EchoStar Corporation (NASDAQ: SATS) closed at $24.19 on May 9, gaining 1.43% after reporting mixed first-quarter 2025 results.

The company posted revenue of $3.9 billion, down 3.6% from last year, mainly dragged by declines in its Pay-TV segment. However, management highlighted solid wireless growth and improved cash flow, positioning SATS to navigate ongoing market pressures

EchoStar Corporation (NASDAQ:SATS) closed at $24.19 on May 9, gaining 1.43% after reporting mixed first-quarter 2025 results that saw revenue decline but wireless momentum continue.

The company's stock had recently enjoyed a strong run-up, notching a year-to-date return of 5.63% and a staggering 54.96% return over the past twelve months. In comparison, the S&P 500 has seen a YTD return of -3.77%, while its longer-term five-year return stands at -21.23%.

Here's a closer look at EchoStar's earnings report for the first quarter of 2025:

The Good: Wireless Momentum Continues with Subscriber Adds

EchoStar's wireless segment continues to be a bright spot, performing well despite macroeconomic headwinds. The company reported adding 150,000 net subscribers during the quarter, a strong turnaround from the 81,000 net loss in the same period last year.

This was also a decent increase compared to last quarter's 100,000 net subscriber additions. The company's expanded prepaid and postpaid offerings appear to be paying off, boosting both subscriber quality and churn rates.

EchoStar's report arrives amid a backdrop of mixed earnings reports from U.S. telecoms. Verizon (NYSE:VZ) and AT&T (NYSE:T) reported better-than-expected results, while T-Mobile (NASDAQ:TMUS) missed revenue expectations despite strong subscriber additions.

The company's 5G infrastructure rollout also hit a milestone, with over 24,000 network sites now live, surpassing FCC requirements ahead of schedule. This network expansion is a key part of EchoStar's strategy to strengthen its competitive positioning in the U.S. wireless market.

The Bad: Pay-TV Revenue Shrinks Further

Despite the positive developments on the wireless front, EchoStar's Pay-TV segment continues to shrink, reporting a 6.9% decrease in revenue from last year. This decline was driven by a decreasing average subscriber base.

EchoStar's DISH TV service had around 5.5 million subscribers at the end of the quarter, and while churn improved to 1.36% from 1.53% last year, reaching the lowest level in a decade, it is still a concern given the highly competitive Pay-TV landscape. Pay-TV ARPU saw a modest year-over-year lift of 3%.

Broadband and satellite services (BSS) revenue slipped by 3.1% to $371 million, reflecting softer sales in both consumer and enterprise markets.

The Ugly: Operating Free Cash Flow Remains Negative

On the cash flow front, operating free cash flow came in at a positive $77 million, showcasing effective cost control and contributions from wireless and enterprise businesses. However, when factoring in debt service, free cash flow remained negative at $172 million, although this was an improvement of $55 million compared to the prior year.

Capital expenditures totaled $378 million in Q1, including capitalized interest, reflecting ongoing investment in the 5G buildout and network upgrades. Total cash and marketable securities dropped to $5.4 billion, down $464 million from year-end.

Overall, EchoStar's earnings report highlights the mixed performance of the company's various business units. While wireless momentum is a positive takeaway, the Pay-TV headwinds and persistent cash flow challenges pose concerns for investors. As the company heads toward its next earnings report in August, investors will be watching closely to see if wireless strength can translate into sustained cash flow improvement and drive further gains in SATS stock.