Financial Data and Key Metrics Changes - The company announced major transactions with AT&T and SpaceX valued at approximately $23 billion and $19 billion respectively, which are expected to enhance capital runway for future operations [5][6] - An amended agreement with SpaceX involves selling EchoStar's unpaired AWS-3 spectrum license for approximately $2.6 billion in SpaceX stock, indicating a strategic shift towards capital management [6] Business Line Data and Key Metrics Changes - The creation of a new division, EchoStar Capital, will focus on capital management and M&A, with Hamid Akhavan leading this division while continuing to manage Hughes Network Systems [6][7] - The company aims to leverage its institutional knowledge and experience to create lasting value through innovation and strategic investments [7] Market Data and Key Metrics Changes - The sale of unpaired AWS-3 spectrum to SpaceX is seen as a timely move, providing SpaceX with flexibility in spectrum utilization, while the paired AWS-3 spectrum remains valuable due to its established presence in devices [15][16] - The company is optimistic about the upcoming auction for AWS-3 spectrum, viewing it as a valuable asset that could yield significant returns [18] Company Strategy and Development Direction - EchoStar is pivoting towards being a capital-rich, asset-light company, focusing on long-term strategic thinking rather than short-term operational pressures [61][62] - The company plans to explore various industries for investment opportunities, leveraging its 45 years of experience to maximize shareholder value [19][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of SpaceX, viewing it as a strategic investment that aligns with future trends in space and technology [25][28] - The company is committed to being great stewards of capital, with plans to optimize the use of proceeds from spectrum sales for strategic investments [19][51] Other Important Information - The company is navigating ongoing litigation related to tower payments, which has complicated negotiations with vendors [20][32] - Management emphasized the importance of long-term thinking in their operational strategy, aiming to enhance competitiveness in the market [62][63] Q&A Session Summary Question: How will EchoStar Capital be capitalized? - Management indicated that all proceeds from spectrum sales will be directed to EchoStar Capital, which will focus on maximizing value through strategic investments [13][19] Question: What is the status of AWS-3 spectrum sales? - Management noted that the unpaired AWS-3 spectrum was sold to SpaceX, while the paired spectrum remains valuable and will be considered for future transactions [15][16] Question: What are the tax implications of the asset sales? - Management confirmed that the impairment charge will not provide a tax benefit, and the estimated tax liabilities remain in the range of $7 billion to $10 billion [40][81] Question: What is the strategic vision for the Boost business? - Management outlined a strategy focused on leveraging technology to differentiate from competitors and emphasized the importance of partnerships, such as with SpaceX, to enhance service offerings [72][74] Question: Any updates on potential mergers, particularly with DirecTV? - Management acknowledged that while a merger with DirecTV has been considered, no predictions can be made at this time regarding its feasibility [84]

Consolidated Results - EchoStar's Q3 2025 revenue was $36 billion, a decrease of $277 million or 71% year-over-year[12] - Adjusted OIBDA in Q3 2025 was $231 million, down $86 million or 271% year-over-year[14] - Capital Expenditures and Capitalized Interest in Q3 2025 were $359 million, down $136 million or 275% year-over-year[14] - Free Cash Flow in Q3 2025 was negative $247 million, down $28 million or 129% year-over-year, primarily due to lower Adjusted OIBDA, partially offset by lower CapEx[17] - Cash and Marketable Securities were $43 billion in Q3 2025, up $14 billion year-over-year, primarily due to Q4 2024 financing transactions[19] Segment Performance - Wireless service revenue was $836 million, up $57 million or 74% year-over-year, with ARPU of $3722, up $095 or 26% year-over-year[23] - Pay-TV revenue was $2341 billion, down $277 million or 106% year-over-year, with ARPU of $10997, up $109 or 10% year-over-year[27] - Broadband & Satellite Services (BSS) revenue was $346 million, down $41 million or 106% year-over-year, with Adjusted OIBDA of $75 million, down $3 million or 39% year-over-year[32] Subscriber Trends - Wireless net additions were 223K, up 520K year-over-year and up 11K or 52% sequentially[21] - Pay-TV net additions improved by 50K year-over-year due to competitive pressures[45] - Hughes broadband subscribers decreased by 129K or 141% year-over-year[48]

