UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED ~~SEPTEMBER~~MARCH 3031, ~~2024~~2025.


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO______.

Commission File Number: 333-31929

DISH DBS Corporation

(Exact name of registrant as specified in its charter)


Colorado	84-1328967
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9601 South Meridian Boulevard
Englewood, Colorado	80112
(Address of principal executive offices)	(Zip code)

(303) 723-1000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (Note: The registrant is a voluntary filer of reports under Section 13 or 15(d) of the Securities Exchange Act of 1934.) Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ◻		Accelerated filer ◻

Non-accelerated filer ⌧		Smaller reporting company ☐

		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of ~~November~~May 19, ~~2024~~2025, the registrant’s outstanding common stock consisted of 1,015 shares of common stock, $0.01 par value per share.

The registrant meets the conditions set forth in General Instructions (H)(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format.

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TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION

	Disclosure Regarding Forward-Looking Statements	i

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets	1

	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	2

	Condensed Consolidated Statements of Changes in Stockholder’s Equity (Deficit)	3

	Condensed Consolidated Statements of Cash Flows	4

	Notes to Condensed Consolidated Financial Statements	5

Item 2.	Management’s Narrative Analysis of Results of Operations	4539

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	*

Item 4.	Controls and Procedures	6351

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	6351

Item 1A.	Risk Factors	6451

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	*

Item 3.	Defaults Upon Senior Securities	*

Item 4.	Mine Safety Disclosures	None

Item 5.	Other Information	None

Item 6.	Exhibits	6852

	Signatures	6953

*	This item has been omitted pursuant to the reduced disclosure format as set forth in General Instructions (H)(2) of Form 10-Q.

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PART I — FINANCIAL INFORMATION

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Unless otherwise required by the context, in this report, the words “DISH DBS,” “DDBS,” the “Company,” “we,” “our” and “us” refer to DISH DBS Corporation and its subsidiaries, “DISH Network” refers to DISH Network Corporation, our parent company, and its subsidiaries, including us, and “EchoStar” refers to EchoStar Corporation and its subsidiaries, our ultimate parent company.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, in particular, statements about our plans, objectives and strategies, growth opportunities in our industries and businesses, our expectations regarding future results, financial condition, liquidity and capital requirements, our estimates regarding the impact of regulatory developments and legal proceedings, and other trends and projections. Forward-looking statements are not historical facts and may be identified by words such as “future,” “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “estimate,” “expect,” “predict,” “will,” “would,” “could,” “can,” “may,” and similar terms. These forward-looking statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. Accordingly, actual performance, events or results could differ materially from those expressed or implied in the forward-looking statements due to a number of factors, including, but not limited to, those summarized below:

SUMMARY OF RISK FACTORS

Risks Relating to the DIRECTV Transaction

● We are subject to a number of risks while the DIRECTV Transaction is pending, which may have an adverse effect on our business, financial condition and results of operations.

Risks Related to the Integration

● Although we expect that the Merger will result in synergies and other benefits, those synergies and benefits may not be realized in the amounts anticipated, or may not be realized within the expected timeframe, or at all, and risks associated with the foregoing may also result from any extended delay in the Integration.

Competition and Economic Risks

●

We face intense and increasing competition from providers of video, broadband and/or wireless services. Changing consumer behavior and new technologies in our Pay-TV business may reduce our subscriber activations and may cause our subscribers to purchase fewer services from us or to cancel our services altogether, resulting in less revenue to us.

●

Our pay-TV competitors may be able to leverage their relationships with programmers to reduce their programming costs and/or offer exclusive content that will place them at a competitive advantage to us.

●

If we are unable to take advantage of technological developments on a timely basis, or at all, we may experience a decline in demand for our services or face challenges in implementing or evolving our business strategy.

Operational and Service Delivery Risks

●

Any deterioration in our operational performance, subscriber activations and churn rate and subscriber satisfaction could adversely affect our business, financial condition and results of operations.

●

We depend on others to provide the programming that we offer to our Pay-TV subscribers and, if we fail to obtain or lose access to certain programming, our Pay-TV subscriber activations and our subscriber churn rate may be negatively impacted.

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●

We have limited satellite capacity and any failures or reduced capacity, caused by, among other things, operational and environmental risks, could adversely affect our business, financial condition and results of operations.

●

Extreme weather may result in risk of damage to our infrastructure and therefore our ability to provide services, and may lead to changes in federal, state and foreign government regulation, all of which could materially and adversely affect our business, results of operations and financial condition.

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●

We currently depend on DISH Network to provide the vast majority of our satellite transponder capacity and other related services to us. Our business would be adversely affected if DISH Network ceases to provide these services to us and we are unable to obtain suitable replacement services from third parties.

●

We rely on a single vendor or a limited number of vendors to provide certain key products or services to us, and the inability of these key vendors to meet our needs could have a material adverse effect on our business.

●

Changes in trade policies, including, but not limited to, tariffs and other restrictions, could increase, among other things, our costs, disrupt our supply chain and negatively affect our business, operations and financial condition.

●

We depend on independent third parties to solicit orders for our services that represent a meaningful percentage of our total gross new subscriber activations.

Risks Related to our Human Capital

●

We rely on highly skilled personnel for our business, and any inability to hire and retain key personnel or to hire qualified personnel may negatively affect our business, financial condition and results of operations.

●

Our business growth and customer retention strategies rely in part on the work of technically skilled employees.

Risks Related to our Products and Technology

●

Our business depends on certain intellectual property rights and on not infringing the intellectual property rights of others.

●

We are, and may become, party to various lawsuits which, if adversely decided, could have a significant adverse impact on our business, particularly lawsuits regarding intellectual property.

●

If our products contain defects, we could be subject to significant costs to correct such defects and our product and network service contracts could be delayed or cancelled, which could adversely affect our revenue.

Risks Related to Cybersecurity

●

We have experienced and may experience in the future consistent cyber-attacks and attempts to gain unauthorized access to our systems and any failure or inadequacy of our information technology infrastructure and communications systems or those of third parties that we use in our operations could disrupt or harm our business.

~~● The confidentiality, integrity, and availability of our services and products depends on the continuing operation of our information technology and other enabling systems.~~

●

The confidentiality, integrity and availability of our services and products depends on the continuing operation of our information technology and other enabling systems.

Acquisition and Capital Structure Risks

●

We have substantial debt outstanding and may incur additional debt and covenants in our Indentures could limit our ability to undertake certain types of activities and adversely affect our liquidity.

● We may pursue acquisitions, dispositions, capital expenditures, the development, acquisition and launch of new satellites and other strategic initiatives to complement or expand our business, which may not be successful and we may lose a portion or all of our investment in these acquisitions and transactions.

● Our ultimate parent, EchoStar, has made substantial investments to acquire certain wireless spectrum licenses and other related assets, and we have made and may continue to make funds available to EchoStar or, our parent, DISH Network in the form of cash distributions or loans in connection with the development of EchoStar’s wireless business.

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●

We may pursue acquisitions, dispositions, capital expenditures, the development, acquisition and launch of new satellites and other strategic initiatives to complement or expand our business, which may not be successful and we may lose a portion or all of our investment in these acquisitions and transactions.

●

Our parent, DISH Network, has made substantial investments to acquire certain wireless spectrum licenses and other related assets, and we have made and may continue to make funds available to DISH Network in the form of cash distributions or loans in connection with the development of DISH Network’s wireless business.

●

Our Senior Secured Notes (defined herein) are subordinated to our existing unsecured notes and certain future unsecured notes with respect to certain realizations under the Intercompany Loan (defined herein) and any collateral pledged as security therefor.

● We may need additional capital, which may not be available on favorable terms, to fund current obligations, to continue investing in our business and to finance acquisitions and other strategic transactions.

●

We will need additional capital, which may not be available on favorable terms or at all, to fund current obligations, to continue investing in our business and to finance acquisitions and other strategic transactions.

●

Our ultimate parent, EchoStar, is controlled by one principal stockholder, who is also our Chairman.

Risks Related to the Regulation of Our Business

●

Our services depend on FCC licenses that can expire or be revoked or modified and applications for FCC licenses that may not be granted.

Other factors that could cause or contribute to such differences include, but are not limited to, those discussed under the caption “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q and in Part I, Item 1A of our most recent Annual Report on Form 10-K (the “10-K”) filed with the SEC, those discussed in “Management’s Narrative Analysis of Results of Operations” herein and in the 10-K and those discussed in other documents we file with the SEC. All cautionary statements made or referred to herein should be read as being applicable to all forward-looking statements wherever they appear. Investors should consider the risks and uncertainties described or referred to herein and should not place undue reliance on any forward-looking statements. The forward-looking statements speak only as of the date made, and we expressly disclaim any obligation to update these forward-looking statements.

Other factors that could cause or contribute to such differences include, but are not limited to, those discussed under the caption “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q and in Part I, Item 1A of our most recent Annual Report on Form 10-K (the “10-K”) filed with the Securities and Exchange Commission (“SEC”), those discussed in “Management’s Narrative Analysis of Results of Operations” herein and in the 10-K and those discussed in other documents we file with the SEC. All cautionary statements made or referred to herein should be read as being applicable to all forward-looking statements wherever they appear. Investors should consider the risks and uncertainties described or referred to herein and should not place undue reliance on any forward-looking statements. The forward-looking statements speak only as of the date made, and we expressly disclaim any obligation to update these forward-looking statements.

iii

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Item 1. FINANCIAL STATEMENTS

DISH DBS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share amounts)

(Unaudited)



	As of
	~~September~~March 3031,		December 31,
	~~2024~~2025		~~2023~~2024
Assets
Current Assets:
Cash and cash equivalents	$	~~339~~639,~~685~~776	$	~~373~~419,~~641~~087
Current restricted cash and cash equivalents		2,047,489		—
Current restricted cash, cash equivalents and marketable investment securities		172,856		150,898
Marketable investment securities		—		397
Trade accounts receivable, net of allowance for credit losses of $46,353 and $42,270, respectively		519,031		592,355
Trade accounts receivable, net of allowance for credit losses of $49,850 and $34,884, respectively		565,384		619,604
Inventory		159,624		183,202
Advances to affiliates		—		421,457
Interest receivable - DISH Network (Note 11)		56,888		14,222
Inventory		209,380		267,841
Prepaids and other assets		127,925		118,070
Interest receivable - DISH Network (Note 11)		56,888		17,761
Other current assets		2,457		1,588
Prepaids and other assets		128,859		147,740
Total current assets		1,678,557		1,479,422
Other current assets		2,056		2,306

Total current assets		3,349,741		1,850,747
Noncurrent Assets:

Restricted cash, cash equivalents and marketable investment securities		59,290		58,676
Noncurrent Assets:
Property and equipment, net		600,588		624,769
Restricted cash, cash equivalents and marketable investment securities		57,085		54,980
Regulatory authorizations, net		611,794		611,794
Property and equipment, net		652,887		808,065
Other investments, net		22,120		22,641
Regulatory authorizations, net		611,794		611,794
Operating lease assets		88,980		81,024
Other investments, net		21,590		90,168
Notes Receivable - DISH Network (Note 11)		4,949,085		4,913,689
Operating lease assets		86,966		92,972
Other noncurrent assets, net		93,806		99,908
Notes Receivable - DISH Network, including interest (Note 11)		4,878,889		7,515,077
Total noncurrent assets		6,425,663		6,412,501
Other noncurrent assets, net		104,983		107,987
Total assets	$	8,104,220	$	7,891,923
Total noncurrent assets		6,414,194		9,281,043

