Iridium Communications Inc (IRDM · NASDAQ)

Iridium's profitability is deteriorating even as the stock trades near its 52-week high: net income fell from $37.1M in the September 2025 quarter to $9.7M in the June 2026 quarter, with earnings down 55% year over year and the company missing consensus in each of the last two quarters by roughly 27-29%. Revenue growth remains modest at 3.8% YoY ($884.2M TTM), though the June quarter's $92.3M in free cash flow and a 71.9% gross margin underscore the underlying business's cash generation; leverage sits at 4.2x debt/EBITDA on $1.76B of total debt. Shares closed at $48.96, up 2.3% on the day and 33.1% above the 200-day moving average, but with RSI at 71 the tape signals near-term overbought conditions. Shareholders have approved Rocket Lab's acquisition proposal targeting a mid-2027 close, which anchors the valuation alongside the $42 analyst target — below the current price.