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Echostar Corp. (SATS)
NASDAQ:SATS
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Echostar
(NASDAQ:SATS)
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Rating:54Neutral
Price Target:
$131.00
▲(13.39% Upside)
Action:ReiteratedDate:12/31/25
The score is held back primarily by weak financial performance (large losses, high leverage, and deteriorating free cash flow). This is partially offset by strong recent price momentum and a constructive strategic narrative from the latest earnings call, while valuation remains constrained by negative earnings and no dividend support.
Positive Factors
Major AT&T and SpaceX transactions
Large strategic transactions with AT&T and SpaceX materially resolved FCC spectrum utilization reviews and inject significant capital or asset swaps. This reduces regulatory overhang, strengthens liquidity options, and can materially de-risk network strategy and funding over the medium term.
Creation of EchoStar Capital (asset-light shift)
Launching EchoStar Capital signals a durable shift to an asset-light, capital-management model focused on M&A and strategic investments. That can improve capital efficiency, lower recurring capex needs, and enable faster portfolio reshaping to capture higher-return opportunities over the coming years.
Hughes pivot to enterprise and aero growth
Shifting Hughes toward enterprise and aero customers diversifies revenue toward higher-contract, recurring and often higher-margin segments. A structural mix change toward enterprise can stabilize revenues, improve gross margins, and reduce retail churn sensitivity over multiple quarters.
Negative Factors
Very high leverage
Extremely elevated leverage constrains strategic flexibility and increases default and refinancing risk. High interest obligations limit reinvestment capacity, amplify downturn vulnerability, and make the firm dependent on asset sales or capital markets to meet obligations, pressuring medium-term stability.
Negative free cash flow & weak cash generation
Sustained negative FCF growth and weak operating cash relative to losses undermine the company's ability to service debt, fund operations, or invest organically. Persistent cash shortfalls force reliance on asset monetizations or external financing, raising dilution or restructuring risk over months.
Regulatory and legal overhang
Active FCC scrutiny, litigation with tower firms, and the underperforming Boost business create enduring operational and financial uncertainty. Spectrum constraints or adverse rulings could limit service capacity; litigation and weaker business units can produce material liabilities and hamper strategic execution.
Echostar (SATS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.26B
Dividend YieldN/A
Average Volume (3M)4.72M
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-44.95%
EPS Growth-430.47%
CountryUS
Employees13,700
SectorCommunication Services
Sector Strength97
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-4.27
Shares Outstanding156,527,850
10 Day Avg. Volume2,933,112
30 Day Avg. Volume4,722,687
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)0.31
Price to Sales (P/S)0.40
P/FCF Ratio-21.48
Enterprise Value/Market Cap2.62
Enterprise Value/Revenue5.75
Enterprise Value/Gross Profit23.03
Enterprise Value/Ebitda-6.16
Forecast
1Y Price Target
$129.00Price Target Upside11.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-2.79
Revenue Forecast (FY)$14.56B
Echostar Business Overview & Revenue Model
Company DescriptionEchoStar Corporation, together with its subsidiaries, provides networking technologies and services worldwide. The company operates in two segments, Hughes and EchoStar Satellite Services (ESS). The Hughes segment offers broadband network technologies, managed services, equipment, hardware, satellite services, and communications solutions to government and enterprise customers. The segment also designs, provides, and installs gateway and terminal equipment to customers for other satellite systems. In addition, it designs, develops, constructs, and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and enterprise customers. Further, this segment designs, provides, and installs gateway and terminal equipment to customers for other satellite systems, as well as offers satellite ground segment systems and terminals for other satellite systems, including mobile system operators. The ESS segment provides satellite services using its owned and leased in-orbit satellites and related licenses to offer satellite services on a full-time and/or occasional-use basis to the U.S. government service providers, internet service providers, broadcast news organizations, content providers, and private enterprise customers. It serves customers in North America, South and Central America, Asia, Africa, Australia, Europe, India, and the Middle East. The company was incorporated in 2007 and is headquartered in Englewood, Colorado.
How the Company Makes MoneyEchostar generates revenue through multiple streams. The primary revenue source comes from its broadband services, where it offers satellite internet connectivity to rural and underserved areas, and earns subscription fees from customers. Additionally, the company derives income from satellite services, which involves leasing satellite capacity to various telecommunications and media companies. Another significant revenue stream is from the sale of equipment, including set-top boxes and satellite terminals, to both retail and wholesale markets. Strategic partnerships with telecommunications companies and media providers enhance its distribution capabilities and broaden its customer base, contributing further to its earnings.
Echostar Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Mixed: the company articulated clear strategic positives — an expected inflow from a spectrum sale, a pragmatic capital-allocation framework, an operational partnership with SpaceX/Starlink, and management's view that DISH Wireless is nearing profitability — but these are balanced by material negatives including a roughly $16 billion decommissioning write-off, ongoing tower litigation after payment suspension, regulatory uncertainty from FCC actions, and significant valuation/timing uncertainty around the SpaceX equity. Management narrowed expected cash liabilities to ~$5–7 billion and highlighted progress on settlements, but near-term legal, regulatory, and valuation risks leave the situation balanced between opportunity and downside.Q4-2025 Updates
Positive Updates
Pending Spectrum Sale and Expected Capital Influx
EchoStar Capital is awaiting final regulatory approvals for a spectrum sale with proceeds expected in the first half of the year; management plans to allocate proceeds across paying down expensive or maturing debt, tax liabilities, investments, and potential shareholder returns.
