Iridium Communications (NASDAQ:IRDM), a global leader in satellite voice and data services, delivered steady growth for the first quarter of 2026, supported by an expanding subscriber base in the Internet of Things (IoT) and maritime sectors.
The McLean, Virginia-based firm reported total revenue of $219.1 million, a 2% increase over the prior-year period.
Service revenue—the company’s high-margin recurring income stream—reached $158 million, while equipment and engineering revenue contributed $61 million.
Profitability metrics for the quarter were influenced by a strategic shift in the company's human capital strategy.
Iridium reported net income of $21.6 million, or $0.20 per diluted share, compared to $30.4 million in the first quarter of 2025.
Operational EBITDA (OEBITDA) stood at $116.3 million.
The year-over-year decline in these metrics was primarily driven by a $4.2 million increase in accrued expenses resulting from the company's decision to pay annual incentive compensation entirely in cash rather than a mix of equity and cash.
Operational momentum remained high as Iridium's total billable subscribers reached 2,555,000, a 5% increase from the year-ago period.
Commercial IoT continues to be a primary driver of this growth, now representing a significant majority of the commercial subscriber base.
This expanding footprint offsets more volatile engineering and support projects as the company commercializes its next-generation PNT (Positioning, Navigation, and Timing) and aviation safety services.
Looking ahead, Iridium reaffirmed its full-year 2026 guidance.
The company expects service revenue to be flat to +2% compared to 2025.
Full-year OEBITDA is projected between $480 million and $490 million, a range that accounts for a total $17 million impact from the change in incentive compensation structure.