Total assets	$	9,763,935	$	11,131,790
Liabilities and Stockholder's Equity (Deficit)

Current Liabilities:
Liabilities and Stockholder's Equity (Deficit)
Trade accounts payable	$	198,839	$	207,531
Current Liabilities:
Deferred revenue and other		417,858		416,156
Trade accounts payable	$	185,176	$	248,640
Accrued programming		1,284,309		1,339,072
Deferred revenue and other		427,901		505,361
Accrued interest		187,492		153,409
Accrued programming		1,499,376		1,427,762
Other accrued expenses and liabilities		404,405		373,915
Accrued interest		222,978		160,137
Current portion of debt, finance lease and other obligations (Note 7)		811,569		744,556
Other accrued expenses and liabilities		421,893		415,109
Total current liabilities		3,304,472		3,234,639
Current portion of debt, finance lease and other obligations (Note 7)		2,465,256		2,023,976

Total current liabilities		5,222,580		4,780,985
Long-Term Obligations, Net of Current Portion:

Long-term debt, finance lease and other obligations, net of current portion (Note 7)		11,193,044		11,402,894
Long-Term Obligations, Net of Current Portion:
Deferred tax liabilities, net		191,904		205,064
Long-term debt, finance lease and other obligations, net of current portion (Note 7)		11,638,420		9,755,538
Operating lease liabilities		58,876		52,156
Deferred tax liabilities, net		223,775		268,170
Long-term deferred revenue and other long-term liabilities		209,981		203,190
Operating lease liabilities		53,115		61,381
Total long-term obligations, net of current portion		11,653,805		11,863,304
Long-term deferred revenue and other long-term liabilities		225,436		211,414
Total liabilities		14,958,277		15,097,943
Total long-term obligations, net of current portion		12,140,746		10,296,503

Total liabilities		17,363,326		15,077,488
Commitments and Contingencies (Note 8)

Commitments and Contingencies (Note 8)
Stockholder’s Equity (Deficit):

Common stock, $0.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding		—		—
Stockholder’s Equity (Deficit):
Additional paid-in capital		1,559,751		1,558,325
Common stock, $0.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding		—		—
Accumulated other comprehensive income (loss)		(3,048)		(3,047)
Additional paid-in capital		1,555,819		1,547,164
Accumulated earnings (deficit)		(8,410,760)		(8,761,298)
Accumulated other comprehensive income (loss)		(2,624)		(2,501)
Total stockholder’s equity (deficit)		(6,854,057)		(7,206,020)
Accumulated earnings (deficit)		(9,152,586)		(5,490,361)
Total liabilities and stockholder’s equity (deficit)	$	8,104,220	$	7,891,923
Total stockholder’s equity (deficit)		(7,599,391)		(3,945,698)

Total liabilities and stockholder’s equity (deficit)	$	9,763,935	$	11,131,790

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DISH DBS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

For the Three Months Ended

~~For the Nine Months Ended~~

~~September~~March 3031,

~~September 30,~~

~~2024~~2025

~~2023~~2024

~~2024~~

~~2023~~

Revenue:

Service revenue

2,~~590~~514,~~379~~466

2,~~761~~687,~~678~~040

~~7,922,880~~

~~8,541,867~~

Equipment sales and other revenue

1112,~~423~~033

2120,~~709~~297

~~45,417~~

~~139,090~~

Total revenue

2,~~601~~526,~~802~~499

2,~~783~~707,~~387~~337

~~7,968,297~~

~~8,680,957~~

Costs and Expenses (exclusive of depreciation and amortization):

Cost of services

1,~~675~~595,~~206~~853

1,~~749~~699,~~627~~945

~~5,049,403~~

~~5,388,456~~

Cost of sales - equipment and other

189,~~157~~404

2414,~~881~~763

~~48,963~~

~~64,619~~

Selling, general and administrative expenses

~~273~~238,~~792~~997

~~356~~285,~~125~~445

~~821,486~~

~~1,072,027~~

Depreciation and amortization

7359,~~290~~038

70,~~474~~680

~~214,309~~

~~236,206~~

Total costs and expenses

21,~~040~~903,~~445~~292

2,~~201~~070,~~107~~833

~~6,134,161~~

~~6,761,308~~

Operating income (loss)

~~561~~623,~~357~~207

~~582~~636,~~280~~504

~~1,834,136~~

~~1,919,649~~

Other Income (Expense):

Interest income

7984,~~312~~981

~~112~~59,~~715~~327

~~210,678~~

~~344,505~~

Interest expense, net of amounts capitalized

(~~184~~243,~~543~~239)

(184,~~407~~854)

~~(554,184)~~

~~(567,718)~~

Other, net

(3,270)

(68,135)

(609)

Other, net (Note 4)

(490)

(569)

Total other income (expense)

(~~108~~158,~~501~~748)

(71126,~~627~~096)

~~(411,641)~~

~~(223,822)~~

Income (loss) before income taxes

~~452~~464,~~856~~459

510,~~653~~408

~~1,422,495~~

~~1,695,827~~

Income tax (provision) benefit, net

(113,~~029~~921)

(~~121~~124,~~899~~867)

~~(366,203)~~

~~(416,152)~~

Net income (loss)

~~339~~350,~~827~~538

~~388~~385,~~754~~541

~~1,056,292~~

~~1,279,675~~

Comprehensive Income (Loss):

Net income (loss)

~~339~~350,~~827~~538

~~388~~385,~~754~~541

~~1,056,292~~

~~1,279,675~~

Other comprehensive income (loss):

Foreign currency translation adjustments

(~~123~~1)

~~(200)~~23

~~(128)~~

~~(11)~~

Unrealized holding gains (losses) on available-for-sale debt securities

—1

~~(1)~~—

—

Deferred income tax (expense) benefit, net

7(1)

(47)

~~(24)~~

Total other comprehensive income (loss), net of tax

(~~116~~1)

~~(205)~~16

~~(123)~~

~~(23)~~

Comprehensive income (loss)

~~339~~350,~~711~~537

~~388~~385,~~549~~557

~~1,056,169~~

~~1,279,652~~

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DISH DBS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY (DEFICIT)

(In thousands)

(Unaudited)


					Accumulated
			Additional		Other		Accumulated
	Common		Paid-In		Comprehensive		Earnings
	Stock		Capital		Income (Loss)		(Deficit)		Total
Balance, December 31, 2022	$	—	$	1,532,906	$	(2,445)	$	(7,234,990)	$	(5,704,529)
Non-cash, stock-based compensation		—		6,131		—		—		6,131
Other comprehensive income (loss)		—		—		135		—		135
Net income (loss)		—		—		—		433,283		433,283
Balance, March 31, 2023	$	—	$	1,539,037	$	(2,310)	$	(6,801,707)	$	(5,264,980)
Non-cash, stock-based compensation		—		4,273		—		—		4,273
Other comprehensive income (loss)		—		—		47		—		47
Net income (loss)		—		—		—		457,638		457,638
Balance, June 30, 2023	$	—	$	1,543,310	$	(2,263)	$	(6,344,069)	$	(4,803,022)
Non-cash, stock-based compensation		—		2,296		—		—		2,296
Other comprehensive income (loss)		—		—		(205)		—		(205)
Net income (loss)		—		—		—		388,754		388,754
Balance, September 30, 2023	$	—	$	1,545,606	$	(2,468)	$	(5,955,315)	$	(4,412,177)

Balance, December 31, 2023	$	—	$	1,547,164	$	(2,501)	$	(5,490,361)	$	(3,945,698)
Non-cash, stock-based compensation		—		1,987		—		—		1,987
Other comprehensive income (loss)		—		—		16		—		16
Intercompany Loan - 2026 Tranche		—		—		—		(4,718,517)		(4,718,517)
Net income (loss)		—		—		—		385,541		385,541
Balance, March 31, 2024	$	—	$	1,549,151	$	(2,485)	$	(9,823,337)	$	(8,276,671)
Non-cash, stock-based compensation		—		4,026		—		—		4,026
Other comprehensive income (loss)		—		—		(23)		—		(23)
Net income (loss)		—		—		—		330,924		330,924
Balance, June 30, 2024	$	—	$	1,553,177	$	(2,508)	$	(9,492,413)	$	(7,941,744)
Non-cash, stock-based compensation		—		2,642		—		—		2,642
Other comprehensive income (loss)		—		—		(116)		—		(116)
Net income (loss)		—		—		—		339,827		339,827
Balance, September 30, 2024	$	—	$	1,555,819	$	(2,624)	$	(9,152,586)	$	(7,599,391)

Balance, December 31, 2024	$	—	$	1,558,325	$	(3,047)	$	(8,761,298)	$	(7,206,020)
Non-cash, stock-based compensation		—		1,426		—		—		1,426
Other comprehensive income (loss)		—		—		(1)		—		(1)
Net income (loss)		—		—		—		350,538		350,538
Balance, March 31, 2025	$	—	$	1,559,751	$	(3,048)	$	(8,410,760)	$	(6,854,057)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DISH DBS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	For the ~~Nine~~Three Months Ended
	~~September~~March 3031,
	~~2024~~2025			~~2023~~2024
Cash Flows From Operating Activities:
Net income (loss)	$	1350,~~056,292~~538	$	1385,~~279,675~~541
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization		~~214~~59,~~309~~038		~~236~~70,~~206~~680
Realized and unrealized losses (gains) on investments and other		—		(804)
Non-cash, stock-based compensation		1,426		1,987
Non-cash, stock-based compensation		8,655		12,700
Deferred tax expense (benefit)		(13,160)		(16,662)
Deferred tax expense (benefit)		(44,390)		(66,140)
Changes in allowance for credit losses		4,083		(591)
Equity in (earnings) losses of affiliates		68,257		1,656
Other, net		36,836		15,059
Changes in allowance for credit losses		14,966		4,404
Non-cash interest income - DISH Network		(35,396)		(26,150)
Other, net		31,173		30,720
Changes in operating assets and operating liabilities, net		42,892		58,439
Non-cash interest income - DISH Network		(93,257)		(260,671)
Net cash flows from operating activities		446,257		488,303
Changes in current assets and current liabilities, net		57,212		(68,964)

Net cash flows from operating activities		1,313,217		1,168,782
Cash Flows From Investing Activities:

(Purchases) Sales and maturities of marketable investment securities, net		(17,454)		160
Cash Flows From Investing Activities:
Purchases of property and equipment (Note 6)		(37,359)		(26,693)
(Purchases) Sales and maturities of marketable investment securities, net		397		198,024
Notes Receivable - DISH Network (Note 11)		—		(555,272)
Purchases of property and equipment		(65,153)		(98,728)
Other, net		1,002		8,770
Notes Receivable - DISH Network, including interest (Note 11)		(1,564,589)		—
Net cash flows from investing activities		(53,811)		(573,035)
Other, net		9,406		3,914

Net cash flows from investing activities		(1,619,939)		103,210
Cash Flows From Financing Activities:

Repayment of long-term debt, finance lease and other obligations		—		(10,111)
Cash Flows From Financing Activities:
Redemption and repurchases of senior notes		(166,667)		—
Repayment of long-term debt, finance lease and other obligations		(41,432)		(39,987)
Other, net		27		—
Proceeds from New DISH DBS Financing (Note 7)		2,500,000		—
Net cash flows from financing activities		(166,640)		(10,111)
Debt issuance costs and debt (discount) premium from New DISH DBS Financing		(136,208)		—

Redemption and repurchases of senior notes		—		(1,451,250)
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents		225,806		(94,843)
Other, net		—		812
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4)		628,661		428,621
Net cash flows from financing activities		2,322,360		(1,490,425)
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4)	$	854,467	$	333,778

Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents		2,015,638		(218,433)
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4)		428,621		675,500
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4)	$	2,444,259	$	457,067

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.	Organization and Business Activities

Principal Business

DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” “DDBS,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”), our parent company. DISH Network is a wholly-owned subsidiary of EchoStar Corporation (“EchoStar”), our ultimate parent company, a publicly traded company listed on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SATS.” DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. Our subsidiaries operate one business segment, Pay-TV.

