ECHOEchoStarQ1 FY2026Earnings Analysis

ConstructiveAI Confidence

7 / 10

AI Takeaway

ECHO's Q1 FY2026 showed lower revenue but a sharp improvement in operating profitability, while substantial doubt about going concern remains until large pending AT&T and SpaceX spectrum transactions close.

Revenue

$3.67B

-5.23% YoY

EPS (Basic)

$-0.51

++28.17% YoY

Operating Income

$392.85M

++545.75% YoY

Filed May 11, 2026 · Analysis updated Jul 17, 2026 · Source: SEC EDGAR 10-Q filing

Management Discussion Highlights

$22.650B$2.844B$3.5B

AT&T spectrum deal could bring $22.650B in cash and fund major debt repayment

Management disclosed an agreement to sell its 3.45 GHz, 3.55 GHz and 600 MHz spectrum licenses plus a 99-year Hawaii lease extension to AT&T for $22.650B in cash, subject to adjustments and approvals, with closing expected in the first half of 2026. The filing says proceeds are expected to repay the DISH 2021 intercompany loan, including a $2.844B 2028 tranche, and redeem $3.5B of 11 3/4% senior secured notes due 2027.

Source: Source: 10-Q Item 2 MD&A, p.69-70

$17B$20B$2.6B

SpaceX transaction package increased to about $20B, including up to $11B in SpaceX equity

Management said the amended SpaceX license purchase agreement increased total consideration from $17B to approximately $20B by adding up to 15 MHz of AWS-3 spectrum for $2.6B, all payable in SpaceX Class A Common Stock valued at $212 per share. As of March 31, 2026, seller notes tied to these assets totaled $9.821B principal, and SpaceX-related interim debt service through November 30, 2027 is expected to total about $2B.

Source: Source: 10-Q Item 2 MD&A, p.70-72

$1.516B$2.0B$1.377B

Management explicitly states substantial doubt about continuing as a going concern

The MD&A says cash, cash equivalents and marketable investment securities were $1.516B as of March 31, 2026, while debt maturities due in 2026 included $2.0B due July 1, $1.377B due August 1 and $2.750B due December 1. Management also notes a potential maximum Auction 113 payment of about $2.921B and states that, without committed funding before the AT&T and SpaceX closings, substantial doubt exists about the company's ability to continue as a going concern.

Source: Source: 10-Q Item 2 MD&A, p.72-73

Wireless model shifted away from ECHO's own 5G traffic to a hybrid model using AT&T's network

Restructuring actions included debt prepayments, intercompany loan extinguishment and a $125M settlement charge

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Risk Factors(2 high, 2 medium, 0 low)

Near-term liquidity pressure and weak current ratio

high

The company ended Q1 FY2026 with $1.344B of cash and equivalents versus $11.766B of current liabilities, producing a current ratio of 0.30. This indicates significant short-term funding pressure even before considering upcoming maturities and suggests liquidity is dependent on asset sales, refinancing or other external actions.

Source: Source: 10-Q Balance Sheet (XBRL), p.N/A

High leverage relative to equity

high

Continued net losses despite improved operating income

medium

Shrinking asset and equity base

medium

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Analyst Expectations

Q1 FY2026

Actual$-0.28

Est.$-0.86

Beat +67.5%

Reported EPS of $-0.28 versus the $-0.86 analyst consensus — a +67.5% beat for Q1 FY2026.

Financial Charts & Detailed Metrics

Revenue & Net Income Trend

Margin Trend

Key Metrics

Income Statement

Metric	Current	Previous	YoY Change
Revenue	$3.67B	$3.87B	-5.23%
Operating Income	$392.85M	$-88.13M	+545.75%
Net Income	$-146.88M	$-202.67M	+27.52%
EPS (Basic)	$-0.51	$-0.71	+28.17%
EPS (Diluted)	$-0.51	$-0.71	+28.17%
R&D Expense	$16M	$18M	-11.11%
SG&A Expense	$639.02M	$597.85M	+6.89%

Balance Sheet

Metric	Current	Previous	YoY Change
Total Assets	$41.38B	$60.57B	-31.69%
Current Assets	$3.55B	$7.65B	-53.59%
Total Liabilities	$35.7B	$40.51B	-11.88%
Current Liabilities	$11.77B	$6.06B	+94.30%
Stockholders' Equity	$5.63B	$20.01B	-71.85%
Cash & Equivalents	$1.34B	$2.53B	-46.88%

Cash Flow

Metric	Current	Previous	YoY Change
Operating Cash Flow	$238.28M	$206.75M	+15.25%
Investing Cash Flow	$849.1M	$-1.66B	+151.25%
Financing Cash Flow	$-1.78B	$-331.85M	-437.45%
D&A	$166.6M	$488.33M	-65.88%

Key Ratios

Metric	Current	Previous	YoY Change
Operating Margin	10.7%	-2.3%	+12.99%
Net Margin	-4.0%	—	—
ROE	-2.6%	—	—
ROA	-0.4%	—	—
Current Ratio	$0.302	—	—
Debt to Equity	$6.339	—	—

More ECHO Earnings Reports

ECHO 2025-FY

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.

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FAQ

What were the key takeaways from ECHO Q1 FY2026 earnings?

