Wireless: Net subscriber growth (+150K), improved churn (7.2% year-over-year), filed Federal Communication Commission (FCC) certification of more than 24,000 5G constructed "on-air" sites one month ahead of schedule
Pay TV: Lowest DISH TV churn (1.36%) in over a decade (excluding the pandemic), growth in average revenue per user (ARPU) (+3% year-over-year)
Broadband & Satellite Services: Enhanced in-flight offerings through universal Ka- and Ku-bands, new international contracts for managed network services, expanded enterprise backlog (+5% year-over-year)
ENGLEWOOD, Colo., May 9, 2025 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) announced its financial results for the three months ended March 31, 2025.
EchoStar (PRNewsfoto/EchoStar Corporation)
The company continued to build on the solid foundation laid last year as a global leader in connectivity and entertainment solutions and services. The business drove efficiencies across all of its brands and invested in profitable growth. EchoStar's unique set of assets across satellite, wireless, video, managed services and U.S.-based manufacturing led to improvements in many key metrics and reported total revenue of $3.87 billion for the first quarter 2025.
"The EchoStar team performed well against our plan in the first quarter," said Hamid Akhavan, president and CEO, EchoStar Corporation. "We are pleased with the progress of our Wireless business and year-over-year net add subscriber growth. In addition, our Pay-TV segment continues to drive improvements in ARPU and churn, and our in-flight connectivity business advances, scaling and driving interest from airlines worldwide."
Wireless
Wireless consists predominantly of Boost Mobile and network wireless services, and delivered approximately $973 million in revenue for the first quarter.
Continued strong performance fueled by +150K subscriber net adds in Q1
Attracted and retained high-quality customers, contributing to a 7.2% churn improvement year-over-year
Boost Mobile Network recognized as #1 mobile network in New York City by an independent, third-party industry benchmarking expert
Met 3GPP release 17 deployment and completed construction of 24,000 5G sites "on air" ahead of June FCC requirement date
More than 1.25 million customers on Boost Mobile Network, and loading more than 75% of compatible devices on-net in accelerated markets
Wireless closed the quarter with approximately 7.15 million subscribers
Pay-TV
Pay TV consists of DISH TV and Sling TV. Performance for Pay-TV was in line with expectations and delivered approximately $2.5 billion in revenue for the first quarter.
Focused on operational efficiency, customer loyalty, and improving user experiences to help increase ARPU (+3%) and reduce non-programming variable costs per subscriber
Loyalty and bundled offerings delivered lowest DISH TV churn (1.36%) in over a decade (excluding the pandemic), an 11% reduction year-over-year
Pay-TV closed the quarter with approximately 7.4 million subscribers
Broadband & Satellite Services
Broadband & Satellite Services consists predominantly of the Hughes enterprise and consumer family of brands and delivered approximately $371 million in revenue for the first quarter.
In-flight connectivity business announced universal compatibility with Ka- and Ku-bands, providing greater interoperability compared to single constellation systems in the market, enabling cost-effective flexibility and an optimal passenger experience
Announced membership in Airbus HBCplus program enhancing ability to serve airlines as a factory line fit option at Airbus
Completed Latin American deployment of multi-orbit managed network to support private networks and security services on LEO and geostationary Earth orbit (GEO) satellites
Approximately $1.6 billion contracted backlog revenue at the end of Q1 (+5% year-over-year)
Broadband & Satellite Services closed the quarter with approximately 853,000 subscribers
Set forth below is a table highlighting certain of EchoStar's segment results for the three months ended March 31, 2025 and 2024 (all U.S. GAAP amounts reference results from operations):
For the Three Months Ended March 31,
2025
2024
(in thousands)
Revenue
Pay-TV
$ 2,538,727
$ 2,726,578
Wireless
972,775
914,006
Broadband and Satellite Services
370,658
382,586
All Other & Eliminations
(12,402)
(8,327)
Total
$ 3,869,758
$ 4,014,843
Net Income (loss) attributable to EchoStar
$ (202,669)
$ (107,376)
OIBDA
Pay-TV
$ 729,873
$ 755,510
Wireless
(415,064)
(363,496)
Broadband and Satellite Services
85,703
79,287
All Other & Eliminations
(311)
(1,145)
Total
$ 400,201
$ 470,156
Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations)
Pay-TV
$ 62,388
$ 57,912
Wireless
283,993
549,173
Broadband and Satellite Services
32,103
70,611
Total
$ 378,484
$ 677,696
Reconciliation of GAAP to Non-GAAP Measurement:
For the Three Months Ended March 31, 2025
Pay-TV
Wireless
Broadband and Satellite Services
Eliminations
Consolidated
(In thousands)
Segment operating income (loss)
$
653,430
$
(722,302)
$
(19,195)
$
(65)
$
(88,132)
Depreciation and amortization
76,443
307,238
104,898
(246)
488,333
OIBDA
$
729,873
$
(415,064)
$
85,703
$
(311)
$
400,201
For the Three Months Ended March 31, 2024
Segment operating income (loss)
$
670,108
$
(645,168)
$
(39,554)
$
(630)
$
(15,244)
Depreciation and amortization
85,402
281,672
118,841
(515)
485,400
OIBDA
$
755,510
$
(363,496)
$
79,287
$
(1,145)
$
470,156
Note on Use of Non-GAAP Financial Measures
OIBDA is defined as "Operating income (loss)" plus "Depreciation and amortization."
