third quarter 2026
Filed Oct 20, 2026Iridium Announces Third Quarter 2026 Results; Completes acquisition of Aireon; Pending acquisition by Rocket Lab receives stockholder approval
Third-quarter total revenue and service revenue grew, led by Aireon, while GAAP net income benefited from a $103.9 million gain related to the acquisition. Operational EBITDA, operating income, equipment revenue and engineering and support revenue declined from the prior-year quarter, and net debt increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30 (in thousands)GAAP | $245.7M | – | 8% |
| Total service revenue, three months ended September 30 (in thousands)GAAP | $187.5M | – | 13% |
| Commercial service revenue, three months ended September 30 (in thousands)GAAP | $159.9M | – | 16% |
| Commercial voice and data revenue, three months ended September 30 (in thousands)GAAP | $58.00M | – | (3) % |
| Commercial IoT data revenue, three months ended September 30 (in thousands)GAAP | $48.67M | – | 4% |
| Commercial broadband revenue, three months ended September 30 (in thousands)GAAP | $11.82M | – | (9) % |
| Hosted payload and other data service revenue, three months ended September 30 (in thousands)GAAP | $41.43M | – | 121% |
| Government service revenue, three months ended September 30 (in thousands)GAAP | $27.57M | – | 2% |
| Subscriber equipment revenue, three months ended September 30 (in thousands)GAAP | $19.05M | – | (11) % |
| Engineering and support revenue, three months ended September 30 (in thousands)GAAP | $39.19M | – | (2) % |
| Commercial engineering and support revenue, three months ended September 30 (in thousands)GAAP | $317K | – | (83) % |
| Government engineering and support revenue, three months ended September 30 (in thousands)GAAP | $38.87M | – | 1% |
| Cost of services, exclusive of depreciation and amortization, three months ended September 30 (in thousands)GAAP | $60.67M | – | – |
| Cost of subscriber equipment sales, three months ended September 30 (in thousands)GAAP | $11.61M | – | – |
| Research and development, three months ended September 30 (in thousands)GAAP | $4.81M | – | – |
| Selling, general and administrative, three months ended September 30 (in thousands)GAAP | $74.94M | – | – |
| Depreciation and amortization, three months ended September 30 (in thousands)GAAP | $62.09M | – | – |
| Total operating expenses, three months ended September 30 (in thousands)GAAP | $214.1M | – | – |
| Operating income, three months ended September 30 (in thousands)GAAP | $31.62M | – | – |
| Interest expense, net, three months ended September 30 (in thousands)GAAP | −$26.79M | – | – |
| Other income, net, three months ended September 30 (in thousands)GAAP | $384K | – | – |
| Income tax expense, three months ended September 30 (in thousands)GAAP | −$2.19M | – | – |
| Gain (loss) on equity method investments, net, three months ended September 30 (in thousands)GAAP | $103.9M | – | – |
| Net income, three months ended September 30 (in thousands)GAAP | $106.9M | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $0.98 per diluted share | – | – |
| Operational EBITDA, three months ended September 30 (in thousands)non-GAAP | $135.6M | – | (1) % |
| Total revenue, nine months ended September 30 (in thousands)GAAP | $690.0M | – | 5% |
| Total service revenue, nine months ended September 30 (in thousands)GAAP | $506.9M | – | 7% |
| Commercial service revenue, nine months ended September 30 (in thousands)GAAP | $424.0M | – | 7% |
| Commercial voice and data revenue, nine months ended September 30 (in thousands)GAAP | $173.8M | – | 1% |
| Commercial IoT data revenue, nine months ended September 30 (in thousands)GAAP | $141.7M | – | 5% |
| Commercial broadband revenue, nine months ended September 30 (in thousands)GAAP | $35.72M | – | (7) % |
| Hosted payload and other data service revenue, nine months ended September 30 (in thousands)GAAP | $72.79M | – | 51% |
| Government service revenue, nine months ended September 30 (in thousands)GAAP | $82.82M | – | 3% |
| Subscriber equipment revenue, nine months ended September 30 (in thousands)GAAP | $60.03M | – | (6) % |
