EchoStar Announces Financial Results for the Three and Six Months Ended June 30, 2025
- Wireless: Net subscriber growth (+212K), improved churn (2.69%, an improvement of 24 basis points year-over-year), improved average revenue per user (ARPU) (4.1% year-over-year) and the highest prepaid ARPU in the industry.
- Pay TV: Lowest DISH TV churn (1.29%) in over a decade (excluding the pandemic), growth in ARPU (+3% year-over-year) and increased viewership engagement (hours/viewer).
-
Broadband & Satellite Services : Increased enterprise order backlog (future revenues) by 8% to$1.6B primarily through gaining share in the attractive Aero sector.
The company's unabated focus on driving operational efficiencies, exceptional customer experiences and profitable growth investment continues to deliver results across the enterprise and reconfirms the company's plan to deliver positive Operating Free Cash Flow, as previously defined.
"
Wireless
Wireless consists predominantly of Boost Mobile and network wireless services, and delivered approximately
- Continued strong performance fueled by +212K subscriber net adds in Q2, closing the quarter with approximately 7.36 million total subscribers
- Attracted and retained high-quality customers, contributing to a 24 basis point improvement in churn year-over-year
- Mix in subscribers with higher priced plans and higher sales of value-added services drove 4.1% improvement in ARPU year-over-year – the highest pre-paid ARPU in the industry
- Boost Mobile Network rated best in 5G Reliability and 5G Coverage in
Atlanta ;Charlotte, N.C. ;Cincinnati ;Cleveland ;Columbus, Ohio ;Dallas-Fort Worth ;Detroit ;Houston ;Miami ;New York City ;Orlando, Fla. ;Philadelphia ;Raleigh, N.C ;St. Louis ; and its hometown market ofDenver by OpenSignal
Pay-TV
Pay TV consists of DISH TV and Sling TV. Performance for Pay-TV delivered approximately
- Continued focus on operational efficiency, higher priced programming packages per subscriber and improved user experiences helped increase ARPU (+3%)
- Customer loyalty and high-quality subscribers further reduced DISH TV churn (1.29%) and drove a 10 basis point reduction in churn year-over-year
- Pay-TV closed the quarter with approximately 7.11 million subscribers
- Announced membership in Airbus HBCplus program enhancing ability to serve airlines as a factory line fit option at Airbus
- Approximately
$1.6 billion contracted backlog revenue at the end of Q2 (+5% year-over-year) -
Broadband & Satellite Services closed the quarter with approximately 819,000 subscribers
Set forth below is a table highlighting certain of
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||
|
|
|
||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
|
|
(in thousands) |
||||||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Pay-TV |
$ |
2,462,249 |
|
$ |
2,676,284 |
|
$ |
5,000,976 |
|
$ |
5,402,862 |
|
Wireless |
|
934,631 |
|
|
892,728 |
|
|
1,907,406 |
|
|
1,806,734 |
|
Broadband and |
|
339,780 |
|
|
394,011 |
|
|
710,438 |
|
|
776,597 |
|
All Other & Eliminations |
|
(11,701) |
|
|
(10,272) |
|
|
(24,103) |
|
|
(18,599) |
|
Total |
$ |
3,724,959 |
|
$ |
3,952,751 |
|
$ |
7,594,717 |
|
$ |
7,967,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) attributable to |
$ |
(306,132) |
|
$ |
(205,591) |
|
$ |
(508,801) |
|
$ |
(312,967) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIBDA |
|
|
|
|
|
|
|
|
|
|
|
|
Pay-TV |
$ |
663,377 |
|
$ |
753,001 |
|
$ |
1,393,250 |
|
$ |
1,508,511 |
|
Wireless |
|
(451,980) |
|
|
(394,439) |
|
|
(867,044) |
|
|
(757,935) |
|
Broadband and |
|
67,699 |
|
|
82,392 |
|
|
153,402 |
|
|
161,679 |
|
All Other & Eliminations |
|
551 |
|
|
1,202 |
|
|
240 |
|
|
57 |
|
Total |
$ |
