Iridium Reports Q1 EPS $0.20 Miss; Revenue Grows 2% to $219.1M
Iridium reported Q1 adjusted EPS of $0.20 versus expectations of $0.33 and revenue of $219.1 million, up 2% year-over-year and narrowly above forecasts. Operational EBITDA fell 5% to $116.3 million as net income declined to $21.6 million, while billable subscribers rose 5% to 2.555 million.
1. Q1 Financial Results
Iridium posted adjusted EPS of $0.20, missing the consensus estimate of $0.33, while revenue reached $219.1 million, a 2% increase from $214.9 million a year earlier and slightly above analyst expectations. Net income decreased to $21.6 million from $30.4 million, reflecting the earnings shortfall.
2. Subscriber Growth and Service Revenue
Total billable subscribers climbed 5% to 2,555,000, driven by expansion in commercial IoT services. Service revenue, representing 72% of total revenue, increased 2% year-over-year to $158.0 million on the back of subscriber gains.
3. Segment Performance
Equipment revenue declined 13% to $20.2 million, while engineering and support revenue grew 9% to $40.8 million. Commercial service revenue rose 2% to $130.4 million and government service revenue climbed 3% to $27.6 million.
4. Guidance and Outlook
Iridium reaffirmed full-year 2026 guidance, expecting service revenue growth of 0%–2% and operational EBITDA between $480 million and $490 million. The midpoint of $485 million factors in a $17 million impact from a shift to fully cash-based incentive compensation.