Iridium Communications Inc. reported mixed results for Q4 2025, with total revenue flat year-over-year, driven by growth in service revenue offsetting declines in subscriber equipment. While full-year net income and OEBITDA saw modest increases, the company faces challenges in subscriber equipment and broadband revenue, alongside a planned shift in incentive compensation impacting future OEBITDA.
Full-year 2025 total revenue increased 5% to $871.7 million.
positiveFull-year 2025 net income per diluted share increased 13% to $1.06, primarily due to a lower share count.
positiveFull-year 2025 OEBITDA increased 5% to $495.3 million.
positiveTotal billable subscribers grew 3% year-over-year to 2,537,000, driven by growth in commercial IoT.
positiveCommercial IoT data revenue increased 11% year-over-year to $46.1 million.
positiveGovernment service revenue grew 3% to $27.6 million.
positiveFourth-quarter 2025 total revenue was flat year-over-year at $212.9 million, with subscriber equipment revenue declining.
attentionFourth-quarter 2025 net income decreased to $24.9 million ($0.24 per diluted share) from $36.3 million ($0.32 per diluted share) in the prior-year period.
attentionFourth-quarter 2025 OEBITDA decreased 2% year-over-year to $115.3 million.
attentionCommercial broadband revenue decreased 9% year-over-year to $12.2 million.
attentionHosted payload and other data service revenue decreased 13% year-over-year to $13.4 million.
attentionGovernment voice and data subscribers declined 31% year-over-year to 43,000.
attentionFull-year 2026 OEBITDA is projected to be $480 million to $490 million, a decrease from $495.3 million in 2025, due to a $17 million impact from paying incentive compensation entirely in cash.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Commercial Service | N/A | — | — | — |
Government Service | N/A | — | — | — |
Subscriber Equipment | N/A | — | — | — |
Engineering and Support Service | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Strong cash flow generation in Q4 and full year.
Focus on growth opportunities in specialized segments that differentiate Iridium's offering.
Revenue growth driven by ongoing demand for IoT and deeper integration of Iridium technology into mission-critical applications.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.