Shares of Iridium Communications (IRDM) tumbled 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 for the quarter, investors appeared to react 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 may 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 appear to have prompted a sell-off in early trading, as investors reassess the company's growth trajectory in the competitive satellite communications market.