EchoStar Corporation Finalizes Spectrum Sales Amid $14.51 Billion Net Loss

**EchoStar Corp Navigates Spectrum Sales Amidst Financial Uncertainty**

EchoStar Corporation (SATS) faces a pivotal year as it finalizes agreements to sell a significant portion of its spectrum holdings to AT&T and SpaceX, while grappling with substantial financial challenges. The company's 10-K filing reveals a net loss of $14.51 billion for the year ended December 31, 2025, compared to a net loss of $124.5 million in the prior year. This downturn is largely attributed to non-cash asset impairments and other expenses totaling $17.63 billion, primarily impacting the Other and Broadband and Satellite Services segments, stemming from the termination of its 5G network deployment. Total revenue decreased by 5.2% to $15.00 billion, driven by declines in the Pay-TV and Broadband and Satellite Services segments, partially offset by growth in the Wireless segment.

The strategic shift to sell spectrum licenses was prompted by a review by the Federal Communications Commission (FCC), which questioned EchoStar's compliance with build-out milestones and spectrum utilization obligations. This led to the AT&T License Purchase Agreement, valued at $22.65 billion in cash, for the sale of 3.45-3.55 GHz and 600 MHz spectrum licenses, and the Amended SpaceX License Purchase Agreement, worth approximately $20 billion in SpaceX Class A Common Stock, for AWS-4 and AWS-3 licenses. These transactions are expected to close in the first half of 2026, pending regulatory approvals. The AT&T deal includes a provision to repay $2.84 billion due to DISH DBS and redeem $3.5 billion in 11 3/4% Senior Secured Notes.

Operationally, EchoStar is restructuring its Wireless segment, transitioning to a Hybrid MNO model that leverages AT&T's network services while maintaining its 5G network core. As of December 31, 2025, the company reported 6.998 million Pay-TV subscribers and 7.511 million Wireless subscribers. The Broadband and Satellite Services segment had 739,000 subscribers. The Pay-TV segment experienced a decline in subscribers, while the Wireless segment saw growth. The company's employee headcount stood at approximately 12,100, with the majority located in the United States.

EchoStar acknowledges substantial doubt about its ability to continue as a going concern, citing insufficient cash on hand, projected future cash flows, or committed financing to meet obligations over the next twelve months. The completion of the AT&T and SpaceX transactions is critical to resolving this uncertainty. The company is also facing increasing competition in the video, broadband, and wireless services markets, which may require increased subscriber acquisition and retention spending. The company's Class A common stock had a market value of $3.741 billion as of June 30, 2025.