SATS 3Q25 Quick Take: Key topics for the call will be taxes, towers, and SpaceX sale
Echostar’s subscriber results were better than expected but financial results were weaker. They announced the sale of their unpaired AWS-3 spectrum to SpaceX for $2.6BN in stock. We did not attach any material value to this spectrum, so the sale represents windfall upside for the stock. Investors are asking if we believe the impairment charge taken this quarter, partially allocated to spectrum, following the decision to shutter the facilities-based wireless business represents a reduction in the assumed market value of retained spectrum (700MHz, AWS-3, etc.). We do not. It is a GAAP accounting issue that needn’t necessarily tie to a presumed multi-bidder, fair market value. We would point investors to pages 10 and 11 of the 10-Q where they explain the reasoning behind the impairment.EchoStar is a holding company. Through its subsidiaries, the company is a global provider of broadband satellite technologies, broadband internet services for home and small office customers, satellite operations and satellite services. The company operates in two business segments: Hughes, which provides broadband satellite technologies and broadband internet services and broadband network technologies, managed services, equipment, hardware, satellite services and communications solutions; and EchoStar Satellite Services, which uses certain of the company's owned and leased in-orbit satellites and related licenses to provide satellite service operations and satellite services.
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