Iridium Communications Inc 10-Q for FY2026 Q3

Iridium Communications Inc. (IRDM)

10-Q 2026-10-20 For: 2026-09-30

Added on October 20, 2026

About this 10-Q

Iridium Communications Inc filed this 10-Q on October 20, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Iridium agreed to be acquired by Rocket Lab for $27.00 in cash plus shares, with completion expected by mid-2027 after stockholder approval. It acquired the remaining 60.5% of Aireon for approximately $366.7 million and reported quarterly net income of $106.9 million. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $245.73M; up 8.3% from $226.94M a year earlier
Net income: $106.9M; up 187.9% from net income of $37.13M a year earlier
Diluted EPS: $0.98; up 180.0% from $0.35 a year earlier

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	September 30, 2026		December 31, 2025
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	97,853	$	96,501
Accounts receivable, net	118,830		93,772
Inventory	62,514		73,764
Prepaid expenses and other current assets	27,526		12,466
Total current assets	306,723		276,503
Property and equipment, net	2,061,704		1,978,153
Equity method investments	1,215		39,773
Other assets	84,431		50,710
Intangible assets, net	361,853		86,928
Goodwill	266,113		98,942
Total assets	$	3,082,039	$	2,531,009
Liabilities and stockholders’ equity
Current liabilities:
Short-term secured debt	$	214,346	$	3,402
Accounts payable	8,830		17,676
Accrued expenses and other current liabilities	83,129		49,465
Deferred revenue	31,037		41,127
Total current liabilities	337,342		111,670
Long-term secured debt, net	1,924,982		1,757,124
Deferred income tax liabilities, net	170,472		130,529
Deferred revenue, net of current portion	31,868		40,316
Other long-term liabilities	40,416		28,770
Total liabilities	2,505,080		2,068,409
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value, 300,000 shares authorized, 106,154 and 104,918 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively	106		105
Additional paid-in capital	865,256		880,643
Accumulated deficit	(280,385)		(418,554)
Accumulated other comprehensive income (loss), net of tax	(8,018)		406
Total stockholders’ equity	576,959		462,600
Total liabilities and stockholders’ equity	$	3,082,039	$	2,531,009


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue:
Services	$	187,498	$	165,243	$	506,855	$	475,105
Subscriber equipment	19,045		21,507		60,031		64,083
Engineering and support services	39,190		40,185		123,141		119,531
Total revenue	245,733		226,935		690,027		658,719

Operating expenses:
Cost of services (exclusive of depreciation and amortization)	60,666		50,762		161,616		153,152
Cost of subscriber equipment	11,609		12,661		38,101		36,830
Research and development	4,810		4,944		16,514		14,640
Selling, general and administrative	74,936		35,508		187,759		115,887
Depreciation and amortization	62,094		52,975		169,698		157,479
Total operating expenses	214,115		156,850		573,688		477,988
Operating income	31,618		70,085		116,339		180,731
Other expense, net:
Interest expense, net	(26,788)		(22,593)		(65,400)		(67,169)

Other income (expense), net	384		372		(258)		(2,184)
Total other expense, net	(26,404)		(22,221)		(65,658)		(69,353)
Income before income taxes and gain (loss) on equity method investments, net	5,214		47,864		50,681		111,378
Income tax expense	(2,186)		(10,003)		(14,138)		(19,629)
Gain (loss) on equity method investments, net	103,868		(734)		101,626		(2,242)
Net income	$	106,896	$	37,127	$	138,169	$	89,507
Weighted average shares outstanding - basic	107,368		106,095		106,849		108,160
Weighted average shares outstanding - diluted	108,926		106,476		108,367		108,846
Net income per share - basic	$	1.00	$	0.35	$	1.29	$	0.83
Net income per share - diluted	$	0.98	$	0.35	$	1.28	$	0.82
Comprehensive income:
Net income	$	106,896	$	37,127	$	138,169	$	89,507
Foreign currency translation adjustments	(758)		(315)		(325)		2,933
Unrealized loss on cash flow hedges, net of tax (see Note 6)	(2,579)		(4,575)		(8,099)		(16,791)
Comprehensive income	$	103,559	$	32,237	$	129,745	$	75,649


	Three Months Ended September 30, 2026											Three Months Ended September 30, 2025
	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders’ Equity		Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders’ Equity

