Iridium Completes Aireon Deal as Rocket Lab Vote Passes

The Tip Desk · November 8, 2026 · 4 min read

Third-quarter revenue reached $245.7 million, up 8% from a year earlier, as Aireon closed on July 2 and stockholders backed the Rocket Lab combination.

Iridium Communications Inc. (IRDM), a provider of global voice, data, aircraft surveillance, and positioning, navigation, and timing satellite services, completed its acquisition of Aireon on July 2, 2026, and reported third-quarter total revenue of $245.7 million, an 8% increase versus the comparable period of 2025 after a 4% year-over-year rise in the second quarter.

Service revenue grew 13% from the year-ago period, primarily due to the Aireon close, and was 76% of total revenue, versus 4% service-revenue growth and a 72% mix in the second quarter.

On September 24, 2026, Iridium stockholders approved Rocket Lab Corporation’s pending acquisition of the company, with 99.6% of votes cast in favor, representing 81.4% of outstanding shares entitled to vote. The transaction is expected to be completed by mid-2027, subject to remaining regulatory approvals and closing conditions. Chief executive Matt Desch said the stockholder vote was “an important milestone in creating a next generation space powerhouse.”

Commercial service remained the largest part of the business, at $159.9 million, up 16% from the comparable period last year, primarily due to Aireon, and represented 65% of total revenue. Hosted payload and other data service revenue increased $22.7 million, or 121%, in the third quarter, primarily due to the acquisition, after a $2.0 million, or 14%, increase in the second quarter.

Commercial IoT data revenue was $48.7 million, up 4% from the year-ago period, with IoT subscribers of 2,163,000, up 9% from 1,991,000 a year earlier, and IoT ARPU of $7.63, down 4% from $7.95. Commercial voice and data revenue was $58.0 million, down 3% from $59.9 million a year earlier, with voice and data subscribers of 396,000 and ARPU of $48, unchanged. Commercial broadband revenue was $11.8 million, down 9% from $13.0 million a year earlier, with broadband subscribers of 16.0 thousand and ARPU of $246.

Government service revenue grew 2% to $27.6 million, reflecting contractual rate increases in the Enhanced Mobile Satellite Services contract. The U.S. government remained Iridium’s largest single customer, representing 15% of service revenue. On September 11, 2026, the U.S. Space Force exercised its option to extend the EMSS contract through March 2027 at the same contractual rate. Iridium continues to expect a renewal of the EMSS contract in 2027.

Equipment revenue was $19.0 million, compared with $21.5 million in the prior-year quarter. Engineering and support revenue was $39.2 million, compared with $40.2 million a year earlier.

Net income was $106.9 million, or $0.98 a share, as compared with $37.1 million, or $0.35 a share, a year earlier, primarily the result of a $103.9 million gain related to the acquisition of Aireon, included in the condensed consolidated statements starting in the third quarter. Operational EBITDA was $135.6 million, as compared with $136.6 million for the prior-year period. The year-over-year change in OEBITDA was partly due to $4.5 million in higher expenses related to paying annual incentive compensation solely in cash.

The company ended the third quarter with 2,696,000 total billable subscribers, up from 2,542,000 a year earlier and 2,627,000 at June 30, 2026. Total billable subscribers grew 6% year-over-year, led by commercial IoT.

Capital expenditures were $27.4 million, including $2.2 million in capitalized interest. Gross debt ended the quarter at $2.2 billion and net debt at $2.1 billion, with net leverage of 4.2 times trailing twelve months OEBITDA. In conjunction with Aireon, Iridium assumed a $154.7 million credit facility maturing October 10, 2028, and deferred 50% of the purchase price in a $183.4 million non-interest-bearing seller loan maturing one year after closing. The company also drew $100.0 million on its revolving credit facility in advance of closing; $50.0 million remained outstanding as of September 30, 2026.

Iridium paid a third-quarter dividend of $0.15 a share on September 30, 2026, totaling $16.3 million. The board plans to increase the quarterly dividend to $0.16 a share starting with the fourth-quarter 2026 dividend, a 5.2% full-year increase.