SATS · EchoStar Corporation

Period Performance

Period Performance

For the three months ended March 31, 2026, EchoStar reported total revenue of $3.667 billion, a decrease of 5.2% compared to $3.870 billion in the prior-year period. The decline was primarily driven by the Pay-TV segment, where revenue fell $244 million, or 9.6%, due to a shrinking subscriber base. Wireless revenue remained nearly flat, down 0.7%, while Broadband and Satellite Services revenue dropped 11.1%. The Other segment saw a 46% increase, largely from leased spectrum revenue.

Operating income swung to a profit of $393 million from a loss of $88 million in 2025. This improvement was fueled by a $541 million reduction in operating loss from the Other segment, which benefited from lower depreciation and amortization (down $293 million) and a $66 million impairment gain on exit/disposal settlements. The Wireless segment also reduced its operating loss by $58 million, helped by higher service revenue and lower equipment costs. Pay-TV operating income fell $182 million due to higher SG&A expenses, including $75 million in RSA settlement costs. Net loss attributable to EchoStar narrowed to $147 million from $203 million, a 27.5% improvement.

Segment Dynamics

• Pay-TV: Revenue declined 9.6% as Pay-TV subscribers fell 10.3% to 6.632 million. Service revenue dropped 10.4% to $2.262 billion, while equipment sales rose. Operating income decreased 27.8% to $472 million, pressured by $76 million higher SG&A (including $75 million RSA costs) and programming cost increases. ARPU slipped 0.4% to $110.19.
• Wireless: Total revenue was nearly unchanged, but service revenue grew 7.2% to $868 million, driven by a higher subscriber base (up 5.3% to 7.527 million) and ARPU increase of 1.8% to $38.59. Equipment sales fell 41.1%. The segment's operating loss improved 61.9% to $36 million, as cost of sales decreased 28.1% and SG&A fell 4.9%, partially offset by higher D&A from the Hybrid MNO transition.
• Broadband and Satellite Services: Revenue declined 11.1% to $330 million, with subscriber losses of 58,000. Operating income improved from a loss of $19 million to a profit of $44 million, aided by a 30.9% reduction in SG&A and a 52.4% drop in D&A from prior asset impairments.
• Other: Revenue more than doubled to $91 million from leased spectrum, but operating loss was $87 million, though far improved from $628 million in 2025. The segment benefited from a $293 million decrease in D&A and a $66 million impairment gain.

Forward View

Management's outlook is heavily dependent on the closing of the AT&T and SpaceX license transactions, which are expected in the first half of 2026. These deals would provide aggregate cash and stock consideration of over $42 billion, allowing repayment of significant debt. However, until approvals are obtained, substantial doubt exists about the company's ability to continue as a going concern. The company faces near-term debt maturities of $2.0 billion in July 2026 and $2.75 billion in December 2026, which it plans to fund with transaction proceeds. Capital expenditures are expected to decrease in 2026, particularly for the 5G network, which has been largely decommissioned. The company continues to emphasize subscriber quality and cost discipline across segments, but macroeconomic pressures and competitive intensity persist.