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Iridium Communications Inc

Iridium Communications Inc

IRDM
$46.68USD↑+0.15%+0.07 today

MARKET CAP

4.9B

P/E (TTM)

47.0x

FWD P/E

32.9x

DAY RANGE

$46 – $48

52W RANGE

$16
$57

AI Summary

Stalk
Sell NowHigh

IRDM remains in a Stage 3 distribution with a clear sequence of lower highs and lower lows, trading below declining short-term EMAs and the flattening 50 SMA which now act as resistance. The medium-term bias is bearish, reinforced by the active Post-Parabola Collapse pattern indicating an ongoing unwind of speculative excess. In the short term, price is rejected at the sloping EMAs with bearish momentum, supporting an immediate sell posture. A decisive reclaim and acceptance above key moving averages would invalidate this bearish stance.

  • ↑Net subscribers climbed 5% YoY to 2.56 M, driven by IoT growth
  • ↑Pro forma free cash flow projected ~$318 M in 2026, $1.5–1.8 B over next decade
  • ↓Negative earnings yield and weak profitability factors signal return concerns
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Iridium Communications Inc. (NASDAQ: IRDM) is a prominent player in the satellite communications industry, specializing in delivering global connectivity services. The company operates a unique constellation of low-earth orbit satellites that serve various critical sectors, notably government, maritime, and the Internet of Things (IoT). As a pioneer in satellite communication technology, Iridium aims to address the growing needs for reliable communication solutions amidst an evolving market landscape, including rising demands for position, navigation, and timing (P&T) solutions.

Bull says

  • ↑Net subscribers climbed 5% YoY to 2.56 M, driven by IoT growth
  • ↑Pro forma free cash flow projected ~$318 M in 2026, $1.5–1.8 B over next decade
  • ↑Iridium 9604 tri-mode modem and expanded P&T services could boost revenues
  • ↑Over $1 B in government contracts won past five years; MSS revenue $110.5 M
  • ↑Rising IoT/P&T demand amid geopolitical tensions supports long-term growth
  • ↑Strong liquidity and positive momentum factors; dividend yield ~4.9%

Bear says

  • ↓Negative earnings yield and weak profitability factors signal return concerns
  • ↓Service revenue growth guidance trimmed from 5–7% to 3–5% due to maritime headwinds
  • ↓Competitive threats from Starlink and Globalstar risk Iridium’s market share
  • ↓Short interest elevated at 43%, reflecting investor skepticism and volatility risk
  • ↓Potential tariff changes could add $6–7 M in costs, squeezing margins
  • ↓Weak growth factors suggest difficulty expanding revenue base amid attrition

Investment themes with IRDM

Telecommunications↑ +0.98%

CSCO · VZ · T
High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Buybacks↑ +0.48%

Companies repurchasing their own shares

C · JCI · WFC
Space↓ -0.99%

PL · GSAT · VSAT

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 04-24-2026neutral

Transcript signals

Bull points

  • service revenue was up 2% to $130.4 million. This was in line with our forecast and reflected growth in commercial IoT and voice and data during the quarter.
  • The introduction of our PNC ASIC this July is expected to accelerate growth and expedite the pace of deployment of Iridium PNC solutions.
  • PNC will drive at least $100 million in annual revenue for Iridium by 2030.

Bear points

  • OE without was $116.3 million in the first quarter, down 5% from the prior year period. The change largely reflected the impact of the shift to pay annual incentive compensation in cash, which resulted in a $4.2 million hit to OE without and will have a full year impact of $17 million in 2026.
  • Commercial broadband was down 5% from the year-ago period, and continues to reflect the ongoing impacts customer conversions to backup companion services, a trend we've discussed previously.
  • The decline mostly reflects the timing of expected payments related to activities with an existing non-PNC customer.
Read full transcript analysis ›