EchoStar Announces Financial Results for the Three Months Ended March 31, 2025
PR Newswire
ENGLEWOOD, Colo., May 9, 2025
-- Wireless: Net subscriber growth (+150K), improved churn (7.2%
year-over-year), filed Federal Communication Commission $(FCC.AU)$
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 $(SATS)$ announced its financial results for the three months ended March 31, 2025.
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:
Broadband
For the Three and
Months Ended March Satellite
31, 2025 Pay-TV Wireless 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$(R)$, Boost Mobile(R), Sling TV, DISH TV, Hughes(R), HughesNet(R), HughesON$(TM)$, and JUPITER(TM) 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 $ 2,813,707 $ 703,415
==================== ====================
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SOURCE EchoStar Corporation
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May 09, 2025 06:30 ET (10:30 GMT)
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