EchoStar Corp. engages in the design, development, and distribution of digital set-top boxes and products for direct-to-home satellite service providers. It operates ...
EchoStar Corporation (Nasdaq: ECHO) is a global communications and content delivery company focused on connecting consumers and enterprises through satellite and related technologies. The company’s origins trace back to 1980, when it was founded by Charlie Ergen, Candy Ergen, and James DeFranco. Today, EchoStar is headquartered in Englewood, Colorado, and ...EchoStar Corporation (Nasdaq: ECHO) is a global communications and content delivery company focused on connecting consumers and enterprises through satellite and related technologies. The company’s origins trace back to 1980, when it was founded by Charlie Ergen, Candy Ergen, and James DeFranco. Today, EchoStar is headquartered in Englewood, Colorado, and operates through multiple business lines that map to both equipment and services delivered over communications networks.
Business model and segments: EchoStar’s operations are commonly described across three segments. The Pay-TV segment centers on delivering video services and the supporting hardware ecosystem, including digital set-top boxes and related products for direct-to-home satellite service providers. The Retail Wireless segment provides wireless services and a competitive portfolio of wireless devices, targeting retail distribution and customer acquisition in wireless connectivity markets. The Broadband and Satellite Services segment focuses on maintaining and improving leadership through technology and services marketed to consumer, enterprise, and government sectors globally, leveraging satellite and engineering capabilities to provide connectivity and communications solutions.
Products and services: EchoStar’s portfolio is best understood as a combination of communications technology (including user-premises and network-adjacent equipment such as set-top boxes) and connectivity offerings that extend from entertainment distribution to broadband and satellite-enabled services. The company’s emphasis on engineering, spectrum-related capabilities, and technology development supports its ability to serve multiple end markets.
Scale, costs, and operations: As a public company with roughly 12,100 full-time employees, EchoStar operates at large corporate and engineering scale. Like many telecommunications and satellite-services businesses, its cost structure is typically influenced by spectrum/asset utilization, network and satellite-related operations, hardware supply chains, and ongoing R&D and customer service requirements. From a financial perspective, profitability and cash generation can be volatile given capital intensity and the timing of network and product cycles (as reflected in financial metrics that can show negative margins and cash-flow measures in some periods).
Leadership and key people: Charlie Ergen, a co-founder of EchoStar, has served in top leadership roles, including CEO/Chairman positions. Leadership continuity is a notable feature of EchoStar’s history, with Ergen remaining a central figure in governance and strategic direction.
Wishes / strategic intent (high level): While specific internal plans are not provided here, EchoStar’s described segment strategies suggest a continued focus on (1) improving technology and customer value in video services, (2) expanding or sustaining competitive offerings in retail wireless, and (3) strengthening its position in broadband and satellite services through technology development and targeted go-to-market across consumer, enterprise, and government customers.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$15.0B
-5.2%
-2.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-14.5B
-12026.9%
+5861.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+25.8%
-28.2%
+11.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-0.6%
+68.4%
+61.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-96.6%
-12690.0%
+6008.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-1.1B
-264.5%
-197.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-7.1%
-284.5%
-200.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
537.8%
+264.2%
-76.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.42x
-70.1%
+1624.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the EchoStar Corporation Q2 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Jeff Blum, Acting Chief Legal Officer and Secretary. Thank you. You may begin.
Jeffrey Blum: Good afternoon. I'm here with Charlie Ergen; Paul Orban, our CFO; and John Swieringa, our COO. We will begin with opening remarks from Charlie, followed by a question-and-answer session. We ask that any participant producing a report not identify other participants or their firms in such reports. We also do not allow audio recordings. All statements we make during this call other than statements of historical fact, constitute forward-looking statements made pursuant to the safe harbor provided by the Securities Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to be materially different from historical results and from any future results expressed or implied by the forward-looking statements. For a list of those factors and risks, please refer to our annual report on Form 10-K for the fiscal year ended December 31, 2025, our 10-Q filed today and our subsequent filings made with the SEC. This information and supplemental materials relating to today's call will be posted on our Investor Relations website. All cautionary statements we make during the call should be understood as being applicable to any forward-looking statements we make wherever they appear. You should carefully consider the risks described in our reports and should not place any undue reliance on any forward-looking statements. We assume no responsibility for updating any forward-looking statements. We refer to OIBDA and free cash flow during this call. The comparable GAAP measure and a reconciliation for OIBDA is presented in our earnings release and in the case of free cash flow in our Form 10-Q as filed today with the SEC. With that, I'll turn it over to Charlie.
Charles Ergen: Thank you, Jeff. We're just going to take questions. But before we take questions, I just want to give a few opening comments. As you all know, August 1, we had a $1.5 billion bond maturity for Hughes Corporation. We had discussions with the bondholders, but weren't able to come up with a workable solution. So we filed Chapter 11 bankruptcy this morning for Hughes. I want to make just a couple of points on that. One is this filing is strictly limited to the Hughes entities. It does not include EchoStar Corporation, our other non-Hughes subsidiaries or even Hughes international entities. Second, we have first day motions this afternoon in front of the court to ensure that Hughes continues to operate in normal course of business. And that means we're paying our employees, we're delivering for customers and channel partners as usual, and we expect to fulfill all ongoing forward commitments to our vendors. And …