Operational cash flow remains robust relative to net income, evidenced by an OCF/NI ratio that reached 5.90 in 2025Q2, despite the lumpy nature of capital expenditures that previously spiked to 61.3% of revenue in 2024Q2.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | 410.61M | 400.07M | 375.95M | 314.91M | 344.73M | 302.87M | 249.77M | 198.14M | 263.71M | 259.62M | 225.2M | 217.48M | 214.87M | 183.05M | 174.02M | 183.46M | 151.44M | 23.17M | 1.98M | 0 |
| Operating CF Margin % | - | 45.9% | 45.26% | 39.83% | 47.81% | 49.29% | 42.81% | 35.35% | 50.42% | 57.95% | 51.93% | 52.87% | 52.59% | 47.84% | 45.38% | 47.74% | 43.49% | 30.49% | - | - |
| Operating CF Growth % | 65.63% | 6.42% | 19.38% | -8.65% | 13.82% | 21.26% | 26.05% | -24.86% | 1.57% | 15.29% | 3.55% | 1.21% | 17.39% | 5.19% | -5.14% | 21.15% | 553.65% | 1072.68% | - | - |
| Net Income | 105.55M | 114.37M | 112.78M | 15.41M | 8.72M | -9.32M | -56.05M | -162M | -13.38M | 233.86M | 111.03M | 7.12M | 74.99M | 62.52M | 64.63M | 39.68M | 22.69M | -44.39M | 1.66M | -3.81K |
| Depreciation & Amortization | 212.28M | 210.21M | 203.13M | 320M | 303.48M | 305.43M | 303.17M | 297.7M | 218.21M | 122.27M | 49.39M | 51.83M | 72.77M | 74.98M | 81.11M | 97.65M | 90.67M | 22.38M | 0 | 0 |
| Stock-Based Compensation | 51.21M | 51.58M | 63.46M | 57.45M | 43.73M | 26.78M | 16.71M | 15.14M | 14.49M | 15.96M | 13.71M | 8.6M | 9.6M | 6.71M | 7.33M | 5.89M | 5.05M | 436K | 0 | 0 |
| Deferred Taxes | 25.75M | 22.17M | 6.56M | -31.83M | -1.19M | -21.31M | -33.68M | -53.9M | -8.33M | -115.81M | 63.81M | 63.38M | 40.23M | 47.09M | 29.55M | 22.92M | 11.72M | -2.04M | -1.17M | 0 |
| Other Non-Cash Items | -15.03M | 9.44M | -12.01M | 10.56M | 7.92M | 4.92M | 34.99M | 131.57M | 17.61M | -14.14M | 2.81M | 89.43M | 6.75M | 4.91M | 1.55M | -13K | 0 | 34.12M | 0 | 0 |
| Working Capital Changes | 30.84M | -7.69M | 2.05M | -56.69M | -17.94M | -3.63M | -15.37M | -30.37M | 35.12M | 17.5M | -15.55M | -2.89M | 10.54M | -13.17M | -10.15M | 17.34M | 21.31M | 12.67M | 1.49M | 3.81K |
| Change in Receivables | 1.35M | 5.58M | -6.37M | -9.54M | -18.71M | -1.82M | 6.38M | 2.51M | -12.78M | -10.34M | -6.04M | -1.84M | 3.85M | 1.9M | 561K | -7.14M | -9.09M | 5.38M | 0 | 0 |
| Change in Inventory | 8.14M | 4.71M | 9.82M | -50.96M | -10.18M | 3.59M | 7.23M | -12.95M | -7.58M | -1.95M | 9.03M | -169K | 251K | -4.63M | -11.2M | 1.58M | 9M | 15.04M | 0 | 0 |
| Change in Payables | -4.58M | -4.71M | -18.81M | 2.76M | 4.73M | -2.17M | 7.41M | -4.3M | -732K | 896K | 3.21M | 3.11M | -2.64M | -5.6M | 464K | 454K | 3.43M | 3.58M | 0 | 0 |
| Cash from Investing | -105.69M | -100.28M | -180.6M | -83.49M | -121.27M | -36.38M | -46.47M | -127.82M | -378.91M | -372.68M | -242.36M | -439.37M | -626.25M | -485.84M | -443.54M | -359.34M | -242.09M | 354.54M | -401.73M | 0 |
| Capital Expenditures | -105.69M | -100.28M | -180.6M | -73.49M | -121.27M | -42.15M | -38.69M | -117.82M | -391.39M | -400.11M | -405.69M | -494.81M | -441.06M | -403.55M | -441.65M | -359.4M | -237.45M | 354.54M | 0 | 0 |
| CapEx % of Revenue | 12.07% | 11.5% | 21.74% | 9.29% | 16.82% | 6.86% | 6.63% | 21.02% | 74.83% | 89.3% | 93.55% | 120.28% | 107.96% | 105.46% | 115.16% | 93.52% | 68.2% | 466.56% | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -10M | 0 | -42.15M | -7.78M | 0 | -391.39M | -400.11M | -494.81M | -494.81M | -441.06M | -82.29M | -1.89M | 67K | -4.64M | -7.35M | -401.73M | 0 |
| Cash from Financing | -245.19M | -299.91M | -170.48M | -327.05M | -374.98M | -182.47M | -188.19M | -313.28M | 193.5M | 16.87M | 224.18M | 197.07M | 438.84M | 234.71M | 387.57M | 192.31M | 63.4M | -230.66M | 399.7M | 184.38K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -115.64M | -185.35M | -407.73M | -247.02M | -253.19M | -163.44M | 12.71M | 13.47M | -1.98M | 0 | -627K | 2.15M | -83K | -26K | 96.5M | 0 | 0 | -107.83M | 398.85M | 25K |
| Dividends Paid | -63.72M | -62.85M | -64.74M | -64.77M | 0 | 0 | 0 | -8.39M | -15.43M | -3.86M | -15.44M | -15.44M | -11.97M | -7M | -1.42M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -116M | -186.47M | -407.73M | -247.02M | -257.06M | -163.44M | 0 | 0 | -1.98M | -1.86M | -627K | 0 | 0 | -26K | 0 | 0 | 0 | -257.43M | -1.15M | 0 |
| Other Financing | -17.37M | -18.68M | -3.61M | -6.88M | -5.29M | -2.53M | -7.08M | -4.6M | -8.79M | -1.48M | -11.26M | -20.07M | 198.7M | -45.68M | -42.16M | -60.44M | 44K | -118.53M | 8M | -90.62K |
| Net Change in Cash | 60.74M | 2.98M | 21.66M | -96.9M | -152.14M | 83.73M | 13.62M | -49.79M | 77.03M | -96.05M | 185.5M | -25.58M | 24.91M | -68.08M | 118.05M | 16.43M | -27.25M | 147.05M | -55.24K | 184.38K |
