Completes acquisition of Aireon; Pending acquisition by Rocket Lab receives stockholder approval
MCLEAN, Va., Oct. 20, 2026 /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM) ("Iridium" or the "Company"), a leading provider of global voice, data, aircraft surveillance, and positioning, navigation, and timing (PNT) satellite services, today reported financial results for the third quarter of 2026.
Update on Pending Transaction with Rocket Lab
On June 28, 2026, the Company entered into a definitive agreement with Rocket Lab Corporation (Nasdaq: RKLB) ("Rocket Lab") under which Rocket Lab will acquire the Company. Iridium stockholders approved the transaction at a Special Meeting of Stockholders on September 24, 2026 with 99.6% of the votes cast voting in favor of the transaction, representing 81.4% of Iridium's outstanding shares of common stock entitled to vote. The transaction is expected to be completed by mid-2027, subject to the satisfaction of the remaining regulatory approvals and closing conditions.
"Last month's stockholder approval for Rocket Lab's acquisition of Iridium was an important milestone in creating a next generation space powerhouse," said Matt Desch, CEO, Iridium. Desch continued, "The combination of these two leading space companies will unlock new innovation in the space industry and accelerate our growth in critical space-based missions."
Third Quarter 2026 Financial Results
Iridium reported third quarter total revenue of $245.7 million, an 8% increase versus the comparable period of 2025. Service revenue grew 13% from the year-ago period, primarily due to the acquisition of Aireon, and was 76% of total revenue for the third quarter of 2026.
Income from Operations
Net income was $106.9 million, or $0.98 per diluted share, for the third quarter of 2026, as compared to net income of $37.1 million, or $0.35 per diluted share, for the third quarter of 2025. The increase was primarily the result of the $103.9 million gain related to the acquisition of Aireon, which is included in the Company's condensed consolidated statements starting in the third quarter. Operational EBITDA ("OEBITDA")(1) for the third quarter of 2026 was $135.6 million, as compared to $136.6 million for the prior-year period. The year-over-year change in OEBITDA was partly due to $4.5 million in higher expenses related to the previously disclosed change to pay annual incentive compensation solely in cash.
Subscribers
The Company ended the third quarter with 2,696,000 total billable subscribers, up from 2,542,000 for the year-ago period and 2,627,000 for the quarter ended June 30, 2026. Total billable subscribers grew 6% year-over-year, led by growth in commercial Internet of Things (IoT).
Business Highlights
Service -- Commercial
Commercial service remained the largest part of Iridium's business, representing 65% of the Company's total revenue during the third quarter. Commercial service revenue was $159.9 million, up 16% from the comparable period last year, primarily due to the acquisition of Aireon. Hosted payload and other data service revenue increased $22.7 million, or 121%, in the third quarter, primarily due to the acquisition of Aireon.
Service -- U.S. Government
Government service revenue grew 2% to $27.6 million in the third quarter, reflecting contractual rate increases in the Enhanced Mobile Satellite Services contract (the "EMSS Contract") over the prior year. The U.S. government continues to be Iridium's largest single customer, representing 15% of service revenue and nearly all of the Company's engineering services and support business.
On September 11, 2026, the U.S. Space Force exercised its option to extend the EMSS Contract with Iridium through March 2027, at the same contractual rate. Iridium continues to expect a renewal of the EMSS Contract in 2027.
Equipment
Equipment revenue was $19.0 million in the third quarter, compared to $21.5 million in the prior-year quarter.
Engineering & Support
Engineering and support revenue was $39.2 million during the third quarter, compared to $40.2 million in the prior-year quarter.
Closing of Aireon Acquisition
Iridium completed its acquisition of Aireon, operator of the world's only space-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic surveillance system, on July 2, 2026. The acquisition solidifies Iridium as the premier global provider of integrated communications, navigation, and surveillance solutions for airlines and air navigation service providers to enable a safer, more connected, and more efficient aviation ecosystem.
