Iridium Communications Inc.IRDM

Iridium Communications Inc. Segments Disclosure

10-KFiled Feb 12, 20263 min read
Segments, Significant Customers, Supplier and Service Providers and Geographic Information
The Company’s operations are primarily located in the United States and the Company operates in one business segment, providing global satellite communications services and products. Its Chief Executive Officer has been determined to be the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance.

The CODM evaluates the segment operating performance based on consolidated net income and reviews components of cost of services, including certain costs related to delivering engineering and other support services, which is considered a significant expense. Costs to support engineering and other support services, included within cost of services in the accompanying consolidated statements of operations and comprehensive income, were $110.1 million, $93.7 million and $77.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. The CODM considers budget-to-actual forecast and prior view-to-current view variances on a monthly and quarterly basis for evaluating performance and making decisions about allocating capital and other resources on a consolidated basis.

The Company derived approximately 29%, 28% and 25% of its total revenue in the years ended December 31, 2025, 2024 and 2023, respectively, from prime contracts with the U.S. government or subcontracts with prime contractors with U.S. government contracts. For the years ended December 31, 2025, 2024 and 2023, no single commercial customer accounted for more than 10% of the Company’s total revenue.

Approximately 46% and 51% of the Company’s accounts receivable balance at December 31, 2025 and 2024, respectively, was due from prime contracts or subcontracts with agencies of the U.S. government. As of December 31, 2025 and 2024, no single commercial customer accounted for more than 10% of the Company’s total accounts receivable balance.

The Company contracts for the manufacture of its subscriber equipment primarily from a limited number of manufacturers and utilizes other sole source suppliers for certain component parts of its devices. Should events or circumstances prevent the manufacturer or the suppliers from producing the equipment or component parts, the Company’s business could be adversely affected until the Company is able to move production to other facilities of the manufacturer or secure a replacement manufacturer or an alternative supplier for such component parts.

The following table summarizes net property and equipment by geographic area:
December 31,
 20252024
 (In thousands)
United States$369,337 $449,012 
Satellites in orbit1,607,403 1,630,121 
All others1,413 1,411 
Total$1,978,153 $2,080,544 
The following table summarizes revenue by geographic area:
Year Ended December 31,
 202520242023
  (In thousands) 
United States$479,039 $437,984 $431,476 
Canada84,114 88,386 65,772 
Other countries (1)
308,506 304,312 293,475 
Total$871,659 $830,682 $790,723 
(1)No single country in this group represented more than 10% of revenue.

Revenue is attributed to geographic area based on the billing address of the distributor. Service location and the billing address are often not the same. The Company’s distributors sell services directly or indirectly to end users, who may be located or use the Company’s products and services elsewhere. The Company does not know the geographical distribution of end users because it does not contract directly with them.

The Company is exposed to foreign currency exchange fluctuations from sales made and costs incurred in foreign currencies.
Free Sentinel

Want the next Iridium Communications Inc. segments disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Iridium Communications Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2018Feb 28, 2019
2015Feb 25, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew Standards