| Free Cash Flow | 304.92M | 299.79M | 195.35M | 241.43M | 223.46M | 260.73M | 211.08M | 80.32M | -127.68M | -140.49M | -180.49M | -277.33M | -226.19M | -220.5M | -267.63M | -175.94M | -86.01M | 377.7M | 1.98M | 0 |
| FCF Margin % | 34.81% | 34.39% | 23.52% | 30.53% | 30.99% | 42.43% | 36.18% | 14.33% | -24.41% | -31.36% | -41.62% | -67.42% | -55.36% | -57.62% | -69.78% | -45.78% | -24.7% | 497.05% | - | - |
| FCF Growth % | 74.21% | 53.46% | -19.08% | 8.04% | -14.29% | 23.52% | 162.78% | 162.91% | 9.11% | 22.16% | 34.92% | -22.61% | -2.58% | 17.61% | -52.11% | -104.56% | -122.77% | 19018.09% | - | - |
| FCF per Share | 2.86 | 2.78 | 1.63 | 1.90 | 1.72 | 1.95 | 1.58 | 0.64 | -1.14 | -1.43 | -1.88 | -2.92 | -2.41 | -2.88 | -3.50 | -2.39 | -1.18 | 7.00 | 0.05 | - |
| FCF Conversion (FCF/Net Income) | 2.89x | 3.50x | 3.33x | 20.43x | 39.52x | -32.50x | -4.46x | -1.22x | -19.70x | 1.11x | 2.03x | 30.53x | 2.87x | 2.93x | 2.69x | 4.62x | 6.67x | -0.52x | 1.19x | - |
| Interest Paid | 68.08M | 90.16M | 95.31M | 91.94M | 63.88M | 72.19M | 0 | 0 | 35.69M | 0 | 22.91M | 18.88M | 15.01M | 0 | 6.97M | 0 | 0 | 1.33M | 6K | 0 |
| Taxes Paid | 4.61M | 7.01M | 5.25M | 4.22M | 2.22M | 1.78M | 0 | 0 | -931K | 1.66M | 1.39M | 3.43M | 184K | 0 | 348K | 0 | 11.87M | 339K | 2.53M | 0 |
Satellite constellation replacement cycle
As reported in financial statements, Iridium consistently generates operating cash flow significantly higher than net income, with the OCF/NI ratio reaching as high as 5.90 in 2025Q2, illustrating that GAAP earnings are heavily suppressed by the non-cash depreciation of the company's extensive satellite constellation infrastructure.
The persistent gap between net income and operating cash flow suggests that the company's true economic performance is better captured by cash metrics than by accounting profit. Investors should monitor this divergence, as it indicates that the business is effectively self-funding its operations despite the heavy amortization burden.
Based on Iridium's reported figures, free cash flow margins have exhibited significant quarterly variance, ranging from a negative 20.9% in 2024Q2 to a peak of 50.2% in 2025Q2, largely driven by the lumpy nature of capital expenditures and strategic acquisition-related cash outflows during specific periods.
The trajectory of free cash flow appears to be stabilizing as the company moves through its current capital expenditure holiday. However, the sensitivity of these margins to periodic infrastructure investment suggests that future cash flow predictability may remain tied to the timing of next-generation satellite development cycles.
According to recent SEC filings, Iridium's capital intensity, measured by CapEx as a percentage of revenue, spiked to 61.3% in 2024Q2, though it has since moderated to more sustainable levels, reflecting the cyclical nature of maintaining a global LEO satellite constellation and associated ground infrastructure.
The fluctuation in capital intensity suggests that the company is currently prioritizing cash returns over aggressive infrastructure expansion. Analysts should interpret the recent moderation in CapEx as a temporary phase that may reverse once the next constellation replacement cycle necessitates significant new investment.
Based on quarterly cash flow data, Iridium has aggressively utilized its free cash flow to fund share repurchases and dividends, with buybacks totaling over $129 million in 2024Q3 alone, signaling management's confidence in the long-term sustainability of the current cash-generating asset base.
This capital allocation strategy appears to prioritize shareholder returns, which may be viewed as a positive signal of management's belief in the business's maturity. However, investors should monitor whether this pace of capital return leaves sufficient liquidity for future technological upgrades or competitive defensive measures.
Quick answers to the most common questions about buying IRDM stock.
Iridium Communications Inc. (IRDM) generated $400.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Iridium Communications Inc. (IRDM) generated $299.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Iridium Communications Inc. (IRDM) spent $100.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Iridium Communications Inc. (IRDM) returned $62.9M to shareholders via cash dividends and spent $186.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.