Latest quarter
EchoStar reported Q2 FY2026 revenue of $3.6 billion, compared with the consensus of $3.5 billion; revenue was 0.95% above the consensus as it is counted. The company’s revenue declined 3.99% from $3.7 billion in Q2 FY2025, while diluted EPS was $24.12, compared with a loss of −$1.06 a year earlier. EchoStar’s filing attributed the revenue decline principally to lower Pay-TV revenue and, to a lesser extent, lower Broadband and Satellite Services revenue, partly offset by growth in its Other segment.
The filing reported gross margin of 34.4%, up from 24.4%, and operating margin of 14.3%, compared with −5.73% a year earlier. EchoStar’s filing said operating income was $513 million, versus a $213 million operating loss, reflecting lower losses in Other and Wireless and higher Broadband and Satellite Services operating income, partly offset by lower Pay-TV operating income. The company reported free cash flow of −$102.3 million, compared with −$285.7 million in Q2 FY2025. The supplied materials do not provide an adjusted-EPS consensus comparison.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $3.6 billion | $3.7 billion | −3.99% |
| Diluted EPS | $24.12 | −$1.06 | — |
| Gross margin | 34.4% | 24.4% | 10.0 percentage points |
| Operating margin | 14.3% | −5.73% | 20.1 percentage points |
| Free cash flow | −$102.3 million | −$285.7 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $3.6 billion | $3.5 billion | Beat by 0.95% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On the earnings call, Executive Chairman and CEO Charlie Ergen said Hughes filed Chapter 11 after its $1.5 billion bond maturity and discussions with bondholders did not produce a workable solution. Ergen said the filing was limited to Hughes entities and did not include EchoStar, other non-Hughes subsidiaries or Hughes International entities. He said Hughes expected to continue normal operations, including employee payments, customer and channel-partner service, and vendor commitments. Ergen said the company did not know how long the bankruptcy would take before Hughes emerged restructured, and he said EchoStar would not take questions on Hughes because litigation was expected.
EchoStar’s filing said Pay-TV service revenue declined as its average Pay-TV subscriber base fell. The filing reported net losses of approximately 161,000 DISH TV subscribers and 80,000 SLING TV subscribers during the quarter. EchoStar attributed the larger DISH TV net loss to higher churn and lower gross activations, while it attributed the smaller SLING TV net loss to higher activations and fewer disconnects. The filing said Pay-TV ARPU rose to $112.39, primarily reflecting a September 2025 programming price increase and higher advertising sales, partly offset by a mix shift toward lower-priced SLING TV services.
The filing said lower subscriber counts reduced Pay-TV service costs, while programming costs per subscriber increased because of contractual rate increases and renewals at higher rates. EchoStar said programming interruptions reduced programming costs per subscriber during the quarter, and the company said future costs would continue to face upward pressure from price increases and contract renewals on less favorable terms. The filing also attributed lower DISH TV activations to lower marketing spending, lack of demand, changing consumer behavior and competitive offers.
Ergen said Boost Mobile was slightly cash positive during the quarter but lost subscribers. He said EchoStar would prioritize investment in its businesses and other opportunities before returning capital through buybacks or dividends, while noting restrictions on some buybacks. Ergen said the board increased the share-repurchase authorization to up to $5.0 billion. When asked about a possible transaction involving DISH and DirecTV, he said EchoStar had no preconceived structure and would consider one if the parties could agree on value or incentives.
When analysts asked about the expected wireless-bankruptcy timeline, Ergen said the confirmation hearing was scheduled for October 13 and that the company expected the process could be completed in the fourth quarter. In discussing an estimated $5 billion to $7 billion range, Ergen said the range included wireless-network termination costs and could change because of litigation, other matters and power-company costs; he characterized the range as a best guess rather than formal guidance.
Guidance
Management guidance is not available in the supplied materials. On the call, Charlie Ergen referred to an estimated $5 billion to $7 billion range that includes wireless-network termination costs, but he said EchoStar did not normally give guidance and said the estimate should not be treated as guidance. Ergen said the range could be higher or lower because of variables including litigation and power-company costs.