EchoStar Corporation (ECHO) Cash Flow Statement

The OCF/NI ratio of 0.03 in 2026Q2 starkly contrasts with the prior quarter's -1.62, indicating that the reported profit is not translating into cash. This divergence likely stems from large non-cash gains or impairments, as seen in the $1.4B negative D&A in 2025Q4. Investors should monitor whether future cash flows can align with reported earnings, as the gap suggests potential earnings volatility.

Despite a positive FCF of $104.8M in 2026Q1, the overall trajectory is unstable, with FCF margins swinging from -19.8% to 8.6%. The company's capital expenditures consistently outpace operating cash flow, suggesting that EchoStar is investing heavily without commensurate cash returns. This pattern implies that the company may need to rely on external financing or asset sales to fund its operations.

The CapEx/Revenue ratio has ranged from 3.6% to 12.9%, with the most recent quarter at 6.3%. This suggests that EchoStar is investing in network infrastructure or spectrum, but the lack of consistent positive FCF implies that these investments are not yet yielding sufficient returns. The elevated capital intensity may continue to strain cash flows, especially if revenue growth remains elusive.

The large positive working capital change in 2026Q1 contributed to the quarter's positive OCF, but the subsequent quarter saw a smaller positive change, suggesting that the company may be stretching payables or collecting receivables unevenly. This volatility makes it difficult to predict future cash flows and may indicate operational inefficiencies or changing terms with customers and suppliers.

The absence of dividends and minimal buybacks suggests that EchoStar is prioritizing debt reduction or capital expenditures over returning cash to shareholders. The $442.0M buyback in 2024Q1 was an outlier, and the company has since refrained from such activity. This conservative deployment may be prudent given the negative FCF, but it also signals limited confidence in generating excess cash.

This cumulative gap indicates that accounting losses are not fully reflected in cash outflows, likely due to non-cash impairments and depreciation. However, the positive cumulative OCF suggests that the underlying business can generate some cash, but it is insufficient to cover capital expenditures, leading to a cumulative FCF deficit of over $1.5B. This divergence underscores the need for investors to focus on cash flow metrics rather than net income when assessing EchoStar's financial health.