Image Source: Pixabay

Key Takeaways

• EchoStar Corporation's Q1 revenue dipped 3.6% to $3.9 billion, mainly from Pay-TV losses.
• Wireless subscribers grew by 150,000, reversing last year’s decline.
• The company's operating free cash flow hit $77 million despite negative overall free cash flow.
• Over 24,000 5G network sites went live, meeting FCC targets early.
• The stock was up 1.43% at $24.19 on Friday, ahead of the next earnings call between Aug. 7-11.

EchoStar Corporation (SATS) closed at $24.19 on May 9, gaining 1.43% after reporting mixed first-quarter 2025 results.

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Image Source: Yahoo! Finance

The company posted revenue of $3.9 billion, down 3.6% from last year, mainly dragged by declines in its Pay-TV segment. However, management highlighted solid wireless growth and improved cash flow, positioning EchoStar Corporation to navigate ongoing market pressures as it prepares for its next earnings date between Aug. 7-11, 2025.

Wireless Shines with Subscriber Gains

EchoStar’s wireless segment delivered a standout performance in Q1. The company added 150,000 net subscribers, a strong turnaround from the 81,000 net loss in the same period last year. Wireless revenue climbed 6.4% to $973 million, helped by expanded prepaid and postpaid offerings that boosted both subscriber quality and churn rates. Total wireless subscribers reached approximately 7.15 million, with ARPU growth indicating healthier profitability.

EchoStar, $SATS, Q1-25. Results:
🔴 -3.5% Pre-Market

📊 EPS: -$0.71 🟢
💰 Revenue: $3.87B 🔴
📈 Net Loss: $202.7M
🔎 Strong wireless momentum with 150K net subscriber adds and 24,000 5G sites completed ahead of FCC deadline; Pay-TV hit lowest churn in a decade. pic.twitter.com/R9yElzMisf

— EarningsTime (@Earnings_Time) May 9, 2025

The company’s 5G infrastructure roll-out also hit a milestone, with over 24,000 network sites live, surpassing FCC requirements ahead of schedule. This network expansion strengthens EchoStar’s competitive positioning in the U.S. wireless market.

Pay-TV Segment Continues to Shrink

Despite gains in wireless, Pay-TV remained a weak spot. Revenue from this segment fell 6.9% to $2.5 billion, driven by a declining average subscriber base. EchoStar’s DISH TV ended the quarter with around 5.5 million subscribers, though churn improved to 1.36% from 1.53% last year. Pay-TV ARPU saw a modest year-over-year lift of 3%, but that wasn’t enough to offset broader declines.

Broadband and satellite services (BSS) revenue also slipped by 3.1% to $371 million, reflecting softer sales in both consumer and enterprise markets.

Cash Flow Shows Mixed Results

EchoStar’s financials painted a mixed picture on cash flow. Operating free cash flow came in at a positive $77 million, showcasing effective cost control and contributions from wireless and enterprise businesses. However, when factoring in debt service, free cash flow remained negative at $172 million. Still, this marked a $55 million improvement compared to the prior year.

Capital expenditures totaled $378 million in Q1, including capitalized interest, reflecting ongoing investment in the 5G buildout and network upgrades. Total cash and marketable securities dropped to $5.4 billion, down $464 million from year-end.

Performance Outpaces Broader Market

Despite recent challenges, the stock has delivered solid returns for investors. The stock is up 5.63% year-to-date and a remarkable 54.96% over the past year, outperforming the S&P 500’s negative 3.77% year-to-date return. However, its longer-term five-year return remains in the red at -21.23%, highlighting past volatility.

As EchoStar heads toward its next earnings report in August, investors will be watching closely to see if wireless momentum can keep offsetting the Pay-TV headwinds and drive sustained cash flow improvement.

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