EchoStar Corporation Q2 FY2025 earnings call

• FCC review of spectrum licenses has caused uncertainty, frozen 5G terrestrial network build-out plans, impacted business plan, and required reevaluation of resource deployment. Delayed interest payments but made due payments for HSSC bonds. - Announced agreement with MDA Space for LEO direct-to-device satellite constellation. Launch planned for 2028, commercial services in 2029, peak funding estimated at $5 billion. - Wireless segment had 212,000 net subscribers added, Boost Mobile focused on profitable growth. - Broadband and Satellite Services segment saw 8% increase in enterprise committed contract volume, Hughes in-flight connectivity selected by airlines, HughesNet consumer business had ~820,000 broadband subscribers. - Pay-TV business had ~5.3 million subscribers, churn at lowest in over a decade, viewership up 8%, ARPU up 3%, Sling viewership up 18% with all-time high streaming quality.

Total Wireless revenue in Q2 increased by 4.7% to $935 million. ARPU increased by 4.1% to $37.40. Wireless OIBDA loss increased to negative $452 million. Pay-TV revenue decreased 8% to $2.5 billion due to a lower average subscriber base, partially offset by a 3.1% increase in ARPU. Pay-TV OIBDA decreased $663 million. Broadband and satellite services (BSS) revenue decreased by 13.8% to $340 million. BSS OIBDA decreased by 17.8% to $68 million.

• Expect positive operating free cash flow for the full year as disciplined in managing operating cost structure for growing Wireless and Hughes enterprise businesses. - Free cash flow in Q2 was negative $739 million, but total cash and marketable securities including restricted cash was $4.7 billion as of June 30, 2025. - Believe have adequate time to address maturities due within 1 year of filing date.

• FCC review of spectrum licenses has introduced uncertainty over spectrum rights, frozen 5G terrestrial network build-out, impacted business plan and required reevaluation of resource deployment.

Q: About the nonterrestrial network, is it going it alone or potential partners, go-to-market strategy, pacing of $5 billion peak funding?

A: No one today is doing wideband like us. Unique spectrum rights and focus on 5G NTN. Believe have in-house capabilities to make it happen, plan to use wholesale model with partners, peak funding of $5 billion is self-funded and spread over time.

Q: As fourth network operator, what's the go-to-market strategy and need for major distribution partner?

A: Can't be specific on FCC discussions, but will operate as fourth player, be disruptive and competitive, maximize value for shareholders, and work collaboratively with FCC and others for amicable solution.

Q: On LEO constellation, service capabilities in 2028, revenue model?

A: Service will be indistinguishable from terrestrial, go-to-market model collaborative with carriers, value enhancing for carriers.

Q: Suspended spending on Wireless network but moving forward with LEO project?

A: Direct-to-satellite project is a key decision factor from merger, not related to recent events, can't wait on space opportunity as it's critical time path while national network build is in strong position.

Q: On Wireless business core, shift to wholesale?

A: Currently committed to both retail Wireless and satellite business, very capable of doing both, unique position as both carrier and satellite technology company.