	Shares	Amount										Shares	Amount
Balances at beginning of period	105,956	$	106	$	864,367	$	(387,281)	$	(4,681)	$	472,511	106,393	$	106	$	910,880	$	(446,674)	$	9,303	$	473,615
Stock-based compensation	—	—		21,290		—		—		21,290		—	—		14,652		—		—		14,652
Stock options exercised and awards vested	284	1		230		—		—		231		380	1		223		—		—		224
Stock withheld to cover employee taxes	(86)	(1)		(4,066)		—		—		(4,067)		(131)	—		(3,541)		—		—		(3,541)
Repurchases and retirements of common stock	—	—		—		—		—		—		(1,906)	(2)		(16,558)		(33,872)		—		(50,432)
Dividends	—	—		(16,565)		—		—		(16,565)		—	—		(16,258)		—		—		(16,258)
Cumulative translation adjustments	—	—		—		—		(758)		(758)		—	—		—		—		(315)		(315)
Unrealized loss on cash flow hedges, net of tax	—	—		—		—		(2,579)		(2,579)		—	—		—		—		(4,575)		(4,575)
Net income	—	—		—		106,896		—		106,896		—	—		—		37,127		—		37,127
Balances at end of period	106,154	$	106	$	865,256	$	(280,385)	$	(8,018)	$	576,959	104,736	$	105	$	889,398	$	(443,419)	$	4,413	$	450,497


	Nine Months Ended September 30, 2026											Nine Months Ended September 30, 2025
	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders’ Equity		Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders’ Equity

	Shares	Amount										Shares	Amount
Balances at beginning of period	104,918	$	105	$	880,643	$	(418,554)	$	406	$	462,600	110,357	$	110	$	964,348	$	(406,092)	$	18,271	$	576,637
Stock-based compensation	—	—		52,103		—		—		52,103		—	—		48,250		—		—		48,250
Stock options exercised and awards vested	1,847	2		770		—		—		772		1,800	2		1,064		—		—		1,066
Stock withheld to cover employee taxes	(611)	(1)		(18,830)		—		—		(18,831)		(588)	—		(17,100)		—		—		(17,100)
Repurchases and retirements of common stock	—	—		—		—		—		—		(6,833)	(7)		(59,664)		(126,834)		—		(186,505)
Dividends	—	—		(49,430)		—		—		(49,430)		—	—		(47,500)		—		—		(47,500)
Cumulative translation adjustments	—	—		—		—		(325)		(325)		—	—		—		—		2,933		2,933
Unrealized loss on cash flow hedges, net of tax	—	—		—		—		(8,099)		(8,099)		—	—		—		—		(16,791)		(16,791)
Net income	—	—		—		138,169		—		138,169		—	—		—		89,507		—		89,507
Balances at end of period	106,154	$	106	$	865,256	$	(280,385)	$	(8,018)	$	576,959	104,736	$	105	$	889,398	$	(443,419)	$	4,413	$	450,497


	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities:
Net income	$	138,169	$	89,507
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	10,931		15,782
Depreciation and amortization	169,698		157,479
Accretion of seller loan discount	2,585		—
Stock-based compensation (net of amounts capitalized)	48,972		43,992
Amortization of deferred financing fees	2,087		2,080
(Gain) loss on equity method investments, net	(101,626)		2,242
All other items, net	545		616
Changes in operating assets and liabilities:
Accounts receivable	(817)		4,813
Inventory	11,297		5,342
Prepaid expenses and other current assets	(12,271)		2,940
Other assets	4,888		5,172
Accounts payable	(9,707)		(6,038)
Accrued expenses and other current liabilities	20,513		(14,035)

Deferred revenue	(1,083)		(14,345)
Other long-term liabilities	(2,475)		(4,069)
Net cash provided by operating activities	281,706		291,478

Cash flows from investing activities:
Capital expenditures	(79,238)		(66,791)
Acquisition of Aireon, net of cash acquired	(179,801)		—


Net cash used in investing activities	(259,039)		(66,791)

Cash flows from financing activities:


Payments on the Term Loan	(3,281)		(33,024)
Borrowings under the Revolving Credit Facility	100,000		50,000
Payments on the Revolving Credit Facility	(50,000)		—
Repurchases of common stock	—		(186,505)

