EchoStar reported a net loss of $12.78 billion for the third quarter of 2025, a figure that is largely driven by a one‑time, non‑cash impairment charge of $16.48 billion related to the abandonment and decommissioning of portions of its 5G network. After excluding the impairment, the company posted an adjusted earnings per share of $0.83, beating the consensus estimate of a loss of $‑1.23 by $1.06, or 86% of the expected loss. Revenue for the quarter was $3.61 billion, missing the consensus estimate of $3.76 billion by $150 million, or 4% lower than expected.
The revenue shortfall was concentrated in the Pay‑TV and Broadband & Satellite Services segments, which together generated $2.69 billion—down 8% from $2.92 billion in Q3 2024. The Wireless segment, however, grew to $939 million, up 2.6% year‑over‑year, driven by 223,000 net subscriber additions and a modest 2.6% increase in average revenue per user. The combined decline in legacy services offset the modest growth in wireless, resulting in a 4% revenue decline versus the prior year.
The $16.48 billion impairment charge reflects EchoStar’s strategic decision to abandon its own 5G network build‑out in favor of a hybrid model that leverages AT&T’s infrastructure. While the charge eliminated the company’s operating margin—dropping from a negative 4.1% in Q3 2024 to a negative 460% in Q3 2025—it also freed up capital that can be deployed through the newly formed EchoStar Capital. The adjusted operating income of $230.9 million, though below the $291 million estimate, demonstrates that core operations remain profitable once one‑time items are removed.
EchoStar completed two major spectrum transactions in the quarter. It sold $22.65 billion of spectrum to AT&T, and $19 billion of spectrum to SpaceX, both of which are expected to accelerate the company’s ability to offer direct‑to‑cell services. In addition, EchoStar sold its unpaired AWS‑3 licenses to SpaceX for $2.6 billion in SpaceX stock, further strengthening its balance sheet. These deals provide a significant capital infusion that will support EchoStar Capital’s investment strategy and the development of a Starlink‑direct‑to‑cell constellation.
Leadership changes accompanied the financial results. Hamid Akhavan was named CEO of EchoStar Capital, while Charlie Ergen was appointed CEO of EchoStar Corporation. Akhavan emphasized that the spectrum transactions “will strengthen EchoStar’s ability to develop new business opportunities and growth in value for our shareholders,” and that the capital raised will enable the company to pursue complementary arenas beyond its traditional pay‑TV, wireless, and enterprise businesses. Ergen’s appointment signals a renewed focus on operational execution and the integration of the company’s remaining assets into a more streamlined business model.
Market reaction to the earnings was muted, with investors focusing on the revenue miss and the large GAAP loss driven by the impairment charge. While the adjusted EPS beat was significant, the negative top‑line and the one‑time write‑down outweighed the positive operating performance, leading to a cautious stance from the market. The company’s strategic pivot toward a hybrid MNO model and the creation of EchoStar Capital are viewed as long‑term tailwinds, but short‑term headwinds remain due to the revenue decline in legacy segments and the substantial impairment expense.
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