EchoStar (SATS) investor relations material

Executive summary

• Q1 2026 revenue was $3.67 billion, down 5.2% year-over-year, with declines in Pay-TV and Hughes/Broadband, while Wireless posted modest subscriber growth and improved ARPU.

• Net loss attributable to shareholders narrowed to $146.89 million from $202.67 million in Q1 2025, with operating income improving to $393 million from a loss of $88 million.

• Entered agreements to sell wireless spectrum licenses to AT&T for $22.65 billion and to SpaceX for approximately $20 billion, pending regulatory approvals.

• Restructuring Support Agreement executed, including $125 million in settlement costs and prepayment of $1.6 billion in debt.

• Substantial doubt exists about ability to continue as a going concern until transaction closings due to insufficient cash and committed financing.

Financial highlights

• Total revenue decreased by $202 million (5.2%) year-over-year, mainly due to declines in Pay-TV and Broadband segments.

• Adjusted OIBDA rose to $559 million from $400 million year-over-year, driven by Wireless improvements and restructuring benefits.

• Net loss improved by $56 million year-over-year, primarily due to 5G network termination and lower impairments.

• Free cash flow was $105 million, up from negative $172 million in Q1 2025; net cash from operating activities was $277.55 million.

• Cash and marketable securities totaled $1.52 billion at quarter-end, down from $2.18 billion at the start of the period.

Outlook and guidance

• Expect to receive $22.65 billion in cash from AT&T and $20 billion in cash and SpaceX equity upon transaction closings, to be used for significant debt repayment.

• Until closings, funding is not committed and liquidity remains a critical risk; additional capital may be required if transactions do not close.

• Forward-looking statements caution that actual results may differ due to risks and uncertainties detailed in SEC filings.