Proceeds from exercise of stock options	772		1,066
Tax payment upon settlement of stock awards	(18,831)		(17,100)
Payment of common stock dividends	(48,962)		(46,865)
Net cash used in financing activities	(20,302)		(232,428)

Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(1,013)		2,748
Net increase (decrease) in cash and cash equivalents, and restricted cash	1,352		(4,993)
Cash, cash equivalents, and restricted cash, beginning of period	96,501		93,526
Cash, cash equivalents, and restricted cash, end of period	$	97,853	$	88,533

Supplemental cash flow information:
Interest paid, net of amounts capitalized	$	65,117	$	68,199
Income taxes paid, net	$	6,553	$	5,479

Supplemental disclosure of non-cash investing and financing activities:
Property and equipment received but not paid	$	8,737	$	9,118
Dividends accrued on common stock	$	3,921	$	3,170
Capitalized stock-based compensation	$	3,131	$	4,258


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	September 30, 2026		December 31, 2025
	(In thousands)
Finished goods	$	39,665	$	52,352
Raw materials	23,508		22,431
Inventory valuation reserve	(659)		(1,019)
Total	$	62,514	$	73,764


	September 30, 2026		December 31, 2025		Recurring Fair Value Measurement
	(In thousands)
Cash and cash equivalents:
Cash	$	28,710	$	24,260
Money market funds	69,143		72,241		Level 2

Total cash and cash equivalents	$	97,853	$	96,501


	September 30, 2026
	Useful Life	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(In thousands)
Indefinite life intangible assets:
Trade names	Indefinite	$	21,195	$	—	$	21,195
Spectrum and licenses	Indefinite	14,030		—		14,030
Total		35,225		—		35,225
Definite life intangible assets:
Intellectual property	20 years	16,439		(12,179)		4,260
Patents	14 - 20 years	587		(280)		307
Customer relationships	12 - 13 years	267,000		(17,272)		249,728
Developed technology	10 years	69,600		(2,423)		67,177
Aireon trade name	4 years	5,500		(344)		5,156
Total		359,126		(32,498)		326,628
Total intangible assets		$	394,351	$	(32,498)	$	361,853


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
	(In thousands)				(In thousands)
Total interest incurred	$	28,271	$	24,955	$	73,182	$	73,954
Amortization of deferred financing fees	$	770	$	739	$	2,245	$	2,175
Capitalized interest	$	2,274	$	1,108	$	5,326	$	3,174
Accretion of seller loan discount	$	2,585	$	—	$	2,585	$	—


Year Ending December 31,	Amount
	(In thousands)
2026	$	779
2027	3,115
2028	3,115
2029	3,115
2030	3,115
Thereafter	15,123
Total lease income	$	28,362


	Shares Underlying RSUs	Weighted- Average Grant Date Fair Value Per RSU
	(In thousands)
Outstanding at December 31, 2025	4,049	$	29.45
Granted	2,272	26.55
Forfeited	(255)	28.01
Released	(1,784)	33.14
Outstanding at September 30, 2026	4,282	$	26.44
Vested and unreleased at September 30, 2026 (1)	612


	July 2, 2026
	(In thousands)
Cash consideration	$	183,362
Seller note	172,789
Seller transaction costs paid by the Company	11,284
Settlement of pre-existing relationships	(15,212)
Total consideration transferred	352,223
Fair value of previously held 39.5% equity interest	171,600
Total acquisition date fair value	$	523,823


	July 2, 2026
	Fair Value
	(In thousands)
Cash	$	14,848
Accounts Receivable, net	25,212
Prepaid expenses and other current assets	8,507
Property and equipment, net	161,935
Intangible assets, net	285,100
Other non-current assets	43,665
Accounts payable	(3,709)
Accrued expenses and other current liabilities	(11,295)
Short-term secured debt	(19,688)
Deferred revenue	(1,717)
Long-term secured debt	(134,969)
Other long-term liabilities	(11,238)
Total fair value of net assets acquired	$	356,651
Goodwill	$	167,172
Total purchase price	$	523,823


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
	(In thousands)				(In thousands)
Commercial services revenue:
Voice and data	$	58,002	$	59,930	$	173,822	$	172,682
IoT data	48,669		46,707		141,706		135,303
Broadband	11,822		12,970		35,718		38,570
Hosted payload and other data	41,432		18,726		72,786		48,140
Total commercial services revenue	159,925		138,333		424,032		394,695
Government services revenue	27,573		26,910		82,823		80,410
Total services revenue	$	187,498	$	165,243	$	506,855	$	475,105


