EchoStar Announces Financial Results for the Three and Twelve Months Ended December 31, 2024

Rhea-AI Summary

EchoStar (NASDAQ: SATS) reported mixed financial results for 2024. Total revenue declined to $15.83 billion from $17.02 billion in 2023, primarily due to subscriber losses in Pay-TV. The company posted a net loss of $119.55 million in 2024, compared to $1.70 billion loss in 2023, benefiting from a $689 million noncash gain from debt restructuring.

Q4 2024 operational highlights include: Pay-TV subscribers decreased by 253,000 to 7.78 million total (5.69M DISH TV, 2.09M Sling TV); Wireless subscribers grew by 105,000 (excluding ACP) to 6.995 million; Broadband Satellite subscribers declined by 29,000 to 883,000. The company's consolidated OIBDA improved to $1.63 billion from $1.32 billion in 2023.

Positive

• Net loss improved significantly from $1.70B in 2023 to $119.55M in 2024
• OIBDA increased to $1.63B from $1.32B in 2023
• Wireless subscriber base grew by 105,000 in Q4
• Reduced rate of Pay-TV subscriber losses compared to previous year
• Achieved positive free cash flow by year-end

Negative

• Revenue declined 7% to $15.83B from $17.02B
• Lost 253,000 Pay-TV subscribers in Q4
• Broadband Satellite subscribers decreased by 29,000
• Adjusted net loss of $664M in 2024 vs net income of $361M in 2023

Insights

Financial Analyst

EchoStar's 2024 financial results reveal a company in transition, struggling with core business erosion while showing early signs of stabilization in key metrics. The 7% revenue decline to $15.83 billion reflects ongoing subscriber challenges, particularly in the mature Pay-TV segment where cord-cutting pressures persist despite slowing churn rates.

The headline net loss improvement to $119.55 million from $1.70 billion masks concerning underlying performance. Stripping away one-time items, the adjusted net loss of $664 million compared to last year's $361 million profit represents significant deterioration in core operations. This 284% swing in underlying profitability signals substantial margin pressure despite cost-cutting efforts.

However, several positive indicators suggest stabilization strategies may be gaining traction:

• The OIBDA increase to $1.63 billion demonstrates improved operational efficiency
• Wireless subscriber growth for three consecutive quarters indicates potential turnaround in that segment
• Narrowing broadband satellite losses following Jupiter 3 deployment shows infrastructure investments yielding returns
• Achievement of positive free cash flow by year-end provides important financial flexibility

The company's focus on higher-quality subscribers appears to be moderating churn across all business segments, but hasn't yet translated to revenue growth. The wireless segment shows the most promise, with the Boost Mobile Network gaining recognition in key markets like New York City, potentially providing a foundation for growth as traditional Pay-TV continues its structural decline.

The debt exchange offer that generated a $689 million non-cash gain has improved EchoStar's balance sheet structure, but investors should focus on whether management can leverage this financial engineering into sustainable operational improvements in 2025 amid intensifying competition in both wireless and streaming markets.

Telecommunications Expert

EchoStar's 2024 results reveal the complex balancing act facing legacy telecommunications providers: managing declining traditional businesses while investing in growth segments. The company's multi-segment approach shows varying degrees of success across its portfolio.

In the wireless segment, the consecutive quarterly subscriber growth since Q1 2024 represents a potential inflection point after years of struggles. The 105,000 net additions this quarter signals that EchoStar's network investments are beginning to yield returns, with the Boost Mobile Network's top ranking in New York City providing a compelling marketing narrative. This improvement comes at a critical juncture as the wireless industry approaches saturation, making EchoStar's ability to attract subscribers from established carriers particularly noteworthy.

The Pay-TV subscriber losses of 253,000, while still substantial, show improving retention compared to previous quarters. However, this business faces structural challenges beyond EchoStar's control. The 7.78 million remaining subscribers (5.69M DISH TV, 2.09M Sling TV) represent a shrinking but still significant revenue base that's providing critical cash flow for investments in growth segments.

The Jupiter 3 satellite deployment has clearly improved the broadband retention metrics, with losses narrowing to 29,000 from 59,000 year-over-year. However, this segment faces increasing competitive pressure from expanding terrestrial broadband and LEO satellite constellations like Starlink, which offer lower latency services.

The concerning aspect of these results is the widening gap between operational and financial performance. Despite improved subscriber trajectories, the adjusted net loss of $664 million (excluding one-time items) suggests the company's cost structure remains misaligned with its revenue reality. The 7% revenue decline to $15.83 billion outpaced the slowing subscriber losses, indicating potential ARPU pressure across segments.