| Engineering and support revenue, nine months ended September 30 (in thousands)GAAP | $123.1M | – | 3% |
| Total operating expenses, nine months ended September 30 (in thousands)GAAP | $573.7M | – | – |
| Operating income, nine months ended September 30 (in thousands)GAAP | $116.3M | – | – |
| Net income, nine months ended September 30 (in thousands)GAAP | $138.2M | – | – |
| Operational EBITDA, nine months ended September 30 (in thousands)non-GAAP | $371.1M | – | (2) % |
| Total billable subscribers, as of September 30other | 2,696,000 | – | 6% |
| Commercial voice and data subscribers, as of September 30 (in thousands)other | 396K | – | (4) % |
| Commercial IoT data subscribers, as of September 30 (in thousands)other | 2.16M | – | 9% |
| Commercial broadband subscribers, as of September 30 (in thousands)other | 16K | – | (2) % |
| Total commercial voice and data, IoT data and Broadband subscribers, as of September 30 (in thousands)other | 2.58M | – | 6% |
| Total government voice and data and IoT data subscribers, as of September 30 (in thousands)other | 121K | – | (2) % |
| Commercial voice and data ARPU, three months ended September 30other | $48 | – | — % |
| Commercial IoT data ARPU, three months ended September 30other | $7.63 | – | (4) % |
| Commercial broadband ARPU, three months ended September 30other | $246 | – | (7) % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial servicePrimarily due to the acquisition of Aireon. | $159.9M | – | 16% |
| Hosted payload and other data servicePrimarily due to the acquisition of Aireon. | $41.43M | – | 121% |
| Government serviceReflecting contractual rate increases in the Enhanced Mobile Satellite Services contract. | $27.57M | – | 2% |
| Subscriber equipmentNo driver was provided. | $19.05M | – | (11) % |
| Engineering and supportNo driver was provided. | $39.19M | – | (2) % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter 2026 and 2027 outlook
- NoteThe Board of Directors plans to increase the quarterly dividend to $0.16 per share starting with the fourth quarter 2026 dividend.
- NoteThe planned dividend increase would result in a full-year dividend increase of 5.2%.
- NoteIridium continues to expect a renewal of the EMSS Contract in 2027.
- NoteThe Rocket Lab transaction is expected to be completed by mid-2027, subject to the satisfaction of the remaining regulatory approvals and closing conditions.
Capital returns
- 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 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%.
What drove it
- Service revenue was 76% of total revenue for the third quarter of 2026.
- Commercial service represented 65% of total revenue during the third quarter.
- Total billable subscribers grew 6% year-over-year, led by growth in commercial IoT.
- Iridium completed its acquisition of Aireon on July 2, 2026.
- The U.S. Space Force exercised its option to extend the EMSS Contract through March 2027 at the same contractual rate.
Concerns
- Operational EBITDA was $135.6 million, compared with $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 change to pay annual incentive compensation solely in cash.
- Operating income was $31,618 (in thousands), compared with $70,085 (in thousands) for the prior-year quarter.
- Net income included a $103.9 million gain related to the acquisition of Aireon.
- Subscriber equipment revenue declined 11%, engineering and support revenue declined 2%, and commercial broadband revenue declined 9%.
- The Rocket Lab transaction remains subject to remaining regulatory approvals and closing conditions.
- Iridium stated that there is no assurance that its expectations will be realized, including the expected EMSS Contract renewal.
What to watch
- The planned $0.16 per share fourth-quarter 2026 dividend.
- Renewal of the EMSS Contract in 2027 following its extension through March 2027.
- Integration and revenue contribution from Aireon following the July 2, 2026 acquisition.
- Completion of Rocket Lab's acquisition of Iridium, expected by mid-2027 subject to remaining approvals and conditions.
- Commercial IoT subscriber growth and ARPU trends.
