Iridium Communications Inc. (IRDM) saw its stock price tumble 5.14% in pre-market trading on Thursday following the release of its third-quarter 2025 results and updated full-year outlook. Despite beating revenue estimates, the company's projections for the rest of the year seem to have fallen short of investor expectations.
The satellite communications company reported Q3 revenue of $226.935 million, surpassing the IBES estimate of $220.4 million. Net income for the quarter stood at $37.127 million. However, the focus quickly shifted to Iridium's revised full-year guidance, which appears to be the primary driver behind the stock's pre-market decline.
Iridium now projects total service revenue growth of approximately 3% for the full-year 2025, a figure that investors may view as conservative. Additionally, the company expects full-year 2025 OEBITDA (Operational Earnings Before Interest, Taxes, Depreciation, and Amortization) to be between $495 million and $500 million. These updated forecasts suggest that Iridium may be facing challenges in maintaining robust growth rates, prompting a negative reaction from the market.