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1. Company Snapshot

1.a. Company Description

Iridium Communications Inc.provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide.The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services.


It also provides hosted payload and other data services, such as satellite time and location services, and inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services.In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence agencies, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the United States government's dedicated gateway.Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services.


Iridium Communications Inc.sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers.The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc.


in September 2009.Iridium Communications Inc.was founded in 2000 and is headquartered in McLean, Virginia.

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1.b. Last Insights on IRDM

Iridium Communications' recent performance was negatively impacted by the pause in share buybacks, which reduced investor appeal. Despite strong Q3 2025 earnings, with revenue and EPS beating estimates, and service and engineering gains driving growth, the company's decision to trim 2025 guidance and halt buybacks overshadowed positive results. Iridium's cash-rich position and growing revenue, however, position it for potential growth, according to some analysts. (Source: Zacks Consensus Estimate)

1.c. Company Highlights

2. Iridium's Q3 2025 Earnings: A Strong Performance

Iridium's third-quarter 2025 earnings report revealed a robust financial performance, with operational EBITDA increasing by 10% to $136.6 million, driven by revenue growth from recurring services and engineering support. Commercial service revenue rose 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services. The company's EPS came in at $0.35, beating analyst estimates of $0.26.

Publication Date: Oct -27

📋 Highlights
  • Operational EBITDA Growth: Increased 10% year-over-year to $136.6 million, driven by recurring services and engineering support revenue.
  • Commercial IoT Expansion: Revenue rose 7%, while hosting and data services surged 14%, contributing to a revised full-year service revenue growth forecast of ~3%.
  • Long-Term Cash Flow Projections: Anticipated $1.5–1.8 billion in total cash flows from 2026–2030, supporting strategic growth and capital deployment flexibility.
  • Tax Savings Impact: New legislation will reduce annual cash taxes to under $10 million through 2027, enhancing incremental cash generation.
  • Free Cash Flow Efficiency: Projected 2025 pro forma free cash flow of $304 million with a 61% OEBITDA-to-free cash flow conversion rate, yielding ~18% by year-end.

Revenue Growth

The company's revenue growth was driven by a 7% increase in commercial IoT revenue and a 14% increase in hosting and other data services revenue. Iridium's focus on providing unique specialized services in the satellite industry, rather than participating in price-driven commodity markets, has enabled it to maintain a strong revenue growth trajectory.

Operational Highlights

Iridium is making significant progress in its new initiatives, including the development of Iridium NTN Direct, a new standards-based D2D service. The company has made progress on on-air testing and partnerships with mobile network operators, and has signed a deal with Deutsche Telekom, which is a roaming arrangement allowing their customers to roam onto Iridium's network. As CEO Matt Desch noted, "We're not in denial of the potential of our competitors, but we'll be complementary to them, focusing on areas like Iridium NTN Direct."

Valuation

With a P/E Ratio of 15.29 and an EV/EBITDA ratio of 8.15, Iridium's valuation appears reasonable, given its strong financial performance and growth prospects. The company's Dividend Yield of 3.14% also provides a attractive return for income investors. Analysts estimate next year's revenue growth at 2.5%, which is slightly lower than the current year's growth rate.

Future Outlook

Iridium expects to generate at least $1.5 billion to $1.8 billion in total cash flows from 2026 through 2030, giving the company flexibility as it enhances its business and focuses on new growth opportunities. The company has paused its share repurchase program to emphasize strategic growth initiatives and continue its discipline in deploying capital. With a strong financial position and a robust growth pipeline, Iridium is well-positioned for long-term success.

3. NewsRoom

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Iridium Appoints Louis Alterman to Board of Directors

Dec -04

Source: prnewswire.com

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Iridium Communications Inc. (IRDM) Presents at Bank of America Leveraged Finance Conference Transcript

Dec -03

Source: seekingalpha.com

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Iridium Awarded 5-Year System Infrastructure Transformation and Hybridization Contract Worth Up to $85.8 Million

Dec -02

Source: prnewswire.com

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Creative Planning Sells 8,028 Shares of Iridium Communications Inc $IRDM

Dec -02

Source: defenseworld.net

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Advisors Asset Management Inc. Boosts Holdings in Iridium Communications Inc $IRDM

Dec -01

Source: defenseworld.net

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Is IRDM Stock Ready To Rebound?

