IRDM (Iridium Communications) Operating Income: $226.3 Mil (TTM As of Mar. 2026)


IRDM Iridium Communications Inc IRDM
69 GF Score
Price $55.72
GF Value $36.49
Valuation Significantly Overvalued
! 10 Warning Signs
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What is Iridium Communications Operating Income?

Iridium Communications IRDM +1.59% 69 Operating Income is $226.3 Mil as of Mar. 2026. GuruFocus rates IRDM with a GF Score™ of 69/100 and a GF Value™ of $36.49 (Significantly Overvalued). The stock has 10 warning signs investors should review.

Iridium Communications's Operating Income for the three months ended in Mar. 2026 was $50.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $226.3 Mil.

Warning Sign:

Iridium Communications Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Iridium Communications's Operating Income for the three months ended in Mar. 2026 was $50.7 Mil. Iridium Communications's Revenue for the three months ended in Mar. 2026 was $219.1 Mil. Therefore, Iridium Communications's Operating Margin % for the quarter that ended in Mar. 2026 was 23.15%.

Good Sign:

Iridium Communications Inc operating margin is expanding. Margin expansion is usually a good sign.

Iridium Communications's 5-Year average Growth Rate for Operating Margin % was 36.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Iridium Communications's annualized ROC % for the quarter that ended in Mar. 2026 was 6.15%. Iridium Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 9.86%.

Iridium Communications  (NAS:IRDM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Iridium Communications's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=202.852 * ( 1 - 28.33% )/( (2367.367 + 2358.296)/ 2 )
=145.3840284/2362.8315
=6.15 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2531.009 - 67.141 - ( 96.501 - max(0, 111.67 - 276.503+96.501))
=2367.367

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2532.289 - 62.349 - ( 111.644 - max(0, 108.444 - 309.137+111.644))
=2358.296

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Iridium Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=202.076/( ( (1978.153 + max(71.734, 0)) + (1953.491 + max(97.016, 0)) )/ 2 )
=202.076/( ( 2049.887 + 2050.507 )/ 2 )
=202.076/2050.197
=9.86 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(93.772 + 73.764 + 12.466) - (67.141 + 41.127 + -1.4210854715202E-14)
=71.734

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(104.382 + 69.667 + 23.444) - (62.349 + 38.128 + 0)
=97.016

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Iridium Communications's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=50.713/219.057
=23.15 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Iridium Communications Operating Income Related Terms

Iridium Communications Operating Income Historical Data

* Premium members only.

The historical data trend for Iridium Communications's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Iridium Communications Operating Income Chart

Iridium Communications Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.31 76.68 81.63 200.38 235.98

Iridium Communications Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.39 50.26 70.09 55.25 50.71
IRDM
69GF Score
Iridium Communications Inc IRDM
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Iridium Communications Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $226.3 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $226.3 Mil mean?
Iridium Communications (IRDM) has a Operating Income of $226.3 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Iridium Communications and its competitors.
Is Iridium Communications' Operating Income too high?
Iridium Communications' current Operating Income is $226.3 Mil. Overall, Iridium Communications has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' Operating Income compare to LBRDA and TDS?
Iridium Communications' Operating Income of $226.3 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Telecommunication Services company?
A good Operating Income depends on the Telecommunication Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Iridium Communications and its competitors. Iridium Communications's current Operating Income is $226.3 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iridium Communications stock overvalued right now?
Based on GuruFocus' analysis, Iridium Communications (IRDM) is currently considered Significantly Overvalued. The stock's GF Value™ is $36.49, compared to a current price of $55.72 — trading 52.7% above its estimated fair value. The current Operating Income is $226.3 Mil. Iridium Communications' overall GF Score™ is 69/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Iridium Communications (IRDM), the current Operating Income is $226.3 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Iridium Communications (IRDM) Overvalued in 2026?

Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued. The current stock price of $55.72 is trading 52.7% above its estimated GF Value™ of $36.49. GuruFocus considers Iridium Communications to be Significantly Overvalued.

Key valuation signals for IRDM:

  • Operating Income: $226.3 Mil
  • GF Value™: $36.49 vs. price of $55.72 (52.7% above fair value)
  • GF Score™: 69/100 with 10 warning signs

No single metric tells the full story. See the IRDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Iridium Communications Business Description

Address 1750 Tysons Boulevard, Suite 1400, McLean, VA, USA, 22102
Iridium Communications Inc is the commercial provider of communications services offering true globalised coverage, connecting people, organizations, and assets to and from anywhere, in real time. The company is a provider of mobile voice and data communications services through a constellation of low-earth-orbiting satellites. Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies world-wide. The Company operates in one business segment, providing satellite communications services and products.
69GF Score

Get the complete analysis for IRDM

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$55.72
Price
$36.49
GF Value