Iridium Communications, a leading provider of global satellite connectivity services, reported strong financial results for the third quarter of 2025, driven by continued expansion in both its commercial and government segments. The McLean, Virginia-based company posted a 7 percent year-over-year increase in total revenue, reaching $226.9 million.
The company’s recurring service revenue, which accounts for 73 percent of its total intake, also saw a consistent rise, growing 3 percent from the third quarter of 2024 to $165.2 million. Operational EBITDA (earnings before interest, taxes, depreciation, and amortization) demonstrated even stronger performance, climbing 10 percent to $136.6 million.
CEO Matt Desch noted that the results reflect disciplined execution and a focus on strategic growth markets where Iridium’s unique satellite network offers a competitive advantage, particularly within critical infrastructure, regulated industries, and the government sector.
Iridium concluded the quarter with 2.54 million total billable subscribers, a 2 percent increase from the previous year, primarily boosted by growth in commercial Internet of Things (IoT) services. Furthermore, the company signaled financial stability by paying a Q3 dividend of $0.15 per common share, resulting in a 5 percent full-year dividend increase.
Defense and National Security Highlights
The company’s commitment to its government partners remained a critical component of its success. Iridium’s U.S. government service revenue grew by 1 percent to $26.9 million during the quarter, underpinned by contractual rate increases under its long-standing Enhanced Mobile Satellite Services (EMSS) contract with the U.S. Space Force.
This EMSS agreement is a fixed-price satellite airtime service relied upon by the Department of Defense (DoD) and other federal agencies. The fixed-price rate under the $738.5 million, seven-year contract increased to $110.5 million for the contract year that began on September 15.
Speaking to analysts, Desch expressed confidence in the ongoing dialogue regarding the renewal of the EMSS contract, expecting a positive outcome as the government continues its reliance on commercial satellite services.
Strategic Role in Missile Defense
Highlighting Iridium’s expanding role in U.S. national security infrastructure, Desch underscored the company’s crucial work with the Space Development Agency (SDA). Iridium is currently building ground entry points and operations centers essential for the SDA’s new satellite network.
This deep integration into the SDA’s architecture provides Iridium significant insight and credibility to support major future defense programs, including the “Golden Dome” next-generation missile defense shield initiative. Desch stated that these strategic areas of investment are expected to drive resilient financial results and continued strong revenue growth as the company executes its long-term vision.
What are your thoughts on Iridium’s expansion of services to major US national security programs like the Space Development Agency’s network? Do you see a trend of increased commercial satellite integration becoming the norm across the entire DoD landscape? Join the conversation below!
A Tip for Your GovCon Success:
When reviewing financial reports like this, always correlate the revenue growth percentage with the growth in recurring service revenue. For service-based GovCon companies, consistent growth in recurring revenue—like Iridium’s—is the most reliable indicator of long-term contract stability and client reliance, making it a stronger measure of success than one-time equipment sales. Focus your own business strategy on securing and expanding long-term, fixed-rate service agreements.