OIBDA, which is presented by segment above, is a non-GAAP measure reconciled to "Operating income (loss)" and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability of our business segments on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions for those business segments, as well as in evaluating operating performance in relation to our competitors.
The condensed consolidated financial statements of EchoStar for the period ended March 31, 2025, are attached to this press release. Detailed financial data and other information are available in EchoStar's Form 10-Q for the period ended March 31, 2025, filed today with the Securities and Exchange Commission.
EchoStar will host a conference call to discuss its earnings on Friday, May 9, 2025, at 11 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on EchoStar's investor relations website at ir.echostar.com. To attend the call, please dial: (877) 484-6065 (U.S.) or (201) 689-8846. When prompted on dial-in, please utilize the conference ID (13753677) or ask for the "EchoStar Corporation Q1 2025 Earnings Conference Call." Please dial in at least 10 minutes before the call to ensure timely participation.
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar®, Boost Mobile®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.
Safe Harbor Statement under the US Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "goal," "seek," "estimate," "expect," "intend," "project," "continue," "future," "will," "would," "can," "may," "plans," and similar expressions and the use of future dates are intended to identify forward–looking statements. Although management believes that the expectations reflected in these forward–looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. We assume no responsibility for the accuracy of forward-looking statements or information or for updating forward-looking information or statements. These statements are subject to certain risks, uncertainties, and assumptions. See "Risk Factors" in EchoStar's Annual Report on Form 10-K for the period ended December 31, 2024 as filed with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.
ECHOSTAR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share amounts)
(Unaudited)
As of
March 31,
December 31,
2025
2024
Assets
Current Assets:
Cash and cash equivalents
$
2,529,878
$
4,305,393
Current restricted cash and cash equivalents
172,856
150,898
Marketable investment securities
2,529,217
1,242,036
Trade accounts receivable, net of allowance for credit losses of $80,641 and $82,628, respectively
1,183,870
1,198,731
Inventory
413,365
455,197
Prepaids and other assets
724,393
655,233
Other current assets
94,630
88,255
Total current assets
7,648,209
8,095,743
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities
172,357
169,627
Property and equipment, net
8,980,928
9,187,132
Regulatory authorizations, net
39,739,466
39,442,166
Other investments, net
202,166
202,327
Operating lease assets
3,242,450
3,260,768
Intangible assets, net
70,906
74,939
Other noncurrent assets, net
515,045
505,985
Total noncurrent assets
52,923,318
52,842,944
Total assets
$
60,571,527
$
60,938,687
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Trade accounts payable
$
690,482
$
740,984
Deferred revenue and other
664,924
650,940
Accrued programming
1,284,309
1,339,072
Accrued interest
667,674
352,499
Other accrued expenses and liabilities
1,743,545
1,804,516
Current portion of debt, finance lease and other obligations
1,004,626
943,029
Total current liabilities
6,055,560
5,831,040
Long-Term Obligations, Net of Current Portion:
Long-term debt, finance lease and other obligations, net of current portion
25,328,132
25,660,288
Deferred tax liabilities, net
4,917,006
4,988,653
Operating lease liabilities
3,195,552
3,211,407
Long-term deferred revenue and other long-term liabilities
1,012,587
1,002,074
Total long-term obligations, net of current portion
34,453,277
34,862,422
Total liabilities
40,508,837
40,693,462
Commitments and Contingencies
Stockholders' Equity (Deficit):
