Iridium Communications delivered a solid QQ3 2025 performance with revenue of $226.9 million, up 6.66% year-over-year and 4.62% quarter-over-quarter. Gross profit reached $176.2 million, yielding a robust gross margin of 77.63%, while EBITDA was $125.8 million (EBITDA margin 55.43%). Operating income stood at $70.1 million (operating margin 30.88%), and net income was $37.1 million, yielding a net margin of 16.36% and basic EPS of $0.35. The quarter reflects continued demand for Iridium’s core voice and data satellite services, as well as contributions from IoT, M2M, and hosted payload/data offerings embedded in a diversified product suite.
Profitability expanded modestly on favorable mix and disciplined cost management. Total operating expenses were $106.1 million, with interest expense of $24.96 million and depreciation & amortization of $52.98 million. Income before tax was $47.86 million and after a $10.00 million tax expense, net income was $37.13 million. Earnings-per-share advanced to $0.35, up strongly on a YoY basis (YoY EPS up 66.7%). Cash generation remained healthy, with operating cash flow per share of $0.95 and free cash flow per share of $0.75, highlighting Iridium’s ability to fund growth while returning value less than 1% annual dividend yield.
From a balance sheet perspective, liquidity remains solid (current ratio 2.67; quick ratio 1.94) but leverage is notable (debt ratio 0.709; debt/equity 4.02; long-term debt to capitalization 0.801). Interest coverage is 2.81x, signaling manageable fixed charges given current earnings power. The company’s cash metrics (cash per share $0.83) and capex coverage ratio of 4.68x indicate capacity to invest in growth assets while preserving liquidity. The valuation remains reasonable relative to earnings and cash flow, with P/E around 12.5x and EV/EBITDA near 28.4x, reflecting Iridium’s niche position in a capital-intensive, government- and enterprise-facing satellite services market. Looking ahead, Iridium’s growth levers include IoT/M2M devices, hosted payload/data services, and ongoing government/government-related opportunities, which could support steady topline growth and cash flow in the mid-term, subject to budget cycles and geopolitical factors.