IRDM presents a deeply negative liquidation recovery posture driven by a single dominant liability: $1,774.7 million face value Term Loan (net book $1,761.2M) maturing September 2030. Against total assets of $2,532.3M, the liability stack totals $2,063.9M at face, leaving book equity of $468.4M. Under liquidation haircuts, that equity disappears rapidly. The asset side is dominated by property, plant and equipment net of $1,953.5M — primarily the 66-satellite LEO constellation. Applying a 50–70% recovery range to PP&E yields $977M–$1,367M. Cash of $111.6M recovers at par. Accounts receivable of $104.4M (45% U.S. government concentration) recovers at roughly $94M–$99M at 90–95%. Inventory of $69.7M (finished goods $48.3M, raw materials $22.4M, $1.0M reserve) recovers at roughly $42M at 60%. Indefinite-lived intangibles (spectrum/licenses $14.0M, other $21.2M) and definite-lived intangibles ($51.7M net, including $46.8M customer relationships) recover at zero under the lens. Goodwill of $98.9M from the Satelles acquisition likewise zeros out. Total estimated liquidation value of tangible assets: approximately $1,230M–$1,620M. Net recovery to equity after satisfying $2,064M in face-value obligations (term loan $1,761.2M net; deferred tax liability $137.6M; current liabilities $108.4M including $38.1M deferred revenue, $50.6M accruals; noncurrent other liabilities $27.8M; deferred revenue noncurrent $36.9M) produces a negative recovery in the range of ($444M) to ($834M) depending on PP&E realization. The EMSS government contract expiring September 2026 — generating ~$27.6M/quarter in fixed-fee revenue — is discussed extensively in MD&A as a renewal risk but is not separately XBRL-tagged; its loss would not affect liquidation math directly but affects going-concern value that supports PP&E market pricing. The interest rate cap (notional $1.0B, expires November 2026, asset fair value $13.4M) is embedded in OtherAssetsNoncurrent and would have nominal liquidation recovery. Period-over-period comparison is Q1 2026 10-Q versus FY 2025 10-K (December 31, 2025). Term Loan face value unchanged at $1,774.7M. Cash improved from $96.5M to $111.6M. No material balance-sheet structural change occurred this quarter.
▼ Community Notes