~~Recent Developments~~Pay-TV

~~DIRECTV~~We ~~Transaction~~offer pay-TV services under the DISH® brand and the SLING® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear and on-demand streaming over-the-top (“OTT”) Internet-based domestic, international, Latino and Freestream video programming services (“SLING TV”). As of March 31, 2025, we had 7.397 million Pay-TV subscribers in the United States, including 5.503 million DISH TV subscribers and 1.894 million SLING TV subscribers.

~~On September 29, 2024, EchoStar and DIRECTV Holdings, LLC (“DTV”), entered into an Equity Purchase Agreement (the “Purchase Agreement”)~~2. ~~Pursuant~~Summary ~~to the terms and subject to the conditions set forth in the Purchase Agreement, DTV agreed to acquire from EchoStar all~~ of ~~its~~Significant ~~issued~~Accounting and outstanding equity interests of DISH DBS, which operates its Pay-TV business (the “Business” and such acquisition of the Business the “DIRECTV Transaction”). Prior to the closing of the DIRECTV Transaction (the “DIRECTV Closing”), EchoStar will complete the Pre-Closing Restructuring, as defined in the Purchase Agreement, and the Pre-Closing Reorganization, as defined in the Purchase Agreement, following which, among other things, DISH DBS will hold all of the properties, rights, assets and liabilities primarily related to the Business, except for certain excluded assets and excluded liabilities. Policies

~~During~~Basis ~~the period between signing~~ of the Purchase Agreement and the DIRECTV Closing, DISH DBS and its subsidiaries are not permitted to declare or pay dividends or otherwise cause or permit any leakage (which includes, among other things, cash payments and certain other value transfers by DISH DBS and its subsidiaries, on the one hand, to EchoStar, DISH Network or certain other related persons, on the other hand), other than (i) certain permitted cash transfers prior to September 30, 2025 in an aggregate amount not to exceed the permitted cash transfer cap set forth in the Purchase Agreement, and (ii) certain permitted tax sharing payments, in each case, on terms and conditions as set forth in the Purchase Agreement. The permitted cash transfer cap is initially equal to $1.52 billion, calculated in accordance with the Purchase Agreement, (“Permitted Transfer Cap”) and is subject to certain adjustments set forth in the Purchase Agreement, including transaction expenses and certain accrued interest adjustments and adjustments tied to certain key performance indicators.Presentation

AsThe ~~set~~accompanying ~~forth~~unaudited incondensed ~~the~~consolidated ~~Reorganization~~financial ~~Plan,~~statements ~~immediately~~have ~~prior~~been toprepared ~~the~~in ~~DIRECTV~~accordance ~~Closing,~~with ~~DISH~~accounting ~~DBS~~principles ~~will~~generally ~~distribute~~accepted in the ~~Intercompany~~United ~~Loan~~States –(“GAAP”) ~~2028~~and ~~Tranche,~~with ~~defined~~the ~~below~~instructions ~~(see~~to ~~Note~~Form 10-Q ~~11)~~and toArticle 10 ~~our~~of ~~seller~~Regulation ~~subsidiary.~~S-X Atfor ~~the~~interim ~~DIRECTV~~financial ~~Closing~~information. Accordingly, ~~our~~these ~~seller~~statements ~~subsidiary~~do ~~will~~not ~~sell~~include ~~and transfer to DTV~~ all of the ~~issued~~information and ~~outstanding~~notes ~~equity~~required ~~interests of DISH DBS in exchange~~ for acomplete ~~total~~financial ~~cash~~statements ~~purchase~~prepared ~~price~~under ~~of $1~~GAAP.00 In ~~plus~~our ~~the~~opinion, ~~assumption~~all ofadjustments ~~net~~(consisting ~~debt~~ of ~~DISH~~normal ~~DBS~~recurring ~~and~~adjustments) ~~its~~considered ~~subsidiaries~~necessary ~~that~~for isa ~~outstanding~~fair aspresentation ofhave ~~the~~been ~~DIRECTV Closing~~included. Our ~~Additionally,~~results ~~effective~~of ~~with~~operations for the ~~DIRECTV~~interim ~~Closing,~~periods ~~certain~~presented ~~other~~are ~~intercompany~~not ~~amounts~~necessarily ~~between~~indicative ~~DISH~~of ~~DBS~~the ~~and~~results ~~DISH~~that ~~Network~~may ~~(in~~be ~~addition~~expected tofor the ~~Intercompany~~full ~~Loan – 2028 Tranche) will be subject to cancellation~~year.

For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024. Certain prior period amounts have been reclassified to conform to the current period presentation.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

AsPrinciples of September 30, 2024, the balance of the DISH DBS intercompany receivables for the Intercompany Loan – 2028 Tranche and other intercompany amounts totaled $4.606 billion, not including Permitted Transfer Cap receivables of up to $1.52 billion and certain other amounts of residual capital remaining based on performance. Upon the completion of the DIRECTV Transaction, DISH DBS will become a direct and wholly-owned subsidiary of DTV.Consolidation

~~Completion~~We ofconsolidate ~~the~~all ~~DIRECTV~~majority ~~Transaction~~owned issubsidiaries, ~~subject~~investments toin ~~satisfaction~~entities orin ~~waiver~~which ofwe ~~closing~~have ~~conditions~~controlling ~~set~~influence ~~forth~~and invariable ~~the~~interest ~~Purchase~~entities ~~Agreement,~~(“VIEs”) ~~including,~~where ~~but~~we ~~not~~have ~~limited~~been determined to, be the ~~receipt~~primary ofbeneficiary. The ~~governmental~~portion ~~approvals~~of ~~and~~equity ~~the~~in ~~success~~a ofsubsidiary ~~the~~not ~~DISH~~attributable, ~~DBS~~directly ~~Exchange~~or ~~Offers~~indirectly, asto ~~detailed~~us ~~and~~are ~~defined~~recorded inas ~~Note~~noncontrolling 7interests inor ~~the~~redeemable ~~Notes~~noncontrolling ~~to our Condensed Consolidated Financial Statements~~interests. ~~The~~Non-consolidated ~~DISH~~investments ~~DBS~~are ~~Exchange~~accounted ~~Offers~~for ~~expired~~using atthe ~~5:00~~equity ~~p.m.,~~method ~~New~~when ~~York~~we ~~City~~have ~~time~~the onability ~~November~~to ~~12,~~significantly ~~2024,~~influence ~~and~~ the ~~DISH~~operating ~~DBS~~decisions ~~Exchange~~of ~~Offers~~the ~~have~~investee. When ~~been~~we ~~terminated~~do ~~due~~not tohave the ~~failure~~ability to ~~satisfy~~significantly influence the ~~Minimum~~operating ~~Series~~decisions ~~Exchange~~of ~~Condition~~an ~~and~~investee, ~~the~~these ~~Acquisition~~equity ~~Consent~~securities ~~Threshold~~are ~~Condition,~~classified ~~each~~ as ~~defined~~either inmarketable ~~the~~investment ~~Exchange~~securities ~~Offering~~or ~~Memorandum~~other ~~(as~~investments, ~~defined~~which ~~below). Pursuant~~will tobe ~~the~~initially ~~terms~~recorded ofat ~~the~~cost, ~~Purchase~~and ~~Agreement~~based on observable market prices, ~~DIRECTV~~will ~~may~~be ~~terminate~~adjusted ~~the~~to ~~Purchase~~their ~~Agreement~~fair byvalue. We ~~November~~record 22fair value adjustments in “Other, ~~2024~~net” ~~due~~within to“Other ~~the~~Income ~~failure~~(Expense)” toon ~~consummate~~our ~~the~~Condensed ~~DISH~~Consolidated ~~DBS~~Statements ~~Exchange~~of ~~Offers~~Operations byand ~~November~~Comprehensive ~~12,~~Income ~~2024~~(Loss). All orsignificant ~~the~~intercompany ~~failure~~accounts toand ~~satisfy~~transactions ~~the~~have ~~Acquisition~~been ~~Consent~~eliminated ~~Threshold~~in ~~Condition~~consolidation.

~~Asset~~Use ~~Transfer~~of Estimates

~~Concurrently~~The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the ~~issuance~~reported amounts of ~~the~~assets 5and ~~1/4%~~liabilities ~~Senior~~and ~~Secured~~disclosure ~~Notes~~of ~~due~~contingent ~~2026~~assets and liabilities at the 5date ~~3/4%~~of ~~Senior~~the ~~Secured~~financial ~~Notes~~statements ~~due~~and ~~2028~~the reported amounts of revenue and ~~using~~expense ~~the~~for ~~proceeds~~each ~~thereof~~reporting period. Estimates are based on historical experience, weobservable ~~made~~market ~~two~~inputs, ~~advances~~and toother ~~DISH~~reasonable ~~Network~~assumptions ~~pursuant~~in toaccounting afor, ~~Loan~~among other things, allowances for credit losses, self-insurance obligations, deferred taxes and ~~Security~~related ~~Agreement~~valuation ~~dated~~allowances, ~~November~~uncertain 26tax positions, ~~2021~~loss (contingencies, fair value of financial instruments, fair value of options granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, inputs or outputs used to recognize revenue over time, including the ~~“Intercompany~~relative ~~Loan~~standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) toon belease ~~used~~right byof ~~DISH~~use ~~Network~~assets, toestimates ~~finance~~of the ~~purchase~~timing of future cash flows used to pay principal on certain ~~wireless~~debt ~~spectrum~~obligations, ~~licenses~~nonrefundable ~~and~~upfront ~~for~~fees, ~~general~~independent ~~corporate~~third-party ~~purposes~~retailer incentives, ~~including~~programming ~~the~~expenses, ~~buildout~~subscriber lives and likelihood of ~~wireless~~certain ~~infrastructure~~contingent events. ~~The~~Economic ~~aggregate~~conditions ~~principal~~may ~~amount~~increase ofthe inherent uncertainty in the ~~Intercompany~~estimates ~~Loan~~and ~~was~~assumptions ~~initially~~indicated $5above.~~250~~ Actual ~~billion,~~results ~~and~~may ondiffer ~~February 11,~~from ~~2022~~previously estimated amounts, weand ~~advanced~~such andifferences ~~additional~~may ~~$1.5~~be ~~billion~~material to ~~DISH~~our ~~Network~~condensed consolidated financial statements. AsEstimates ofand ~~December~~assumptions ~~31,~~are ~~2023~~reviewed periodically, and the ~~receivable~~effects ~~including~~of ~~capitalized~~revisions ~~paid~~are reflected prospectively in ~~kind~~the ~~interest~~period ~~was~~they $7occur.~~496 billion.~~