279,647 |
|
$ |
442,156 |
|
$ |
679,848 |
|
$ |
912,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment, net of refunds, (including capitalized |
|
|
|
|
|
|
|||||
|
Pay-TV |
$ |
78,580 |
|
$ |
54,006 |
|
$ |
140,968 |
|
$ |
111,918 |
|
Wireless |
|
625,203 |
|
|
560,468 |
|
|
909,196 |
|
|
1,109,641 |
|
Broadband and |
|
43,118 |
|
|
56,559 |
|
|
75,221 |
|
|
127,170 |
|
|
$ |
746,901 |
|
$ |
671,033 |
|
$ |
1,125,385 |
|
$ |
1,348,729 |
Reconciliation of GAAP to Non-GAAP Measurement:
|
For the Three Months Ended
|
|
Pay-TV |
|
Wireless |
|
Broadband and |
|
|
|
Consolidated |
|||||
|
Eliminations |
|||||||||||||||
|
|
|
(In thousands) |
|||||||||||||
|
Segment operating income (loss) |
|
$ |
595,552 |
|
$ |
(772,948) |
|
$ |
(36,738) |
|
$ |
726 |
|
$ |
(213,408) |
|
Depreciation and amortization |
|
|
67,825 |
|
|
320,968 |
|
|
104,437 |
|
|
(175) |
|
|
493,055 |
|
OIBDA |
|
$ |
663,377 |
|
$ |
(451,980) |
|
$ |
67,699 |
|
$ |
551 |
|
$ |
279,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||||||
|
|
|
|
|||||||||||||
|
Segment operating income (loss) |
|
$ |
667,752 |
|
$ |
(700,302) |
|
$ |
(34,586) |
|
$ |
1,767 |
|
$ |
(65,369) |
|
Depreciation and amortization |
|
|
85,249 |
|
|
305,863 |
|
|
116,978 |
|
|
(565) |
|
|
507,525 |
|
OIBDA |
|
$ |
753,001 |
|
$ |
(394,439) |
|
$ |
82,392 |
|
$ |
1,202 |
|
$ |
442,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
|
Pay-TV |
|
Wireless |
|
Broadband and
|
|
|
|
Consolidated |
|||||
|
Eliminations |
|||||||||||||||
|
|
|
(In thousands) |
|||||||||||||
|
Segment operating income (loss) |
|
$ |
1,248,982 |
|
$ |
(1,495,250) |
|
$ |
(55,933) |
|
$ |
661 |
|
$ |
(301,540) |
|
Depreciation and amortization |
|
|
144,268 |
|
|
628,206 |
|
|
209,335 |
|
|
(421) |
|
|
981,388 |
|
OIBDA |
|
$ |
1,393,250 |
|
$ |
(867,044) |
|
$ |
153,402 |
|
$ |
240 |
|
$ |
679,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|||||||||||||||
|
|
|
|
|||||||||||||
|
Segment operating income (loss) |
|
$ |
1,337,860 |
|
$ |
(1,345,470) |
|
$ |
(74,140) |
|
$ |
1,137 |
|
$ |
(80,613) |
|
Depreciation and amortization |
|
|
170,651 |
|
|
587,535 |
|
|
235,819 |
|
|
(1,080) |
|
|
992,925 |
|
OIBDA |
|
$ |
1,508,511 |
|
$ |
(757,935) |
|
$ |
161,679 |
|
$ |
57 |
|
$ |
912,312 |
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
About
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
|
|
|
||||||
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
|
(Dollars in thousands, except share amounts) |
||||||
|
|
(Unaudited) |
||||||
|
|
|
|
|
|
|
||
|
|
As of |
||||||
|
|
June 30, |
|
|
||||
|
|
2025 |
|
2024 |
||||
|
Assets |
|
|
|
|
|
||
|
Current Assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
2,345,085 |
|
$ |
4,305,393 |
||
|
Current restricted cash, cash equivalents and marketable investment securities |
|
184,012 |
|
|
150,898 |
|
|
|
Marketable investment securities |
|
1,988,001 |
|
|
1,242,036 |
||
|
Trade accounts receivable, net of allowance for credit losses of |
|
1,158,592 |
|
|
1,198,731 |
||
|
Inventory |
|
375,118 |
|
|
455,197 |
||
|
Prepaids and other assets |
|
771,171 |
|
|
655,233 |
||
|
Other current assets |
|
94,247 |
|
|
88,255 |
||
|
Total current assets |
|
6,916,226 |
|
|
8,095,743 |
||
|
|
|
|
|
|
|
||
|
Noncurrent Assets: |
|
|
|
|
|
||
|
Restricted cash, cash equivalents and marketable investment securities |
|
176,004 |
|
|
169,627 |
||
|
Property and equipment, net |
|
8,773,656 |
|
|
9,187,132 |
||
|
Regulatory authorizations, net |
|
40,029,923 |
|
|
39,442,166 |
||
|
Other investments, net |
|
191,792 |
|
|
202,327 |
||
|
Operating lease assets |
|
3,218,062 |
|
|
3,260,768 |
||
|
Intangible assets, net |
|
66,903 |
|
|
74,939 |
||
|
Other noncurrent assets, net |
|