Capital Allocation
Capital expenditures were $27.4 million for the third quarter, including $2.2 million in capitalized interest. The Company ended the third quarter with gross debt of $2.2 billion, and a cash and cash equivalents balance of $97.9 million, for a net debt balance of $2.1 billion.
In conjunction with the Company's acquisition of Aireon, Iridium assumed Aireon's existing credit facility with an aggregate principal balance of $154.7 million with a scheduled maturity date of October 10, 2028 and deferred 50% of the purchase price in the form of a $183.4 million loan from the sellers, bearing no interest and maturing one year following closing. The Company also drew $100.0 million on the Company's revolving credit facility in advance of closing and $50.0 million remained outstanding as of September 30, 2026. The Company ended the third quarter with net leverage of 4.2 times trailing twelve months OEBITDA.
Iridium paid its third quarter dividend of $0.15 per share of common stock on September 30, 2026, resulting in a total payment of $16.3 million to stockholders. The Company's Board of Directors plans to increase the quarterly dividend to $0.16 per share starting with the fourth quarter 2026 dividend, which would result in a full-year dividend increase of 5.2%.
(1) Non-GAAP Financial Measures & Definitions
In addition to disclosing financial results that are determined in accordance with U.S. GAAP, the Company reports OEBITDA, which is a non-GAAP financial measure, as a supplemental measure to help investors evaluate the Company's fundamental operational performance. OEBITDA represents earnings before interest, income taxes, depreciation and amortization, gain (loss) on equity method investments, transaction related expenses, and share-based compensation expenses. The Company considers the loss on early extinguishment of debt to be financing-related costs associated with interest expense or amortization of financing fees, which by definition are excluded from OEBITDA. Management believes such charges are incidental to, but not reflective of, the Company's day-to-day operating performance. OEBITDA does not represent, and should not be considered, an alternative to U.S. GAAP measurements such as net income or loss. In addition, there is no standardized measurement of OEBITDA, and the Company's calculations thereof may not be comparable to similarly titled measures reported by other companies. The Company believes OEBITDA is a useful measure across time in evaluating its fundamental operational performance. Management also uses OEBITDA to manage the business, including in preparing its annual operating budget, debt covenant compliance, financial projections and compensation plans. The Company believes that OEBITDA is also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. OEBITDA does not include interest expense on borrowed money, the payment of income taxes, amortization of the Company's definite-lived intangible assets, or depreciation expense on the Company's capital assets, which are necessary elements of the Company's operations. Since OEBITDA does not account for these and other expenses, its utility as a measure of the Company's operating performance has material limitations. Due to these limitations, the Company's management does not view OEBITDA in isolation, but also uses other measurements, such as net income, revenues and operating profit, to measure operating performance. Please refer to the schedule below for a reconciliation of consolidated GAAP net income to OEBITDA and Iridium's Investor Relations webpage at www.iridium.com for a discussion and reconciliation of this and other non-GAAP financial measures.
Iridium Communications Inc.
Supplemental Reconciliation of GAAP Net Income to Operational EBITDA
(In thousands)
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------
2026 2025 2026 2025
--------------- --------------- --------------- ---------------
GAAP net income $ 106,896 $ 37,127 $ 138,169 $ 89,507
Interest expense, net 26,788 22,593 65,400 67,169
Income tax expense 2,186 10,003 14,138 19,629
Depreciation and
amortization 62,094 52,975 169,698 157,479
Share-based
compensation 20,231 13,155 48,972 43,992
Transaction-related
expenses(1) 21,294 -- 36,318 --
(Gain) loss on equity
method investments (103,868) 734 (101,626) 2,242
--------------- --------------- --------------- ---------------
Operational EBITDA $ 135,621 $ 136,587 $ 371,069 $ 380,018
=============== =============== =============== ===============
(1) Represents direct costs incurred in connection with the evaluation,
negotiation, consummation, financing and integration of strategic
transactions, including acquisitions, divestitures and investments,
whether or not actually completed. These costs generally include
legal and advisory fees, severance and other related costs.
About Iridium Communications Inc.
Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network. It serves as a platform for innovation, enabling voice, data, and messaging, positioning, navigation, and timing (PNT), and aircraft surveillance services anywhere on Earth. Through its satellite constellation and integrated capabilities like Aireon, the world's only space-based air traffic surveillance system, Iridium delivers services that support safety-focused operations across aviation, maritime, government, industrial, and consumer markets. The Company is a leader in satellite Internet of Things (IoT) connectivity and is advancing direct-to-device (D2D) communications based on open standards to expand access to satellite services.
Headquartered in McLean, Virginia, Iridium innovates through an ecosystem of more than 500 technology and distribution partners, serving millions of customers worldwide. For more information, visit www.iridium.com.
Forward-Looking Statements
Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Iridium has based these statements on its current expectations and the information currently available to it. Forward-looking statements in this press release include statements regarding Iridium's strategy and growth opportunities; Iridium's acquisition by Rocket Lab and the benefits and expected timing and completion thereof; the expected benefits of Iridium's acquisition of Aireon; expectations related to the renewal of the EMSS Contract and the expected timing thereof; and plans regarding Iridium's quarterly dividends. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding customer demand for Iridium's products and services, including demand from the U.S. government; Iridium's ability to maintain the health, capacity and content of its satellite constellation; the development of and market for Iridium's products and services; increased competition; risks related to Iridium's pending acquisition by Rocket Lab, including the risk that regulatory approvals or other closing conditions may not be obtained, satisfied or waived, that the proposed transaction may be delayed or not completed, that the anticipated benefits of the proposed transaction may not be realized, the impact of pending or potential litigation relating to the proposed transaction against Rocket Lab, Iridium or their respective directors, managers, or officers, including the effects of any outcomes related thereto, the risk that disruptions from the proposed transaction will harm Rocket Lab's or Iridium's businesses, including current plans and operations, or will otherwise divert management time from ongoing business operations on transaction-related issues, potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction, fluctuations in, and uncertainty as to the long-term value of, Rocket Lab or Iridium common stock (including as relating to the risk that any announcements related to the proposed transaction could have adverse effects on the market price of such stock), restrictions during the pendency of the proposed transaction that may impact Iridium's ability to pursue certain business opportunities or strategic transactions, and unexpected costs, charges or expenses resulting from the proposed transaction; risks related to Iridium's recent acquisition of Aireon; the risk that the EMSS Contract may not be renewed on as favorable terms or at all; changes in trade policy, including tariff rates, as well as general industry and economic conditions; and legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on February 12, 2026, and the Company's Form 10-Q for the quarter ended September 30, 2026, filed with the SEC on October 20, 2026, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Iridium's forward-looking statements are based on information available to it as of the date of this press release and speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements, except as required by applicable law.
Iridium Communications Inc.
Condensed Consolidated Statements
of Operations (In thousands)
Three Months Ended September 30,
2026 2025
------------------ ------------------
Revenue
Service revenue
Commercial $ 159,925 $ 138,333
Government 27,573 26,910
------------------ ------------------
Total service revenue 187,498 165,243
Subscriber equipment 19,045 21,507
Engineering and support service 39,190 40,185
------------------ ------------------
Total revenue 245,733 226,935
Operating expenses
Cost of services (exclusive of
depreciation and amortization) 60,666 50,762
Cost of subscriber equipment
sales 11,609 12,661
Research and development 4,810 4,944
Selling, general and
administrative 74,936 35,508
Depreciation and amortization 62,094 52,975
------------------ ------------------
Total operating expenses 214,115 156,850
------------------ ------------------
Operating income 31,618 70,085
Other expense, net
Interest expense, net (26,788) (22,593)
Other income, net 384 372
------------------ ------------------
Total other expense, net (26,404) (22,221)
------------------ ------------------
Income before income taxes and
gain (loss) on equity method
investments, net 5,214 47,864
Income tax expense (2,186) (10,003)
Gain (loss) on equity method
investments, net 103,868 (734)
------------------ ------------------
Net income $ 106,896 $ 37,127
================== ==================
Operational EBITDA $ 135,621 $ 136,587
Iridium Communications Inc.