On January 10, 2024, we, in our capacity as “Lender” under the terms of the Loan and Security Agreement related to the Intercompany Loan between DISH Network and us, have consummated the assignment pursuant to such terms, without any modification or amendment thereto, of our receivable in respect to the first tranche which matures on December 1, 2026 (“2026 Tranche”) of $4.7 billion (the “Intercompany Loan – 2026 Tranche”) to DBS Intercompany Receivable L.L.C. DBS Intercompany Receivable L.L.C. has subsequently assigned its rights as lender thereunder to EchoStar Intercompany Receivable Company L.L.C., our ultimate parent, EchoStar’s direct wholly-owned subsidiary, such that amounts owed in respect of the 2026 Tranche will now be paid by DISH Network to EchoStar Intercompany Receivable L.L.C. As of September 30, 2024, our remaining intercompany receivable (the “Intercompany Loan – 2028 Tranche”) amount outstanding plus interest paid in kind was $2.844 billion, not including accrued interest receivable of $57 million which must be paid to us in cash.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

EchoStar Merger with DISH Network

On December 31, 2023, EchoStar, our ultimate parent, completed the acquisition of DISH Network, our parent, pursuant to the Amended and Restated Agreement and Plan of Merger, dated as of October 2, 2023 (the “Amended Merger Agreement”), by and among EchoStar, EAV Corp., a Nevada corporation and EchoStar’s wholly owned subsidiary (“Merger Sub”), and DISH Network, pursuant to which EchoStar acquired DISH Network by means of the merger of Merger Sub with and into DISH Network (the “Merger”), with DISH Network surviving the Merger as EchoStar’s wholly-owned subsidiary. For further information, refer to the Consolidated Financial Statements and notes thereto included in EchoStar’s Annual Report on Form 10-K for the year ended December 31, 2023.

With the Merger complete, EchoStar is currently focused on the process of integrating its and DISH Network’s business in a manner that facilitates synergies, cost savings, growth opportunities and achieves other anticipated benefits (the “Integration”).

Future Capital Requirements

The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

During the third quarter of 2024, we completed our issuance of $2.5 billion (including $136 million of debt issuance costs) of New DISH DBS Financing, as detailed and defined in Note 7, which includes $2.047 billion of funds required to be used for the redemption, repayment or repurchase of the principal balance and remaining interest outstanding on our 5 7/8% Senior Notes due November 15, 2024. As a result of this transaction, substantial doubt no longer exists about our ability to continue as a going concern.

Our cash and cash equivalents, current restricted cash and cash equivalents, and marketable investment securities totaled $2.387 billion as of September 30, 2024 (“Cash on Hand”) and we will fund the $1.983 billion of debt maturing in November 2024 from Cash on Hand.

Pay-TV

We offer pay-TV services under the DISH® brand and the SLING® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear and on-demand streaming over-the-top (“OTT”) Internet-based domestic, international, Latino and Freestream video programming services (“SLING TV”). As of September 30, 2024, we had 8.031 million Pay-TV subscribers in the United States, including 5.888 million DISH TV subscribers and 2.143 million SLING TV subscribers.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year.

For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Certain prior period amounts have been reclassified to conform to the current period presentation.

Principles of Consolidation

We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities (“VIEs”) where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments, which will be initially recorded at cost, and based on observable market prices, will be adjusted to their fair value. We record fair value adjustments in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are based on historical experience, observable market inputs, and other reasonable assumptions in accounting for, among other things, allowances for credit losses (including those related to our installment billing programs), self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, inputs used to recognize revenue over time, including the relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, independent third-party retailer incentives, programming expenses, subscriber lives and likelihood of certain contingent events. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur.

Fair Value Measurements

We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value:

●

Level 1, defined as observable inputs being quoted prices in active markets for identical assets;

●

Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

●

Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available.

As of March 31, 2025 and December 31, 2024, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of debt, finance lease and other obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. See Note 4 for the fair value of our marketable investment securities.

9Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our debt.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

As of September 30, 2024 and December 31, 2023, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of debt, finance lease and other obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. See Note 4 for the fair value of our marketable investment securities.

Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt.

Assets Recognized Related to the Costs to Obtain a Contract with a Customer

We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated customer life or the contract term. These amounts are capitalized in “Prepaids and other assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Advertising Costs

We recognize advertising expense when incurred as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expenses totaled $5743 million and $9555 million for the three months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023, respectively. Advertising expenses totaled $160 million and $293 million for the nine months ended September 30,~~ 2024 ~~and 2023~~, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

Research and Development

Research and development costs, not incurred in connection with customer requirements, are expensed as incurred and are included as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled $67 million ~~and~~for ~~$11~~each ~~million~~of ~~for~~ the three months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023, respectively. Research and development costs totaled $20 million and $33 million for the nine months ended September 30,~~ 2024 ~~and 2023, respectively~~.

New Accounting Pronouncements

~~Joint~~Not ~~Ventures.~~Yet On August 23, 2023, the FASB issued ASU 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60) (“ASU 2023-05”), which requires an entity that qualifies as either a joint venture or a corporate joint venture as defined in the FASB Accounting Standards Codification (ASC) master glossary to apply a new basis of accounting upon the formation of the joint venture. This standard will be effective for all joint venture formations with a formation date on or after January 1, 2025. A joint venture that was formed before January 1, 2025 may elect to apply the amendments retrospectively if it has sufficient information. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued or made available for issuance. We plan to adopt the standard if applicable and we expect the adoption of the standard will have an immaterial impact on our disclosures.Adopted

~~Segment~~Income ~~Reporting~~Taxes. On ~~November 27~~December 14, 2023, the FASB issued ASU 2023-079, ~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reporting~~Income ~~Segment~~Tax Disclosures (“ASU 2023-0709”), which will enhance ~~financial~~income ~~reporting~~tax bydisclosures. ~~providing~~ASU ~~additional~~2023-09 requires among other items disaggregated information ~~about~~in a ~~public~~reporting ~~company~~entity’s ~~significant~~rate ~~segment~~reconciliation ~~expenses~~table, ~~and~~clarification ~~more~~on ~~timely~~uncertain ~~and~~tax ~~detailed~~positions ~~segment~~and ~~information~~the ~~reporting~~related ~~throughout~~financial ~~the~~statement ~~fiscal~~impact ~~period.~~as ~~This~~well ~~standard~~as ~~will~~information beon ~~effective~~income ~~for~~taxes ~~fiscal years~~paid ~~beginning~~on ~~after~~a ~~December 15,~~disaggregated ~~2023,~~basis. This ~~and~~standard ~~interim~~will ~~periods~~be ~~within~~effective for fiscal years beginning after December 15, 2024. ~~Early adoption is permitted.~~ We plan to adopt the standard when it becomes effective for us beginning in our fiscal year ~~2024~~2025 annual financial statements, and we expect the adoption of the standard will impact certain of our ~~segment~~income ~~reporting~~tax disclosures.

Disaggregation of Income ~~Taxes~~Statement Expenses. On ~~December~~November 145, ~~2023~~2024, the FASB issued ASU ~~2023~~2024-903, Income ~~Taxes~~Statement ~~(Topic~~– ~~740):~~Reporting ~~Improvements~~Comprehensive to Income ~~Tax~~– Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU ~~2023~~2024-0903”), which will enhance ~~income~~financial ~~tax~~statement ~~disclosures.~~reporting ~~ASU~~by ~~2023-09~~providing ~~requires~~additional ~~among~~information ~~other~~about ~~items~~specific ~~disaggregated~~expense ~~information~~categories, inincluding apurchases ~~reporting~~of ~~entity’s~~inventory, ~~rate~~employee ~~reconciliation~~compensation, ~~table~~depreciation, ~~clarification on uncertain tax positions~~ and ~~the related financial statement impact as well as information on income taxes paid on a disaggregated basis~~amortization. This standard will be effective for fiscal years beginning after December 15, ~~2024~~2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. We are evaluating the impact the adoption of ASU ~~2023~~2024-0903 will have on our ~~Condensed~~condensed ~~Consolidated~~consolidated ~~Financial~~financial ~~Statements~~statements, ~~and~~ related disclosures and control environment.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

3.	Supplemental Data - Statements of Cash Flows

The following table presents certain supplemental cash flow and other non-cash data.:


	For the ~~Nine~~Three Months Ended
	~~September~~March 3031,
	~~2024~~2025		~~2023~~2024
	(In thousands)
Cash paid for interest	$	~~471~~181,~~726~~928	$	~~506~~114,~~172~~798
Cash received for interest		20,843		10,706
Cash paid for income taxes, net of (refunds)		1,564		(4,483)
Cash received for interest - Intercompany Loan		41,984		—
Cash paid for income taxes to DISH Network		117,645		185,090
Cash paid for income taxes, net of (refunds)		10,714		11,090
Intercompany Loan - 2026 Tranche		—		4,718,517
Cash paid for income taxes to DISH Network		391,326		568,689

Intercompany Loan - 2026 Tranche		4,718,517		—
Vendor financing		—		26,751

~~Our~~Income parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries to, among other reasons, maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Condensed Consolidated Balance Sheets are a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Condensed Consolidated Balance Sheets and are managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each period presented on our Condensed Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities.Taxes

Beginning in 2024, DISH DBS and its domestic subsidiaries join with our parent, DISH Network, and our ultimate parent, EchoStar, ~~Exchange~~in ~~Offer~~filing U.S. consolidated federal income tax returns and, in some states, combined or consolidated returns. The federal and state income tax provisions or benefits recorded by DISH DBS are generally those that would have been recorded if DISH DBS and its domestic subsidiaries had filed returns as a consolidated group independent of EchoStar. Cash is due and paid to DISH Network based on amounts that would be payable based on DISH DBS consolidated or combined group filings.

OnCentralized ~~March~~Cash 4,Management 2024, EchoStar commenced a tender offer to eligible employees to exchange eligible stock options for new options as detailed in its Schedule TO filed March 4, 2024 with the Securities and Exchange Commission (the “Exchange Offer”), to, among other things, further align employee incentives with the current market. The Exchange Offer expired on April 1, 2024 and EchoStar accepted for exchange approximately 7 million stock options. As a result of the Exchange Offer, during the second quarter of 2024, the exercise price of approximately 3 million new stock options associated with our employees, affecting approximately 580 eligible employees, was adjusted to $14.04. The total incremental non-cash stock-based compensation expense resulting from the Exchange Offer was $9 million, which will be recognized over the remaining vesting period of the applicable options.System

Our parent, DISH Network, provides a centralized system for the management of our restricted and unrestricted cash, cash equivalents, and marketable investment securities as it does for all of its subsidiaries to, among other reasons, maximize yield of the portfolio. As a result, the restricted and unrestricted cash, cash equivalents, and marketable investment securities included on our Condensed Consolidated Balance Sheets are a component or portion of the overall restricted and unrestricted cash, cash equivalents, and marketable investment securities portfolio included on DISH Network’s Condensed Consolidated Balance Sheets and are managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each period presented on our Condensed Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

4.	Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investments

Our marketable investment securities, restricted cash and cash equivalents, and other investments consisted of the following:


	As of
	~~September~~March 3031,		December 31,
	~~2024~~2025		~~2023~~2024
	(In thousands)
Marketable investment securities:
Current marketable investment securities	$	—	$	~~397~~—

Restricted marketable investment securities (1)		17,455		—
Restricted cash and cash equivalents (1) (2)		2,104,574		54,980
Total marketable investment securities		17,455		—

Other investments, net:

Equity method investments (3)		19,389		90,168
Restricted cash and cash equivalents (1)		214,691		209,574
Cost method investments		2,201		—

Total other investments, net		21,590		90,168
Other investments, net:

Equity method investments		19,919		20,440
Total marketable investment securities, restricted cash and cash equivalents, and other investments, net	$	2,126,164	$	145,545
Other investments		2,201		2,201

Total other investments, net		22,120		22,641

Total marketable investment securities, restricted cash and cash equivalents, and other investments, net	$	254,266	$	232,215

(1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Current restricted cash and cash equivalents” and “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets.

