IRDMIridium Communications Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.1×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 24% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is IRDM?
Iridium Communications Inc. earns 5.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.8 points below what the capital costs: growth destroys value
- Operating margin
- 19%
Operating margin · Telecom Services median 14% · 12 months to Q3 2026
- Cash conversion
- 3.09×
Cash conversion · 1.88× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.3%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 6.1% |
| FY2021 | 7.5% |
| FY2022 | 11% |
| FY2023 | 10% |
| FY2024 | 24% |
| FY2025 | 27% |
Details›
- Operating margin12 months to Q3 2026
- 19%
- Net margin12 months to Q3 2026
- 18%
- Free cash flow margin
- 31%
- R&D as % of revenue
- 2.4%
- Revenue, trailing twelve months
- $903M
- Free cash flow, trailing twelve months
- $278M
- Net income, trailing twelve months
- $163M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from IRDM and who it buys from, as the companies report it.
- U.S. government29%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; IRDM’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.