Condensed Consolidated Statements
of Operations (In thousands)
Nine Months Ended September 30,
--------------------------------------
2026 2025
------------------ ------------------
Revenue
Service revenue
Commercial $ 424,032 $ 394,695
Government 82,823 80,410
------------------ ------------------
Total service revenue 506,855 475,105
Subscriber equipment 60,031 64,083
Engineering and support service 123,141 119,531
------------------ ------------------
Total revenue 690,027 658,719
Operating expenses
Cost of services (exclusive of
depreciation and amortization) 161,616 153,152
Cost of subscriber equipment
sales 38,101 36,830
Research and development 16,514 14,640
Selling, general and
administrative 187,759 115,887
Depreciation and amortization 169,698 157,479
------------------ ------------------
Total operating expenses 573,688 477,988
------------------ ------------------
Operating income 116,339 180,731
Other expense, net
Interest expense, net (65,400) (67,169)
Other expense, net (258) (2,184)
------------------ ------------------
Total other expense, net (65,658) (69,353)
------------------ ------------------
Income before income taxes and
gain (loss) on equity method
investments, net 50,681 111,378
------------------ ------------------
Income tax expense (14,138) (19,629)
Gain (loss) on equity method
investments, net 101,626 (2,242)
------------------ ------------------
Net income $ 138,169 $ 89,507
================== ==================
Operational EBITDA $ 371,069 $ 380,018
Iridium Communications Inc.
Summary Revenue and OEBITDA
Highlights (In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- ------------------------
2026 2025 % Change 2026 2025 % Change
------------ ----------- -------- ----------- ----------- --------
Revenue
Service
revenue(1)
Commercial
service revenue
Voice and
data $ 58,002 $ 59,930 (3) % $ 173,822 $ 172,682 1 %
IoT data(2) 48,669 46,707 4 % 141,706 135,303 5 %
Broadband(3) 11,822 12,970 (9) % 35,718 38,570 (7) %
Hosted
payload and
other data
service(4) 41,432 18,726 121 % 72,786 48,140 51 %
------------ ----------- ----------- -----------
Total
commercial
service
revenue 159,925 138,333 16 % 424,032 394,695 7 %
Government
service
revenue(5) 27,573 26,910 2 % 82,823 80,410 3 %
------------ ----------- ----------- -----------
Total service
revenue 187,498 165,243 13 % 506,855 475,105 7 %
Subscriber
equipment 19,045 21,507 (11) % 60,031 64,083 (6) %
Engineering and
support(6)
Commercial 317 1,852 (83) % 3,348 5,893 (43) %
Government 38,873 38,333 1 % 119,793 113,638 5 %
------------ ----------- ----------- -----------
Total
engineering
and support 39,190 40,185 (2) % 123,141 119,531 3 %
------------ ----------- ----------- -----------
Total revenue $ 245,733 $ 226,935 8 % $ 690,027 $ 658,719 5 %
============ =========== =========== ===========
Operational EBITDA
Operational
EBITDA $ 135,621 $ 136,587 (1) % $ 371,069 $ 380,018 (2) %
Other
Capital
expenditures(7) $ 27,447 $ 21,535 $ 79,238 $ 66,791
Net debt(8) $ 2,061,605 $ 1,736,188
Cash, cash
equivalents and
marketable
securities $ 97,853 $ 88,533
Gross debt(9) $ 2,159,458 $ 1,824,721
Deferred
financing
costs (20,130) (14,878)
------------ -----------
Debt, net $ 2,139,328 $ 1,809,843
============ ===========
(1) Service revenue consists primarily of subscription-based services
which often generate a long-term recurring revenue stream from
subscribers.
(2) IoT data service provides a two-way short burst data transmission
between Iridium's network and a telemetry unit, which may be located,
for example, on a container in transit or a buoy monitoring
oceanographic conditions.
(3) Broadband is comprised of Iridium OpenPort(R) and Iridium Certus(R)
.