(2) Includes $2.047 billion in proceeds received from the New DBS Financing, as detailed and defined in Note 7.

(3) This decrease primarily resulted from our Invidi Technologies Corporation investment, discussed below.

~~Marketable~~(1) ~~Investment~~Restricted ~~Securities~~marketable investment securities and restricted cash and cash equivalents are included in “Current restricted cash, cash equivalents and marketable investment securities” and “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets and discussed below.

Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Stockholder’s Equity (Deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

~~Current Marketable Investment Securities~~10

Our current marketable investment securities portfolio can include investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

Marketable Investment Securities

Current Marketable Investment Securities

Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days. Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months. U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies.

Restricted Cash, Cash Equivalents and Marketable Investment Securities

As of ~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~2024, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit, surety bonds and trusts.

Current restricted cash, ~~and~~ cash equivalents. and marketable investment securities. As of ~~September 30~~March 31, 2025 and December 31, 2024, we had $173 million and $151 million, respectively, included in “Current restricted cash, ~~and~~ cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets ~~includes~~that ~~$2.047~~primarily ~~billion~~consists inof ~~proceeds~~funds received ~~from~~by ~~the~~our ~~New~~subsidiary, DISH DBS ~~Financing~~Issuer LLC (“DBS SubscriberCo”), asfrom ~~detailed~~subscriber payments and ~~defined~~certain inother ~~Note 7~~revenue, which isare required to be ~~used~~restricted ~~for~~per the ~~redemption,~~terms ~~repayment~~of orthe ~~repurchase~~debt ofissued ~~the~~by ~~principal~~DBS ~~balance~~SubscriberCo. DBS ~~and~~SubscriberCo ~~remaining~~holds ~~interest~~certain ~~outstanding~~DISH onTV ~~our~~subscribers 5and ~~7/8%~~their ~~Senior~~related ~~Notes~~subscription ~~due~~and ~~November~~equipment ~~15,~~agreements ~~2024~~which collateralizes certain debt obligations.

Other Investments, net

We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investments, net” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and are recorded at fair value. Generally, our debt investments in non-publicly traded debt instruments without a readily determinable fair value are recorded at amortized cost. Our equity investments where we have the ability to exercise significant influence over the investee are accounted for using the equity method of accounting. Certain of our equity method investments are detailed below.

NagraStar L.L.C. We own a 50% interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. The three main technologies NagraStar provides to its customers are microchips, set-top box software and uplink computer systems. NagraStar also provides end-to-end platform security testing services.11

Invidi Technologies Corporation. We own a 35% interest in Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. Invidi contracts with multichannel video programming distributers to include its software in their respective set-top boxes and DVRs in order to deliver targeted advertisements based on a variety of demographic attributes selected by the advertisers. Invidi has also developed a cloud-based solution for internet protocol-based platforms. During the three months ended June 30, 2024, Invidi impaired the goodwill on their financial statements and our portion of this impairment resulted in a $63 million loss in “Equity in earnings (losses) of affiliates” recorded in “Other, net” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) during the nine months ended September 30, 2024.

We also hold investments that are not accounted for using the equity method of accounting, which are measured at fair value. Investments in equity securities without readily determinable fair values are accounted for at cost, less impairment and adjusted for observable price changes for identical or similar investments of the same issuer.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

NagraStar L.L.C. We own a 50% interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. The three main technologies NagraStar provides to its customers are microchips, set-top box software and uplink computer systems. NagraStar also provides end-to-end platform security testing services.

Invidi Technologies Corporation. We own a 35% interest in Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. Invidi contracts with multichannel video programming distributers to include its software in their respective set-top boxes and DVRs in order to deliver targeted advertisements based on a variety of demographic attributes selected by the advertisers. Invidi has also developed a cloud-based solution for internet protocol-based platforms.

Our ability to realize value from our strategic investments in securities that are not publicly traded depends on, among other things, the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them.

Fair Value Measurements

Our investments measured at fair value on a recurring basis were as follows:


	As of
	~~September~~March 3031, ~~2024~~2025								December 31, ~~2023~~2024
	~~Total~~Level 1		Level 12		Level 23		~~Level 3~~Total		~~Total~~Level 1		Level 12		Level 23		~~Level 3~~Total
	(In thousands)
Cash equivalents (including restricted)	$	2,427,597	$	434,221	$	1,993,376	$	—	$	411,571	$	358,545	$	53,026	$	—
Cash and cash equivalents (including restricted):

Cash	$	89,716	$	—	$	—	$	89,716	$	124,360	$	—	$	—	$	124,360
Debt securities (including restricted):
Cash equivalents		319,431		445,320		—		764,751		463,394		40,907		—		504,301
Other	$	—	$	—	$	—	$	—	$	397	$	—	$	397	$	—
Total	$	409,147	$	445,320	$	—	$	854,467	$	587,754	$	40,907	$	—	$	628,661
Total	$	—	$	—	$	—	$	—	$	397	$	—	$	397	$	—


Debt securities (including restricted):
U.S. Treasury and agency securities	$	5,414	$	—	$	—	$	5,414	$	—	$	—	$	—	$	—
Commercial paper		—		11,949		—		11,949		—		—		—		—
Corporate securities		—		—		—		—		—		—		—		—
Other		—		92		—		92		—		—		—		—
Total	$	5,414	$	12,041	$	—	$	17,455	$	—	$	—	$	—	$	—

As of March 31, 2025, restricted and non-restricted marketable investment securities included debt securities of $17 million with contractual maturities within one year. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

Gains and Losses on Sales and Changes in Carrying Amounts of Investments and Other

“Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows:


	For the Three Months Ended				~~For the Nine Months Ended~~
	~~September~~March 3031,				~~September 30,~~
Other, net:	~~2024~~2025		~~2023~~2024		~~2024~~		~~2023~~
	(In thousands)
Gains (losses) related to early redemption of debt	$	—	$	755	$	—	$	804
Equity in earnings (losses) of affiliates	$	(481)	$	(708)
Equity in earnings (losses) of affiliates		(3,345)		(891)		(68,257)		(1,656)
Other		(9)		139
Other		75		201		122		243
Total	$	(490)	$	(569)
Total	$	(3,270)	$	65	$	(68,135)	$	(609)

5.Inventory

Inventory consisted of the following:


	As of
	~~September~~March 3031,		December 31,
	~~2024~~2025		~~2023~~2024
	(In thousands)
Finished goods	$	~~170~~128,~~904~~073	$	~~208~~149,~~049~~172
Work-in-process and service repairs		3124,~~187~~685		3527,~~457~~415
Raw materials		76,~~289~~866		246,~~335~~615
Total inventory	$	~~209~~159,~~380~~624	$	~~267~~183,~~841~~202

6.	Property and Equipment

Property and equipment consisted of the following:


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

				(In thousands)
Equipment leased to customers	2	-	5	$	969,636	$	1,002,518
EchoStar XV		15			277,658		277,658
EchoStar XVIII		15			411,255		411,255
Furniture, fixtures, equipment and other	2	-	10		746,984		746,585
Software and computer equipment	3	-	5		684,378		670,503
Buildings and improvements	5	-	40		290,162		288,573
Land		-			12,007		12,007
Construction in progress		-			36,726		34,232
Total property and equipment					3,428,806		3,443,331
Accumulated depreciation					(2,828,218)		(2,818,562)
Property and equipment, net (1)				$	600,588	$	624,769

~~Table~~(1) As of ~~Contents~~March 31, 2025 and December 31, 2024, there were no refunds and other receipts of purchases of property and equipment.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

6. Property and Equipment

Property and equipment consisted of the following:


	Depreciable		As of
	Life	September 30,		December 31,
	(In Years)	2024		2023
		(In thousands)
Equipment leased to customers	2-5	$	1,040,595	$	1,175,734
EchoStar XV	15		277,658		277,658
EchoStar XVIII	15		411,255		411,255
Satellites acquired under finance lease agreements	5		174,685		174,685
Furniture, fixtures, equipment and other	2-10		746,715		755,163
Software and computer equipment	2-5		1,225,577		1,197,632
Buildings and improvements	5-40		288,549		294,890
Land	-		12,007		12,505
Construction in progress	-		30,160		45,413
Total property and equipment			4,207,201		4,344,935
Accumulated depreciation			(3,554,314)		(3,536,870)
Property and equipment, net		$	652,887	$	808,065

Depreciation and amortization expense consisted of the following:

For the Three Months Ended

~~For the Nine Months Ended~~

~~September~~March 3031,

~~September 30,~~

~~2024~~2025

~~2023~~2024

~~2024~~

~~2023~~

(In thousands)

Equipment leased to customers

3832,~~489~~725

3436,~~469~~868

~~110,062~~

~~126,034~~

Satellites

2011,~~073~~482

20,073

~~60,219~~

Buildings, furniture, fixtures, equipment and other

5,~~426~~933

64,~~259~~008

~~14,887~~

~~18,994~~

Software and computer equipment

98,~~302~~898

9,~~673~~731

~~29,141~~

~~30,959~~

Total depreciation and amortization

7359,~~290~~038

70,~~474~~680

~~214,309~~

~~236,206~~

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 software.

Satellites

We currently utilize nine satellites in ~~geostationary~~geosynchronous orbit approximately 22,300 miles above the equator, two of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on six satellites that we lease from DISH Network, which are accounted for as operating leases~~, except for Nimiq 5 which is accounted for as a finance lease and is depreciated over its economic life~~. We also lease one satellite from a third- party:, the Anik F3 satellite, which is accounted for as an operating lease.

As of March 31, 2025, our Pay-TV satellite fleet consisted of the following:


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV (1)	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Under Construction:
EchoStar XXV	2026	110	N/A

Leased from DISH Network (2):
EchoStar X	February 2006	110	February 2026
EchoStar XI	July 2008	110	February 2026
EchoStar XIV	March 2010	119	February 2026
EchoStar XVI	November 2012	61.5	January 2026
EchoStar XXIII	March 2017	110	Month to Month
Nimiq 5	September 2009	72.7	Month to Month

Leased from Other Third-Party:
Anik F3 (3)	April 2007	118.7	April 2025

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~~DISH~~(1) ~~DBS~~During ~~CORPORATION~~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 is expected to be completed by the third quarter of 2025.