Revenue was $3.667B, down 5.2% YoY, but operating income improved sharply to $392.8M from an $88.1M operating loss a year earlier. The biggest issue in the filing is liquidity: management said substantial doubt exists about continuing as a going concern until the pending AT&T and SpaceX transactions close. Source: 10-Q Item 2 MD&A, p.72-73; 10-Q Income Statement (XBRL), p.N/A

How did ECHO perform in Q1 FY2026?

ECHO reported a net loss of $146.9M in Q1 FY2026, improved from a $202.7M loss in the prior-year period, while basic EPS improved to -$0.51 from -$0.71. Operating cash flow was positive at $238.3M, up 15.2% YoY, but cash and equivalents fell to $1.344B. Source: 10-Q Income Statement (XBRL), p.N/A; 10-Q Cash Flow (XBRL), p.N/A; 10-Q Balance Sheet (XBRL), p.N/A

Why is ECHO saying there is going concern risk in Q1 FY2026?

Management said cash on hand plus marketable securities totaled $1.516B as of March 31, 2026, while the company faces $2.0B of notes due July 1, 2026, $1.377B due August 1, 2026 and $2.750B due December 1, 2026. It also may need to make a maximum Auction 113 payment of about $2.921B, and management said funding is not committed until the AT&T and SpaceX deals close. Source: 10-Q Item 2 MD&A, p.72-73

What are the AT&T and SpaceX deals in ECHO Q1 FY2026?

The AT&T agreement would sell certain spectrum licenses for $22.650B in cash, subject to adjustments and approvals, with closing expected in the first half of 2026. The amended SpaceX transaction would provide approximately $20B of consideration, including up to $11B in SpaceX Class A Common Stock valued at $212 per share, plus about $2B of interim debt service support through November 30, 2027. Source: 10-Q Item 2 MD&A, p.69-72

How healthy is ECHO's balance sheet in Q1 FY2026?

The balance sheet looks strained: current ratio was only 0.30, debt to equity was 6.34x, and stockholders' equity fell 71.9% YoY to $5.631B. Cash and equivalents were $1.344B versus current liabilities of $11.766B, which helps explain the company's dependence on pending asset-sale proceeds. Source: 10-Q Balance Sheet (XBRL), p.N/A

FAQ

What were the key takeaways from ECHO Q1 FY2026 earnings?

How did ECHO perform in Q1 FY2026?

Why is ECHO saying there is going concern risk in Q1 FY2026?

What are the AT&T and SpaceX deals in ECHO Q1 FY2026?

How healthy is ECHO's balance sheet in Q1 FY2026?

Management Discussion Highlights

$22.650B$2.844B$3.5B

AT&T spectrum deal could bring $22.650B in cash and fund major debt repayment

Source: Source: 10-Q Item 2 MD&A, p.69-70

$17B$20B$2.6B

SpaceX transaction package increased to about $20B, including up to $11B in SpaceX equity

Source: Source: 10-Q Item 2 MD&A, p.70-72

$1.516B$2.0B$1.377B

Management explicitly states substantial doubt about continuing as a going concern

Source: Source: 10-Q Item 2 MD&A, p.72-73

Wireless model shifted away from ECHO's own 5G traffic to a hybrid model using AT&T's network

Restructuring actions included debt prepayments, intercompany loan extinguishment and a $125M settlement charge

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Risk Factors(2 high, 2 medium, 0 low)

Near-term liquidity pressure and weak current ratio

high

Source: Source: 10-Q Balance Sheet (XBRL), p.N/A

High leverage relative to equity

high

Continued net losses despite improved operating income

medium

Shrinking asset and equity base

medium

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Financial Charts & Detailed Metrics

Revenue & Net Income Trend

Margin Trend

Key Metrics

Income Statement

Metric	Current	Previous	YoY Change
Revenue	$3.67B	$3.87B	-5.23%
Operating Income	$392.85M	$-88.13M	+545.75%
Net Income	$-146.88M	$-202.67M	+27.52%
EPS (Basic)	$-0.51	$-0.71	+28.17%
EPS (Diluted)	$-0.51	$-0.71	+28.17%
R&D Expense	$16M	$18M	-11.11%
SG&A Expense	$639.02M	$597.85M	+6.89%

Balance Sheet

Metric	Current	Previous	YoY Change
Total Assets	$41.38B	$60.57B	-31.69%
Current Assets	$3.55B	$7.65B	-53.59%
Total Liabilities	$35.7B	$40.51B	-11.88%
Current Liabilities	$11.77B	$6.06B	+94.30%
Stockholders' Equity	$5.63B	$20.01B	-71.85%
Cash & Equivalents	$1.34B	$2.53B	-46.88%

Cash Flow

Metric	Current	Previous	YoY Change
Operating Cash Flow	$238.28M	$206.75M	+15.25%
Investing Cash Flow	$849.1M	$-1.66B	+151.25%
Financing Cash Flow	$-1.78B	$-331.85M	-437.45%
D&A	$166.6M	$488.33M	-65.88%

Key Ratios

Metric	Current	Previous	YoY Change
Operating Margin	10.7%	-2.3%	+12.99%
Net Margin	-4.0%	—	—
ROE	-2.6%	—	—
ROA	-0.4%	—	—
Current Ratio	$0.302	—	—
Debt to Equity	$6.339	—	—