EchoStar CORP
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
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Sep 30, 2026 · Filed Nov 3, 2026
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Item 1A. Risk Factors
Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2025 includes a detailed discussion of our risk factors. The information presented below updates, and should be read in conjunction with, the risk factors and information disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
We are subject to risks and uncertainties associated with the Chapter 11 bankruptcy proceedings of certain of our subsidiaries.
On June 30, 2026, our subsidiary DISH DBS Corporation and certain of its subsidiaries (the “DISH DBS Filing Entities”), including DISH Wireless L.L.C. and its subsidiaries (the “DISH Wireless Filing Entities,” and together with the DISH DBS Filing Entities, the “DISH Filing Entities”), commenced voluntary cases under chapter 11 of title 11 of the United States Code (the “DISH Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”), to pursue confirmation of a joint prepackaged chapter 11 plan, which restructures certain liabilities of the DISH Filing Entities pursuant to the terms of the Restructuring Support Agreement dated March 19, 2026 (the “RSA”). Following the commencement of the DISH Chapter 11 Cases, the DISH Filing Entities bifurcated their prepackaged plan into separate plans for the DISH DBS Filing Entities and the DISH Wireless Filing Entities. On September 29, 2026, the Bankruptcy Court entered an order confirming the DISH DBS Filing Entities’ chapter 11 plan. On October 1, 2026, all of the conditions precedent to the effective date of the DISH DBS Filing Entities’ chapter 11 plan were satisfied or waived in accordance with the terms of the such plan, and the DISH DBS Filing Entities emerged from bankruptcy. The chapter 11 cases of the DISH Wireless Filing Entities remain pending.
On August 2, 2026, our subsidiary Hughes Satellite Systems Corporation (“HSSC”) and certain of its U.S. subsidiaries, including Hughes Network Systems, LLC (the “Hughes Filing Entities”) commenced voluntary cases under chapter 11 of the Bankruptcy Code (the “Hughes Chapter 11 Cases” and, together with the DISH Chapter 11 Cases, the “Chapter 11 Cases”) in the Bankruptcy Court to pursue confirmation of a plan of reorganization. In addition, the board of directors of HSSC established a special committee (the "HSSC Special Committee"), to which it delegated exclusive authority over matters determined by the HSSC board or the HSSC Special Committee to be conflict matters.
The DISH Wireless Filing Entities and the Hughes Filing Entities are engaged in ongoing negotiations with their respective stakeholders with the objective of formulating, soliciting, and obtaining Bankruptcy Court approval of chapter 11 plans that achieve their restructuring objectives. EchoStar Corporation is not a debtor in the Chapter 11 Cases, and certain subsidiaries and operating brands are not included in the proceedings. Nevertheless, the Chapter 11 Cases could have a material adverse effect on our business, financial condition, results of operations, liquidity and prospects.
