Schwab Network on $IRDM (Nov 6, 2026)
IRDM rose about 16% after beating revenue and profit expectations; revenue grew 66% sequentially and AI cloud revenue reached $200 million versus $71 million, while adjusted EBITDA of $66 million missed the $73.5 million expected. Backlog size explains market excitement; 11% three-year and about 12% five-year contract-price increases plus about two-thirds investment-grade-or-better deals ease financing concerns.
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The stock started to rise this morning, after a difficult month . Particular attention is being paid to the artificial intelligence sector . Tell us some of the key points you've come up with.
Yes, we are currently seeing a rise in the share price of about 16 %. They exceeded expectations in both revenue and profits. Revenue grew by 66% compared to the previous quarter, and adjusted earnings before interest, taxes, depreciation and amortization reached $66 million.
It is true that it did not reach the market's expectations of $73.5 million, but when you look at the size of the backlog of orders, it becomes clear why the market is so excited about this stock.
AI cloud computing revenues reached $200 million, three times the previous quarter's $71 million. As for contract prices, they rose by 11% for three-year contracts and by about 12% for five-year contracts.
They reiterate that the majority of their deals, about two-thirds, are with companies with investment-grade or better ratings, in an attempt to allay some of the market's concerns about the financing of their business model.