Balance sheet and cash flow
- Capital expenditures were $27.4 million for the third quarter, including $2.2 million in capitalized interest.
- Capital expenditures were $27,447 (in thousands) for the three months ended September 30, 2026, compared with $21,535 (in thousands) for the prior-year period.
- Gross debt was $2,159,458 (in thousands), cash, cash equivalents and marketable securities were $97,853 (in thousands), and net debt was $2,061,605 (in thousands).
- Debt, net was $2,139,328 (in thousands), including deferred financing costs of $(20,130) (in thousands).
- 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.
- Iridium deferred 50% of the purchase price through a $183.4 million seller loan bearing no interest and maturing one year following closing.
- The Company drew $100.0 million on its revolving credit facility in advance of closing, and $50.0 million remained outstanding as of September 30, 2026.
- Net leverage was 4.2 times trailing twelve months OEBITDA.
Analysis
Iridium reported third-quarter total revenue of $245.7 million, up 8% versus the comparable period of 2025, as service revenue grew 13% and represented 76% of total revenue. Commercial service revenue increased 16% to $159.9 million, and hosted payload and other data service revenue increased $22.7 million, or 121%. The company attributed both areas primarily to the Aireon acquisition, completed on July 2, 2026. Government service revenue increased 2% to $27.6 million, reflecting EMSS contractual rate increases.
Underlying operating results were softer than the revenue growth indicates. Operational EBITDA was $135.6 million, compared with $136.6 million in the prior-year quarter, and operating income was $31.6 million, compared with $70.1 million. The company cited $4.5 million in higher expenses from paying annual incentive compensation solely in cash as a partial reason for the OEBITDA change. Equipment revenue fell to $19.0 million from $21.5 million, while engineering and support revenue declined to $39.2 million from $40.2 million.
GAAP net income rose to $106.9 million, or $0.98 per diluted share, from $37.1 million, or $0.35 per diluted share. The increase was primarily driven by a $103.9 million gain related to the Aireon acquisition. Subscriber trends remained positive, with total billable subscribers reaching 2,696,000, up from 2,542,000 in the year-ago period and 2,627,000 as of June 30, 2026. Commercial IoT data subscribers increased 9%, although commercial IoT ARPU declined 4% to $7.63 and broadband ARPU declined 7% to $246.
Capital requirements increased with the acquisition. Iridium reported $2.2 billion of gross debt, $97.9 million of cash and cash equivalents, and $2.1 billion of net debt, with net leverage at 4.2 times trailing twelve months OEBITDA. The company assumed a $154.7 million Aireon credit facility, deferred 50% of the purchase price through a $183.4 million seller loan, and had $50.0 million outstanding under its revolving credit facility at September 30, 2026. It paid a $0.15 per-share quarterly dividend totaling $16.3 million and plans a $0.16 per-share dividend beginning in the fourth quarter of 2026.
The company did not provide operating financial guidance. Forward items include its expectation of an EMSS Contract renewal in 2027, a planned fourth-quarter dividend increase, and expected completion of Rocket Lab's acquisition by mid-2027, subject to remaining regulatory approvals and closing conditions. Iridium stockholders approved the transaction on September 24, 2026, with 99.6% of votes cast in favor, representing 81.4% of outstanding common shares entitled to vote.
Management, verbatim
Last month’s stockholder approval for Rocket Lab’s acquisition of Iridium was an important milestone in creating a next generation space powerhouse.
Matt Desch, CEO, Iridium
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.
Matt Desch, CEO, Iridium
Not in the filing
stated, not guessed- GAAP gross margin and non-GAAP gross margin were not reported.
- Operating cash flow and free cash flow were not reported.
- Share repurchases were not reported.
- A formal revenue, gross margin, operating expense, tax rate, EBITDA or EPS outlook was not reported.
- Prior-quarter financial comparisons were not reported, except total billable subscribers.
- Nine-month diluted EPS was not reported.
- A tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.