Iridium Q2 Earnings: Net Income Halves on M&A Costs, Aireon Deal Closed, Rocket Lab Merger on Track for Mid-2027
IRDM has more than doubled off its 52-week low of $15.645.
Summary
Iridium reported Q2 2026 earnings with net income falling to $9.7M due to M&A costs, while revenue rose 4% to $225.2M. The Aireon acquisition closed, and the Rocket Lab merger remains on track for mid-2027.
Key Events · Earnings and Guidance · IRDM
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Q2 Net Income Halves on M&A Costs
Net income fell to $9.7M ($0.09/share) from $22.0M a year ago, primarily due to $14.3M in transaction-related expenses for the Rocket Lab and Aireon deals.
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Revenue Up 4%, OEBITDA Stable
Total revenue reached $225.2M, driven by 4% growth in service revenue. Operational EBITDA was $119.1M, down slightly from $121.3M due to higher cash incentive compensation.
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Aireon Acquisition Closed, Adds Revenue Stream
Iridium completed the $366.7M Aireon acquisition on July 2, 2026, expected to contribute at least $100M in annual service revenue and $30M in OEBITDA.
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Rocket Lab Merger on Track for Mid-2027
The $54/share acquisition by Rocket Lab, announced June 28, 2026, is expected to close in mid-2027. Iridium will not provide financial guidance or hold earnings calls during the pendency.
Analysis · IRDM · Technology
Iridium's Q2 net income dropped 56% to $9.7M, driven by $14.3M in transaction costs tied to the Rocket Lab acquisition and Aireon deal. Revenue grew 4% to $225.2M, and OEBITDA held relatively steady at $119.1M. The company closed the Aireon acquisition on July 2 for ~$366.7M, which is expected to add $100M in annual service revenue and $30M in OEBITDA. With the Rocket Lab buyout pending, Iridium suspended financial guidance and conference calls, leaving investors to focus on deal execution and integration milestones.
At the time of this filing, IRDM was trading at $47.40 on NASDAQ in the Technology sector, with a market capitalization of approximately $5B. 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.