Property and Equipment and Intangible Assets

6 Months Ended

Jun. 30, 2025

Property and Equipment and Intangible Assets

Property and Equipment and Intangible Assets

6.Property and Equipment and Intangible Assets

Property and Equipment

Property and equipment consisted of the following:


	Depreciable			As of
	Life			June 30,		December 31,
	(In Years)			2025		2024

				(In thousands)
Equipment leased to customers	2	-	5	$	941,313	$	1,005,750
Satellites	9	-	15		1,718,865		1,718,865
Furniture, fixtures, equipment and other	2	-	12		783,119		801,650
5G Network equipment (1)	3	-	15		5,672,959		5,382,706
Software and computer equipment	2	-	8		1,980,215		1,816,749
Buildings and improvements	5	-	40		335,995		334,213
Land		-			12,041		12,041
Construction in progress		-			1,498,158		1,544,726
Total property and equipment					12,942,665		12,616,700
Accumulated depreciation					(6,011,239)		(5,387,611)
Property and equipment, net (2)				$	6,931,426	$	7,229,089

(1)	Includes 5G Network assets acquired under finance lease agreements.

(2)	As of June 30, 2025 and December 31, 2024, there were no refunds and other receipts of purchases of property and equipment.

Depreciation and amortization expense consisted of the following:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024

	(In thousands)
Equipment leased to customers	$	27,217	$	34,707	$	59,942	$	71,573
Satellites		25,190		32,956		52,126		65,911
Buildings, furniture, fixtures, equipment and other		15,190		16,019		26,583		21,127
5G Network equipment		216,782		179,473		424,914		346,294
Software and computer equipment		100,970		87,845		201,978		168,514
Intangible assets and other amortization expense		3,436		40,110		6,923		84,765
Total depreciation and amortization	$	388,785	$	391,110	$	772,466	$	758,184

Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation and amortization expense related to satellites, equipment leased to customers, or our 5G Network equipment and software.

Activity relating to our asset retirement obligations, included in “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets, was as follows:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024

	(In thousands)
Balance, beginning of period	$	338,506	$	289,059	$	327,031	$	278,287
Liabilities incurred		1,188		4,651		4,885		8,959
Accretion expense		8,026		6,765		15,804		13,229
Balance, end of period	$	347,720	$	300,475	$	347,720	$	300,475

The corresponding assets, net of accumulated depreciation, related to asset retirement obligations were $209 million and $216 million as of June 30, 2025 and December 31, 2024, respectively.

Satellites

Pay-TV Segment. Our Pay-TV segment currently utilizes eight satellites in geosynchronous orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We also lease one satellite from a third party, Nimiq 5, which is accounted for as an operating lease.

As of June 30, 2025, our Pay-TV segment satellite fleet consisted of the following:


		Degree	Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar X	February 2006	110	N/A
EchoStar XI	July 2008	110	N/A
EchoStar XIV	March 2010	119	N/A
EchoStar XV (1)	July 2010	119	N/A
EchoStar XVI	November 2012	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A
EchoStar XXIII	March 2017	110	N/A

Under Construction:
EchoStar XXV	2026	110	N/A
EchoStar XXVI	2028	119	N/A

Leased from Other Third-Party:
Nimiq 5	September 2009	72.7	October 2029

(1)	During April 2025, the EchoStar XV satellite began the process of relocating from the 61.5 degree orbital location to the 119 degree orbital location. The relocation process was completed in July 2025.

As of April 2025, we no longer lease the Anik F3 satellite.

Satellites Under Construction

EchoStar XXV. On March 20, 2023, we entered into a contract with Maxar Space LLC for the construction of EchoStar XXV, a DBS satellite that is capable of providing service to the continental United States (“CONUS”) and is intended to be used at the 110 degree orbital location. During the fourth quarter of 2023, we entered into an agreement with Space Exploration Technologies Corp (“SpaceX”) for launch services for this satellite, which is expected to be launched during 2026. The EchoStar XXV contract was included in the Sale and Transfer of Assets to EchoStar on January 10, 2024. Subsequently, on May 2, 2024, the EchoStar XXV contract was included in the Orbital II Transfer from EchoStar and is recorded in “Property and equipment, net” on our Condensed Consolidated Balance Sheets. For the six months ended June 30, 2024, capital expenditures for EchoStar XXV totaled $66 million, which includes $19 million for capital expenditures incurred after May 2, 2024, which is included in “Purchases of property and equipment,” and $47 million for capital expenditures incurred between the Sale and Transfer of Assets to EchoStar on January 10, 2024 and May 2, 2024, which is included in “Other, net” within “Net cash flows from investing activities” on our Condensed Consolidated Statements of Cash Flows. See Note 12 for further information.

EchoStar XXVI. On May 15, 2025, we entered into a contract with Maxar Space LLC for the construction of EchoStar XXVI, a DBS satellite that is capable of providing service to the CONUS and is intended to be used at the 119 degree orbital location. EchoStar XXVI is expected to be launched during 2028.