Iridium Communications Net Income Drops 29% to $21.6M in Q1 2026

Iridium Communications Inc. (NASDAQ: IRDM), a mobile satellite services provider, reported net income of $21.6 million for the three months ended March 31, 2026, down 29% from $30.4 million in the same period a year earlier. Earnings per share fell to $0.20 from $0.28 a year ago. Read more earnings reports.

Total revenue climbed 2% to $219.1 million from $214.9 million in the first quarter of 2025. Services revenue, the company's largest segment at 72% of total revenue, increased $3.7 million to $158.0 million. Engineering and support services revenue jumped 9% to $40.8 million from $37.5 million.

Subscriber equipment revenue declined 13% to $20.2 million from $23.1 million in the year-ago quarter.

Operating income fell 16% to $50.7 million from $60.4 million. The decline came as total operating expenses surged 9% to $168.3 million from $154.5 million. Selling, general and administrative costs rose 28% to $45.8 million from $35.8 million.

Depreciation and amortization increased 4% to $53.7 million from $51.7 million. Cost of services climbed to $49.6 million from $48.8 million.

Interest expense fell 11% to $19.4 million from $21.8 million. Income tax expense rose 52% to $8.8 million from $5.8 million, lifting the effective tax rate.

Cash and cash equivalents stood at $111.6 million at March 31, 2026, up from $96.5 million at December 31, 2025. Operating activities generated $71.6 million in cash during the quarter, up from $61.1 million a year earlier.

The company spent $30.0 million on capital expenditures compared to $24.5 million in the prior-year period. Total debt remained largely flat at $1.76 billion.

Iridium paid $16.5 million in dividends during the quarter and repurchased no shares. The company had $245.3 million remaining under its share repurchase authorization at quarter end.

Weighted average diluted shares outstanding fell to 106.6 million from 110.7 million, reflecting the impact of prior share buybacks.