These specific risks include, but are not limited to, the following:
| ● | Chapter 11 Plan confirmation, timing and execution risks: Chapter 11 plans for the DISH Wireless Filing Entities and the Hughes Filing Entities remain subject to ongoing negotiations with creditors and other stakeholders. Once formulated, these plans must be approved by the Bankruptcy Court. Objections by creditors, failure to satisfy conditions to confirmation or effectiveness, appeals, or other legal or procedural developments, could in each case delay or prevent confirmation or emergence from chapter 11 on a timely basis or at all, which would exacerbate the risks described below. |
| ● | Potential parent-level claims and financial exposure: Although the pending Chapter 11 Cases are limited to the DISH Wireless Filing Entities and the Hughes Filing Entities, and EchoStar Corporation is not a debtor, certain creditors have asserted and are seeking or may in the future seek standing to file and prosecute, on behalf of the Filing Entities’ estates, claims or causes of action against EchoStar or its non-debtor subsidiaries. If any such claims are successful, our business, financial condition and liquidity could be materially adversely impacted. In addition, certain creditors have filed an alternative plan regarding the Hughes Filing Entities and in the event these creditors are successful in implementing their alternative plan, we could face, in addition to the risks described herein, additional negative impacts and the loss of control of the Hughes Entities. We cannot predict with any certainty how any individual creditor or group of creditors tactics may impact the Chapter 11 Cases. |
| ● | Operational, asset and counterparty risks: The Chapter 11 Cases are intended to facilitate a rapid and orderly transition of the legacy DISH Wireless business infrastructure, including decommissioning of our facilities-based 5G network, and the Hughes Filing Entities’ Chapter 11 Cases are intended to pivot and reorient the Hughes Filing Entities toward its enterprise and government businesses while continuing to service its existing direct-to-consumer business. The pendency of the Chapter 11 Cases, including the need for Bankruptcy Court authority to use property of the Filing Entities’ estates outside the ordinary course of business, and the HSSC Special Committee’s exclusive authority over conflict matters relating to the Hughes Filing Entities, could adversely affect our ability to preserve, monetize or otherwise realize value from the assets or operations of the Filing Entities or their subsidiaries or impact our flexibility in operating certain of our businesses. In addition, the Chapter 11 Cases may disrupt relationships with vendors, customers, regulators and other counterparties, may reduce vendor confidence, make it harder for us to attract new customers and contribute to customer churn across active businesses, and make it more difficult to attract and retain employees. Consummation of chapter 11 plans for the Filing Entities will require the devotion of management attention, and expenses related to the Chapter 11 Cases could be higher than anticipated. |
| ● | Consolidated financial condition, debt and capital markets risks: The Chapter 11 Cases and our broader consolidated debt burden could materially adversely affect our liquidity, credit profile, access to capital and the market price of our securities. As a result, an investment in our securities may be highly speculative and subject to significant volatility. |
| ● | Deconsolidation Risks. As a result of the Chapter 11 Cases, we deconsolidated the June 2026 Deconsolidated Subsidiaries effective June 30, 2026 and the July 2026 Deconsolidated Entities effective July 31, 2026. Beginning with the third quarter of 2026, the operating results of the Deconsolidated Subsidiaries, which constitute a substantial portion of our businesses and substantially all of our expenses for our Other segment, were no longer included in our consolidated results of operations, although the DISH DBS Deconsolidated Subsidiaries were reconsolidated into our financial statements as of October 1, 2026. Our reported results will be materially different than in prior periods, and comparisons with our historical financial performance will be more difficult. |
We Use AI Technologies in Our Business, and the Use of These Technologies Involves, among other things, Certain Technological and Legal Risks.
We use artificial intelligence and machine learning technologies (collectively, “AI Technologies”) across our business, with AI Technologies integrated into most functions performed by our business units. Our use of, and investments in, AI Technologies may not produce the expected benefits on our anticipated timeline or at all. Flawed design, poor quality or improperly licensed data, inadequate oversight, defects, cybersecurity threats (including offensive use of AI Technologies) or other negative results, could impair our networks and services, cause errors in our regulatory filings, contracts, financial reporting and business decisions, harm our reputation or expose us to civil claims and other liability.
Our use of AI Technologies in our Pay-TV, Wireless, Broadband and Satellite Services and Other segments and internal processes is still developing and may not succeed. We also depend on third-party AI Technologies and infrastructure whose availability, pricing and terms we cannot control, and any disruption could harm our operations, services and reputation.
The regulatory framework for AI Technologies is evolving and uncertain, including federal efforts to challenge or preempt state AI laws and new AI laws enacted or under consideration in a number of states. New laws, or the application of existing communications, telemarketing, data privacy, competition and consumer protection laws, could limit our use of AI Technologies or increase our costs, and any actual or perceived noncompliance could result in litigation, enforcement actions, reputational harm and penalties, any of which could have a material adverse effect on our business, financial condition and results of operations.
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