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Iridium Communications IRDM

Iridium Communications scores average on business quality (5.0 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$47.47Oct 9, 2026
Business qualityAverage
Next earningsOct 15, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Iridium Communications does

    Iridium Communications sells global satellite voice and data services through a crosslinked low-earth orbit constellation. Maritime, aviation, and government customers pay recurring subscription fees for connectivity where cellular towers cannot reach.

  2. What it does best

    Iridium delivers pole-to-pole global coverage that no terrestrial network can match, driven by a proprietary crosslinked satellite mesh. This architecture yields an 83% gross margin, completely outpacing peer AST SpaceMobile at 39% and locking enterprise customers into multi-year contracts.

  3. The main risk

    A debt-to-equity ratio of 3.8 and $1.66 billion in net debt creates severe financial exposure. With interest coverage sitting at just 2.2x, any dip in operating cash flow leaves little room to service heavy debt obligations.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin hits 24% while free cash flow margin lands in the top decile of its sector at 32%. This strong conversion means the business scales efficiently, turning heavy revenue into reliable cash.

MoatFair

A regulatory-licensed spectrum and proprietary L-band constellation lock in global maritime and defense agencies. This network places gross margins in the top decile of its sector at 72%, forming a barrier rivals cannot easily copy.

GrowthSlow

Revenue growth crawls at 4.9%, inching up to $884 million from $872 million previously. This top-line expansion sits in the middle of the pack for its sector, showing modest acceleration.

Financial healthWeak

Net debt totals $1.66 billion against $97 million in cash, leaving interest coverage dangerously thin at 2.2x. Free cash flow reached $288 million, but heavy leverage makes the balance sheet softer.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

6 sold $19.6M outside pre-planned sales.

Our sealed record on IRDM

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is IRDM a good business?

Iridium Communications scores average on the Cluenex quality check (5.0 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health weak.

Are insiders buying IRDM?

In the last 90 days of SEC Form 4 filings: 6 sold $19.6M outside pre-planned sales.

When does IRDM report earnings?

Oct 15, 2026.

For members

See IRDM today

  • Today's verdict on IRDM, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Iridium Communications (IRDM)”, https://cluenex.com/stocks/irdm/, data as of Oct 10, 2026.