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Echostar Corp. (SATS)
NASDAQ:SATS
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Echostar (SATS) AI Stock Analysis

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SATS

Echostar

(NASDAQ:SATS)

Rating:46Neutral
Price Target:
$26.00
▼(-1.25%Downside)
Echostar's stock is currently facing significant risks, primarily due to financial challenges and regulatory uncertainties. The company's high leverage and negative cash flow are major concerns. Technical indicators provide some hope, but recent corporate events related to FCC inquiries and delayed interest payments significantly weigh down the overall outlook.
Positive Factors
Financial and Strategic Strength
EchoStar is sitting on a large amount of cash and what could easily be a significant value of spectrum, showing a position of confidence.
Investment and Business Expansion
EchoStar announced a new $5 billion investment to build a mobile wideband satellite network, showing commitment to expand its business.
Operational Performance
EchoStar posted mostly good 1Q25 results including in-line revenue, slight upside EBITDA, and record high wireless subscriber adds.
Negative Factors
FCC License Risk
The uncertainty over the integrity of its FCC licenses is a significant concern given the FCC review.
Financial Instability
EchoStar has delayed interest payments on two different bond issuances that could lead to a default event if those payments are not made within 30 days of their due date.
Regulatory Risk
The FCC is planning to investigate EchoStar's compliance with the buildout of its 5G network, introducing potential regulatory challenges for the company.

Echostar (SATS) vs. SPDR S&P 500 ETF (SPY)

Echostar Business Overview & Revenue Model

Company DescriptionEchoStar Corporation (SATS) is a global provider of satellite communication solutions, offering a range of services including satellite broadband, satellite television, and secure communication networks. It operates primarily through its Hughes Network Systems and EchoStar Satellite Services segments, serving both consumer and enterprise markets. The company leverages its fleet of satellites and ground infrastructure to deliver reliable communication services worldwide.
How the Company Makes MoneyEchoStar makes money through a variety of revenue streams primarily driven by its two main business segments: Hughes Network Systems and EchoStar Satellite Services. Hughes Network Systems generates revenue by providing broadband satellite technology and services to consumers, businesses, and governments, including satellite internet services and managed network solutions. EchoStar Satellite Services earns revenue by leasing satellite capacity on a full-time and occasional-use basis to media companies, internet service providers, and government agencies. The company also benefits from strategic partnerships with telecommunications and technology firms, which help expand its service offerings and customer base.

Echostar Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: -19.21%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The call highlighted significant achievements in strategic projects like the LEO satellite constellation and growth in the Wireless segment. However, these were offset by challenges such as the FCC review impacting the 5G network, revenue and OIBDA declines, and significant negative free cash flow.
Q2-2025 Updates
Positive Updates
LEO Direct-to-Device Satellite Constellation Announcement
EchoStar announced an agreement with MDA Space to build a new LEO direct-to-device satellite constellation, aiming to provide global wideband services directly to standard 5G NTN devices. The launch is planned for 2028 with commercial services starting in 2029.
Wireless Segment Growth
The Wireless segment achieved another quarter of sequential growth with 212,000 net subscriber additions compared to a 16,000 net loss in the same period of 2024. Churn improved by 24 basis points year-over-year.
In-Flight Connectivity Expansion
EchoStar's Hughes in-flight connectivity solution was selected by two large airlines, continuing penetration in the market with innovative multi-frequency LEO-GEO satellite network solutions.
Strong Pay-TV Performance
Pay-TV grew its ARPU by 3% year-over-year, and viewership increased by 8% year-over-year despite competitive headwinds.
Negative Updates
FCC Review Impact on 5G Network
The FCC review of EchoStar's spectrum licenses has introduced uncertainty, freezing decisions about the 5G terrestrial network build-out and delaying interest payments.
Revenue Decline
Revenue was approximately $3.7 billion, a decrease of 5.8% year-over-year, primarily due to fewer subscribers in the Pay-TV and Broadband and Satellite Services segments.
Decreased OIBDA
OIBDA was $280 million in the second quarter, a decrease of $163 million year-over-year, driven by fewer subscribers in Pay-TV and increased operating loss in Wireless.
Negative Free Cash Flow
Free cash flow, including debt service, was negative $739 million for the quarter compared to negative $191 million in the prior year, primarily due to higher cash interest and decreased OIBDA.
Company Guidance
During the EchoStar Corporation Second Quarter 2025 Earnings Conference Call, the company provided several guidance metrics. EchoStar reported a revenue of approximately $3.7 billion for the second quarter, marking a 5.8% decrease year-over-year, primarily due to fewer subscribers in its Pay-TV and Broadband and Satellite Services segments. The company also reported OIBDA of $280 million, down by $163 million from the previous year. EchoStar's Wireless segment showed growth, with revenue increasing by 4.7% to $935 million, driven by a 4.1% rise in ARPU to $37.40 and an addition of approximately 212,000 net subscribers, ending the quarter with 7.4 million subscribers. The Pay-TV segment's revenue decreased by 8% to $2.5 billion, with churn at its lowest levels in over a decade, excluding the pandemic. The company generated $166 million in positive operating free cash flow in the first half of the year but reported negative free cash flow, including debt service, of $739 million for the second quarter. Additionally, EchoStar highlighted its strategic focus on a new LEO direct-to-device satellite constellation, with a planned launch in 2028 and commercial services starting in 2029, as part of its commitment to future growth and U.S. leadership in the global communications industry.

