Iridium Communications (IRDM) Q4 2025 earnings summary

Executive summary

• Achieved 2025 guidance with total revenue of $871.7 million, up 5% year-over-year, and operational EBITDA of $495.3 million, a 5% increase; pro forma free cash flow reached $296 million, supporting investments and a growing dividend.

• Market leadership driven by reliable services, valuable L-band spectrum, and a broad partner ecosystem; added 40 new partners in 2025, with strong engagement into 2026.

• Four key growth areas: narrowband IoT expansion, PNT leadership, national security (notably with the U.S. government), and aviation sector disruption.

• New products and services, including Certus GMDSS terminals, a new PNT ASIC, and NTN Direct, expected to generate over $200 million in revenue by 2030.

• Net income for 2025 was $114.4 million, up from $112.8 million in 2024; Q4 net income was $24.9 million.

Financial highlights

• 2025 service revenue grew 3% year-over-year to $634.0 million; operational EBITDA was $495.3 million, up 5% year-over-year.

• Q4 2025 total revenue was $212.9 million; service revenue comprised 75% of the total.

• Commercial IoT revenue grew 11% in Q4; broadband revenue declined 9% year-over-year in Q4 and 10% for the full year.

• Engineering and support revenue rose 26% to $156.6 million in 2025.

• Equipment revenue declined 11% to $81.1 million for 2025.

Outlook and guidance

• 2026 service revenue expected to be flat to up 2%; OIBDA guidance is $480–$490 million, reflecting a $17 million impact from the shift to all-cash incentive compensation.

• Net leverage targeted at or below 3.0x OEBITDA by end of 2026, falling below 2.0x by decade's end.

• Commercial voice and data forecasted to grow low single digits; IoT expected to see mid-single-digit growth, supported by new products and contract renewals.

• CapEx for 2026 expected to be similar to 2025 at around $100 million; pro forma free cash flow projected at $318 million for 2026, with a 66% OIBDA conversion rate.

• Cash taxes expected to remain under $10 million annually through 2027.