SATS

Don't read the headline loss literally. FY2025 net income of -$14.5B and operating income of -$17.7B are impairment-driven, not cash-driven: operating cash flow was only -$99.4M. The MD&A explains why — after the FCC's 2025 review deemed EchoStar's spectrum underutilized and forced a sale, the company began 'the abandonment and decommission process for certain portions of our 5G Network' in August 2025, writing down the assets that once represented the entire bull case. So the real question isn't the -$50.41 EPS; it's whether the remaining pieces are worth more than the $29.2B market cap after the balance sheet is cleaned up.

The offset is concrete and large: the AT&T License Purchase Agreement sells the 3.45 GHz and 600 MHz licenses for $22.65B cash (with a $18.6B minimum EchoStar can walk below), plus separate SpaceX Transactions for cash and an equity amount. Against a heavily levered balance sheet — $37.2B total liabilities, equity down 71% to $5.77B, and a liabilities/equity of 6.45x — that inflow is the whole thesis: it's a forced de-levering, not growth. Meanwhile the surviving core, Pay-TV, still threw off $2.425B of segment operating income in 2025 even as it shrank, so there is a real, cash-generative business underneath.