Iridium Communications (IRDM) saw its stock price plummet 9.31% in pre-market trading on Thursday, following the release of its third-quarter 2025 results and updated full-year outlook. Despite beating revenue estimates for the quarter, investors reacted negatively to the company's guidance for the rest of the year.

Iridium reported third-quarter revenue of $226.935 million, surpassing the IBES estimate of $220.4 million. The company also posted a net income of $37.127 million for the quarter. However, the positive quarterly performance was overshadowed by the company's full-year projections. For the full-year 2025, Iridium now anticipates total service revenue growth of approximately 3%, which appears to have fallen short of investor expectations. Additionally, the company forecasts full-year 2025 OEBITDA (Operational Earnings Before Interest, Taxes, Depreciation, and Amortization) to be between $495 million and $500 million.

The modest growth outlook and potentially conservative OEBITDA guidance seem to have prompted a significant sell-off in early trading. Investors appear to be reassessing the company's growth trajectory in the competitive satellite communications market. Despite Iridium's focus on mission-critical communications and safety services in government and regulated industries, which drove its Q3 performance, the market seems concerned about the company's ability to maintain robust growth rates in the long term.