The pending Rocket Lab acquisition (expected mid-2027) and the Aireon integration are the key catalysts. Monitor regulatory approvals for the Rocket Lab deal and any updates on the EMSS Contract renewal (currently extended through March 2027). The flat OEBITDA despite revenue growth suggests margin pressure from cash compensation changes and acquisition costs.
Price Chart
Executive Summary
Iridium reported Q3 2026 revenue of $245.7M (+8% YoY) and net income of $106.9M ($0.98/diluted share), boosted by a $103.9M gain from the Aireon acquisition. The pending Rocket Lab acquisition received 99.6% stockholder approval and is expected to close by mid-2027. Operational EBITDA was essentially flat at $135.6M vs $136.6M a year ago, with higher cash compensation costs offsetting revenue growth.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue $245.7M, +8% YoY
- Net income $106.9M ($0.98/diluted share) vs $37.1M ($0.35) in Q3 2025, largely due to $103.9M gain on Aireon acquisition
- Operational EBITDA $135.6M vs $136.6M YoY, essentially flat
- Service revenue $187.5M, +13% YoY, driven by Aireon acquisition (hosted payload +121%)
- Commercial IoT subscribers grew 9% YoY to 2,163k; total billable subscribers 2,696k (+6% YoY)
- Rocket Lab acquisition approved by 99.6% of Iridium stockholders (81.4% of outstanding shares); expected close mid-2027
- Aireon acquisition closed July 2, 2026; Iridium assumed $154.7M credit facility and $183.4M seller loan
- Quarterly dividend increased to $0.16/share starting Q4 2026 (5.2% increase)
- Net debt $2.06B; net leverage 4.2x trailing twelve months OEBITDA
Financial Impact
Q3 revenue $245.7M (+8% YoY); net income $106.9M vs $37.1M; OEBITDA flat at $135.6M
Risk Factors
- Rocket Lab acquisition may not close or may be delayed due to regulatory approvals
- Integration of Aireon may not deliver expected synergies
- EMSS Contract renewal terms uncertain beyond March 2027 extension
- Net leverage of 4.2x is elevated following Aireon acquisition
- Commercial voice and broadband subscriber declines (-4% and -2% YoY respectively)
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302913127 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 144 | $44.89 | awaiting T+1 | — | $45.65 (+1.69%) |
Oct 23, 2026 4d ago | Institutional Cluster | $44.40 $44.52 | ▲ +0.26% | ▼ −0.45% | $45.65 (+2.82%) |
Oct 20, 2026 7d ago | 8-K | $43.94 $44.25 | ▲ +0.71% | ▲ +0.18% | $45.65 (+3.89%) |
Oct 20, 2026 7d ago | Press Release | $43.94 $44.25 | ▲ +0.71% | ▲ +0.18% | $45.65 (+3.89%) |
Sep 24, 2026 4w ago | 8-K | $48.75 $48.33 | ▼ −0.86% | ▼ −0.12% | $45.65 (−6.36%) |
Sep 18, 2026 5w ago | 425 | $48.21 $48.65 | ▲ +0.91% | ▲ +0.93% | $45.65 (−5.31%) |
Sep 15, 2026 6w ago | 425 | $47.09 $47.28 | ▲ +0.40% | ▲ +0.84% | $45.65 (−3.06%) |
Sep 15, 2026 6w ago | 8-K | $47.09 $47.28 | ▲ +0.40% | ▲ +0.84% | $45.65 (−3.06%) |
Sep 3, 2026 7w ago | 425 | $47.21 $47.80 | ▲ +1.25% | ▲ +1.80% | $45.65 (−3.30%) |
Aug 19, 2026 9w ago | Insider Cluster | $48.45 $48.98 | ▲ +1.09% | ▲ +0.68% | $45.65 (−5.78%) |
US Market Status
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