EchoStar (ECHO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 5.8% year-over-year to $3.72–$3.73 billion, with net loss widening to $306 million and operating loss increasing to $213 million; wireless subscriber growth and ARPU gains partially offset Pay TV and broadband declines.

• FCC review of spectrum licenses and 5G build-out compliance has created significant regulatory uncertainty, freezing network expansion and impacting business planning and capital deployment.

• Free cash flow was negative $739 million for Q2 and negative $911 million for the first half, primarily due to higher cash interest payments and lower OIBDA.

• Substantial doubt exists about the ability to continue as a going concern due to insufficient liquidity and upcoming debt maturities.

• Announced agreement with MDA Space to build a new LEO direct-to-device satellite constellation, targeting global wideband 5G NTN services.

Financial highlights

• Q2 2025 revenue: $3.72–$3.73 billion, down 5.8% year-over-year; Pay TV revenue down 8% to $2.46 billion, Wireless revenue up 4.7% to $935 million, Broadband & Satellite revenue down 13.8% to $340 million.

• OIBDA was $280 million, down from $442 million year-over-year; OIBDA margin fell to 7.5%.

• Net loss attributable to shareholders was $306 million, compared to $206–$207 million in the prior year.

• Free cash flow for Q2 was negative $739 million; cash and marketable securities at quarter-end were $4.7 billion, down sequentially.

• Interest expense rose sharply to $279 million in Q2 2025, up from $81 million in Q2 2024.

Outlook and guidance

• Management expects negative free cash flow to continue in 2025 and future periods, with additional capital required for 5G build-out, debt maturities, and potential spectrum payments.

• No network CapEx guidance for the second half of the year due to FCC-related uncertainty.

• Commitment to positive operating free cash flow for the full year remains, but substantial doubt about going concern status persists.