Strategic Partnership with SpaceX/Starlink and Direct-to-Device Positioning
EchoStar has an agreement to provide direct-to-device services via SpaceX/Starlink after electing not to pursue its own DDD constellation; EchoStar holds rights to roughly a 2.8% SpaceX stake (previously valued versus a $400 billion reference), but the equity has not yet been received and will be evaluated upon closing.
Customer Migration and Execution on Network Changes
Management successfully moved all customers off EchoStar's network in Q4; the company reported numerous consensual settlements with tower partners (hundreds of contracts) and indicated further declines in connectivity costs through Q1/Q2 as decommissioning continues (an investor estimate cited ~70% reduction in connectivity expenses in Q4).
Financial Cleanup and Clearer Cash Liability Range
Company recorded prior impairments (including Q3) associated with the network transition and decommissioning; management reported approximately $16 billion of network decommissioning/operational write-offs to date and provided an updated estimate for expected cash payments (taxes and decommissioning) of roughly $5 billion to $7 billion (narrowed from earlier $7 billion to $10 billion range).
DISH Wireless Approaching Profitability
Management stated DISH Wireless is 'very, very, very close' to breakeven on an EBITDA basis, citing improvements in hybrid RAN/core economics and an emphasis on ensuring new customers are profitable.
Accounting and Cost Recognition Transparency
Management explained that Q3 impairment included accruals for future contractual commitments (e.g., tower expenses), which reduced Q4 P&L impact; they also disclosed that a significant portion of remaining 'other segment' costs are attributable to non-cash accretion of previously discounted lease liabilities (management indicated accretion accounts for roughly half of those reported costs).
Negative Updates
Tower Payment Suspension and Ongoing Litigation
EchoStar (through its DISH Wireless entity) stopped making tower payments after declaring a force majeure following FCC action; several tower companies have initiated litigation, which management expects could be protracted, increasing legal and operational uncertainty.
Large Write-off from Network Decommissioning
The company recorded approximately $16 billion in write-offs related to network decommissioning and related operational costs, representing a material historical charge to the balance sheet and earnings.
Uncertainty Around SpaceX Equity and Valuation
Although EchoStar holds rights to an estimated ~2.8% SpaceX stake, the equity has not closed and mark-to-market valuation is unclear amid widely varying public valuation references (e.g., prior $400 billion reference, xAI $250 billion mention, and public commentary of much higher figures), creating substantial valuation uncertainty for a key asset.
Regulatory Risk and FCC Action
An ongoing FCC investigation into EchoStar's spectrum created the force majeure event prompting contract disputes and has placed the company into an Auction 113 quiet period, limiting management commentary and adding regulatory risk to spectrum monetization and timing.
Near-term P&L Impact from Remaining Costs and Accretion
The 'other segment' continues to carry connectivity costs and non-cash accretion on lease liabilities (management estimated accretion is about half of those costs), so near-term P&L will still reflect these items until decommissioning and lease liabilities are resolved.
Company Guidance
The company provided limited forward guidance: it expects the cash inflow from a pending spectrum sale to arrive in the first half of the year and will consider allocations including paying down maturing/expensive debt, addressing tax liabilities, making investments, and potential returns to shareholders; EchoStar reiterated it is in a quiet period for FCC Auction 113 and will not comment on auction matters. Management noted the previously discussed ~2.8% SpaceX stake (initially cited at roughly $400 billion) remains unclosed and valuation/structure is uncertain (the Starlink/xAI merger was described publicly as roughly 80/20). On costs and decommissioning, the company said it has written off about $16 billion related to network decommissioning and now estimates cash decommissioning/tax payments of roughly $5–7 billion (down from prior $7–10 billion). All customers were moved off the network in Q4, DISH Wireless’s network assets sit in the “Other” segment (antennas, servers, radios), and management expects connectivity/decommissioning expenses in the Other segment to decline substantially in Q1–Q2 (an analyst estimated ~70% reduction in Q4), noting that roughly half of remaining expense is non‑cash accretion of lease liabilities. Management said DISH Wireless is “very, very, very close” to break‑even, and referenced OIBDA and free cash flow metrics with GAAP reconciliations in the earnings release/Form 10‑K.Echostar Financial Statement Overview
Summary
