Iridium (NASDAQ: IRDM) posts 8% higher revenue as Rocket Lab deal wins approval

What happened

Iridium Communications Inc. (NASDAQ: IRDM) said third-quarter revenue rose 8% to $245.7 million. Stockholders also approved Rocket Lab's acquisition.

The company completed its acquisition of Aireon on July 2, 2026. Net income was $106.9 million, or $0.98 per diluted share. Commercial service revenue rose 16% to $159.9 million. Hosted payload and other data service revenue increased $22.7 million, or 121%, mainly because of Aireon.

Subscriber equipment revenue was $19.0 million, down from $21.5 million a year earlier. Engineering and support revenue was $39.2 million, down from $40.2 million. Total billable subscribers reached 2.696 million, up from 2.542 million a year earlier and 2.627 million at June 30, 2026.

Key numbers

Metric	Latest	Change	Source
Total revenue	$245.7 million	from $226.9 million, +8%	SEC 8-K press release
Commercial service revenue	$159.9 million	from $138.3 million, +16%	SEC 8-K press release
Net income	$106.9 million	from $37.1 million, +69.8 million	SEC 8-K press release
Operational EBITDA	$135.6 million	from $136.6 million, -$1.0 million	SEC 8-K press release
Total billable subscribers	2.696 million	from 2.542 million, +6%	SEC 8-K press release

Read more: Iridium Communications (IRDM) stock analysis and investment case

Why it matters

OptimistFi's case is that Iridium can keep producing cash from a differentiated global network. This quarter supports that view with higher revenue and more subscribers. Commercial service revenue also rose 16%.

Net income increased by $69.8 million from the third quarter of 2025. But the filing says the rise mainly came from a $103.9 million gain tied to the Aireon acquisition. Operational EBITDA was $135.6 million, down from $136.6 million a year earlier, so operating profit did not improve.

Capital expenditures were $27.4 million. Gross debt was $2.2 billion and cash and cash equivalents were $97.9 million, which left net debt of $2.1 billion. The company ended the quarter with net leverage of 4.2 times trailing twelve months OEBITDA.

The company also drew $100.0 million on its revolving credit facility before closing. As of September 30, 2026, $50.0 million remained outstanding.

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What's next

Rocket Lab's acquisition is expected to close by mid-2027, subject to remaining regulatory approvals and closing conditions. The board plans to raise the quarterly dividend to $0.16 starting with the fourth quarter 2026 dividend, a 5.2% full-year increase.

A timely closing would support the deal path. If the deal is delayed or does not close, Iridium's standalone revenue and cash flow trends would carry the case.

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