Iridium Shareholders Approve Rocket Lab Deal as Revenue Grows to $245.7 Million
Key Facts
Iridium shareholders approved its deal with Rocket Lab, with 99.6% of votes cast at a special meeting held on September 24, 2026, according to a company statement issued on October 20. Votes in favor represented 81.4% of outstanding shares eligible to vote. The companies announced the agreement in June, before Iridium released its third-quarter results, so those results were not a reason for entering into the deal. Completion remains subject to regulatory approvals and the remaining closing conditions. Iridium expects to complete the deal by mid-2027.
Iridium reported total revenue of $245.7 million in the third quarter, up 8% year over year, while service revenue rose 13% from the same period last year. The company attributed service revenue growth primarily to its acquisition of Irion. Adjusted operating income, however, did not keep pace with revenue growth, reaching $135.6 million, compared with $136.6 million a year earlier. The company said the year-over-year change in this measure was partly due to a $4.5 million increase in expenses related to paying annual incentives in cash. The figures show a divergence between revenue growth and a slight decline in adjusted operating income.
Net income jumped to $106.9 million, or $0.98 per diluted share, compared with $37.1 million and $0.35 per share in the third quarter of 2025. The company attributed the increase primarily to a $103.9 million gain related to the Irion acquisition, making this accounting gain a key driver of higher net income. Iridium said revenue from hosted payload and other data services increased $22.7 million, or 121%, during the quarter, attributing the rise primarily to the acquisition. Iridium completed its acquisition of Irion on July 2, 2026. Commercial service revenue also reached $159.9 million, up 16% from the same period last year, supported primarily by the deal.
The company ended the quarter with 2,696,000 billable subscribers, compared with 2,542,000 in the same period last year and 2,627,000 in the quarter ended June 30, 2026. Billable subscribers grew 6% year over year, led by growth in commercial IoT. In the government business, service revenue rose 2% to $27.6 million in the third quarter. The U.S. Space Force exercised an option on September 11 to extend its mobile satellite communications services contract through March 2027, at the same contract price. Iridium continues to expect the contract to be renewed in 2027.
Iridium plans to raise its quarterly dividend to $0.16 per share starting with the fourth-quarter 2026 dividend, equivalent to a full-year increase of 5.2%. Regarding the deal, Chief Executive Matt Desch said shareholder approval “marks an important milestone in creating a next-generation space company,” adding that the combination “will enable new innovation in the space industry and accelerate our growth in space-based, mission-critical applications.” Rocket Lab said the agreement combines its launch and satellite manufacturing capabilities with Iridium’s global network, spectrum and operational expertise, enabling space applications including IoT and positioning, navigation and timing services. The agreement provides for a potential termination fee of $223.62 million payable by Iridium to Rocket Lab under specified circumstances, including acceptance of a superior alternative acquisition offer or withdrawal of the Iridium board’s recommendation. If the deal is not completed by June 28, 2027, either party may terminate it, with the deadline potentially extendable to September 28 and then December 28, 2027, if regulatory approvals remain unresolved.