Iridium revenue increased in the third quarter after the Aireon acquisition lifted commercial service sales. Subscriber growth continued, while operating profit and adjusted operating earnings weakened.

Key Insights

  • Iridium revenue rose 8% year over year to $245.7 million.
  • Service revenue increased 13%, while operational EBITDA declined 1%.
  • Shareholders approved Rocket Lab’s acquisition, but regulatory approvals remain outstanding.

Iridium revenue benefits from Aireon

Iridium Communications reported $245.7 million of third-quarter revenue, compared with $226.9 million a year earlier. Service revenue rose 13% to $187.5 million and represented 76% of total sales.

Commercial service revenue increased 16% to $159.9 million, mainly because Iridium completed its Aireon acquisition on July 2. Government service revenue rose 2% to $27.6 million after contractual rate increases.

Iridium Q3 revenue growth by business
Commercial service: 16%
Government service: 2%
Equipment: -11%
Engineering and support: -2%

Source: Iridium third-quarter 2026 results, released October 20, 2026. Percentages compare with Q3 2025 and are rounded.

Subscriber growth contrasts with weaker operating profit

Total billable subscribers increased 6% to 2.696 million, led by commercial Internet of Things connections. Net income rose to $106.9 million from $37.1 million, but the increase included a $103.9 million Aireon-related gain.

Operating income fell to $31.6 million from $70.1 million, while operational EBITDA slipped to $135.6 million from $136.6 million. Net debt reached $2.1 billion and net leverage was 4.2 times trailing operational EBITDA.

Rocket Lab transaction moves toward regulatory review

Iridium shareholders approved Rocket Lab’s proposed acquisition on September 24, with 99.6% of votes cast supporting the deal. Completion remains targeted for mid-2027 and depends on regulatory approvals and other closing conditions.

The transaction extends a busy aerospace cycle that includes Northrop Grumman’s record backlog, GE Aerospace’s higher guidance and RTX’s $340 billion backlog. Investors should separate the acquisition-related gain from Iridium’s underlying operating trend.

Source: Iridium Communications third-quarter results. Image credit: SpaceX/Unsplash.

Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.