Iridium Communications Inc (IRDM) AI Stock Analysis

Headquartered in McLean, Virginia, Iridium Communications Inc. specializes in mobile voice and data communications services and products across the globe. Founded in 2000, it serves businesses, governments, non-governmental organizations, and individual consumers. Its solutions include postpaid and prepaid voice and data satellite services, push-to-talk, broadband data, and Internet of Things (IoT) capabilities. The company also offers hosted payload and data services, satellite time and location services, personnel and asset tracking devices, and military-grade communication solutions for defense and intelligence agencies. In addition, Iridium sells satellite handsets, connectivity devices, modems, and provides engineering support through a wholesale distribution network.

Revenue expanded at an 8.4% five-year CAGR from FY2020 to FY2025. Annual revenue grew from $614.5M in FY2021 to $871.7M in FY2025, when revenue growth was 4.9%. Gross margin widened significantly from 25.8% in FY2021 to 77.3% in FY2025, while operating margin rose from 7.5% to 27.1%. Net income shifted from -$9.3M in FY2021 to $114.4M in FY2025, producing EPS of $1.09. Over the trailing twelve months, revenue reached $884.2M with an operating margin of 15.1% and a net profit margin of 10.5%. In the quarter ended June 30, 2026, revenue increased 3.8% year-over-year, while quarterly earnings fell 55.0%.

As of June 30, 2026, Iridium held $184.2M in cash and short-term investments against $1.76B in total debt, resulting in net debt of $1.58B. The debt-to-equity ratio stood at 3.73, while shareholders' equity was $472.5M and total assets were $2.57B. The current ratio was 2.78. In FY2025, the business generated $400.1M in operating cash flow and $299.8M in free cash flow. Capital expenditures totaled $100.3M, while capital allocation included $186.5M spent on share buybacks and $62.9M paid in dividends. Over five years, the share count fell 26.3%.

At $43.76 per share, Iridium carries a market capitalization of $4.64B and an enterprise value of $6.70B. The stock trades at a trailing P/E of 49.7x and a forward P/E of 24.5x, compared to medians of 16.2x and 14.1x for its US-listed Communication Services peers. Its price-to-sales multiple is 5.2x, versus the peer median of 0.8x, and EV-to-EBITDA is 15.9x versus 10.0x. Over the past 12 months, IRDM generated a return of 138.6%, substantially outpacing the 16.8% return of the S&P 500 (SPY). Over five years, IRDM returned 19.5% versus 83.0% for SPY.

Iridium pays a quarterly dividend with an annualized forward rate of $0.60 per share, representing a dividend yield of 1.37%. The payout ratio is 59.3%, and the company has paid dividends for 4 consecutive years. The most recent ex-dividend date was September 15, 2026.

Wall Street coverage includes 3 Strong Buy, 1 Buy, and 4 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $42.00, which sits 4.0% below the last close of $43.76. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $938.6M and EPS of $1.08, reflecting 1.5% earnings growth. For the following fiscal year, 2 analysts expect revenue of $995.1M and EPS of $1.72. The company beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for October 22, 2026.

This page is an AI-written research summary of Iridium Communications Inc (IRDM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: IRDM income statement, IRDM balance sheet, IRDM key metrics, IRDM analyst forecast, IRDM chart. See the IRDM stock overview for the latest quote and news.