EchoStar (NASDAQ: ECHO) reported Q2 2026 revenue of $3.58 billion, down about 4.0% from $3.72 billion a year earlier, while diluted EPS swung to $24.12 from a loss of $1.06. Reported profit was dominated by a $9.73 billion non-cash deconsolidation gain, although operating income and adjusted OIBDA also improved despite continued subscriber losses.

Core financial results

The quarter combined declining revenue with a substantial improvement in operating profitability. Operating income reached $512.9 million, compared with a $213.4 million loss, while adjusted OIBDA increased by approximately 143.6%.

Reported net income attributable to EchoStar was $8.46 billion. However, the company said net income would have been approximately $49.46 million after excluding the tax-affected impact of the non-cash deconsolidation adjustment.

OIBDA and adjusted OIBDA are non-GAAP measures. Adjusted OIBDA excludes depreciation, amortization, impairments and other specified items from operating income or loss.

Business and segment performance

Pay-TV generated the largest revenue decline, while wireless revenue was nearly unchanged. The profitability picture was different: wireless moved to positive adjusted OIBDA, broadband and satellite services improved, and the Other segment’s loss narrowed substantially.

Pay-TV lost approximately 241,000 net subscribers, an improvement from the 261,000 lost a year earlier, and ended the quarter with 6.39 million subscribers. That total included 4.68 million DISH TV subscribers and 1.71 million Sling TV subscribers.

Retail wireless lost approximately 118,000 subscribers after adding 212,000 in the prior-year quarter, leaving it with 7.38 million subscribers. Broadband losses also accelerated to approximately 59,000 from 34,000, and the business ended Q2 with 622,000 subscribers.

Consolidated revenue also benefited from a change in eliminations, which were negative $9.8 million compared with negative $80.7 million a year earlier. Without that favorable $70.9 million difference, the decline in total revenue would have been larger.

Revenue fell, but lower costs reversed the operating loss

Service revenue declined by $238.6 million to $3.30 billion, more than offsetting an $89.8 million increase in equipment sales and other revenue. Total costs and expenses, meanwhile, fell by $875.1 million to $3.06 billion.

The cost of services declined by $533.5 million, selling, general and administrative expenses fell by $81.6 million, and depreciation and amortization decreased by $322.5 million. These reductions more than offset a $64.8 million increase in the cost of equipment and other sales, allowing EchoStar to move from an operating loss to a profit.

The improvement was not solely the result of lower depreciation and amortization. Adjusted OIBDA, which excludes those expenses, increased by $401.5 million. The wireless turnaround and narrower loss in Other were important contributors, while lower Pay-TV adjusted OIBDA remained a drag.

The $8.46 billion profit was mostly a non-cash gain

EchoStar recorded a $9.73 billion deconsolidation gain in Q2, which was the primary reason net income reached $8.46 billion. The gain exceeded total pretax income of $9.79 billion, demonstrating that reported EPS does not represent the quarter’s recurring operating earnings.

The company’s estimate of approximately $49.46 million in net income after excluding the gain’s tax-affected impact provides a more restrained view of the underlying result. Interest expense was also material, rising to $509.1 million from $279.2 million and nearly matching the quarter’s $512.9 million of operating income.

Cash flow and balance sheet

EchoStar provided cash-flow information for the first six months of 2026 rather than Q2 alone. First-half operating cash flow was $228.3 million, up from $214.3 million, and exceeded property and equipment purchases by only about $2.6 million.

First-half investing activities generated $811.7 million of cash, while financing activities used $1.78 billion. Financing outflows included $1.79 billion for debt redemptions and repurchases. Cash, cash equivalents and restricted cash declined by $738.8 million during the period to $1.44 billion.

On the balance sheet, cash and cash equivalents stood at $440.0 million, down from $1.88 billion at December 31, 2025. The current portion of debt, finance leases and other obligations declined to $1.45 billion from $7.32 billion, while the long-term portion fell to $15.99 billion from $18.66 billion. EchoStar also classified $16.82 billion of regulatory authorizations as held for sale, materially changing the presentation of its assets.

Recent insider transactions

The 10 most recent records supplied consisted of three stock grants, four derivative-security exercises and three sales. No open-market purchase appeared among these 10 transactions, and the disclosures alone do not establish insiders’ views about EchoStar’s outlook.

Risks investors need to watch

• Subscriber contraction: Pay-TV, retail wireless and broadband all recorded net subscriber losses. Wireless moved from subscriber growth a year ago to a decline in Q2 2026.
• Continued revenue pressure: Pay-TV revenue fell approximately 8.7%, while total service revenue declined by $238.6 million. Further customer losses could continue to weigh on recurring revenue.
• Earnings quality: The $9.73 billion deconsolidation gain was non-cash and non-recurring, making reported net income and EPS poor measures of underlying quarterly profitability.
• Interest burden: Quarterly interest expense increased to $509.1 million and was nearly equal to operating income, leaving limited operating-profit coverage before the deconsolidation gain.
• Reduced comparability: The deconsolidation and the classification of $16.82 billion of regulatory authorizations as held for sale make comparisons with prior periods more difficult.

Summary

EchoStar’s Q2 2026 results showed two different trends: recurring revenue and subscriber counts remained under pressure, but lower costs and improved wireless and Other segment profitability produced a clear operating turnaround. The reported $8.46 billion profit was largely an accounting result from deconsolidation, so the main issues to monitor are subscriber trends, the durability of adjusted OIBDA improvement, interest expense and cash generation relative to capital and financing needs.

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