EchoStar(US:SATS)2025-11-06 11:04Financial 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]