EchoStar (ECHO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $3.87 billion, down 3.6% year-over-year, with Pay-TV and Broadband declines partially offset by Wireless growth and 150,000 net wireless subscriber adds, reversing prior losses.

• Net loss attributable to shareholders was $(203) million, compared to $(107) million in the prior year, as operating loss increased due to higher Wireless segment losses and lower Pay-TV income.

• Free cash flow was negative $172 million, an improvement of $55 million year-over-year, mainly due to lower CapEx.

• Cash and marketable securities at quarter-end totaled $5.4 billion, up $4.5 billion year-over-year, reflecting Q4 2024 financing.

• Continued investment in 5G network deployment and spectrum, with over $30 billion invested to date.

Financial highlights

• Q1 2025 revenue: $3.87 billion (down 3.6% year-over-year); OIBDA: $400 million (down 15% year-over-year); operating loss: $88 million.

• Free cash flow: negative $172 million (vs. negative $226 million in Q1 2024); OIBDA margin: 10.3%.

• CapEx and capitalized interest totaled $378 million, down 44.2% year-over-year.

• Total debt at $26.3 billion, up 20.9% year-over-year due to Q4 2024 financing.

• Cash paid for interest was $214 million, up 2.4% year-over-year.

Outlook and guidance

• Management targets positive operating free cash flow for 2025, continued wireless and enterprise growth, and optimized pay TV profitability.

• CapEx expected to be lower in 2025 than 2024, with future increases tied to build-out deadlines and network expansion.

• The company will need to refinance or restructure 2026 debt maturities, as current liquidity is insufficient to fully fund these obligations.