Core Insights - EchoStar reported a widened loss in the third quarter due to decreased revenue and a charge related to its multibillion-dollar wireless spectrum sales [1] - The company has appointed a new CEO [1] Financial Performance - The loss for the third quarter increased as a result of lower revenue [1] - A significant charge was taken on the company's multibillion-dollar sales of wireless spectrum [1] Leadership Changes - EchoStar has appointed a new CEO, indicating a potential shift in strategic direction [1]

Core Viewpoint - EchoStar reported quarterly earnings of $0.83 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $1.23 per share, and compared to a loss of $0.52 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +167.48%, with the company previously expected to post a loss of $1.12 per share but actually reporting a loss of $1.06, resulting in a surprise of +5.36% [2] - EchoStar's revenues for the quarter ended September 2025 were $3.61 billion, missing the Zacks Consensus Estimate by 3.83%, and down from $3.89 billion in the same quarter last year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [3] Stock Performance - EchoStar shares have increased approximately 215.8% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.26 on revenues of $3.81 billion, and for the current fiscal year, it is -$3.86 on revenues of $15.12 billion [8] - The outlook for the Satellite and Communication industry is favorable, ranking in the top 30% of over 250 Zacks industries, suggesting potential for better performance compared to lower-ranked industries [9] Industry Context - Gilat Satellite, another company in the same industry, is expected to report quarterly earnings of $0.13 per share, reflecting a year-over-year change of -7.1%, with revenues anticipated to be $112 million, up 50.1% from the previous year [10][11]

Core Viewpoint - EchoStar Communications (SATS.US) has agreed to amend its final agreement with SpaceX to sell its unpaired AWS-3 spectrum licenses for $2.6 billion in SpaceX stock, enhancing its ability to create value for shareholders through new business opportunities [1] Group 1: Transaction Details - The transaction is based on a previous agreement reached in September between the two companies [1] - EchoStar had previously agreed to sell AWS-4 and H-band spectrum licenses to SpaceX for approximately $17 billion, with payments split into a maximum of $8.5 billion in cash and $8.5 billion in SpaceX stock [1] - The acquisition of the unpaired AWS-3 spectrum, along with the previously mentioned licenses, will enable SpaceX to develop and deploy the next-generation Starlink Direct to Cell constellation system [1] Group 2: Company Impact - EchoStar's CEO, Hamid Akhavan, stated that this collaboration with SpaceX, along with prior spectrum transactions and commercial agreements, will enhance the company's ability to explore new business opportunities and create shareholder value [1] - The existing operations of EchoStar's subsidiaries, including DISH TV, Sling TV, Boost Mobile, and Hughes, will not be affected by this transaction [1] Group 3: Market Reaction - As of pre-market trading, EchoStar's stock price slightly declined by 0.03% to $72.3 [2]

Telecommunications firm EchoStar Corp. (NASDAQ:SATS) said on Thursday, it will sell more wireless spectrum licenses to SpaceX for about $2.6 billion in exchange for stock in the Elon Musk-backed company that owns the Starlink satellite internet network. The announcement is an extension to the $17 billion deal the companies struck in September, which will close after receiving regulatory approval. The AWS-3 licenses cover airwaves across the U.S. that can be used to support mobile and satellite communication ...

