Fri, May 9, 7:48 PM (6 days ago)
Hughes Satellite Systems Corporation (HUGH) reported its financial performance for the quarter ending March 31, 2025. The company experienced a decline in total revenue, which decreased by 3.7% to $366.1 million compared to $380 million in the same period last year. Service revenue dropped by 13.1% to $277.7 million, primarily due to lower sales of broadband services to North American and international consumer and enterprise customers. Equipment sales and other revenue increased by 46.1% to $88.4 million, driven by higher hardware sales to North American enterprise customers. Operating expenses saw a reduction of 4.2% to $406.3 million. Cost of services decreased by 6.7% to $159.1 million, while selling, general, and administrative expenses fell by 21.1% to $81.8 million. Depreciation and amortization expenses also decreased by 10.6% to $83.8 million. Despite these reductions, the company reported an operating loss of $40.2 million, a slight improvement from the $44.3 million loss in the previous year. Net income (loss) attributable to HSSC was $(48.4) million, a marginal improvement from $(45.6) million in the prior year. The company's cash position weakened, with cash and cash equivalents decreasing by $48.7 million to $157.1 million. The company's liquidity remains a concern, as it does not have sufficient cash to cover its 2026 debt maturities, necessitating refinancing or restructuring. Hughes continues to face significant challenges, including intense competition, technological advancements, and regulatory uncertainties. The company's strategic focus is on optimizing financial returns on its satellite portfolio and leveraging its expertise to find new commercial opportunities. The outlook remains uncertain, with potential risks related to satellite anomalies, supply chain disruptions, and changes in trade policies.