The positive free cash flow achievement provides important financial flexibility, but EchoStar must accelerate its transformation to reverse the concerning underlying profit trend before its improved operational metrics can translate to sustainable financial recovery.

ENGLEWOOD, Colo., Feb. 27, 2025 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) announced its financial results for the three and twelve months ended December 31, 2024.

Twelve Months Ended December 31, 2024:

• EchoStar reported 2024 total revenue of $15.83 billion, compared to $17.02 billion in 2023. The net decrease in revenue primarily resulted from subscriber declines, most significantly in its Pay-TV segment.
• Net loss attributable to EchoStar in 2024 was $119.55 million, compared to net loss of $1.70 billion in 2023. The net loss in 2024 was positively impacted by a noncash gain totaling approximately $689 million related to our debt exchange offer and the resulting debt extinguishment. The net loss in 2023 was primarily attributable to a noncash impairment to goodwill totaling approximately $758 million, and an adjustment to the carrying value of the 800 MHz purchase option totaling approximately $1.8 billion. Excluding the tax affected impact of the noncash adjustments for 2024 and 2023, the 2024 net loss attributable to EchoStar would have been approximately $664 million and the 2023 net income attributable to EchoStar would have been approximately $361 million. Diluted loss per share was $0.44 in 2024, compared to $6.28 in 2023.
• Consolidated OIBDA totaled $1.63 billion, compared to $1.32 billion in 2023. (See OBIDA definition and non-GAAP reconciliation below.)

"Overall, we made improvements in all of our lines of business and achieved our plan of ending the year delivering positive free cashflow," said Hamid Akhavan, CEO and president, EchoStar Corporation. "In addition, we had notable developments in our wireless business. Excluding the impact of ACP, our efforts resulted in consecutive quarter-over-quarter net positive subscriber growth since the first quarter of 2024, and last month the Boost Mobile Network was recognized as the number one mobile network in New York City. These are favorable trends we will work to capitalize on in 2025."

Three Months Ended December 31, 2024:

• Net Pay-TV subscribers decreased approximately 253,000 in the fourth quarter, compared to a decrease of approximately 314,000 in the year-ago quarter. The company closed the quarter with 7.78 million Pay-TV subscribers including 5.69 million DISH TV subscribers and 2.09 million Sling TV subscribers. This change resulted from the decrease in net DISH TV and net Sling TV subscriber losses due to lower subscriber disconnects in 2024 as a result of the company's emphasis on acquiring higher-quality subscribers.
• Wireless subscribers, excluding Affordable Connectivity Program (ACP) subscribers, increased approximately 105,000 in the fourth quarter. The company closed the fourth quarter with 6.995 Wireless subscribers. On an unadjusted basis Wireless net subscribers increased by approximately 90,000 in the fourth quarter, compared to a net decrease of 123,000 in the year-ago quarter. The net Wireless subscriber additions resulted from a lower Wireless churn rate and higher gross new Wireless subscriber activations compared to the year-ago quarter.
• The company closed the fourth quarter with 883,000 Broadband Satellite subscribers, a decrease of approximately 29,000 in the fourth quarter, compared to a decrease of 59,000 in the year-ago quarter. This decrease in net Broadband Satellite subscriber losses was primarily due to lower subscriber disconnects as a result of the new EchoStar XXIV (Jupiter 3) satellite service launch.

Set forth below is a table highlighting certain of EchoStar's segment results for the three and twelve months ended December 31, 2024 and 2023 (all U.S. GAAP amounts reference results from operations):

				For the Three Months Ended December 31,				For the Years Ended December 31,
				2024		2023		2024		2023
				(in thousands)
Revenue
Pay-TV				$     2,667,311		$    2,816,787		$   10,688,204		$  11,571,159
Wireless				902,853		907,609		3,607,983		3,732,160
Broadband and Satellite Services				412,482		449,779		1,575,788		1,755,559
All Other & Eliminations				(15,708)		(11,579)		(46,459)		(43,280)
Total				$     3,966,938		$    4,162,596		$   15,825,516		$  17,015,598
Net Income (loss) attributable to EchoStar				$        335,233		$   (2,029,882)		$      (119,546)		$   (1,702,057)
OIBDA
Pay-TV				$        800,771		$       809,464		$     2,985,285		$    3,081,102
Wireless				(501,728)		(746,741)		(1,697,023)		(1,723,924)
Broadband and Satellite Services				102,690		(432,686)		341,895		(39,347)
All Other & Eliminations				(4,589)		161		(4,034)		2,183
Total				$        397,144		$     (369,802)		$     1,626,123		$    1,320,014
Purchases of property and equipment, net of refunds, (including capitalized interest related to regulatory authorizations)
Pay-TV				$         53,198		$        75,212		$        218,473		$       242,736
Wireless				559,333		841,522		2,065,570		3,748,624
Broadband and Satellite Services				40,498		61,172		212,581		233,423
Total				$        653,029		$       977,906		$     2,496,624		$    4,224,783