509,831 |
|
|
505,985 |
||
|
Total noncurrent assets |
|
52,966,171 |
|
|
52,842,944 |
||
|
Total assets |
$ |
59,882,397 |
|
$ |
60,938,687 |
||
|
|
|
|
|
|
|
||
|
Liabilities and Stockholders' Equity (Deficit) |
|
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
|
||
|
Trade accounts payable |
$ |
745,587 |
|
$ |
740,984 |
||
|
Deferred revenue and other |
|
638,989 |
|
|
650,940 |
||
|
Accrued programming |
|
1,251,114 |
|
|
1,339,072 |
||
|
Accrued interest |
|
308,917 |
|
|
352,499 |
||
|
Other accrued expenses and liabilities |
|
1,675,958 |
|
|
1,804,516 |
||
|
Current portion of debt, finance lease and other obligations |
|
1,053,230 |
|
|
943,029 |
||
|
Total current liabilities |
|
5,673,795 |
|
|
5,831,040 |
||
|
|
|
|
|
|
|
||
|
Long-Term Obligations, Net of Current Portion: |
|
|
|
|
|
||
|
Long-term debt, finance lease and other obligations, net of current portion |
|
25,401,688 |
|
|
25,660,288 |
|
|
|
Deferred tax liabilities, net |
|
4,809,572 |
|
|
4,988,653 |
||
|
Operating lease liabilities |
|
3,178,737 |
|
|
3,211,407 |
||
|
Long-term deferred revenue and other long-term liabilities |
|
1,027,111 |
|
|
1,002,074 |
||
|
Total long-term obligations, net of current portion |
|
34,417,108 |
|
|
34,862,422 |
||
|
Total liabilities |
|
40,090,903 |
|
|
40,693,462 |
||
|
|
|
|
|
|
|
||
|
Commitments and Contingencies |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Stockholders' Equity (Deficit): |
|
|
|
|
|
||
|
Class A common stock, 156,299,276 and 155,048,676 shares issued and outstanding, respectively |
|
156 |
|
|
155 |
||
|
Class B common stock, 131,348,468 shares issued and outstanding |
|
131 |
|
|
131 |
||
|
Additional paid-in capital |
|
8,809,264 |
|
|
8,768,360 |
||
|
Accumulated other comprehensive income (loss) |
|
(183,181) |
|
|
(195,711) |
||
|
Accumulated earnings (deficit) |
|
11,109,636 |
|
|
11,618,437 |
||
|
Total |
|
19,736,006 |
|
|
20,191,372 |
||
|
Noncontrolling interests |
|
55,488 |
|
|
53,853 |
||
|
Total stockholders' equity (deficit) |
|
19,791,494 |
|
|
20,245,225 |
||
|
Total liabilities and stockholders' equity (deficit) |
$ |
59,882,397 |
|
$ |
60,938,687 |
||
|
|
|
||||||||||
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
|
|
(Dollars in thousands, except per share amounts) |
||||||||||
|
|
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue |
$ |
3,540,107 |
|
$ |
3,742,086 |
|
$ |
7,146,263 |
|
$ |
7,561,755 |
|
Equipment sales and other revenue |
|
184,852 |
|
|
210,665 |
|
|
448,454 |
|
|
405,839 |
|
Total revenue |
|
3,724,959 |
|
|
3,952,751 |
|
|
7,594,717 |
|
|
7,967,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses (exclusive of depreciation and amortization): |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
2,461,631 |
|
|
2,507,478 |
|
|
4,893,829 |
|
|
5,064,660 |
|
Cost of sales - equipment and other |
|
354,187 |
|
|
408,093 |
|
|
793,695 |
|
|
771,176 |
|
Selling, general and administrative expenses |
|
629,494 |
|
|
595,024 |
|
|
1,227,345 |
|
|
1,219,446 |
|
Depreciation and amortization |
|
493,055 |
|
|
507,525 |
|
|
981,388 |
|
|
992,925 |
|
Total costs and expenses |
|
3,938,367 |
|
|
4,018,120 |
|
|
7,896,257 |
|
|
8,048,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
(213,408) |
|
|
(65,369) |
|
|
(301,540) |
|
|
(80,613) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
65,369 |
|
|
13,929 |
|
|
130,898 |
|
|
44,391 |
|
Interest expense, net of amounts capitalized |
|
(279,232) |
|
|
(81,166) |
|
|
(565,287) |
|
|
(180,574) |
|
Other, net |
|
35,137 |
|
|
(91,498) |
|
|
76,527 |
|
|
(117,608) |
|
Total other income (expense) |
|
(178,726) |
|
|
(158,735) |
|
|
(357,862) |
|
|
(253,791) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