Echostar Financial Statement Overview

Summary
Echostar is facing significant financial challenges, with declining revenues and negative net profit margins, coupled with high leverage and negative free cash flow. While there are some operational efficiencies, the financial health is under substantial pressure.
Income Statement
42
Neutral
Echostar's income statement reveals challenges with profitability as indicated by negative EBIT and net income figures in the TTM (Trailing-Twelve-Months). The TTM gross profit margin stands at 28.05%, but continued revenue decline and negative net profit margin of -2.65% indicate financial pressure. Despite these issues, the EBITDA margin of 11.46% suggests some operational efficiency, albeit under strain.
Balance Sheet
55
Neutral
Echostar's balance sheet reflects a high leverage situation with a debt-to-equity ratio of 3.20 in the TTM, indicating significant financial risk. The equity ratio of 33.04% suggests moderate stability, but the high debt levels may constrain future growth. The return on equity is negative at -2.08%, highlighting profitability challenges.
Cash Flow
38
Negative
The cash flow statement indicates negative free cash flow, with a TTM free cash flow of -584.26 million. The operating cash flow to net income ratio is -2.43, reflecting inefficiencies in converting income to cash. Free cash flow has declined significantly, raising concerns about liquidity and operational efficiency.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.83B17.02B2.00B1.99B1.89B
Gross Profit5.69B5.07B1.14B1.20B1.14B
EBITDA2.34B-247.35M4.59B715.19M746.38M
Net Income-119.55M-1.70B177.05M72.88M-51.90M
Balance Sheet
Total Assets60.94B57.11B58.75B6.05B7.07B
Cash, Cash Equivalents and Short-Term Investments5.55B2.44B4.31B1.55B2.53B
Total Debt29.81B25.89B25.72B1.65B2.52B
Total Liabilities40.69B36.72B36.70B2.63B3.47B
Stockholders Equity20.19B19.88B21.49B3.35B3.54B
Cash Flow
Free Cash Flow-292.18M-668.27M180.61M160.25M86.94M
Operating Cash Flow1.25B2.43B529.61M632.23M534.39M
Investing Cash Flow-3.05B-2.81B-275.19M158.93M-1.14B
Financing Cash Flow4.48B-277.12M-83.11M-1.15B-15.62M

Echostar Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price26.33
Price Trends
50DMA
25.31
Positive
100DMA
24.47
Positive
200DMA
25.08
Positive
Market Momentum
MACD
0.71
Positive
RSI
42.57
Neutral
STOCH
29.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SATS, the sentiment is Neutral. The current price of 26.33 is below the 20-day moving average (MA) of 29.88, above the 50-day MA of 25.31, and above the 200-day MA of 25.08, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 29.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SATS.

Echostar Risk Analysis

Echostar disclosed 51 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$419.08M30.174.79%13.49%-39.61%
67
Neutral
$58.63M-29.09%-21.44%-3.31%
64
Neutral
$2.23B-12.00%5.50%48.79%
61
Neutral
$41.44B-3.01-10.30%3.97%2.71%-44.19%
54
Neutral
$18.02B-88.95%-85.21%
47
Neutral
$60.26M-43.88%-12.02%-615.33%
46
Neutral
$7.74B-1.60%-35.86%85.81%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SATS
Echostar
26.33
7.39
39.02%
CMTL
Comtech Telecommunications
2.05
-0.76
-27.05%
GILT
Gilat
7.46
3.30
79.33%
VSAT
ViaSat
20.28
2.74
15.62%
AMPG
AmpliTech Group
3.07
2.09
213.27%
ASTS
AST SpaceMobile
51.38
31.85
163.08%

Echostar Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
EchoStar Subsidiary Avoids Default with Interest Payment
Neutral
Jul 30, 2025

On July 30, 2025, DISH DBS Corporation, a subsidiary of EchoStar, made scheduled interest payments on its senior notes within the grace period, avoiding an event of default. The company is addressing concerns raised by the FCC in May 2025, working cooperatively to resolve these issues while exploring alternative solutions, although no resolution has been achieved yet.

