Iridium Communications Inc. Q1 FY2026 earnings call

We've had a good start to the year. Total revenue grew 2% as in service revenue. Reiterating our guidance for the year. New products under development like IoT's Iridium 9604 on track for June commercial availability, P&C's new ASIC rolling out in July, NTN Direct standards-based service progressing. Four growth factors: IoT as leader in satellite IoT, PNT with new ASIC expanding opportunities, national security missions with U.S. government, aviation safety as area of distinction.

Total revenue grew 2% as in service revenue. Commercial service revenues up 2% to $130.4 million. Voice and data revenue rose 3% to $57.4 million. Commercial IoT revenue was $46 million, up 5% from a year earlier. Commercial broadband was down 5% from the year ago period. Hosting and other data services revenue was $14.8 million this quarter, down about 1% from last year's comparable quarter. Government Service revenue was up modestly to $27.6 million. Engineering and support revenue was $40.8 million in Q1 as compared to $37.5 million in the prior year period.

Affirming full year guidance. OEBITDA expected between $480 million and $490 million this year. Service revenue forecast flat to 2% growth in '26. Impact of shift to pay annual incentive compensation entirely in cash with $17 million impact to OEBITDA in '26.

Q: Brent Penter on Amazon acquisition of Globalstar and strategic alliances related to spectrum.

A: Matthew Desch on it signals value of spectrum, not dramatically changing competition, not commenting on strategic alliances update.

Q: Christopher Quilty on Amazon acquisition and PNT business.

A: Matthew Desch on not sure on big LEO processing round, PNT business to have chunky step function pickups and subscriber by subscriber growth.

Q: Edison Yu on Amazon Globalstar and drones.

A: Matthew Desch on drone environment hot, activity around FAA rules.

Q: Hamed Khorsand on commercial IoT subscribers.

A: Matthew Desch on coming from both industrial and consumer.

Q: Timothy Horan on PNT and IoT adoption.

A: Matthew Desch on PNT in standards, IoT in chip integration.

Q: James Ratzer on network capacity utilization.

A: Matthew Desch on network reassigns every 90ms, planning 10x capacity increase.

Q: Justin Lang on spectrum and government users.

A: Matthew Desch on no issue with government users and spectrum transition.