Iridium Communications Inc. reported its financial results for the second quarter of 2026, revealing total revenue of $225.2 million, a 3.1% increase from $216.9 million in the same period last year. For the first half of 2026, revenue reached $444.3 million, up from $431.8 million in the first half of 2025. The company's net income for the second quarter was $9.7 million, or $0.09 per share, a decline from $22.0 million, or $0.20 per share, in the prior year. For the six months ended June 30, 2026, net income totaled $31.3 million, compared to $52.4 million in the same period of 2025.
The company experienced notable changes in its operating expenses, which rose to $191.2 million in the second quarter, up from $166.6 million a year earlier. This increase was primarily driven by higher selling, general, and administrative expenses, which surged to $67.0 million from $44.6 million. Additionally, the cost of subscriber equipment increased to $13.5 million from $11.3 million. The rise in expenses contributed to a decrease in operating income, which fell to $34.0 million from $50.3 million in the second quarter of 2025.
Iridium's operational metrics showed a steady increase in service revenue, which reached $161.3 million in the second quarter, compared to $155.6 million in the same quarter of 2025. The company reported a total of 1.6 million subscribers as of June 30, 2026, reflecting a 5% increase year-over-year. The company also noted a significant expansion in its geographic footprint, particularly in the government services sector, which accounted for $27.6 million of the service revenue in the second quarter, up from $26.8 million in the prior year.
Strategically, Iridium completed the acquisition of Aireon Holdings on July 2, 2026, for approximately $366.7 million, which is expected to enhance its capabilities in air traffic surveillance. This acquisition was financed through a $100 million drawdown from its revolving credit facility. The company also announced a merger agreement with Rocket Lab Corporation, under which Iridium shareholders will receive $27.00 in cash and shares of Rocket Lab's common stock, subject to certain conditions. This transaction is anticipated to close in mid-2027, pending regulatory approvals.
Looking ahead, Iridium expects continued growth in its service revenue driven by increased demand for its satellite communications services. The company remains focused on integrating Aireon and leveraging its capabilities to enhance operational efficiencies. However, the increase in debt obligations from the acquisition may impact future financial flexibility. Iridium's management expressed optimism about the long-term benefits of these strategic moves, despite the short-term fluctuations in profitability.
About Iridium Communications Inc.
Iridium Communications Inc. provides global satellite voice and data services via a constellation of 66 low-earth orbit satellites, serving remote land, maritime, aviation, government, and IoT markets. Its offerings include secure communications, air traffic surveillance, and satellite-based navigation and timing. The company supports mission-critical applications, leveraging a unique mesh architecture for weather-resilient, low-latency coverage worldwide, including polar regions, with a focus on government and commercial long-term growth.
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