The most recent analyst rating on (SATS) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

Legal ProceedingsBusiness Operations and StrategyRegulatory Filings and Compliance
EchoStar Faces FCC Inquiry and Financial Strategy Shift
Negative
Jun 27, 2025

EchoStar Corporation, along with its subsidiary DISH DBS Corporation, is facing regulatory uncertainty due to inquiries by the Federal Communications Commission (FCC) that began in May 2025. This uncertainty has led the company to reassess its financial strategies, including the decision not to make certain interest payments on senior notes due in 2026 and 2028, which could lead to a default if not resolved within a 30-day grace period. Despite this, EchoStar has made other scheduled interest payments within their respective grace periods, following discussions with the FCC and encouragement from the President of the United States to find an amicable resolution. These actions aim to extend the timeline for resolving the FCC’s concerns and minimize disruption to EchoStar’s operations.

The most recent analyst rating on (SATS) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

Legal ProceedingsRegulatory Filings and Compliance
EchoStar Delays $183 Million Interest Payments Amid FCC Review
Negative
Jun 2, 2025

EchoStar Corporation has decided not to make approximately $183 million in cash interest payments due on June 2, 2025, for its DISH DBS Corporation secured and unsecured notes. This decision is due to the uncertainty surrounding the Federal Communications Commission’s review. EchoStar has a 30-day grace period to make these payments before it is considered an Event of Default, and the company is awaiting relief from the FCC within this period.

The most recent analyst rating on (SATS) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

Legal ProceedingsRegulatory Filings and Compliance
EchoStar Delays $326M Payment Amid FCC Review
Negative
May 30, 2025

On May 9, 2025, EchoStar Corporation received a letter from the FCC indicating a review of their compliance with federal obligations related to 5G services and MSS utilization. This has led to uncertainty regarding their spectrum rights, impacting their business decisions and prompting them to withhold a $326 million interest payment due on May 30, 2025, to allow time for FCC relief.

The most recent analyst rating on (SATS) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

Legal ProceedingsRegulatory Filings and Compliance
EchoStar Challenges FCC Review Amidst 5G Concerns
Negative
May 28, 2025

On May 9, 2025, the FCC initiated a review of EchoStar’s compliance with its federal obligations related to 5G services and raised questions about its September 2024 buildout extension and MSS utilization. EchoStar responded on May 27, 2025, detailing the importance of its services and the potential negative impact of interrupting its deployment. The FCC’s actions have created uncertainty over EchoStar’s spectrum rights, affecting its 5G network buildout. EchoStar requested the FCC to deny a petition for reconsideration and reaffirm its licenses and milestones. EchoStar disclosed having 1.3 million subscribers and adding 88,000 wireless subscribers in April.

The most recent analyst rating on (SATS) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
FCC Reviews EchoStar’s 5G Compliance Amid Concerns
Neutral
May 13, 2025

On May 9, 2025, the FCC began a review of EchoStar’s compliance with its federal obligations to provide 5G service in the U.S., raising questions about a 2024 buildout extension and MSS utilization in the 2GHz band. EchoStar’s Chairman, Charles W. Ergen, emphasized the company’s investment in deploying a nationwide 5G network and its commitment to meeting FCC obligations. Despite past extensions and missed milestones, EchoStar claims to have fulfilled recent commitments, but the FCC is investigating compliance with buildout milestones and seeking public comment on related issues.

The most recent analyst rating on (SATS) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Echostar stock, see the SATS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
EchoStar Holds 2025 Annual Shareholders Meeting
Neutral
May 6, 2025

On May 2, 2025, EchoStar conducted its 2025 Annual Meeting of Shareholders, where key decisions were made regarding the company’s leadership and financial oversight. The meeting resulted in the election of several directors to serve until the 2026 annual meeting, and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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.Date of analysis: Aug 02, 2025