(4) Hosted payload and other data services consist primarily of services
that do not have traditional billable subscribers, including hosting
and other data services to Iridium's payload customers, Aireon
(through the acquisition date of July 2, 2026), and L3Harris
Technologies, Inc. After the Aireon acquisition date, hosted payload
services also include revenue associated with Iridium's space-based
ADS-B, air traffic surveillance system, and related data services.
Other data services primarily include Iridium's positioning,
navigation and timing service.
(5) Government service revenue consists of voice and IoT data
subscription-based services provided to agencies of the U.S.
government through prime contracts.
(6) Engineering and support includes engineering services for the Space
Development Agency contract and to assist commercial customers in
developing new technologies for use on Iridium's satellite system, as
well as maintenance services to the U.S. government's dedicated
gateway.
(7) Capital expenditures based on cash spent in the respective period.
(8) Net debt is calculated as gross debt less cash, cash equivalents, and
marketable securities.
(9) Gross debt includes amounts outstanding under Iridium's Term Loan and
Revolving Credit Facility, Aireon's existing credit facility assumed
in the acquisition, and the loan from the Aireon sellers.
Iridium
Communications
Inc. Subscriber
Highlights (In
thousands,
except ARPU)
As of September 30,
--------------------------
2026 2025 % Change
------------ ------------ --------
Billable
Subscribers (1)
(2)
Commercial
Voice and data,
IoT data and
Broadband
service
Voice and
data 396 411 (4) %
IoT data 2,163 1,991 9 %
Broadband
(3) 16.0 16.3 (2) %
------------ ------------
Total
commercial
voice and
data, IoT
data and
Broadband
service 2,575 2,418 6 %
Government
Voice and data
and IoT data
service
Voice and
data 44 45 (2) %
IoT data 77 79 (2) %
------------ ------------
Total
government
voice and
data and
IoT data
service 121 124 (2) %
------------ ------------
Total billable
subscribers 2,696 2,542 6 %
============ ============
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2026 2025 2026 2025
------------ ------------ ------------ ------------
Net Billable
Subscriber
Additions
Commercial
Voice and data.
IoT data and
Broadband
service
Voice and
data (6) (4) (6) (4)
IoT data 72 67 165 104
Broadband -- -- (0.1) (0.3)
------------ ------------ ------------ ------------
Total
commercial
voice and
data, IoT
data and
Broadband
service 66 63 159 100
Government
Voice and data
and IoT data
service
Voice and
data 2 (4) 1 (17)
IoT data 1 -- (1) --
------------ ------------ ------------ ------------
Total
government
voice and
data and
IoT data
service 3 (4) -- (17)
------------ ------------ ------------ ------------
Total net
billable
subscriber
additions 69 59 159 83
============ ============ ============ ============
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2026 2025 % Change 2026 2025 % Change
------------ ------------ -------- ------------ ------------ --------
ARPU (2) (4)
Commercial
Voice and
data $ 48 $ 48 -- % $ 48 $ 46 4 %
IoT data $ 7.63 $ 7.95 (4) % $ 7.57 $ 7.75 (2) %
Broadband $ 246 $ 265 (7) % $ 248 $ 261 (5) %
(1) Subscribers as of the end of the respective period.
(2) Billable subscriber and average monthly revenue per unit ("ARPU")
data is not applicable for hosted payload and other data service
revenue items and is excluded from presentation above.
(3) Broadband is comprised of Iridium OpenPort and Iridium Certus.
(4) ARPU is calculated by dividing revenue in the respective period by
the average of the number of billable subscribers at the beginning of
the period and the number of billable subscribers at the end of the
period and then dividing the result by the number of months in the
period.
Investor Contact: Press Contact:
Kenneth Levy Jordan Hassin
Iridium Communications Inc. Iridium Communications Inc.
+1 (703) 287-7570 +1 (703) 287-7421
ken.levy@iridium.com jordan.hassin@iridium.com
---------------------------
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SOURCE Iridium Communications Inc.
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