DISH Network (DISH) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenue for Q2 2025 was $3,395,542, a decrease of 4.8% compared to $3,568,270 in Q2 2024[24] - Service revenue for Q2 2025 was $3,270,566, down 5.0% from $3,443,518 in Q2 2024[24] - Net loss attributable to DISH Network for Q2 2025 was $273,125, compared to a net loss of $211,849 in Q2 2024, representing a 29% increase in losses[24] - Operating income for Q2 2025 was a loss of $173,249, compared to a loss of $31,771 in Q2 2024, showing a significant decline in operational performance[24] - The company reported a comprehensive loss of $273,196 for Q2 2025, compared to a comprehensive loss of $211,890 in Q2 2024[24] - For the six months ended June 30, 2025, DISH Network reported a net loss of $462.6 million, compared to a net loss of $222.1 million for the same period in 2024[30] - The company generated net cash flows from operating activities of $80.5 million, a significant decrease from $703.7 million in the prior year[30] Assets and Liabilities - Total current assets increased to $2,810,995 as of June 30, 2025, up from $2,479,266 as of December 31, 2024, reflecting a growth of 13.4%[22] - Total liabilities rose to $39,381,228 as of June 30, 2025, compared to $38,510,835 as of December 31, 2024, indicating an increase of 2.3%[22] - Total stockholder's equity decreased to $4,962,844 as of June 30, 2025, down from $5,683,674 as of December 31, 2024, reflecting a decline of 12.6%[22] - Cash and cash equivalents increased to $830,321 as of June 30, 2025, from $476,075 as of December 31, 2024, marking a 74.5% increase[22] - Cash and cash equivalents totaled $1.093 billion as of June 30, 2025, up from $327.1 million at the end of the previous period[30] Debt and Financing - The company has $2.0 billion of debt maturing in July 2026 and may need to make payments up to approximately $2.921 billion for AWS-3 licenses[35] - The company incurred interest expense of $230,249 in Q2 2025, compared to $164,561 in Q2 2024, representing a 40% increase in interest costs[24] - Cash paid for interest, including capitalized interest, was $641,535 thousand for the six months ended June 30, 2025, compared to $629,947 thousand for the same period in 2024[67] - The total debt, finance lease, and other obligations, net of current portion, amounted to $21,979,753,000, an increase from $20,754,776,000 as of December 31, 2024[104] - The fair value of the total debt as of June 30, 2025, was estimated at $23,021,765,000, compared to $21,688,257,000 as of December 31, 2024[104] 5G Network and Services - DISH Network is currently transitioning to a mobile network operator (MNO) as its 5G network becomes commercially available[41] - The Wireless segment serves over 223 million Americans with 5G voice services and over 269 million Americans with 5G broadband services, with a total of 7.357 million Wireless subscribers[40][42] - The company has certified offering 5G broadband service to at least 80% of the U.S. population as of December 31, 2024[134] - The company has deployed at least 24,000 5G sites as part of its commitments to the FCC[135] - DISH Network currently offers 5G VoNR services to over 223 million Americans and 5G broadband service covering over 269 million Americans[136] Legal Proceedings - DISH Network is involved in various legal proceedings, but management does not believe these will materially affect the company's financial condition[148] - The company is currently engaged in litigation regarding patent infringement related to its AutoHop™ feature[149] - DISH Network is facing multiple class action lawsuits related to a cybersecurity incident that allegedly compromised private information of customers, with ten additional complaints filed following the initial case[155] - The court has consolidated multiple class action complaints related to the cybersecurity incident, with ongoing proceedings to determine the outcome[155] - DISH Network has been granted a stay in the Digital Broadcasting Solutions case pending resolution of patent validity challenges[158] Capital Expenditures and Investments - The company expects capital expenditures for its 5G Network to be approximately $10 billion, including amounts incurred since 2021[136] - DISH Network has invested over $30 billion in wireless spectrum licenses, with $24 billion currently related to these licenses, excluding $7 billion of capitalized interest[131] - The total carrying amount of owned wireless spectrum licenses is $19,424,035,000[133] - The company has capitalized interest totaling $7,289,803,000 related to its spectrum licenses[133] Regulatory and Compliance - The FCC has raised concerns regarding DISH Network's compliance with obligations to provide 5G broadband service, which has introduced regulatory uncertainty affecting its operations[33] - The company has committed to deploying a facilities-based 5G broadband network and has received extensions for certain deployment deadlines until December 14, 2026[45] - The final construction deadline for certain licenses has been extended to December 14, 2026, contingent on meeting specific service obligations[135]