Hughes Satellite Systems Corp

CIK:0001533758|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Revenue:
Total revenue	$ 324,914	$ 366,064
Costs and Expenses (exclusive of depreciation and amortization):
Selling, general and administrative expenses	59,153	81,795
Depreciation and amortization	43,315	83,801
Total costs and expenses	308,053	406,251
Operating income (loss)	16,861	(40,187)
Other Income (Expense):
Interest income	1,689	2,500
Interest expense, net of amounts capitalized	(26,365)	(25,659)
Other, net (Note 4)	1,352	1,750
Total other income (expense)	(23,324)	(21,409)
Income (loss) before income taxes	(6,463)	(61,596)
Income tax (provision) benefit, net	(1,216)	12,556
Net income (loss)	(7,679)	(49,040)
Less: Net income (loss) attributable to noncontrolling interests	(370)	(645)
Net income (loss) attributable to HSSC	(7,309)	(48,395)
Comprehensive Income (Loss):
Net income (loss)	(7,679)	(49,040)
Other comprehensive income (loss):
Foreign currency translation adjustments	871	12,439
Unrealized holding gains (losses) on available-for-sale debt securities		(4)
Recognition of previously unrealized (gains) losses on available-for-sale debt securities included in net income (loss)		3
Total other comprehensive income (loss), net of tax	871	12,438
Comprehensive income (loss):	(6,808)	(36,602)
Less: Comprehensive income (loss) attributable to noncontrolling interests	(76)	1,156
Comprehensive income (loss) attributable to HSSC	(6,732)	(37,758)
Service revenue
Revenue:
Total revenue	249,491	277,701
Costs and Expenses (exclusive of depreciation and amortization):
Cost of sales	134,795	159,069
Equipment sales and other revenue
Revenue:
Total revenue	75,423	88,363
Costs and Expenses (exclusive of depreciation and amortization):
Cost of sales	$ 70,790	$ 81,586

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Cash Flows From Operating Activities:
Net income (loss)	$ (7,679)	$ (49,040)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization	43,315	83,801
Realized and unrealized losses (gains) and impairments on investments and other	0	(3)
Non-cash, stock-based compensation	2,914	2,961
Deferred tax expense (benefit)	(1,561)	(25,251)
Equity in (earnings) losses of affiliates	(389)	403
Changes in allowance for credit losses	(2,716)	1,112
Foreign currency transaction losses (gains), net	(1,088)	(2,135)
Amortization of debt issuance costs	243	229
Noncurrent assets and noncurrent liabilities, net	(3,090)	(21,768)
Other, net	0	(195)
Changes in operating assets and operating liabilities, net:
Trade accounts receivable and contract assets, net	27,833	(9,500)
Other current assets	(811)	(3,695)
Trade accounts payable	4,551	(715)
Contract liabilities	(10,725)	10,145
Accrued expenses and other liabilities	(51,796)	17,415
Net cash flows from operating activities	(999)	3,764
Cash Flows From Investing Activities:
Purchases of marketable investment securities	0	(21,269)
Sales and maturities of marketable investment securities	0	2,000
Purchases of property and equipment (Note 6)	(11,610)	(31,648)
Expenditures for externally marketed software	(3,953)	(5,752)
Dividend received from unconsolidated affiliate	2,002	1,000
Other, net	17	(184)
Net cash flows from investing activities	(13,544)	(55,853)
Cash Flows From Financing Activities:
Payment of in-orbit incentive obligations	(3,343)	(2,781)
Other, net	883	4,453
Net cash flows from financing activities	(2,460)	1,672
Effect of exchange rates on cash and cash equivalents	(228)	1,701
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents	(17,231)	(48,716)
Cash and cash equivalents, including restricted amounts, beginning of period (Note 4)	121,520	205,813
Cash and cash equivalents, including restricted amounts, end of period (Note 4)	$ 104,289	$ 157,097

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 101,628	$ 118,765
Trade accounts receivable and contract assets, net of allowance for credit losses of $14,843 and $17,559, respectively	286,730	311,723
Prepaids and other assets	65,479	62,018
Inventory	186,180	182,401
Other current assets	63,694	72,511
Total current assets	703,711	747,418
Noncurrent Assets:
Property and equipment, net	420,660	442,203
Operating lease assets	298,062	313,066
Intangible assets, net	3,833	4,118
Other investments	19,439	22,144
Deferred tax assets	220,776	220,589
Other noncurrent assets, net	237,139	247,704
Total noncurrent assets	1,199,909	1,249,824
Total assets	1,903,620	1,997,242
Current Liabilities:
Trade accounts payable	93,652	90,258
Contract liabilities	65,855	76,580
Accrued interest	20,476	38,613
Accrued compensation	26,165	39,423
Accrued expenses	61,632	61,713
Operating lease liabilities	180,054	176,615
Other current liabilities	36,187	43,827
Current portion of debt and other notes payable (Note 8)	1,510,174	1,508,730
Total current liabilities	1,994,195	2,035,759
Long-Term Obligations, Net of Current Portion:
Long-term debt and other notes payable, net of current portion (Note 8)	23,390	27,129
Operating lease liabilities, noncurrent	675,763	708,958
Other noncurrent liabilities	66,783	78,013
Total long-term obligations, net of current portion	765,936	814,100
Total liabilities	2,760,131	2,849,859
Commitments and Contingencies (Note 9)
Stockholder's Equity (Deficit):
Common stock, $0.01 par value, 1,000,000 shares authorized, 1,078 shares issued and outstanding at both March 31, 2026 and December 31, 2025	0	0
Additional paid-in capital	1,507,278	1,504,364
Accumulated other comprehensive income (loss)	(168,129)	(168,706)
Accumulated earnings (deficit)	(2,239,502)	(2,232,193)
Total HSSC stockholder's equity (deficit)	(900,353)	(896,535)
Noncontrolling interests	43,842	43,918
Total stockholder's equity (deficit)	(856,511)	(852,617)
Total liabilities and stockholder's equity (deficit)	$ 1,903,620	$ 1,997,242