $103.9M Aireon remeasurement gain.

• Service revenue increased 13% to $187.5M, primarily reflecting Aireon’s acquisition; Q3 OEBITDA was nearly flat YoY.

• Aireon’s remaining 60.5% was acquired July 2, bringing ownership to 100%; the pending Rocket Lab transaction is expected to close by mid-2027, subject to remaining conditions.

• Billable subscribers increased 6% YoY to 2.696M at September 30, 2026.

Financial highlights

• Q3 revenue was $245.7M, up 8% YoY; 9M revenue was $690.0M, up 5%. Q3 service revenue was $187.5M, up 13%.

• Q3 operating income was $31.6M vs. $70.1M; 9M operating income was $116.3M vs. $180.7M, primarily reflecting higher SG&A and acquisition-related costs.

• Q3 net income was $106.9M vs. $37.1M; 9M net income was $138.2M vs. $89.5M, including a $103.9M after-tax Aireon remeasurement gain. Q3 diluted EPS was $0.98 vs. $0.35.

• Q3 SG&A increased 111% YoY to $74.9M, including $21.3M of transaction costs; 9M SG&A rose 62% to $187.8M, including $36.3M of transaction costs.

• Q3 OEBITDA was $135.6M vs. $136.6M; 9M OEBITDA was $371.1M vs. $380.0M. 9M operating cash flow was $281.7M vs. $291.5M.

Outlook and guidance

• 2026 subscriber equipment revenue is expected to be in line with 2025; engineering and support service revenue is expected to exceed 2025.

• SG&A is expected to moderate from Q3 levels as transaction costs decrease; merger process and Aireon integration have increased professional and advisory fees.

• The EMSS contract was extended through March 2027 at the existing rate; renewal is expected in 2027.

• Rocket Lab transaction closing is expected by mid-2027, subject to remaining regulatory approvals and customary closing conditions.

• A planned Q4 2026 dividend increase to $0.16 per share would raise the full-year dividend 5.2%; comparable dividends remain subject to earnings, capital needs, financial condition and Board discretion.