Fri, May 9, 10:12 AM (14 days ago)
### Summary of EchoStar Corporation's Q1 2025 Financial Performance **Ticker:** SATS **Quarterly Financial Health:** - **Revenue:** $3.87 billion, a 3.6% decrease from Q1 2024. - **Net Loss:** $203.3 million, an increase in net loss of $94.9 million compared to Q1 2024. - **Operating Loss:** $88.1 million, an increase in operating loss of $72.9 million compared to Q1 2024. **Profit Margins:** - **Operating Margin:** -2.3% (Operating loss of $88.1 million on $3.87 billion in revenue). - **Net Margin:** -5.25% (Net loss of $203.3 million on $3.87 billion in revenue). **Cash Flow:** - **Operating Cash Flow:** $206.8 million, a decrease of $244.5 million compared to Q1 2024. - **Investing Cash Flow:** -$1.66 billion, a decrease of $1.43 billion compared to Q1 2024. - **Financing Cash Flow:** -$331.8 million, an increase of $1.09 billion compared to Q1 2024. **Earnings Changes:** - **EPS:** -$0.71, a decrease of $0.31 compared to Q1 2024. **Quarterly Performance Discussion:** - **Pay-TV Segment:** Revenue decreased by 6.9% due to a lower average Pay-TV subscriber base, partially offset by an increase in Pay-TV ARPU. Operating income decreased by 2.5% due to a decrease in revenue and an increase in costs. - **Wireless Segment:** Revenue increased by 6.4% due to an increase in Wireless ARPU and a higher average Wireless subscriber base. Operating loss increased by 12.0% due to an increase in costs. - **Broadband and Satellite Services Segment:** Revenue decreased by 3.1% due to a decrease in service revenue and equipment sales and other revenue. Operating loss decreased by 51.5% due to a decrease in costs. **Trends:** - **Pay-TV Segment:** The Pay-TV subscriber base has been declining due to cord-cutting, shifting consumer behavior, and increased competitive pressures. Programming costs represent a large percentage of costs and are expected to continue increasing. - **Wireless Segment:** The Wireless subscriber base has been growing due to competitive offers, choice, and outstanding customer service. However, the segment faces intense competition and regulatory uncertainties. - **Broadband and Satellite Services Segment:** The segment faces increased competition from satellite-based competitors and other technologies. The segment's revenue is primarily derived from Broadband subscriber revenue, broadband services revenue, and communications equipment sales and leases. **Uncertainties:** - **Pay-TV Segment:** The segment's future depends on the ability to obtain desirable programming and deliver it to subscribers at competitive prices. The segment also faces intense competition and regulatory uncertainties. - **Wireless Segment:** The segment's future depends on the ability to complete all build-out requirements or profitably deploy Wireless spectrum licenses. The segment also faces intense competition and regulatory uncertainties. - **Broadband and Satellite Services Segment:** The segment's future depends on the ability to maintain and improve its leadership position and competitive advantage. The segment also faces intense competition and regulatory uncertainties. **Future Operations Impact:** - **Pay-TV Segment:** The segment's future operations will depend on the ability to obtain desirable programming and deliver it to subscribers at competitive prices. The segment also faces intense competition and regulatory uncertainties. - **Wireless Segment:** The segment's future operations will depend on the ability to complete all build-out requirements or profitably deploy Wireless spectrum licenses. The segment also faces intense competition and regulatory uncertainties. - **Broadband and Satellite Services Segment:** The segment's future operations will depend on the ability to maintain and improve its leadership position and competitive advantage. The segment also faces intense competition and regulatory uncertainties.