EchoStar Q4 Earnings Call Highlights

EchoStar (NASDAQ:SATS) executives used the company’s fourth-quarter 2025 earnings call to discuss capital allocation priorities ahead of expected proceeds from a spectrum sale, provide updates on the company’s relationship with SpaceX/Starlink, and address vendor disputes tied to the wind-down of its wireless network build. Management also cautioned that the company is in an FCC “quiet period” related to an upcoming AWS-3 auction and would not comment on Auction 113.

Capital allocation ahead of expected spectrum-sale proceeds

Hamid Akhavan, CEO of EchoStar Capital, said the company is awaiting final regulatory approvals for a spectrum sale and expects an “influx of capital” during the first half of the year. Akhavan said EchoStar is preparing to allocate those funds with an emphasis on maximizing shareholder returns across near-term and long-term time horizons.

He said the company is weighing multiple, interconnected considerations, including:

• Paying down “expensive or maturing” debt obligations
• Current and anticipated tax liabilities, as well as potential mitigation avenues
• Investment and development opportunities within EchoStar Capital
• Potential capital returns to shareholders through “common short-term remuneration” approaches

Akhavan added that external factors—such as the “possibility and the timing of a potential SpaceX IPO”—further complicate decision-making. Because these items are interrelated and changing, he said it would be “difficult and potentially misleading” to provide significant detail at this time.

SpaceX/Starlink stake: timing, valuation questions, and D2D strategy

During the Q&A, management addressed several analyst questions about EchoStar’s expected stake in SpaceX and how it might factor into capital allocation decisions.

Akhavan said that, until the underlying transaction closes, EchoStar does not yet have the SpaceX equity in hand. “We have a right to it, but we don’t have that equity yet,” he said, adding that the company cannot make plans around that position until it is received. He noted EchoStar would evaluate options depending on conditions at the time, including the timing of any IPO. Akhavan also said EchoStar was “very happy” with the size of the stake it expects to hold and is not “actively looking necessarily to make any transactions at this point” based on it.

Charlie Ergen, EchoStar’s CEO and chairman, addressed questions about SpaceX’s valuation and its reported merger framework with xAI. Ergen said the company is not privy to IPO details and does not have internal information. He referenced public reporting suggesting an “80/20” split between xAI and Starlink, saying that “probably gives you a feel” for what EchoStar’s investment might look like, but emphasized uncertainty.

Ergen also discussed direct-to-device (D2D) satellite connectivity. He said EchoStar was “disappointed” it could not continue with a D2D constellation it had “built over 17 years,” but said the company is “pleased” it made its “bet” with SpaceX and Starlink. Ergen said EchoStar already has an agreement with SpaceX/Starlink to provide services to EchoStar customers and expects additional industry announcements during Mobile World Congress. Based on EchoStar’s experience, he said he did not expect to see “too much from anybody except” SpaceX/Starlink in the near term and called SpaceX “the most viable company” to lead D2D.

On valuation broadly, Ergen said Space will become increasingly important commercially and militarily, and argued that connecting devices everywhere extends beyond phones to IoT and automotive applications. He said SpaceX has been “the best company I’ve ever worked with in 45 years,” praising its pace and responsiveness, while noting EchoStar invested “on faith” in people and was not privy to SpaceX’s financials.

Tower and vendor disputes: force majeure claim and litigation

Another focal point was EchoStar’s disputes with tower companies and other vendors tied to its wireless network contracts. Ergen said the company believes an FCC investigation into its spectrum created an “existential threat” and constituted a force majeure event. He said EchoStar’s first priority was ensuring customers would not be “disenfranchised,” and that the company moved customers “off of our network” in the fourth quarter.

With the network no longer generating income, Ergen said EchoStar informed vendors it had experienced a force majeure event “as we’re allowed” under its contracts. He said several tower companies have filed litigation against the independent DISH Wireless entity that is party to the agreements, while other counterparties have engaged in negotiations and reached settlements. Ergen said EchoStar had settled “hundreds of contracts” and recently signed a settlement with a “large tower company” that did not litigate.

Ergen said the company will continue to respond to litigation and pursue consensual solutions, but cautioned that lawsuits can become “protracted.” He also emphasized EchoStar’s position: “We don’t believe we owe any money.”

Asked what assets sit within the DISH Wireless entity, executive Paul (last name not provided in the transcript) said it holds the 5G network build assets, including antennas, radios, servers, and other equipment used to deploy and operate the network. He confirmed those assets are included in the “other segment” now being reported.

Network costs, impairment accounting, and decommissioning outlook

Management provided some detail on how vendor-related costs affected reported results and what to expect going forward as the company decommissions tower sites.

In response to a question about fourth-quarter wireless segment EBITDA effects, Akhavan said the topic is “a little complicated” and pointed back to the third quarter, when the company recorded an impairment charge. He said that impairment included costs related to future commitments under contracts—specifically citing tower expenses as items that would have been accrued within the impairment—so those costs would not show up again in fourth-quarter numbers. He said fourth-quarter results reflected “normal operating costs and accruals” needed to run the network during the period.

On the “other segment” connectivity expenses, Paul said those costs should decline over time as tower sites are decommissioned, with a “big decrease” expected in the first and second quarters. He added that the reported amounts include non-cash accretion on lease liabilities. Referencing prior discussion from the third-quarter call, he said the company discounted lease obligations to present value and took an impairment charge, and must accrete that amount over time—representing “about half” of the expense running through the P&L.

Ergen also discussed cash expectations around decommissioning and taxes. He said the company has “written off about $16 billion on the network decommissioning,” including operational costs. He said the company’s current estimate for cash payments tied to taxes and further decommissioning is in the “$5 billion-$7 billion range,” describing it as the company’s “best guess today” and noting the figures could change given ongoing variables and litigation.

Wireless profitability and next update cadence

Asked about the path to wireless profitability, Ergen said the business is “very, very close to a break-even business,” while acknowledging disappointment with progress after four years. He said his framework is to evaluate the total cost of running the business, including the hybrid core, and to ensure each new customer is profitable. Ergen said he believes the company is making profit on existing customers, but emphasized that each business “has to stand on its own” as a for-profit operation. “We’re close… but we’re not there yet,” he said.

EchoStar also said it does not plan to hold a separate conference call after the first quarter, though it will still make filings. Management said it currently expects to hold the next conference call after the second quarter—around July or early August—unless material changes prompt an earlier update.

About EchoStar (NASDAQ:SATS)

EchoStar Corporation (NASDAQ: SATS) is a global provider of satellite communication solutions, offering a suite of broadband and video delivery services to consumer, enterprise and government customers. The company operates two principal business segments: Broadband and Video. Through its Broadband segment, EchoStar delivers high-speed satellite internet access, managed network services and ground infrastructure for residential, commercial and rural markets. Its Video segment provides satellite fleet operations, teleport facilities and capacity-leasing services to video distributors and content providers.

In the Broadband segment, EchoStar’s Hughes Network Systems division designs and manufactures satellite broadband equipment, including user terminals and gateways, and develops advanced network management technologies.