Iridium’s (IRDM) 2025 Results And 2026 Outlook Frame a Steady Cash-Flow Story Even as Growth Moderates

Group 1: Company Overview - Iridium Communications operates a global low Earth orbit satellite network, providing voice and data services for land, maritime, and aviation users, as well as IoT connectivity and related equipment and support services [4] Group 2: Financial Performance - For the full year 2025, Iridium reported total revenue of $871.7 million, representing a 5% increase year over year, with service revenue contributing $634.0 million [2] - Operational EBITDA (OEBITDA) for 2025 was $495.3 million, also up 5%, while net income reached $114.4 million, resulting in a diluted EPS of $1.06, primarily due to a lower share count [2] - In the fourth quarter of 2025, revenue was $212.9 million, with service revenue at $158.9 million, as management noted that higher service revenue largely offset declines in subscriber equipment [2] Group 3: Future Guidance - For 2026, Iridium guided total service revenue growth to be flat to 2%, with OEBITDA expected to be between $480 million and $490 million, citing a headwind of approximately $17 million from shifting incentive compensation entirely to cash [3] Group 4: Analyst Ratings - As of March 1, 2026, Wall Street's consensus on Iridium is a 'Hold,' with a split of four buys, one hold, and two sells among seven analysts, and an average one-year price target of $25.40 [1] - Morgan Stanley's recent note on February 18, 2026, maintained an equal weight rating and raised its price target to $26 from $24 [1]