AI Takeaway
EchoStar's FY2025 10-K showed a sharp deterioration in financial performance, driven by a $17.632 B non-cash impairment tied largely to the shutdown and decommissioning of portions of its 5G network, while the company also disclosed substantial doubt about its ability to continue as a going concern until major AT&T and SpaceX spectrum transactions close.
Revenue
$15B
-5.18% YoY
EPS (Basic)
$-50.41
-11356.82% YoY
Operating Income
$-17.72B
-5728.64% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Management said the FCC review created the risk of license revocation and led EchoStar to sell a material amount of spectrum through the AT&T and SpaceX transactions. Following these deals, the company began abandoning and decommissioning portions of its 5G network in August 2025 and had no customer traffic on that network by November 15, 2025.
Source: Source: 10-K Item 7 MD&A, p.62, p.68
EchoStar agreed to sell all of its 3.45 GHz and 600 MHz spectrum licenses and extend certain Hawaii leases to AT&T for $22.650 B in cash, subject to adjustments, with a minimum purchase price of $18.6 B. Management expects the closing in the first half of 2026, and the proceeds are intended in part to repay the DISH 2021 intercompany loan and redeem $3.5 B of 11 3/4% senior secured notes due 2027 outstanding at December 31, 2025.
Source: Source: 10-K Item 7 MD&A, p.63
The amended SpaceX agreement increased total consideration from $17 B to approximately $20 B by adding up to 15 MHz of AWS-3 spectrum. Up to $11 B is expected to be paid in SpaceX Class A common stock valued at $212 per share, while the transaction also contemplates repayment of $9.821 B of seller notes outstanding as of December 31, 2025.
Source: Source: 10-K Item 7 MD&A, p.64-p.65
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Upgrade to unlockEchoStar said both transactions are subject to FCC, DOJ and other approvals, and none of those conditions had been satisfied at the time of the filing. Because future leverage, liquidity and expected benefits depend heavily on these deals, a delay or failure to close could materially hurt cash-on-hand, results of operations and financial condition.
Source: Source: 10-K Item 1A, p.27
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-4.20 versus the $-0.75 analyst consensus — a -463.3% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $15B | $15.83B | -5.18% |
Operating Income | $-17.72B | $-304.07M | -5728.64% |
Net Income | $-14.5B | $-119.55M | -12026.86% |
EPS (Basic) | $-50.41 | $-0.44 | -11356.82% |
EPS (Diluted) | $-50.41 | $-0.44 | -11356.82% |
R&D Expense | $68M | $91M | -25.27% |
SG&A Expense | $2.38B | $2.43B | -1.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $43.02B | $60.94B | -29.41% |
Current Assets | $5.13B | $8.1B | -36.59% |
Total Liabilities | $37.2B | $40.69B | -8.57% |
Current Liabilities | $12.36B | $5.83B | +112.03% |
Stockholders' Equity | $5.77B | $20.19B | -71.44% |
Cash & Equivalents | $1.88B | $4.31B | -56.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-99.37M | $1.25B | -107.93% |
Investing Cash Flow | $-1.4B | $-3.05B | +53.92% |
Financing Cash Flow | $-910.31M | $4.48B | -120.30% |
Share Buybacks | $48.51M | — | — |
D&A | $1.59B | $1.93B | -17.86% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | -118.1% | -1.9% | -116.19% |
Net Margin | -96.6% | — | — |
ROE | -251.4% | — | — |
ROA | -33.7% | — | — |
Current Ratio | $0.415 | — | — |
Debt to Equity | $6.453 | — | — |
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The biggest takeaway was a collapse in profitability: revenue fell 5.2% to $15.0 B, while net loss widened to -$14.5 B and operating loss to -$17.7 B. Management said FY2025 was heavily affected by $17.632 B of non-cash impairments and by strategic spectrum sale agreements with AT&T and SpaceX.
Management said it recorded $17.632 B of non-cash asset impairments and other expenses during FY2025, largely tied to the termination of parts of its 5G network deployment and related asset write-downs. That helps explain why operating income fell to -$17.7 B and EPS dropped to -$50.41.
Yes. Management said substantial doubt exists about the company's ability to continue as a going concern because it lacks sufficient cash on hand, projected cash flow or committed financing to fund obligations for at least twelve months from the issuance of the financial statements. The auditor also included a going concern paragraph, while the company disclosed $2.0 B, $1.377 B and $2.750 B of debt maturities in 2026.
EchoStar agreed to sell certain spectrum licenses to AT&T for $22.650 B in cash, subject to adjustments, and separately amended its SpaceX transaction to approximately $20 B of total consideration, including up to $11 B in SpaceX stock. Management expects the AT&T closing in the first half of 2026, while the SpaceX transaction includes a later spectrum acquisition closing around November 30, 2027, subject to approvals and other conditions.
The balance sheet and cash flow data point to significant stress: cash and equivalents fell 56.3% to $1.883 B, current ratio was only 0.42, debt to equity was 6.45, and operating cash flow turned negative at -$99.4 M. Stockholders' equity also dropped 71.4% to $5.766 B, mainly reflecting the year's massive losses.