- Service revenue rose 4 percent and made up 72 percent of the quarterly total
- Net income slipped to $9.7 million from $22 million a year earlier
- Iridium will not hold earnings calls or issue guidance while its roughly $8 billion Rocket Lab acquisition is pending
Iridium Communications reported second-quarter revenue of $225.2 million, up 4 percent from the same period a year earlier, driven by recurring service revenue and continued subscriber gains. The McLean, Virginia-based satellite services provider released the results Wednesday.
Service revenue, which makes up the recurring portion of Iridium’s business, grew 4 percent year over year and accounted for 72 percent of the quarterly total. The company closed the quarter with over 2.6 billion billable subscribers, a 6 percent increase from a year earlier, led by commercial Internet of Things growth.
Net income fell to $9.7 million, or 9 cents per diluted share, from $22 million a year prior. Transaction-related expenses of $14.3 million weighed on the quarter, a factor in both the lower net income and a slight dip in operational EBITDA to $119.1 million.
Iridium CEO Matt Desch, a 12-time Wash100 Award winner, said combining with Rocket Lab’s launch and satellite capabilities will enable the company to pursue larger ambitions to solve global connectivity challenges.
How Is the Pending Rocket Lab Acquisition Affecting Iridium?
Iridium entered a definitive agreement in late June to be acquired by Rocket Lab, a cash-and-stock transaction valued at roughly $8 billion that is expected to close in mid-2027, pending stockholder approval and customary conditions. Given the pending deal, the company said it will not hold quarterly earnings calls or issue financial guidance.
What Progress Did Iridium Report on Its Growth Initiatives?
The company advanced the four strategic initiatives it laid out in February. In aviation safety, Iridium completed its acquisition of Aireon — the only space-based Automatic Dependent Surveillance-Broadcast air traffic surveillance system — on July 2, a deal it expects to add at least $100 million in annualized service revenue and $30 million in OEBITDA. On the government side, Iridium said it still anticipates renewing its Enhanced Mobile Satellite Services contract with the Space Force by March 2027. The company also launched its tri-mode Iridium 9604 IoT module in June and plans to introduce its standards-based Iridium NTN Direct service later this year.
