Iridium 10-Q: Q3 Revenue Up 8% to $245.7M; Profit Boosted by $103.9M Aireon Gain, Not Operations
IRDM has more than doubled off its 52-week low of $15.645.
Summary
Iridium's Q3 revenue rose 8% to $245.7M, but the $106.9M profit was almost entirely a $103.9M non-cash Aireon acquisition gain — operating income fell to $31.6M. Debt rose to $2.1B after the Aireon deal, and the Rocket Lab merger is now expected to close by mid-2027.
Key Events · Earnings and Guidance · IRDM
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Q3 Revenue Up 8%, Profit Is Accounting
Revenue was $245.7M vs $226.9M, with service revenue up 13% to $187.5M on Aireon consolidation. Net income of $106.9M ($0.98 diluted) includes a $103.9M non-cash gain on remeasuring the prior 39.5% Aireon stake; operating income fell to $31.6M from $70.1M.
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Aireon Deal Closed July 2
Iridium paid $352.2M for the remaining 60.5% of Aireon (total acquisition-date fair value $523.8M), recording $167.2M of goodwill and $285.1M of intangibles. Aireon contributed $34.5M of revenue and a $0.1M net loss since closing; $14.9M of deal costs were expensed.
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Debt Rises to $2.1B Gross
Gross borrowings were $2,109.5M at September 30, including a $183.4M non-interest-bearing seller loan due one year after closing and $154.7M of consolidated Aireon term debt. The $100M revolver was drawn for the deal, with $50M repaid and $50M still outstanding; net leverage is 4.2x TTM OEBITDA.
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Interest Cap Expires November 2026
The $1.0B SOFR cap runs through November 2026. Management expects annual interest expense to rise by roughly $23.3M after it expires, with each 25bp SOFR move adding about $4.4M.
Analysis · IRDM · Technology
The headline profit jump is accounting, not operations: net income of $106.9M includes a $103.9M non-cash gain from remeasuring Iridium's previously held 39.5% Aireon stake when it bought the remaining 60.5% on July 2. Strip that out and operating income fell to $31.6M from $70.1M a year ago, with SG&A up 111% on $21.3M of deal costs and higher compensation. For holders, the balance sheet is the real story: gross debt rose to $2,109.5M after the Aireon deal added a $183.4M non-interest-bearing seller loan (due in one year) and $154.7M of Aireon term debt, and the interest rate cap expires in November 2026 — management expects roughly $23.3M more annual interest expense after that. With the $54.00-per-share Rocket Lab merger approved by shareholders on September 24 and now targeted to close by mid-2027, quarterly operations matter less than deal completion and the $223.6M termination fee risk if it breaks.
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In the 30 days to Oct 20, 2026, 29.2% of the 1466 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, IRDM was trading at $44.31 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.7B. The 52-week trading range was $15.65 to $57.18. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.