Reconciliation of GAAP to Non-GAAP Measurement:

For the Three Months Ended December 31, 2024		Pay-TV			Wireless			Broadband and Satellite Services						Consolidated
											Eliminations
		(In thousands)
Segment operating income (loss)		$	721,593		$	(772,373)		$	(7,645)		$	(4,265)		$	(62,690)
Depreciation and amortization			79,178			270,645			110,335			(324)			459,834
OIBDA		$	800,771		$	(501,728)		$	102,690		$	(4,589)		$	397,144
For the Three Months Ended December 31, 2023
Segment operating income (loss)		$	714,319		$	(1,027,013)		$	(540,152)		$	719		$	(852,127)
Depreciation and amortization			95,145			280,272			107,466			(558)			482,325
OIBDA		$	809,464		$	(746,741)		$	(432,686)		$	161		$	(369,802)
For the Year Ended December 31, 2024		Pay-TV			Wireless			Broadband and Satellite Services						Consolidated
											Eliminations
		(In thousands)
Segment operating income (loss)		$	2,647,954		$	(2,831,906)		$	(117,901)		$	(2,217)		$	(304,070)
Depreciation and amortization			337,331			1,134,883			459,796			(1,817)			1,930,193
OIBDA		$	2,985,285		$	(1,697,023)		$	341,895		$	(4,034)		$	1,626,123
For the Year Ended December 31, 2023
Segment operating income (loss)		$	2,699,810		$	(2,524,553)		$	(458,609)		$	5,443		$	(277,909)
Depreciation and amortization			381,292			800,629			419,262			(3,260)			1,597,923
OIBDA		$	3,081,102		$	(1,723,924)		$	(39,347)		$	2,183		$	1,320,014

Note on Use of Non-GAAP Financial Measures

OIBDA is defined as "Operating income (loss)" plus "Depreciation and amortization."

OIBDA, which is presented by segment above, is a non-GAAP measure reconciled to "Operating income (loss)" and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability of our business segments on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions for those business segments, as well as in evaluating operating performance in relation to our competitors.

The consolidated financial statements of EchoStar for the periods ended December 31, 2024, are attached to this press release. Detailed financial data and other information are available in EchoStar's Annual Report on Form 10-K for the period ended December 31, 2024, filed today with the Securities and Exchange Commission.

EchoStar will host a conference call to discuss its earnings on Thursday, February 27, 2025, at 11:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on EchoStar's investor relations website at ir.echostar.com. To attend the call, please dial: (877) 484-6065 (U.S.) or (201) 689-8846. When prompted on dial-in, please utilize the conference ID (13751949) or ask for the "EchoStar Corporation Q4 and Full Year 2024 Earnings Conference Call." Please dial in at least 10 minutes before the call to ensure timely participation.

About EchoStar Corporation

EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar®, Boost Mobile®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.

©2025 EchoStar. Hughes, HughesNet, DISH, and Boost Mobile are registered trademarks of one or more affiliate companies of EchoStar Corp.

Safe Harbor Statement under the US Private Securities Litigation Reform Act of 1995

This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "goal," "seek," "estimate," "expect," "intend," "project," "continue," "future," "will," "would," "can," "may," "plans," and similar expressions and the use of future dates are intended to identify forward–looking statements. Although management believes that the expectations reflected in these forward–looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. We assume no responsibility for the accuracy of forward-looking statements or information or for updating forward-looking information or statements. These statements are subject to certain risks, uncertainties, and assumptions. See "Risk Factors" in EchoStar's Annual Report on Form 10-K for the period ended December 31, 2024 as filed with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.