Core Viewpoint - EchoStar is set to sell wireless spectrum licenses to SpaceX for approximately $2.6 billion, receiving stock in return, which builds upon a previous $17 billion agreement between the two companies [1] Group 1 - The transaction involves the exchange of wireless spectrum licenses, indicating a strategic move to enhance SpaceX's capabilities in the telecommunications sector [1] - The deal reflects a growing trend of collaboration between satellite and telecommunications companies, aiming to leverage each other's strengths [1] - The financial terms of the deal highlight the significant valuation placed on spectrum assets in the current market environment [1] Group 2 - This transaction is part of a broader strategy by EchoStar to optimize its asset portfolio and focus on core business areas [1] - The partnership with SpaceX may provide EchoStar with potential growth opportunities in the rapidly evolving space and telecommunications industry [1] - The previous $17 billion deal suggests a long-term commitment between the two companies, indicating confidence in future synergies [1]

Core Insights - EchoStar Corporation announced its financial results for Q3 and nine months ended September 30, 2025, alongside the formation of EchoStar Capital to drive future growth through new business investments [2][4] - The company executed two significant spectrum transactions with AT&T for $22.65 billion and SpaceX for $19 billion, which helped meet FCC requirements for 5G network buildout [3][4] - EchoStar reported a total revenue of $3.61 billion for Q3 2025, a decrease from $3.89 billion in Q3 2024, and $11.21 billion for the nine months ended September 30, 2025, compared to $11.86 billion in the same period of 2024 [7][11] Financial Performance - Wireless segment revenue was approximately $939 million for Q3 2025, with a net subscriber growth of 223,000, improved churn at 2.86%, and a 2.6% increase in average revenue per user (ARPU) year-over-year [5][8] - Pay-TV segment, including DISH TV and Sling TV, generated approximately $2.34 billion in revenue for Q3 2025, with a historic low churn rate of 1.33% and a 1% increase in ARPU year-over-year [6][9] - Broadband & Satellite Services reported approximately $346 million in revenue for Q3 2025, with a contracted backlog revenue of $1.5 billion [10][12] Strategic Developments - EchoStar Capital will utilize capital from recent spectrum transactions to explore new growth opportunities beyond existing business units [4] - The company is undergoing a significant impairment charge of $16.48 billion due to the abandonment of certain 5G network assets not aligned with its hybrid MNO business model [4] - Hamid Akhavan has been appointed CEO of EchoStar Capital, while Charlie Ergen continues as President and CEO of EchoStar Corporation [4] Segment Results - For Q3 2025, Pay-TV revenue was $2.34 billion, down from $2.62 billion in Q3 2024, while Wireless revenue increased from $898 million to $939 million [11] - The Broadband & Satellite Services segment saw a revenue decline from $386 million in Q3 2024 to $346 million in Q3 2025 [11] - The total net income attributable to EchoStar for Q3 2025 was a loss of $12.78 billion, compared to a loss of $141.81 million in Q3 2024 [11][23]