~~NOTES~~(2) TOSee ~~CONDENSED~~Note ~~CONSOLIDATED~~11 ~~FINANCIAL~~for ~~STATEMENTS~~further -information ~~Continued~~on our Related Party Transactions with DISH Network.

(~~Unaudited~~3) As of April 2025, we no longer lease this satellite.

~~As of September 30, 2024, our Pay-TV satellite fleet in service consisted of the following:~~14


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Under Construction:
EchoStar XXV (1)	2026	110	N/A

Leased from DISH Network (2):
EchoStar X	February 2006	110	February 2025
EchoStar XI	July 2008	110	February 2025
EchoStar XIV	March 2010	119	February 2025
EchoStar XVI	November 2012	61.5	January 2025
EchoStar XXIII	March 2017	110	Month to Month
Nimiq 5 (3)	September 2009	72.7	October 2025

Leased from Other Third-Party:
Anik F3	April 2007	118.7	April 2025

(1) EchoStar XXV. On March 20, 2023, DISH Network 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, DISH Network entered into an agreement with Space Exploration Technologies Corp (“SpaceX”) for launch services for this satellite, which is expected to be launched during 2026.

(2) See Note 11 for further information on our Related Party Transactions.

(3) Subsequent to September 30, 2024, we extended the Nimiq 5 lease with DISH Network and as a result, beginning in the fourth quarter of 2024, we will account for the Nimiq 5 lease as an operating lease.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

Satellite Under Construction

EchoStar XXV. On March 20, 2023, DISH Network 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, DISH Network entered into an agreement with Space Exploration Technologies Corp (“SpaceX”) for launch services for this satellite, which is expected to be launched during 2026.

7.	Debt and Finance Lease Obligations

Fair Value of our Debt

The following table summarizes the carrying amount and fair value of our debt facilities as of ~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~2024:


		As of
		~~September~~March 3031, ~~2024~~2025				December 31, ~~2023~~2024
	Issuer	CarryingAmount		Fair Value		CarryingAmount		Fair Value
		(In thousands)
Current:
Term Loan due 2025 (1)	DBS SubscriberCo	$	333,333	$	333,333	$	500,000	$	500,000
5 7/8% Senior Notes due 2024	DDBS	$	1,982,544	$	1,978,559	$	1,982,544	$	1,872,275
7 3/4% Senior Notes due 2026	DDBS		2,000,000		1,745,000		2,000,000		1,678,640
Term Loan due 2025 (1)	DBS SubscriberCo		500,000		500,000		—		—
5 1/4% Senior Secured Notes due 2026	DDBS		2,750,000		2,530,000		2,750,000		2,507,780
Long-Term:
7 3/8% Senior Notes due 2028	DDBS		1,000,000		714,160		1,000,000		715,680
7 3/4% Senior Notes due 2026	DDBS		2,000,000		1,718,660		2,000,000		1,388,060
5 3/4% Senior Secured Notes due 2028	DDBS		2,500,000		2,122,900		2,500,000		2,143,350
5 1/4% Senior Secured Notes due 2026	DDBS		2,750,000		2,536,875		2,750,000		2,366,073
5 1/8% Senior Notes due 2029	DDBS		1,500,000		976,050		1,500,000		959,610
7 3/8% Senior Notes due 2028	DDBS		1,000,000		729,150		1,000,000		600,160
Term Loan due 2029 (2)	DBS SubscriberCo		1,800,000		1,800,000		1,800,000		1,800,000
5 3/4% Senior Secured Notes due 2028	DDBS		2,500,000		2,200,000		2,500,000		2,013,125
Mandatorily Redeemable Preferred Shares due 2029 (2)(3)	DBS SubscriberCo		200,000		200,000		200,000		200,000
5 1/8% Senior Notes due 2029	DDBS		1,500,000		981,000		1,500,000		774,600
Other notes payable			32,350		32,350		32,350		32,350
Term Loan due 2029 (1)	DBS SubscriberCo		1,800,000		1,800,000		—		—
Subtotal			12,115,683	$	10,453,793		12,282,350	$	10,537,410
Mandatorily Redeemable Preferred Shares due 2029 (1) (2)	DBS SubscriberCo		200,000		200,000		—		—
Unamortized deferred financing costs and other debt discounts, net			(111,070)				(134,900)
Subtotal			14,232,544		12,644,244		11,732,544		9,014,293
Total			12,004,613				12,147,450
Other notes payable			32,350		32,350		42,678		42,678
Less: current portion (2)			(811,569)				(744,556)
Unamortized deferred financing costs and other debt discounts, net			(161,218)		—		(26,812)		—
Total debt, finance lease and other obligations, net of current portion		$	11,193,044			$	11,402,894
Finance lease obligations (3)			—		—		31,104		—
Total long-term debt, finance lease and other obligations (including current portion)		$	14,103,676	$	12,676,594	$	11,779,514	$	9,056,971

(1) See “New DISH DBS Financing” below for further information.

(2) Due to the mandatory redemption feature of this instrument, it is considered a debt instrument.

(3) Disclosure regarding fair value of finance leases is not required.

(1)	During the three months ended March 31, 2025, we redeemed approximately $167 million of our Term Loan due 2025. The remaining balance of approximately $333 million is paid monthly and the final payment is due September 30, 2025.

(2)

A portion of the principal balance of these instruments is classified as “Current portion of debt, finance lease and other obligations” due to payment terms upon which we may pay a portion of principal balance based on estimated variable cash flows for certain Pay-TV business metrics which could change significantly based on actual performance.

(3)	Due to the June 30, 2029 mandatory redemption feature of this instrument, it is considered a debt instrument.

We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2).

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Recent Transactions

DISH DBS Exchange Offers

On September 30, 2024, we commenced offers to exchange (the “DISH DBS Exchange Offers”) any and all of our (a) 5 1/4% Senior Secured Notes due 2026 (the “Outstanding 2026 DBS Secured Notes”) for an equal principal amount of our new 5 1/4% First Lien Notes due 2026 (the “New 2026 DBS First Lien Notes”), (b) 5 3/4% Senior Secured Notes due 2028 (the “Outstanding 2028 DBS Secured Notes”) for an equal principal amount of our new 5 3/4 % First Lien Notes due 2028 (the “New 2028 DBS First Lien Notes”), (c) 7 3/4% Senior Notes due 2026 (the “Outstanding 2026 DBS Notes”) for an equal principal amount of our new 7 3/4% Second Lien Notes due 2026 (the “New 2026 DBS Second Lien Notes”), (d) 7 3/8% Senior Notes due 2028 (the “Outstanding 2028 DBS Notes”) for an equal principal amount of our new 7 3/8 % Second Lien Notes due 2028 (the “New 2028 DBS Second Lien Notes”) and (e) 5 1/8 % Senior Notes due 2029 (the “Outstanding 2029 DBS Notes” and, together with the Outstanding 2026 DBS Secured Notes, the Outstanding 2028 DBS Secured Notes, the Outstanding 2026 DBS Notes and the Outstanding 2028 DBS Notes, the “Outstanding DBS Notes”) for an equal principal amount of our new 5 1/8% Second Lien Notes due 2029 (the “New 2029 DBS Second Lien Notes” and, together with the New 2026 DBS First Lien Notes, the New 2028 DBS First Lien Notes, the New 2026 DBS Second Lien Notes and the New 2028 DBS Second Lien Notes, the “New DBS Notes”), in each case, pursuant to the terms described in a confidential exchange offering memorandum and consent solicitation statement, dated September 30, 2024 (“Original Exchange Offering Memorandum”). On October 28, 2024, we amended certain terms of the DISH DBS Exchange Offers pursuant to the terms described in Supplement No. 1, dated October 28, 2024 (the “Supplement” and together with the Original Exchange Offering Memorandum, the “Exchange Offering Memorandum”).

The DISH DBS Exchange Offers expired at 5:00 p.m., New York City time on November 12, 2024, and the DISH DBS Exchange Offers have been terminated due to the failure to satisfy the Minimum Series Exchange Condition and the Acquisition Consent Threshold Condition, each as defined in the Exchange Offering Memorandum.

New DISH DBS Financing

On September 29, 2024 (the “Financing Closing Date”), we and our subsidiary, DISH DBS Issuer LLC (“DBS SubscriberCo”), received $2.5 billion in financing from TPG Angelo Gordon and other co-lenders in the form of Term Loans and Mandatorily Redeemable Preferred Shares (each as defined below and together, the “New DISH DBS Financing”). Approximately $2.047 billion in proceeds received from the New DISH DBS Financing are included in “Current restricted cash and cash equivalents” on our Condensed Consolidated Balance Sheets and are required to be used for the redemption, repayment or repurchase of the principal balance and remaining interest outstanding on our 5 7/8% Senior Notes due November 15, 2024. If the DISH DBS Exchange Offers and the DIRECTV Transaction fails, the $2.5 billion in New DISH DBS Financing can be redeemed at our election with no prepayment penalty for 180 days.

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Term Loans

On the Financing Closing Date, DBS SubscriberCo, Alter Domus (US) LLC, as Administrative Agent, and the lenders party thereto, entered into a Loan and Security Agreement (together with all the exhibits, annexes and schedules thereto, the “Loan and Security Agreement”), pursuant to which, among other things and subject to the terms and conditions set forth therein, the lenders agreed to extend credit to DBS SubscriberCo in an aggregate principal amount of up to $2.3 billion secured by the assets of DBS SubscriberCo, which includes approximately three million DISH TV subscribers and their related subscription and equipment agreements (such transactions, the “Loan Financing”). The Loan Financing consists of the following: (i) initial term loans in an aggregate principal amount of $1.8 billion that mature on June 30, 2029 (the “Term Loan due 2029”), (ii) incremental term loans in an aggregate principal amount of $500 million that are payable in equal monthly installments beginning in January 2025 and mature on September 30, 2025 (the “Term Loan due 2025”) and (iii) an additional amount of incremental term loans (the “Roll-up Incremental Term Loans” and, together with the Term Loan due 2029 and the Term Loan due 2025, the “Term Loans”). The Roll-up Incremental Term Loans may be incurred from time to time, subject to DBS SubscriberCo’s prior approval and pro forma compliance with a leverage ratio set forth in the Loan and Security Agreement, and mature on June 30, 2029.

The Roll-up Incremental Term Loans may be incurred in exchange for Outstanding DBS Notes in an aggregate principal amount equal to (i) the price at which certain lenders acquire such notes plus (ii)(A) in the case of Outstanding 2028 DBS Notes and Outstanding 2029 DBS Notes, 15% of the difference between the aggregate principal amount of such notes and the purchase price thereof, or (B) in the case of Outstanding 2026 DBS Notes, Outstanding 2026 DBS Secured Notes and Outstanding 2028 DBS Secured Notes, 20% of the difference between the aggregate principal amount of such notes and the purchase price thereof.

Interest on the Term Loans accrues and is payable monthly, generally in cash. The interest rate with respect to the Term Loan due 2029 is (i) from (and including) the Financing Closing Date and until (but excluding) the date that is twelve months thereafter, 10.75% per annum and (ii) from (and including) the date that is twelve months after the Financing Closing Date and until June 30, 2029, 11.25% per annum. The interest rate with respect to the Term Loan Due 2025 is 11.00% per annum. The interest rate with respect to the Roll-up Incremental Term Loans is (i) from (and including) the Financing Closing Date and until (but excluding) the date that is twelve months thereafter, 11.00% per annum and (ii) from (and including) the date that is twelve months after the Financing Closing Date and until the Maturity Date, 11.50% per annum.