Financials are weak: revenue is shrinking (TTM -1.79%), profitability is deeply negative (net margin -140.13%) with negative EBIT/EBITDA trends, leverage is very high (debt-to-equity 8.47), and free cash flow growth is negative (-25.20%), indicating ongoing operating and funding pressure.Income Statement
Echostar's income statement shows significant challenges. The TTM data reveals a negative revenue growth rate of -1.79% and a net profit margin of -140.13%, indicating substantial losses. Historical data shows a declining trend in revenue and profitability, with EBIT and EBITDA margins also turning negative. This suggests operational inefficiencies and declining market performance.30
Negative
Balance Sheet
The balance sheet reflects high leverage with a TTM debt-to-equity ratio of 8.47, indicating significant financial risk. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio has decreased over time, highlighting increased reliance on debt financing.40
Negative
Cash Flow
Cash flow analysis shows a negative free cash flow growth rate of -25.20% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to reported losses. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.18B | 15.83B | 17.02B | 18.63B | 19.82B | 1.89B |
| Gross Profit | 3.79B | 5.69B | 5.07B | 6.42B | 7.32B | 1.14B |
| EBITDA | -14.16B | 2.34B | -247.35M | 4.59B | 4.67B | 645.10M |
| Net Income | -12.95B | -119.55M | -1.70B | 2.48B | 2.49B | -40.15M |
Balance Sheet | ||||||
| Total Assets | 45.27B | 60.94B | 57.11B | 58.75B | 6.05B | 7.07B |
| Cash, Cash Equivalents and Short-Term Investments | 4.08B | 5.55B | 2.44B | 4.31B | 1.55B | 2.53B |
| Total Debt | 30.59B | 29.81B | 25.89B | 25.72B | 1.65B | 2.52B |
| Total Liabilities | 38.26B | 40.69B | 36.72B | 36.70B | 2.63B | 3.47B |
| Stockholders Equity | 6.95B | 20.19B | 19.88B | 21.49B | 3.35B | 3.54B |
Cash Flow | ||||||
| Free Cash Flow | -1.09B | -292.18M | -668.27M | 570.72M | 160.25M | 86.94M |
| Operating Cash Flow | 371.50M | 1.25B | 2.43B | 3.62B | 632.23M | 534.39M |
| Investing Cash Flow | -3.52B | -3.05B | -2.81B | -9.06B | 168.81M | -1.14B |
| Financing Cash Flow | 3.05B | 4.48B | -277.12M | -274.45M | -1.16B | -15.62M |
Echostar Technical Analysis
Positive
115.53
Price Trends
114.08
Positive
95.15
Positive
66.75
Positive
Market Momentum
-1.08
Positive
54.26
Neutral
40.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SATS, the sentiment is Positive. The current price of 115.53 is above the 20-day moving average (MA) of 111.81, above the 50-day MA of 114.08, and above the 200-day MA of 66.75, indicating a bullish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 40.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SATS.
Echostar Risk Analysis
Echostar disclosed 52 risk factors in its most recent earnings report. Echostar reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Echostar Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.16B | 47.95 | 5.15% | ― | 29.67% | 41.90% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $29.09B | -63.60 | -39.22% | ― | 641.24% | 41.70% | |
54 Neutral | $33.26B | -2.57 | -98.16% | ― | -44.95% | -430.47% | |
53 Neutral | $6.22B | -17.62 | -7.27% | ― | 1.23% | -31.80% | |
50 Neutral | $67.49M | -5.24 | -27.13% | ― | 93.47% | 37.19% | |
49 Neutral | $148.81M | -2.17 | -7.88% | ― | -1.89% | 76.61% |
* Communication Services Sector Average
SATS
Echostar
115.53
84.46
271.84%
CMTL
Comtech Telecommunications
5.02
3.41
211.80%
GILT
Gilat
15.90
9.13
134.86%
VSAT
ViaSat
45.78
37.43
448.26%
AMPG
AmpliTech Group
2.68
1.13
72.90%
ASTS
AST SpaceMobile
79.19
53.57
209.09%
Echostar Corporate Events
Executive/Board Changes
Echostar Updates CEO Hamid Akhavan’s Compensation Agreement
Positive
Dec 29, 2025
On December 26, 2025, EchoStar Corporation entered into a new letter agreement with recently appointed Chief Executive Officer Hamid Akhavan, replacing his prior October 2, 2023 arrangement while keeping his base salary and bonus opportunity unchanged. The updated agreement, which runs through December 31, 2026, enhances Akhavan’s compensation package by accelerating vesting of the final tranche of his December 31, 2023 option award upon a qualifying termination and clarifies that any future equity awards will be granted at the discretion of the chairman and the executive compensation committee, underscoring the board’s tailored approach to CEO incentives and retention.
The most recent analyst rating on (SATS) stock is a Hold with a $111.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
EchoStar Announces New Division and Leadership Changes
Positive
Nov 6, 2025
On November 5, 2025, EchoStar Corporation entered into an Amended and Restated License Purchase Agreement with Space Exploration Technologies Corp. and Spectrum Business Trust 2025-1, revising their previous transaction to include the transfer of 15 MHz of AWS spectrum, increasing the total transaction value to over $19.6 billion. Additionally, on November 6, 2025, EchoStar announced the creation of a new division, EchoStar Capital, and appointed Charles W. Ergen as Chairman, President, and CEO, while Hamid Akhavan became CEO of the new division, reflecting strategic leadership changes within the company.
The most recent analyst rating on (SATS) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.