Key Highlights

  • USD 2.78 billion of Net Income was booked by EchoStar (NASDAQ:ECHO) in the third quarter of 2026, or USD 7.97 per diluted share, against a USD 12.78 billion loss a year earlier.
  • USD 3.11 billion was the gain from the AT&T Transactions in the quarter, plus a USD 439.2 million deconsolidation gain, both recorded outside operating income.
  • USD 1.13 billion of quarterly Revenue compared with USD 3.61 billion a year earlier, a decline of about 68.8% (simple arithmetic on the two figures).
  • USD 13.44 billion of cash and equivalents sat on the Balance Sheet at September 30, 2026, up from USD 1.88 billion at December 31, 2025.

Profit Built on Gains, Not on Operations

EchoStar (NASDAQ:ECHO) filed its Quarterly Report for the period ended September 30, 2026 on November 3, 2026. GAAP net income attributable to the company was USD 2.78 billion, or USD 7.97 per diluted share and USD 9.57 basic, compared with a net loss of USD 12.78 billion a year earlier. Operating Income was USD 147.8 million. The swing came from below that line: a USD 3.11 billion gain from the AT&T Transactions and a USD 439.2 million deconsolidation gain. Together they total USD 3.55 billion (simple arithmetic), which exceeds pre-tax income of USD 3.40 billion, so excluding them the quarter would show a small pre-tax loss of about USD 147 million on the same arithmetic.

A Much Smaller Revenue Base After Deconsolidation

Total revenue fell to USD 1.13 billion from USD 3.61 billion, with service revenue at USD 1.03 billion against USD 3.43 billion. The filing notes that period-over-period changes primarily resulted from the Deconsolidated Subsidiaries and the AT&T Transactions, meaning the comparison is not like for like. Operating income of USD 147.8 million equals about 13.1% of revenue (simple arithmetic). Depreciation and amortization shrank to USD 86.4 million from USD 391.3 million, and the prior-year quarter carried USD 16.48 billion of impairments and other charges, which explains that period's operating loss of USD 16.64 billion. Interest expense, net of amounts capitalized, was USD 312.2 million.

Cash Pile, Debt Paydown and Spectrum Value

Cash and cash equivalents rose to USD 13.44 billion from USD 1.88 billion. Current debt dropped to USD 14.1 million from USD 7.32 billion, and long-term debt and other obligations fell to USD 9.64 billion from USD 18.66 billion. Regulatory authorizations, which hold spectrum licenses, were carried at USD 17.12 billion against USD 34.55 billion at year-end, while total Assets fell to USD 36.31 billion. A USD 2.40 billion FCC Escrow now appears as both an asset and an obligation. Stockholders' Equity rose to USD 16.99 billion from USD 5.81 billion. The extract does not explain the terms of the AT&T Transactions, and such large one-time gains do not recur, so quarterly profit is not a guide to future earnings.

Where Things Stand

EchoStar (NASDAQ:ECHO) reached USD 2.78 billion of net income because of one-time gains, not because the Business became more profitable: revenue was USD 1.13 billion, operating income USD 147.8 million, and the AT&T Transactions and deconsolidation added USD 3.55 billion (simple arithmetic). The balance sheet is stronger, with USD 13.44 billion of cash and far less near-term debt, but the revenue base and spectrum assets are smaller. Investors will likely watch what the company does with the cash, the FCC escrow, and results in coming quarters without the gains.