The Loan and Security Agreement specifies a priority of payments for funds received by DBS SubscriberCo from subscriber payments and certain other revenue. Specifically, on each Transfer Date, as defined in the Loan and Security Agreement, payments will be made, as applicable to the Administrative Agent for certain administrative and other fees, to DBS SubscriberCo for reimbursement of certain operating costs, to a subsidiary of DISH Network as Manager under the Loan and Security Agreement and as Servicer for DBS SubscriberCo, and to an account used to collect and remit interest on the Term Loans, preferred distributions with respect to Preferred Membership interests (as defined below), and monthly principal payments on the Term Loan due 2025. After remitting those payments, through September 30, 2025 if DBS SubscriberCo is in compliance with the terms of the Loan and Security Agreement, it will have the ability to accumulate any excess collections, subject to the terms of the Loan and Security Agreement. At its election, any such excess collections can be distributed by DBS SubscriberCo to its parent via an intercompany loan. No later than September 30, 2025, all excess collections will be used to fund the payment of the Term Loans, the Mandatorily Redeemable Preferred Shares and the associated interest and preferred distributions. If DBS SubscriberCo is not in compliance with its covenants, the entity will lose the ability to accumulate any excess collections with those proceeds being utilized to satisfy the debt obligation and associated interest.

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Mandatorily Redeemable Preferred Shares Due 2029

On the Financing Closing Date, DBS SubscriberCo, entered into an amended and restated limited liability company agreement (the “SubscriberCo LLCA”), pursuant to which, among other things, DBS SubscriberCo issued to certain investors (the “Preferred Members”) redeemable preferred equity interests (the “Preferred Membership Interests”) with an aggregate liquidation preference of $200 million (the “Mandatorily Redeemable Preferred Shares”). The Mandatorily Redeemable Preferred Shares mature on June 30, 2029. Due to the mandatory redemption feature of this instrument, it is considered a debt instrument and recorded in “Long-term debt, finance lease and other obligations, net of current portion” on our Condensed Consolidated Balance Sheets.

The Preferred Membership Interests have a preferential cumulative return that accumulates daily in arrears at a rate of: (a) from (and including) the Financing Closing Date and until (but excluding) the date that is 12 months thereafter, 13.25% per annum and (b) from (and including) the date that is 12 months after the Financing Closing Date and until June 30, 2029 (or the first business day thereafter), 13.75% per annum, payable in cash monthly and a liquidation preference equal to the issue price plus all accrued and unpaid dividends.

The Preferred Membership Interests are redeemable at DBS SubscriberCo’s option prior to the June 30, 2029 maturity date at a premium as described in the SubscriberCo LLCA. Upon the maturity date, DBS SubscriberCo is required to redeem all of the Preferred Membership Interests issued and outstanding at such time, and upon payment in full of the aggregate liquidation preference, all rights of the Preferred Members will terminate. The Preferred Members also have certain governance and economic rights set forth in the SubscriberCo LLCA.

DBS SubscriberCo Intercompany Loan (Eliminated in Consolidations at DISH DBS)

A portion of the net proceeds from the New DISH DBS Financing were used by DBS SubscriberCo to make an intercompany loan of $323 million to DISH DBS pursuant to a Loan, Guaranty and Security Agreement dated September 29, 2024 (the “DBS SubscriberCo Intercompany Loan”) between DBS SubscriberCo and DISH DBS as funding for general corporate purposes. The DBS SubscriberCo Intercompany Loan matures on June 30, 2029. Interest accrues and is payable monthly and interest payments are payable in kind. The interest rate with respect to the DBS SubscriberCo Intercompany Loan is (i) for the first twelve months following the effective date of September 29, 2024 at 11% per annum and (ii) thereafter at 11.50% per annum. The DBS SubscriberCo Intercompany Loan is secured by DISH DBS’s rights and interest receivable in respect to the Intercompany Loan – 2028 Tranche. As of September 30, 2024, the total DBS SubscriberCo Intercompany Loan amount outstanding plus interest paid in kind was $323 million.

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8.	Commitments and Contingencies

Commitments

Our commitments include certain obligations incurred by us on behalf of ~~EchoStar~~DISH Network’s Wireless segment. These obligations will be either paid directly by ~~EchoStar~~DISH Network or settled monthly as part of our centralized cash management system with our parent, DISH Network. See Note 3 for further information.

~~EchoStar’s Spectrum and~~ 5G Network Deployment

~~EchoStar~~DISH ~~has~~Network initially invested a total of over $30 billion in wireless spectrum licenses. ~~EchoStar~~DISH Network’s wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. ~~EchoStar~~DISH ~~plans~~Network continues to commercialize its wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (“O-RAN”) based 5G VoNR and broadband network (the “5G Network ~~Deployment~~”). ~~EchoStar~~DISH Network currently expects capital expenditures, excluding capitalized interest, for its 5G Network ~~Deployment~~ to be approximately $10 billion, including amounts incurred into ~~2021,~~date ~~2022,~~since ~~2023 and the first nine months of 2024~~2021.

~~EchoStar~~DISH Network may need to make significant additional investments or partner with others to, among other things, continue its 5G Network ~~Deployment~~deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, as ~~EchoStar~~DISH Network continues its 5G Network ~~Deployment~~deployment, ~~EchoStar~~DISH Network has and may continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, software and third-party integration. As a result of these investments, among other factors, ~~EchoStar~~DISH ~~may~~Network will need to raise additional capital, which may not be available on favorable terms or at all. ~~EchoStar~~DISH Network may also determine that additional wireless spectrum licenses may be required for its 5G Network ~~Deployment~~deployment, ~~and~~which will enhance its ability to compete effectively with other wireless service providers.

In connection with the development of ~~EchoStar~~DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions and ~~the~~ intercompany loans to partially finance these efforts to date and may make additional cash distributions or loans to finance, in whole or in part, ~~EchoStar~~DISH Network’s future efforts, including, among other things, any potential Northstar re-auction payment and SNR re-auction payment. There can be no assurance that ~~EchoStar~~DISH Network will be able to complete all build-out requirements or profitably deploy these wireless spectrum licenses.

See Note 10 “Commitments and Contingencies – Commitments – 5G Network ~~Deployment~~” in the Notes to EchoStar’s Quarterly Report on Form 10-Q for the quarter ended ~~September~~March 3031, ~~2024~~2025 for further information.

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Contingencies

Litigation

We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made.

For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.

ClearPlay, Inc.

On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against EchoStar and its wholly-owned subsidiaries DISH Network, DISH Network L.L.C., and EchoStar’s then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges willful infringement of United States Patent Nos. 6,898,799 (the “799 patent”), entitled “Multimedia Content Navigation and Playback”; 7,526,784 (the “784 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318 (the “318 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970 (the “970 patent”), entitled “Multimedia Content Navigation and Playback”; and 8,117,282 (the “282 patent”), entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums.” ClearPlay alleges that the AutoHop^™ feature of our Hopper® set-top box infringes the asserted patents. On February 11, 2015, the case was stayed pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents asserted in the action.

In those third-party challenges, the United States Patent and Trademark Office found that all claims of the 282 patent are unpatentable, and that certain claims of the 784 patent and 318 patent are unpatentable. ClearPlay appealed as to the 784 patent and the 318 patent, and on August 23, 2016, the United States Court of Appeals for the Federal Circuit affirmed the findings of the United States Patent and Trademark Office. On October 31, 2016, the stay was lifted, and in May 2017, ClearPlay agreed to dismiss EchoStar and DISH Network as defendants, leaving DISH Network L.L.C. and DISH Technologies L.L.C. as the sole defendants.

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On October 16, October 21, November 2, 2020 and November 9, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of the asserted claims of, respectively, the 784 patent, the 799 patent, the 318 patent and the 970 patent; and on November 2, November 20, December 14 and December 15, 2020, the United States Patent and Trademark Office granted each request for reexamination. On May 7, 2021, May 25, 2021, June 25, 2021 and July 7, 2021, the United States Patent and Trademark Office issued Ex Parte Reexamination Certificates confirming the patentability of the challenged claims of, respectively, the 799 patent, the 784 patent, the 318 patent and the 970 patent.

In October and November 2021, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of certain asserted claims of the 784 patent, the 799 patent and the 970 patent. In November and December 2021, the United States Patent and Trademark Office granted review of the challenged claims of the 799 patent and the 970 patent, but denied review of the challenged claims of the 784 patent. On January 24, 2022, an examiner of the United States Patent and Trademark Office affirmed the challenged claims of the 799 patent, and on January 19, 2023, an examiner of the United States Patent and Trademark Office affirmed the challenged claims of the 970 patent.

In an order dated January 31, 2023, the Court granted in part and denied in part DISH Network L.L.C.’s and DISH Technologies L.L.C.’s motion for summary judgment. Thereafter, ClearPlay narrowed its case to three asserted claims: one under the 799 patent and two under the 970 patent. Following a two-week trial, on March 10, 2023, the jury returned a verdict that DISH Network L.L.C. and DISH Technologies L.L.C. infringed each of the asserted patent claims (though not willfully), and awarded damages of $469 million. That verdict became moot on March 21, 2023, when the trial court indicated that it would grant DISH Network L.L.C.’s and DISH Technologies L.L.C.’s motion for judgment as a matter of law, thus effectively vacating the jury award. On June 2, 2023, the Court entered its formal order granting judgment as a matter of law. On December 12, 2023, the Court denied ClearPlay’s motion to alter or amend the judgment. ClearPlay has filed a notice of appeal to the United States Court of Appeals for the Federal Circuit and briefing ~~should~~was be completed byon November 27, 2024.

We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

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Data Breach Class Actions

On May 9, 2023, Susan Owen-Brooks, an alleged customer, filed a putative class action complaint against DISH Network, our parent, in the United States District Court for the District of Colorado. She purports to represent a nationwide class of all individuals in the United States who allegedly had private information stolen as a result of the February 23, 2023 Cyber-security Incident (and a North Carolina statewide subclass of the same individuals). Since that filing, ten additional putative class action complaints have been filed in the United States District Court for the District of Colorado, purporting to represent the same nationwide class of people, and Owen-Brooks has filed an amended complaint. On August 2, 2023, the Court issued an order consolidating the first ten cases (the eleventh was dismissed) and, on November 16, 2023 and January 16, 2024, the plaintiffs filed consolidated amended class action complaints. On September 27, 2024, the Court granted DISH Network’s motion to dismiss the First Amended Consolidated Class Action Complaint as to eight of the eleven named plaintiffs and as to certain causes of action. On October 29, 2024, the Plaintiffs filed the operative Second Amended Consolidated Class Action Complaint, which deletes the allegations as to the dismissed plaintiffs and causes of action, leaving three named plaintiffs and causes of action for negligence, negligence per se, breach of implied contract, and declaratory judgment.

DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Digital Broadcasting Solutions, LLC

On August 29, 2022, Digital Broadcasting Solutions, LLC filed a complaint against our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 8,929,710 (the “710 patent”) and U.S. Patent No. 9,538,122 (the “122 patent”), each entitled “System and method for time shifting at least a portion of a video program.” Generally, the plaintiff contends that the AutoHop feature of our Hopper® set-top boxes infringes the asserted patents. On June 21, 2023, the Court granted the motion of DISH Network L.L.C. and DISH Technologies L.L.C. to have the case transferred to the United States District Court for the District of Colorado.