Nov -26

Source: forbes.com

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Is the Options Market Predicting a Spike in Iridium Stock?

Nov -17

Source: zacks.com

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Joel Greenblatt's Strategic Moves: A Closer Look at SPDR S&P 500 ETF Trust

Nov -14

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.63%)

6. Segments

Service - Commercial

Expected Growth: 4.5%

Iridium Communications Inc.'s Commercial Service segment growth of 4.5% is driven by increasing demand for satellite-based voice and data services, expansion in IoT and M2M markets, and growing adoption of satellite-based broadband services in remote and underserved areas.

Service - Government

Expected Growth: 4.2%

Iridium Communications Inc.'s Government Service segment growth of 4.2% is driven by increasing demand for secure satellite communications from government agencies, expansion of existing contracts, and new business from emerging markets. Additionally, the company's investments in network modernization and its unique satellite constellation capabilities are also contributing to this growth.

Subscriber Equipment

Expected Growth: 5.5%

Iridium Communications Inc.'s Subscriber Equipment segment growth of 5.5% is driven by increasing demand for satellite-based communication devices, particularly in the IoT, aviation, and maritime industries. Growing adoption of satellite-based services, expansion into new markets, and strategic partnerships are also contributing to this growth.

Engineering and Support Services

Expected Growth: 4.8%

Iridium Communications Inc.'s Engineering and Support Services segment growth of 4.8% is driven by increasing demand for satellite-based communication services, expansion of IoT and M2M applications, and growing need for secure and reliable connectivity in remote areas. Additionally, the company's investments in network modernization and its partnerships with government and commercial customers contribute to the segment's growth.

7. Detailed Products

Iridium Satellite Phones

Iridium offers a range of satellite phones that provide global voice and data communications, enabling users to stay connected from anywhere on the planet.

Iridium Certus

Iridium Certus is a broadband service that provides high-speed internet and voice communications, enabling users to stay connected and productive on the go.

Iridium Short Burst Data (SBD)

Iridium SBD is a low-latency, two-way data service that enables machine-to-machine (M2M) and IoT applications, such as tracking, monitoring, and control.

Iridium Push-to-Talk (PTT)

Iridium PTT is a real-time, voice-based communication service that enables instant group communications, ideal for teams that require rapid coordination and response.

Iridium IoT and M2M Solutions

Iridium offers a range of IoT and M2M solutions that enable remote monitoring, tracking, and control of assets, equipment, and systems.

8. Iridium Communications Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Iridium Communications Inc. has a low threat of substitutes due to its unique satellite-based communication services, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Iridium Communications Inc. has a medium bargaining power of customers due to the presence of a few large customers, but the company's unique services and high switching costs mitigate this power.

Bargaining Power Of Suppliers

Iridium Communications Inc. has a low bargaining power of suppliers due to its vertical integration and ownership of its satellite constellation, reducing its dependence on suppliers.

Threat Of New Entrants

Iridium Communications Inc. has a low threat of new entrants due to the high barriers to entry, including the need for significant capital investments and regulatory approvals.

Intensity Of Rivalry

Iridium Communications Inc. operates in a competitive industry, but its unique services and strong brand recognition help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.54%
Debt Cost 3.95%
Equity Weight 37.46%
Equity Cost 7.84%
WACC 5.40%
Leverage 166.93%

11. Quality Control: Iridium Communications Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Liberty Broadband

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Growth: 9.0

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Momentum: 2.0

Volatility: 4.7

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A-Score: 4.6/10

Value: 7.6

Growth: 7.8

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

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Value: 7.0

Growth: 3.0

Quality: 3.1

Yield: 0.0

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Volatility: 8.0

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Growth: 4.6

Quality: 2.7

Yield: 7.0

Momentum: 0.0

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Iridium Communications

A-Score: 4.4/10

Value: 5.6

Growth: 6.6

Quality: 6.0

Yield: 4.0

Momentum: 0.5

Volatility: 4.0

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Cogent Communications

A-Score: 4.1/10

Value: 5.2

Growth: 2.7

Quality: 2.1

Yield: 10.0

Momentum: 0.0

Volatility: 4.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.96$

Current Price

17.96$

Potential

-0.00%

Expected Cash-Flows