AI Takeaway
SATS reported Q1 2026 revenue of $3.67B (down 5.2% YoY) while dramatically swinging to a $392.8M operating profit from a prior-year operating loss, though the company still posted a net loss of $146.9M and faces acute liquidity pressure with a current ratio of just 0.30.
Revenue
$3.67B
-5.23% YoY
EPS (Basic)
$-0.51
++28.17% YoY
Operating Income
$392.85M
++545.75% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue fell 5.2% YoY to $3.67B from $3.87B in the prior-year quarter, yet operating income surged $480.9M to $392.8M, implying significant cost restructuring or one-time charges in the prior period that have since been resolved. Operating margin improved dramatically from -2.3% to +10.7%.
Source: Source: 10-Q Income Statement Data
Despite the strong operating income recovery, SATS still recorded a net loss of $146.9M (improved from -$202.7M YoY), suggesting substantial below-the-line costs such as interest expense on its heavy debt load of approximately $35.7B in total liabilities are continuing to weigh on bottom-line profitability.
Source: Source: 10-Q Income Statement & Balance Sheet Data
Current liabilities surged 94.3% YoY to $11.77B while current assets fell 53.6% to $3.55B, resulting in a current ratio of only 0.30 — well below the 1.0 threshold considered minimally adequate. Cash and equivalents dropped 46.9% YoY to $1.34B, signaling a potential near-term liquidity crunch.
Source: Source: 10-Q Balance Sheet Data
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Upgrade to unlockWith a current ratio of only 0.30 and current liabilities of $11.77B vastly exceeding current assets of $3.55B, SATS faces severe near-term liquidity risk. Cash on hand of $1.34B is insufficient to cover short-term obligations without additional financing or asset sales.
Source: Source: 10-Q Balance Sheet Data
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Upgrade to unlockReported EPS of $-0.28 versus the $-0.86 analyst consensus — a +67.5% beat for Q1 FY2026.
| 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% |
| 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% |
| 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% |
| 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 | — | — |
SATS reported Q1 2026 revenue of $3.67B (down 5.2% YoY) and a dramatically improved operating income of $392.8M versus a prior-year loss of -$88.1M. However, the company still posted a net loss of -$146.9M, and its balance sheet shows critical liquidity stress with a current ratio of just 0.30 and debt-to-equity of 6.34x.
Yes, SATS narrowed its net loss to -$146.9M in Q1 2026 from -$202.7M in Q1 2025, a 27.5% improvement. EPS also improved from -$0.71 to -$0.51, though the company has not yet returned to profitability.
SATS's financial health shows significant stress: its current ratio of 0.30 means current liabilities of $11.77B far exceed current assets of $3.55B, and cash has fallen 46.9% YoY to $1.34B. The debt-to-equity ratio of 6.34x and stockholders' equity collapse of 71.9% YoY to $5.63B further highlight the fragile balance sheet condition.
SATS's stockholders' equity fell 71.9% YoY from $20.0B to $5.63B, likely driven by a combination of accumulated net losses, potential asset impairments, and possible asset disposals that reduced the equity base. Total assets also declined sharply by 31.7% YoY to $41.4B, consistent with significant balance sheet restructuring.
SATS's operating margin swung from -2.3% in Q1 2025 to +10.7% in Q1 2026, as operating income surged $480.9M to $392.8M despite a 5.2% revenue decline. This suggests the prior year included significant one-time charges or that the company executed meaningful cost restructuring, though the full details are not available without the complete filing text.