EchoStar Corporation (SATS) shares tumbled 6.57% in pre-market trading on Friday following the release of disappointing second-quarter financial results. The satellite and wireless services provider reported a wider-than-expected loss and missed revenue estimates, overshadowing news of a major satellite contract.

For the second quarter of 2025, EchoStar posted a loss of $1.06 per diluted share, exceeding analysts' expectations of a $1.04 loss. The company's revenue for the quarter came in at $3.72 billion, falling short of the $3.83 billion forecast by FactSet. This represents a decline from $3.95 billion in the same period last year, indicating ongoing challenges in the company's core businesses.

Despite the earnings setback, EchoStar announced a significant contract with MDA Space Ltd. for the world's first 3GPP 5G compliant non-terrestrial network using low Earth orbit (LEO) satellites. The initial contract is valued at approximately $1.3 billion, with potential to increase to $2.5 billion with additional options. This project aims to provide seamless connectivity for mobile and IoT devices, particularly in remote and underserved regions, with commercial services expected to commence in 2029. However, the long-term nature of this project appears to have done little to offset investors' immediate concerns about the company's financial performance.