Financial Performance - Total revenue for Q3 2025 was $3,614,258, a decrease of 7.1% from $3,890,984 in Q3 2024[23] - Service revenue decreased to $3,427,947 in Q3 2025, down 6.6% from $3,671,674 in Q3 2024[23] - Net loss attributable to EchoStar for Q3 2025 was $12,781,196, compared to a loss of $141,812 in Q3 2024[23] - Operating loss for Q3 2025 was $16,641,875, significantly higher than the loss of $160,767 in Q3 2024[23] - Basic net loss per share attributable to EchoStar was $(44.37) in Q3 2025, compared to $(0.52) in Q3 2024[23] - For the nine months ended September 30, 2025, EchoStar reported a net loss of $13.29 million compared to a net loss of $459,634 for the same period in 2024[29] - Net cash flows from operating activities decreased to $325,948 from $1.21 million year-over-year[29] - The company experienced a significant increase in impairments, totaling $16.48 million in 2025, compared to none in 2024[29] Assets and Liabilities - Total current assets decreased to $6,032,290 as of September 30, 2025, down from $8,095,743 as of December 31, 2024[21] - Total assets decreased to $45,271,366 as of September 30, 2025, compared to $60,938,687 as of December 31, 2024[21] - Total liabilities increased to $38,264,495 as of September 30, 2025, from $40,693,462 as of December 31, 2024[21] - Total stockholders' equity decreased to $7,006,871 as of September 30, 2025, down from $20,245,225 as of December 31, 2024[21] - The total cash and cash equivalents and marketable investment securities amounted to $3.915 billion as of September 30, 2025[56] - The company has $2.0 billion of debt maturing in July 2026 and $1.377 billion maturing in August 2026[56] Spectrum and Network Operations - EchoStar entered into a License Purchase Agreement with AT&T for the sale of spectrum licenses for an aggregate purchase price of $22.65 billion, expected to close in the first half of 2026[37] - The AT&T Transactions include a minimum purchase price clause of $18.6 billion, ensuring a baseline for the sale[38] - The company plans to transition to a Hybrid Mobile Network Operator (MNO) model, with expected implementation as early as Q4 2025[44] - EchoStar agreed to sell its AWS-4 and H-Block Licenses to SpaceX, with the transaction contingent on regulatory approvals[47] - The total consideration amount for the SpaceX transactions is $17 billion, which includes $8.5 billion in SpaceX's Class A Common Stock valued at $212 per share[49] - The Spectrum Acquisition Closing is expected on or about November 30, 2027, subject to the satisfaction of customary closing conditions[50] - The company is actively migrating customer traffic from its 5G Network to AT&T's network as part of its transition strategy[74] - The company has received conditional approval from the FCC to extend 5G deployment deadlines to December 14, 2026, and further to June 14, 2028, based on compliance with commitments[76] Subscriber Metrics - As of September 30, 2025, the company had 7.166 million Pay-TV subscribers, including 5.171 million DISH TV subscribers and 1.995 million SLING TV subscribers[70] - The Wireless segment reported 7.520 million subscribers as of September 30, 2025[71] - As of September 30, 2025, the Broadband segment had 783,000 subscribers[79] Capital Expenditures and Investments - The company has invested over $30 billion in Wireless spectrum licenses, excluding $10 billion of capitalized interest related to these licenses[75] - The company has ceased capitalizing interest on its 5G Network qualifying assets as of the end of August 2025[88] - The company reported realized and unrealized gains (losses) on investments of $28.9 million for the three months ended September 30, 2025, compared to $52.1 million for the same period in 2024[130] Debt and Financing - The carrying amount of the company's debt facilities as of September 30, 2025, was $26,310,870,000, with a fair value of $29,795,145,000[155] - The company repurchased approximately $123 million of its 5 1/4% Senior Secured Notes due 2026 during the nine months ended September 30, 2025[155] - The company issued $5.356 billion and $150 million of its 10 3/4% Senior Secured Notes due November 30, 2029, in November 2024 and May 2025, respectively[165] - The company issued $2.0 billion aggregate principal amount of Convertible Notes due 2025, with $138 million remaining outstanding after a portion was exchanged and cancelled[171] Impairments and Write-downs - The company began the abandonment and decommission process for certain portions of its 5G Network, resulting in significant impairment assessments[61] - The company impaired the EchoStar XXI satellite, writing down its carrying value to zero as of September 30, 2025[143] - Impairment charges recorded during the three and nine months ended September 30, 2025, totaled approximately $16.481 billion[66] Regulatory Compliance and Obligations - The company is subject to a review of its compliance with obligations regarding federal spectrum licenses by the FCC[10] - The licenses remain in effect based on the submission of build-out certifications, despite the FCC not yet updating the build-out deadlines in the Universal Licensing System[10] - Northstar Wireless paid gross winning bid amounts for 261 AWS-3 Licenses but will not pay for 84, resulting in the FCC retaining those licenses[217]

Accessibility StatementSkip Navigation ENGLEWOOD, Colo., Oct. 30, 2025 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) will host a conference call to discuss its third quarter financial results on Thursday, November 6, 2025, at 11 a.m. Eastern Time (ET). The conference call will be broadcast live in listen-only mode on EchoStar's Investor Relations website. To attend the call, please use the information below for dial-in access. When prompted on dial-in, please utilize the conference ID or ask for the " ...