Iridium Communications (IRDM) Q4 2025 earnings summary

Executive summary

• Achieved 2025 guidance with service revenue on target, total revenue of $871.7 million up 5% year-over-year, and 5% OIBDA growth.

• Pro forma free cash flow reached nearly $300 million, supporting investments and a growing dividend.

• Business transformation focuses on new services, technology platforms, and expanding partner ecosystem.

• Four key growth areas: narrowband IoT, PNT, national security, and aviation data communications.

• Industry developments and spectrum value are driving strategic considerations for alliances and partnerships.

Financial highlights

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

• Q4 total revenue was $212.9 million; operational EBITDA for the quarter was $115.3 million.

• Commercial IoT revenue grew 11% in Q4; broadband revenue declined 9% year-over-year.

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

• Equipment revenue declined 11% to $81.1 million for 2025; Q4 equipment revenue was $17.0 million.

Outlook and guidance

• 2026 service revenue expected to be flat to up 2%.

• OIBDA guidance for 2026 is $480–$490 million, reflecting a $17 million impact from incentive compensation changes.

• IoT expected to see mid-single-digit growth; broadband revenue decline to moderate.

• PNT services anticipated to contribute meaningful growth, with potential upside if customer deployments accelerate.

• CapEx for 2026 expected to be consistent with 2025 at around $100 million.