			ECHOSTAR CORPORATION
			CONSOLIDATED BALANCE SHEETS
			(Dollars in thousands, except share amounts)
		As of
		December 31,			December 31,
		2024			2023
Assets
Current Assets:
Cash and cash equivalents		$	4,305,393		$	1,821,376
Current restricted cash and cash equivalents			150,898			—
Marketable investment securities			1,242,036			623,044
Trade accounts receivable, net of allowance for credit losses of $82,628 and $74,390, respectively			1,198,731			1,122,139
Inventory			455,197			665,169
Prepaids and other assets			655,233			644,005
Other current assets			88,255			16,081
Total current assets			8,095,743			4,891,814
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities			169,627			118,065
Property and equipment, net			9,187,132			9,561,834
Regulatory authorizations, net			39,442,166			38,572,980
Other investments, net			202,327			314,370
Operating lease assets			3,260,768			3,065,448
Intangible assets, net			74,939			172,892
Other noncurrent assets, net			505,985			411,491
Total noncurrent assets			52,842,944			52,217,080
Total assets		$	60,938,687		$	57,108,894
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Trade accounts payable		$	740,984		$	774,011
Deferred revenue and other			650,940			754,658
Accrued programming			1,339,072			1,427,762
Accrued interest			352,499			297,678
Other accrued expenses and liabilities			1,804,516			1,717,826
Current portion of debt, finance lease and other obligations			943,029			3,046,654
Total current liabilities			5,831,040			8,018,589
Long-Term Obligations, Net of Current Portion:
Long-term debt, finance lease and other obligations, net of current portion			25,660,288			19,717,266
Deferred tax liabilities, net			4,988,653			5,014,309
Operating lease liabilities			3,211,407			3,121,307
Long-term deferred revenue and other long-term liabilities			1,002,074			849,131
Total long-term obligations, net of current portion			34,862,422			28,702,013
Total liabilities			40,693,462			36,720,602
Commitments and Contingencies
Redeemable noncontrolling interests			—			438,382
Stockholders' Equity (Deficit):
Class A common stock, $0.001 par value, 1,600,000,000 shares authorized, 155,048,676 and 140,153,020 shares issued and outstanding, respectively			155			140
Class B common stock, $0.001 par value, 800,000,000 shares authorized, 131,348,468 shares issued and outstanding			131			131
Additional paid-in capital			8,768,360			8,301,979
Accumulated other comprehensive income (loss)			(195,711)			(160,056)
Accumulated earnings (deficit)			11,618,437			11,737,983
Total EchoStar stockholders' equity (deficit)			20,191,372			19,880,177
Noncontrolling interests			53,853			69,733
Total stockholders' equity (deficit)			20,245,225			19,949,910
Total liabilities and stockholders' equity (deficit)		$	60,938,687		$	57,108,894

 

		ECHOSTAR CORPORATION
		CONSOLIDATED STATEMENTS OF OPERATIONS
		(Dollars in thousands, except per share amounts)
			For the Years Ended December 31,
			2024			2023			2022
Revenue:
Service revenue			$	14,956,126		$	16,145,763		$	17,596,265
Equipment sales and other revenue				869,390			869,835			1,037,981
Total revenue				15,825,516			17,015,598			18,634,246
Costs and Expenses (exclusive of depreciation and amortization):
Cost of services				10,135,622			9,510,427			10,111,341
Cost of sales - equipment and other				1,636,955			2,434,904			2,099,136
Selling, general and administrative expenses				2,426,816			2,989,154			3,015,325
Depreciation and amortization				1,930,193			1,597,923			1,174,895
Impairment of long-lived assets and goodwill				—			761,099			711
Total costs and expenses				16,129,586			17,293,507			16,401,408
Operating income (loss)				(304,070)			(277,909)			2,232,838
Other Income (Expense):
Interest income, net				116,625			207,374			93,240
Interest expense, net of amounts capitalized				(481,622)			(90,357)			(79,217)
Other, net				593,497			(1,770,792)			1,088,441
Total other income (expense)				228,500			(1,653,775)			1,102,464
Income (loss) before income taxes				(75,570)			(1,931,684)			3,335,302
Income tax (provision) benefit, net				(48,945)			296,860			(798,410)
Net income (loss)				(124,515)			(1,634,824)			2,536,892
Less: Net income (loss) attributable to noncontrolling interests, net of tax				(4,969)			67,233			59,172
Net income (loss) attributable to EchoStar			$	(119,546)		$	(1,702,057)		$	2,477,720
Weighted-average common shares outstanding - Class A and B common stock:
Basic				274,079			270,842			270,102
Diluted				274,079			270,842			307,733
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to EchoStar			$	(0.44)		$	(6.28)		$	9.17
Diluted net income (loss) per share attributable to EchoStar			$	(0.44)		$	(6.28)		$	8.05

 

