Iridium Communications Inc
NASDAQ:IRDM
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
This alert will be permanently deleted.
Iridium Communications Inc
In the ever-expanding realm of global communications, Iridium Communications Inc. stands as a unique player, weaving connectivity across the most remote corners of the world. Born from the audacious idea of Motorola in the late 1980s, Iridium has grown into a pivotal satellite communications provider, distinguished by its robust network. Comprising a constellation of 66 cross-linked low Earth orbit (LEO) satellites, the company offers an uninterrupted satellite phone service that blankets the planet, excluding the occasional blind spot near the poles. This capability ensures that whether on a tumultuous sea, a distant mountain, or an isolated desert, connectivity remains unyielding for those who require it.
The company's business model is built around offering reliable voice and data solutions, primarily catering to industries that operate beyond the reach of conventional telecom infrastructure. From maritime and aviation to government and military sectors, Iridium provides essential communication services that facilitate operations in challenging environments. Their revenue streams are diverse, encompassing not only direct subscriber services but also lucrative partnerships with value-added resellers and technology integrators, who customize Iridium’s solutions for specific applications. This, combined with their commitment to innovation and recent forays into the burgeoning Internet of Things (IoT) market, positions Iridium as a vital cog in the intricate machinery of global connectivity.
In the ever-expanding realm of global communications, Iridium Communications Inc. stands as a unique player, weaving connectivity across the most remote corners of the world. Born from the audacious idea of Motorola in the late 1980s, Iridium has grown into a pivotal satellite communications provider, distinguished by its robust network. Comprising a constellation of 66 cross-linked low Earth orbit (LEO) satellites, the company offers an uninterrupted satellite phone service that blankets the planet, excluding the occasional blind spot near the poles. This capability ensures that whether on a tumultuous sea, a distant mountain, or an isolated desert, connectivity remains unyielding for those who require it.
The company's business model is built around offering reliable voice and data solutions, primarily catering to industries that operate beyond the reach of conventional telecom infrastructure. From maritime and aviation to government and military sectors, Iridium provides essential communication services that facilitate operations in challenging environments. Their revenue streams are diverse, encompassing not only direct subscriber services but also lucrative partnerships with value-added resellers and technology integrators, who customize Iridium’s solutions for specific applications. This, combined with their commitment to innovation and recent forays into the burgeoning Internet of Things (IoT) market, positions Iridium as a vital cog in the intricate machinery of global connectivity.
OEBITDA Growth: Operational EBITDA rose 10% to $136.6 million in Q3, driven by recurring services and support revenue.
Revenue Drivers: Commercial service revenue grew 4%, with strong IoT and PNT performance, but broadband revenue declined as expected due to a lost contract.
Guidance Updated: Full-year OEBITDA guidance narrowed to $495–500 million, and service revenue growth tightened to ~3%, near the lower end of the previous range due to delayed PNT revenue.
Competitive Landscape: Management acknowledged rising competition, particularly from new D2D satellite entrants, and plans to pause share buybacks to focus on strategic growth and M&A.
Cash Flow & Capital Allocation: Iridium expects $1.5–1.8 billion in total cash flow from 2026–2030 and will continue quarterly dividends while prioritizing balance sheet flexibility.
Strategic Initiatives: Company is investing in NTN Direct, PNT, and exploring both bolt-on and potentially transformational M&A, with emphasis on regulated and industrial applications.
IoT & Partner Growth: IoT revenue up 7% in Q3; more than 70 new partners signed YTD to drive future growth.
Tax Benefit: Cash taxes expected to stay under $10 million annually through 2027 due to favorable legislation.
