Iridium Communications Inc (NASDAQ:IRDM) Reports Mixed Q2 Results with Revenue Beat but EPS Miss, Shares Drop 6% in Pre-Market

Iridium Communications Inc (NASDAQ:IRDM) reported mixed second-quarter results, with revenue slightly exceeding expectations but earnings per share (EPS) falling short of analyst estimates. The market reaction has been negative, with shares dropping nearly 6% in pre-market trading.

Key Financial Highlights

• Revenue: $216.9 million, up 7.9% year-over-year, narrowly beating the consensus estimate of $218.4 million.
• EPS: $0.20 per diluted share, down from $0.27 in Q2 2024 and below the $0.246 analyst forecast.
• Operational EBITDA (OEBITDA): $121.3 million, a 6% increase from $114.0 million in the prior-year period.

The decline in net income was primarily attributed to a one-time $19.8 million gain from the acquisition of Satelles, Inc. in Q2 2024, which did not recur this year. Excluding this non-recurring item, underlying profitability showed modest improvement.

Market Reaction & Performance

Despite the revenue beat, the EPS miss appears to have driven investor disappointment. The stock’s pre-market drop of nearly 6% contrasts with its recent performance, which had been positive—up 12% over the past month and relatively flat over the past two weeks.

Forward-Looking Estimates

Analysts project:

• Q3 2025 Revenue: $228.5 million
• Full-Year 2025 Revenue: $893.4 million
• Full-Year 2025 EPS: $1.10

The company did not provide explicit guidance in its press release, making it difficult to assess whether management’s expectations align with Wall Street’s forecasts.

Press Release Summary

• Iridium emphasized growth in operational EBITDA, reflecting improved efficiency.
• The absence of last year’s one-time acquisition gain contributed to lower net income.
• No major updates on future guidance were provided, leaving investors to rely on existing analyst estimates.

For a deeper dive into earnings trends and future estimates, see Iridium’s earnings and estimates page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.