EchoStar (ECHO) investor relations material

Executive summary

• Hughes Corporation filed for Chapter 11 bankruptcy, limited to Hughes entities, while DISH DBS and DISH Wireless also filed prepackaged Chapter 11 plans, resulting in deconsolidation and a $9.73 billion non-cash gain; operations continue as normal for unaffected subsidiaries.

• Q2 2026 revenue was $3.58 billion, down 4% year-over-year, with net income reaching $8.46 billion, driven by the deconsolidation gain; excluding the gain, net income would have been $49.46 million.

• Major structural changes included the deconsolidation of Pay-TV and most of the Other segment as of June 30, 2026, impacting reported results and segment performance.

• Significant transactions included a $20.25 billion spectrum sale to AT&T and a $20 billion spectrum sale agreement with SpaceX, with up to $11 billion in SpaceX stock.

• The company is focused on restructuring, prudent capital management, and leveraging assets such as Boost Mobile, video, spectrum holdings, and a SpaceX stake.

Financial highlights

• Q2 2026 revenue: $3.58 billion (down 4% year-over-year); operating income: $513 million (vs. $213 million loss in Q2 2025); adjusted OIBDA: $681.2 million (up from $279.6 million in Q2 2025).

• Net income for Q2 2026: $8.46 billion, primarily from the $9.73 billion deconsolidation gain.

• Free cash flow for six months: $2.6 million; adjusted free cash flow: $416 million (includes $414 million SpaceX reimbursement).

• Cash, cash equivalents, and marketable securities at June 30, 2026: $1.55 billion, down from $3.16 billion at year-end.

• Total assets at June 30, 2026, were $39.4 billion; total liabilities were $25.2 billion.

Capital allocation and financing

• Board increased share buyback authorization to $5 billion, extended through December 2026, but actual buybacks are restricted by bond indentures.

• Major debt repayments and redemptions in 2026, including $1.6 billion term loan and $3.5 billion senior secured notes; $2.844 billion and $4.767 billion intercompany loans extinguished with AT&T transaction proceeds.

• Cash paid for interest improved by $270 million year-over-year, aided by SpaceX interim debt service payments.

• Purchases of property and equipment for the first half of 2026 totaled $225.7 million.

• HSSC faces $627 million and $750 million note maturities in August 2026; refinancing or restructuring needed.