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

, /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 EndedDecember 31, For the Years EndedDecember 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 YearEnded 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 YearEnded 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 SOURCE EchoStar Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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

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