Class A common stock, $0.001 par value, 1,600,000,000 shares authorized, 155,262,098 and 155,048,676 shares issued and outstanding, respectively
155
155
Class B common stock, $0.001 par value, 800,000,000 shares authorized, 131,348,468 shares issued and outstanding
131
131
Additional paid-in capital
8,779,458
8,768,360
Accumulated other comprehensive income (loss)
(187,865)
(195,711)
Accumulated earnings (deficit)
11,415,768
11,618,437
Total EchoStar stockholders' equity (deficit)
20,007,647
20,191,372
Noncontrolling interests
55,043
53,853
Total stockholders' equity (deficit)
20,062,690
20,245,225
Total liabilities and stockholders' equity (deficit)
$
60,571,527
$
60,938,687
ECHOSTAR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
For the Three Months Ended March 31,
2025
2024
Revenue:
Service revenue
$
3,606,156
$
3,819,673
Equipment sales and other revenue
263,602
195,170
Total revenue
3,869,758
4,014,843
Costs and Expenses (exclusive of depreciation and amortization):
Cost of services
2,432,198
2,557,182
Cost of sales - equipment and other
439,508
363,083
Selling, general and administrative expenses
597,851
624,422
Depreciation and amortization
488,333
485,400
Total costs and expenses
3,957,890
4,030,087
Operating income (loss)
(88,132)
(15,244)
Other Income (Expense):
Interest income
65,529
30,462
Interest expense, net of amounts capitalized
(286,055)
(99,408)
Other, net
41,390
(26,110)
Total other income (expense)
(179,136)
(95,056)
Income (loss) before income taxes
(267,268)
(110,300)
Income tax (provision) benefit, net
63,987
1,925
Net income (loss)
(203,281)
(108,375)
Less: Net income (loss) attributable to noncontrolling interests, net of tax
(612)
(999)
Net income (loss) attributable to EchoStar
$
(202,669)
$
(107,376)
Weighted-average common shares outstanding - Class A and B common stock:
Basic
286,513
271,519
Diluted
286,513
271,519
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to EchoStar
$
(0.71)
$
(0.40)
Diluted net income (loss) per share attributable to EchoStar
$
(0.71)
$
(0.40)
ECHOSTAR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the Three Months Ended
March 31,
2025
2024
Cash Flows From Operating Activities:
Net income (loss)
$
(203,281)
$
(108,375)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization
488,333
485,400
Realized and unrealized losses (gains) on investments, impairments and other
(35,769)
23,893
Non-cash, stock-based compensation
7,609
9,058
Deferred tax expense (benefit)
(68,902)
(11,688)
Changes in allowance for credit losses
(1,987)
10,516
Change in long-term deferred revenue and other long-term liabilities
(2,772)
(3,871)
Other, net
51,627
31,261
Changes in operating assets and operating liabilities, net
(28,103)
15,065
Net cash flows from operating activities
206,755
451,259
Cash Flows From Investing Activities:
Purchases of marketable investment securities
(1,807,779)
(19,135)
Sales and maturities of marketable investment securities
533,812
458,792
Purchases of property and equipment
(258,427)
(519,612)
Capitalized interest related to regulatory authorizations
(120,057)
(158,084)
Purchases of regulatory authorizations, including deposits
—
(1,104)
Other, net
(4,268)
998
Net cash flows from investing activities
(1,656,719)
(238,145)
Cash Flows From Financing Activities:
Repayment of long-term debt, finance lease and other obligations
(24,671)
(27,125)
Redemption and repurchases of term loans, convertible and senior notes
(289,383)
(951,168)
Early debt extinguishment gains (losses) of convertible and senior notes
11,465
—
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan
2,534
(160)
Purchase of SNR Management's ownership interest in SNR HoldCo
—
(441,998)
Other, net
(31,792)
—
Net cash flows from financing activities
(331,847)
(1,420,451)
Effect of exchange rates on cash and cash equivalents
1,714
(849)
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents
(1,780,097)
(1,208,186)
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period
4,593,804
1,911,601
Cash, cash equivalents, restricted cash and cash equivalents, end of period
