Hughes Network Systems continues to report lower satellite broadband subscribers, citing competition from satellite competitors and other technologies.
Hughes reported broadband subscribers on Monday as part of EchoStar’s first quarter financials, reporting 681,000 broadband subscribers at the quarter end. This was a 20% decline year-over-year and a decline of 58 million subscribers sequentially.
Hughes enterprise backlog also dipped compared to last year. A year ago, the enterprise backlog was $1.6 billion, and it is now at $1.4 billion.
Hughes revenue declined 11% year-over-year to $330 million, with declines in both service revenue and equipment sales from the same time last year.
Overall, EchoStar reported a 5% revenue decrease year-over-year in the first quarter of 2026, reporting total revenue of $3.67 billion. The company’s pay-TV business saw a decline in subscribers, while its retail wireless increased subscribers.
Spectrum Sales and Going Concern
EchoStar did not hold a conference call to discuss results. Chairman Charlie Ergen previously said EchoStar will provide more of an update after the second quarter, as to how it plans to deploy the capital influx from the pending spectrum sales to SpaceX and AT&T.
In a 10-Q filing, EchoStar said the timing of completing the AT&T and SpaceX transactions “are not certain.”
The company also said the transfer of its AWS-4 and H-block licenses to SpaceX will occur in two steps, with one stage set to complete in the first half of this year, and it to finalize on or about November 30, 2027.
EchoStar also noted in its risk factors that until these transactions close, the company does not have the cash on hand or projected future cash flows to fund obligations over the next 12 months, including a “going concern” warning about the company’s ability to continue operations.
“Until the closing of these transactions, which are subject to receipt of government approvals and other customary conditions, funding is not deemed committed and because we do not currently have the necessary cash on hand and/or projected future cash flows or committed financing to fund our obligations for at least 12 months from the issuance of these condensed consolidated financial statements, substantial doubt exists about our ability to continue as a going concern,” EchoStar said in its 10-Q.