			ECHOSTAR CORPORATION
			CONSOLIDATED STATEMENTS OF CASH FLOWS
			(In thousands)
		For the Years Ended  December 31,
		2024			2023			2022
Cash Flows From Operating Activities:
Net income (loss)		$	(124,515)		$	(1,634,824)		$	2,536,892
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization			1,930,193			1,597,923			1,174,895
Impairment of long-lived assets and goodwill			—			761,099			711
Realized and unrealized losses (gains) on investments, impairments and other			73,217			(46,888)			(72,371)
Realized and unrealized losses (gains) on derivatives			—			1,693,387			(1,015,387)
Liberty Puerto Rico Asset Sale losses (gains)			(50,418)			—			—
EchoStar Exchange Offers debt extinguishment losses (gains)			(688,661)			—			—
Non-cash, stock-based compensation			36,383			51,514			82,994
Deferred tax expense (benefit)			28,281			(337,222)			729,587
Equity in (earnings) losses of affiliates			73,451			8,099			3,087
Changes in allowance for credit losses			8,238			14,600			6,590
Change in long-term deferred revenue and other long-term liabilities			12,555			15,825			83,453
Other, net			183,775			158,284			250,697
Changes in current assets and current liabilities:
Trade accounts receivable			(171,365)			20,622			(74,812)
Prepaid and accrued income taxes			43,430			15,836			(36,115)
Inventory			189,648			(37,981)			16,200
Other current assets			(54,039)			(40,290)			21,737
Trade accounts payable			108,982			4,108			90,721
Deferred revenue and other			(103,718)			(78,555)			(71,709)
Accrued programming and other accrued expenses			(242,740)			267,110			(105,980)
Net cash flows from operating activities			1,252,697			2,432,647			3,621,190
Cash Flows From Investing Activities:
Purchases of marketable investment securities			(1,253,543)			(2,407,546)			(1,965,859)
Sales and maturities of marketable investment securities			573,031			3,710,544			4,159,830
Purchases of property and equipment			(1,544,877)			(3,100,921)			(3,050,472)
Refunds and other receipts of purchases of property and equipment			—			38,611			—
Capitalized interest related to regulatory authorizations			(951,747)			(1,162,473)			(984,309)
Proceeds from other debt investments			—			148,448			—
Purchases of regulatory authorizations, including deposits			(1,104)			(2,009)			(7,206,865)
Sale of assets to CONX			26,719			—			—
Liberty Puerto Rico Asset Sale			95,435			—			—
Other, net			7,736			(33,386)			(11,900)
Net cash flows from investing activities			(3,048,350)			(2,808,732)			(9,059,575)
Cash Flows From Financing Activities:
Repayment of long-term debt, finance lease and other obligations			(108,961)			(121,981)			(86,229)
Redemption and repurchases of convertible and senior notes			(2,933,714)			(1,643,469)			(2,056,821)
Proceeds from issuance of senior notes			5,386,000			1,500,000			2,000,000
Debt issuance costs and debt (discount) premium			(182,279)			21,635			(51,121)
Proceeds from issuance of PIPE Shares			400,000			—			—
Proceeds from New DISH DBS Financing			2,500,000			—			—
Debt issuance costs and debt (discount) premium from New DISH DBS Financing			(134,510)			—			—
Early debt extinguishment gains (losses) of convertible and senior notes			—			73,024			—
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan			4,192			10,598			27,438
Purchase of SNR Management's ownership interest in SNR HoldCo			(441,998)			—			—
Purchase of Northstar Manager, LLC's ownership interest in Northstar Spectrum			—			(109,432)			—
Treasury share repurchase			—			—			(89,303)
Other, net			(5,153)			(7,496)			(18,413)
Net cash flows from financing activities			4,483,577			(277,121)			(274,449)
Effect of exchange rates on cash and cash equivalents			(5,721)			3,004			(2,306)
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents			2,682,203			(650,202)			(5,715,140)
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period			1,911,601			2,561,803			8,276,943
Cash, cash equivalents, restricted cash and cash equivalents, end of period		$	4,593,804		$	1,911,601		$	2,561,803

 

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SOURCE EchoStar Corporation

FAQ

What caused EchoStar's (SATS) revenue decline in 2024?

EchoStar's revenue declined from $17.02B to $15.83B primarily due to subscriber losses in its Pay-TV segment.

How many Pay-TV subscribers did EchoStar (SATS) lose in Q4 2024?

EchoStar lost 253,000 Pay-TV subscribers in Q4 2024, ending with 7.78 million total subscribers.

What was EchoStar's (SATS) wireless subscriber growth in Q4 2024?

Wireless subscribers increased by 105,000 (excluding ACP) in Q4 2024, with total subscribers reaching 6.995 million.

How did EchoStar's (SATS) broadband satellite business perform in Q4 2024?

Broadband Satellite subscribers decreased by 29,000 to 883,000, showing improvement from the 59,000 decrease in Q4 2023.