ITEM 2.			MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


	Three Months Ended September 30,
	2026					2025					Change
	Revenue		Billable Subscribers (1)	ARPU (2)		Revenue		Billable Subscribers (1)	ARPU (2)		Revenue		Billable Subscribers	ARPU
	(Revenue in millions and subscribers in thousands)
Commercial services:
Voice and data	$	58.0	396	$	48	$	59.9	411	$	48	$	(1.9)	(15)	$	—
IoT data	48.7		2,163	7.63		46.7		1,991	7.95		2.0		172	(0.32)
Broadband (3)	11.8		16.0	246		13.0		16.3	265		(1.2)		(0.3)	(19)
Hosted payload and other data	41.4		N/A			18.7		N/A			22.7		N/A
Total commercial services	$	159.9	2,575			$	138.3	2,418			$	21.6	157


	Three Months Ended September 30,
	2026			2025			Change
	Revenue		Billable Subscribers (1)	Revenue		Billable Subscribers (1)	Revenue		Billable Subscribers
	(Revenue in millions and subscribers in thousands)
Government services	$	27.6	121	$	26.9	124	$	0.7	(3)


	Three Months Ended September 30, 2026
	(In thousands)
Revenue	$	34,492
Net loss	(55)


Exhibit						Description
3.1						Amended and Restated Bylaws of Iridium Communications Inc., adopted on August 10, 2026, incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed on August 10, 2026.
10.1#						Credit and Guaranty Agreement, dated July 2, 2026, by and among Iridium Monitor Holdings LLC, as borrower, the Guarantors named party thereto, the Lenders from time to time party thereto, GLAS USA LLC, as Administrative Agent, and GLAS Americas LLC, as Collateral Agent, incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K filed on July 7, 2026.
10.2#						Credit and Guaranty Agreement, dated October 10, 2023, among Aireon LLC, as borrower, the Guarantors named party thereto, the Lenders from time to time party thereto, GLAS USA LLC, as Administrative Agent, and GLAS Americas LLC, as Collateral Agent, incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K filed on July 7, 2026.
10.3#						First Amendment, dated July 2, 2026, by and among Aireon LLC, as borrower, Aireon Holdings LLC and the other Guarantors signatory thereto, the Lenders signatory thereto, and GLAS USA LLC, as administrative agent, to Credit and Guaranty Agreement, dated October 10, 2023, incorporated by reference to Exhibit 10.3 to the Registrant’s Form 8-K filed on July 7, 2026.
10.4						Parent Guaranty Agreement, dated July 2, 2026, by and between Iridium Communications Inc. and Aireon LLC, incorporated by reference to Exhibit 10.3 to the Registrant’s Form 8-K filed on July 7, 2026.
10.5#						Consent and Amendment No. 4 to Amended and Restated Credit Agreement, dated September 15, 2026, incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K filed on September 15, 2026.
10.6*						Form of Retention Award Agreement (2026)
31.1						Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as adopted pursuant to section 302 of The Sarbanes-Oxley Act of 2002.
31.2						Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as adopted pursuant to section 302 of The Sarbanes-Oxley Act of 2002.
32.1**						Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rules 13a-14(b) and 15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to section 906 of The Sarbanes-Oxley Act of 2002.
101.INS						Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document).
101.SCH						Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents.
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).





*			Denotes management contract or compensatory plan or arrangement.
**			These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
#			Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted exhibit or schedule will be furnished supplementally to the U.S. Securities and Exchange Commission upon request; provided, however that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished.


			IRIDIUM COMMUNICATIONS INC.

			By:			/s/ Vincent J. O’Neill
						Vincent J. O’Neill
						Chief Financial Officer


1.			I have reviewed this quarterly report on Form 10-Q of Iridium Communications Inc.;


2.			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.			The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


			a)			Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


			b)			Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


			c)			Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			d)			Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


			a)			All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


			b)			Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: October 20, 2026			/s/ Matthew J. Desch
			Matthew J. Desch
			Chief Executive Officer (principal executive officer)


1.			The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and


2.			The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition of the Company at the end of the period covered by the Quarterly Report and results of operations of the Company for the periods covered in the financial statements in the Quarterly Report.