(392,134) |
|
|
(224,104) |
|
|
(659,402) |
|
|
(334,404) |
|
Income tax (provision) benefit, net |
|
85,290 |
|
|
16,646 |
|
|
149,277 |
|
|
18,571 |
|
Net income (loss) |
|
(306,844) |
|
|
(207,458) |
|
|
(510,125) |
|
|
(315,833) |
|
Less: Net income (loss) attributable to noncontrolling interests, net of tax |
|
(712) |
|
|
(1,867) |
|
|
(1,324) |
|
|
(2,866) |
|
Net income (loss) attributable to |
$ |
(306,132) |
|
$ |
(205,591) |
|
$ |
(508,801) |
|
$ |
(312,967) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - Class A and B |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
287,505 |
|
|
271,592 |
|
|
287,012 |
|
|
271,555 |
|
Diluted |
|
287,505 |
|
|
271,592 |
|
|
287,012 |
|
|
271,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - Class A and B common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share attributable to |
$ |
(1.06) |
|
$ |
(0.76) |
|
$ |
(1.77) |
|
$ |
(1.15) |
|
Diluted net income (loss) per share attributable to |
$ |
(1.06) |
|
$ |
(0.76) |
|
$ |
(1.77) |
|
$ |
(1.15) |
|
|
|
|
||||
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
|
|
(In thousands) |
|||||
|
|
|
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
||||
|
|
|
|
||||
|
|
|
2025 |
|
2024 |
||
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(510,125) |
|
$ |
(315,833) |
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
981,388 |
|
|
992,925 |
|
Realized and unrealized losses (gains) on investments, impairments and other |
|
|
(64,831) |
|
|
49,312 |
|
Non-cash, stock-based compensation |
|
|
16,123 |
|
|
19,693 |
|
Deferred tax expense (benefit) |
|
|
(174,719) |
|
|
(35,300) |
|
Changes in allowance for credit losses |
|
|
15,603 |
|
|
33,108 |
|
Change in long-term deferred revenue and other long-term liabilities |
|
|
420 |
|
|
8,139 |
|
Other, net |
|
|
115,365 |
|
|
125,969 |
|
Changes in operating assets and operating liabilities, net |
|
|
(164,957) |
|
|
52,971 |
|
Net cash flows from operating activities |
|
|
214,267 |
|
|
930,984 |
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
Purchases of marketable investment securities |
|
|
(2,247,724) |
|
|
(21,847) |
|
Sales and maturities of marketable investment securities |
|
|
1,526,245 |
|
|
501,512 |
|
Purchases of property and equipment |
|
|
(551,600) |
|
|
(866,922) |
|
Capitalized interest related to regulatory authorizations |
|
|
(573,785) |
|
|
(481,807) |
|
Purchases of regulatory authorizations, including deposits |
|
|
— |
|
|
(1,104) |
|
Sale of assets to CONX |
|
|
— |
|
|
26,719 |
|
Sale of Fiber business |
|
|
47,207 |
|
|
— |
|
Other, net |
|
|
(64) |
|
|
(4,716) |
|
Net cash flows from investing activities |
|
|
(1,799,721) |
|
|
(848,165) |
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
Repayment of long-term debt, finance lease and other obligations |
|
|
(46,272) |
|
|
(52,758) |
|
Redemption and repurchases of term loans, convertible and senior notes |
|
|
(456,049) |
|
|
(951,170) |
|
Proceeds from issuance of convertible and senior notes |
|
|
150,000 |
|
|
— |
|
Debt issuance costs and debt (discount) premium |
|
|
(946) |
|
|
— |
|
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 |
|
|
6,994 |
|
|
1,832 |
|
Purchase of SNR Management's ownership interest in SNR HoldCo |
|
|
— |
|
|
(441,998) |
|
Other, net |
|
|
(31,189) |
|
|
2 |
|
Net cash flows from financing activities |
|
|
(365,997) |
|
|
(1,444,092) |
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents |
|
|
2,965 |
|
|
(3,701) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents |
|
|
(1,948,486) |
|
|
(1,364,974) |
|
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 |
|
$ |
2,645,318 |
|
$ |
546,627 |
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