In May 2023, DISH Network L.L.C. and DISH Technologies L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of all claims of the 710 patent and the 122 patent and, on December 119, ~~2023~~2024, the United States Patent and Trademark Office ~~entered~~issued final written decisions ~~instituting~~invalidating ~~each~~38 ~~petition~~of the 39 challenged claims. On ~~May~~January 913, ~~2024~~2025, Digital Broadcasting Solutions filed a ~~magistrate~~notice ~~judge~~of ~~issued~~appeal anof ~~order~~those ~~granting~~final ~~the~~written ~~defendants’~~decisions, ~~motion~~and toon ~~stay~~February 7, 2025, DISH Network L.L.C. and DISH Technologies L.L.C. cross-appealed as to the single patent claim that wasn’t invalidated. The underlying case has been stayed since May 9, 2024, pending resolution of the petitions before the United States Patent and Trademark Office and any related appeals.

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Entropic Communications, LLC (first action)

On March 9, 2022, Entropic Communications, LLC (“Entropic”) filed a complaint against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C. and Dish Network Service L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 7,130,576 (the “576 patent”), entitled “Signal Selector and Combiner for Broadband Content Distribution”; U.S. Patent No. 7,542,715 (the “715 Patent”), entitled “Signal Selector and Combiner for Broadband Content Distribution”; and U.S. Patent No. 8,792,008 (the “008 Patent”), entitled “Method and Apparatus for Spectrum Monitoring.” On March 30, 2022, Entropic filed an amended complaint alleging infringement of the same patents. Generally, the plaintiff accuses satellite antennas, low-noise block converters, signal selector and combiners, and set-top boxes and the manner in which they process signals for satellite television customers of infringing the asserted patents. The plaintiff is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein.

On October 24, 2022, this case was ordered to be transferred to the United States District Court for the Central District of California. A companion case against DirecTV was also ordered transferred to the United States District Court for the Central District of California. In January and February of 2023, DISH Network L.L.C. and Dish Network Service L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of all claims of the 715 patent, all claims of the 008 patent, and 25 claims of the 576 patent, which includes all of its asserted claims. In August and September 2023, the Patent Office denied institution on the petitions challenging the 715 patent and the 576 patent. In September 2023, at the parties’ joint request, the Patent Office dismissed the petition challenging the 008 patent, as Entropic agreed to drop its claims against DISH Network on that patent. On July 12, 2024, the United States Patent and Trademark Office granted a request for reexamination of the 715 patent.

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Entropic Communications, LLC (second action)

On February 10, 2023, Entropic filed a second lawsuit against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C., Dish Network Service L.L.C. and Dish Network California Service Corporation in the United States District Court for the Central District of California. The complaint alleges infringement of U.S. Patent No. 7,295,518 (the “518 patent”), entitled “Broadband network for coaxial cable using multi-carrier modulation”; U.S. Patent No. 7,594,249 (the “249 patent”), entitled “Network interface device and broadband local area network using coaxial cable”; U.S. Patent Nos. 7,889,759 (the “759 patent”), entitled “Broadband cable network utilizing common bit-loading”; U.S. Patent No. 8,085,802 (the “802 Patent”), entitled “Multimedia over coaxial cable access protocol”; U.S. Patent No. 9,838,213 (the “213 patent”), entitled “Parameterized quality of service architecture in a network”; U.S. Patent No. 10,432,422 (the “422 patent”), entitled “Parameterized quality of service architecture in a network”; U.S. Patent No. 8,631,450 (the “450 patent”), entitled “Broadband local area network”; U.S. Patent No. 8,621,539 (the “539 patent”), entitled “Physical layer transmitter for use in a broadband local area network”; U.S. Patent No. 8,320,566 (the “0,566 patent”), entitled “Method and apparatus for performing constellation scrambling in a multimedia home network”; U.S. Patent No. 10,257,566 (the “7,566 patent”), entitled “Broadband local area network”; U.S. Patent No. 8,228,910 (the “910 Patent”), entitled “Aggregating network packets for transmission to a destination mode”; and U.S. Patent No. 8,363,681 (the “681 patent”), entitled “Method and apparatus for using ranging measurements in a multimedia home network.” Generally, the patents relate to Multimedia over Coax Alliance standards and the manner in which we provide a whole-home DVR network over an on-premises coaxial cable network. Entropic has asserted the same patents in the same court against Comcast, Cox and DirecTV. On September 7, 2023, the Court granted the motion of DISH Network L.L.C., Dish Network Service L.L.C. and Dish Network California Service Corporation to dismiss the claims arising from the 7,566 patent and the 910 patent on the grounds that they claimed in eligible subject matter. In January and February 2024, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the 249 patent, the 518 patent, the 759 patent, the 450 patent, the 539 patent, the ’0,566 patent, and the ’681 patent. In July and August 2024, the United States Patent and Trademark Office agreed to institute proceedings on the petitions challenging the 249 patent and the 518 patent, but denied institution on the remaining petitions.

Entropic has asserted the same patents in the same court against Comcast, Cox and DirecTV. On September 7, 2023, the Court granted the motion of DISH Network L.L.C., Dish Network Service L.L.C. and Dish Network California Service Corporation to dismiss the claims arising from the 7,566 patent and the 910 patent on the grounds that they claimed in eligible subject matter. In January and February 2024, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the 249 patent, the 518 patent, the 759 patent, the 450 patent, the 539 patent, the ’0,566 patent, and the ’681 patent. In July and August 2024, the United States Patent and Trademark Office agreed to institute proceedings on the petitions challenging the 249 patent and the 518 patent, but denied institution on the remaining petitions. On February 24, 2025, the Court granted other defendants’ motions to dismiss the claims arising from the 213 patent, the 422 patent, the 681 patent and the 802 patent on the grounds that they claimed in eligible subject matter. In a claim construction order issued on April 18, 2025, the Court found that the asserted claim of the 539 patent is invalid as indefinite.

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Freedom Patents

On April 7, 2023, Freedom Patents LLC filed a complaint against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C. and Dish Network Service L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 8,284,686 (the “686 Patent”), entitled “Antenna/Beam Selection Training in MIMO Wireless LANS with Different Sounding Frames”; U.S. Patent No. 8,374,096 (the “096 Patent”), entitled “Method for Selecting Antennas and Beams in MIMO Wireless LANs”; and U.S. Patent No. 8,514,815 (the “815 Patent”), entitled “Training Signals for Selecting Antennas and Beams in MIMO Wireless LANs.” Similar complaints were also filed against Acer, Altice, Charter, Comcast and Verizon. In general, the asserted patents relate to the 802.11 wireless standard, and the products accused of infringement are the Wireless Joey, its access point, and certain Ring, Nest and Linksys products that we sell. On March 15, 2024, the Court denied the defendants’ motion to transfer the case to the United States District Court for the District of Colorado. On May 24, 2024, the case was dismissed pursuant to a settlement under which DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. paid an immaterial amount. This matter is now concluded.

Jones 401(k) Litigation

On December 20, 2021, four former employees filed a class action complaint in the United States District Court for the District of Colorado against DISH Network, DISH Network’s Board of Directors, and DISH Network’s Retirement Plan Committee alleging fiduciary breaches arising from the management of our 401(k) Plan. The putative class, comprised of all participants in the Plan on or after January 20, 2016, alleges that the Plan had excessive recordkeeping and administrative expenses and that it maintained underperforming funds. On February 1, 2023, a Magistrate Judge issued a recommendation that the defendants’ motion to dismiss the complaint be granted, and on March 27, 2023, the district court judge granted the motion. As permitted by the Court’s order, the plaintiffs filed an amended complaint on April 10, 2023, which is limited to allegations regarding the alleged underperformance of the Fidelity Freedom Funds. On November 7, 2023, a Magistrate Judge issued a recommendation that the defendants’ motion to dismiss the amended complaint be denied as to the duty to prudently monitor fund performance, but be granted as to the duty of loyalty and, on November 27, 2023, the district court judge entered an order adopting the recommendation. On March 1, 2024, by stipulation, the plaintiffs dismissed their claims against the Board of Directors and the Retirement Plan Committee, leaving DISH Network as the sole defendant. On April 30, 2024, pursuant to the parties’ stipulation, the Court certified the proposed plaintiff class. On October 30, 2024, pursuant to the parties’ stipulation, the Court stayed the litigation pending a mediation.

DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Lingam Securities Class Action (formerly Jaramillo)

On March 23, 2023, a securities fraud class action complaint was filed against DISH Network and Messrs. Ergen, Carlson and Orban in the United States District Court for the District of Colorado. The complaint iswas brought on behalf of a putative class of purchasers of DISH Network’s securities during the February 22, 2021 to February 27, 2023 class period. In general, the complaint alleges that DISH Network’s public statements during that period were false and misleading and contained material omissions, because they did not disclose that DISH Network allegedly maintained a deficient cyber-security and information technology infrastructure, were unable to properly secure customer data and DISH Network’s operations were susceptible to widespread service outages.

28In general, the complaint alleged that DISH Network’s public statements during that period were false and misleading and contained material omissions, because they did not disclose that DISH Network allegedly maintained a deficient cyber-security and information technology infrastructure, were unable to properly secure customer data and DISH Network’s operations were susceptible to widespread service outages.

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In August 2023, the Court appointed a new lead plaintiff and lead plaintiff’s counsel, and on October 20, 2023, they filed a First Amended Complaint that abandoned the original allegations. In their First Amended Complaint, plaintiffs alleged that, during the class period, the defendants concealed problems concerning the 5G network buildout that prevented scaling and commercializing the network to obtain enterprise customers.

The amended complaint added as individual defendants James S. Allen, DISH Network’s Senior Vice President and Chief Accounting Officer; John Swieringa, DISH Network’s President, Technology and Chief Operating Officer; Dave Mayo, DISH Network’s former Executive Vice President of Network Development; Marc Rouanne, DISH Network’s former Executive Vice President and Chief Network Officer; and Stephen Bye, DISH Network’s former Executive Vice President and Chief Commercial Officer.

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InAfter ~~August 2023,~~ the ~~Court~~defendants ~~appointed~~filed a ~~new~~motion ~~lead~~to ~~plaintiff~~dismiss ~~and~~the ~~lead~~First ~~plaintiff’s~~Amended ~~counsel~~Complaint, ~~and~~the onplaintiffs ~~October 20, 2023, they~~ filed ana ~~amended~~Second ~~complaint~~Amended ~~that~~Complaint, ~~abandoned~~asserting the ~~original~~same ~~allegations. In their amended complaint~~theory, ~~plaintiffs~~on ~~allege~~February ~~that~~23, ~~during the class period, the defendants concealed problems concerning the 5G network buildout that prevented scaling and commercializing the network to obtain enterprise customers~~2024. The ~~amended~~new complaint ~~added~~drops asErik ~~individual defendants James S. Allen~~Carlson, ~~DISH Network’s Senior Vice President and Chief Accounting Officer;~~ John Swieringa, ~~DISH~~Paul ~~Network’s~~Orban ~~President, Technology~~ and ~~Chief~~James ~~Operating~~Allen ~~Officer;~~as ~~Dave~~individual ~~Mayo,~~defendants. The ~~DISH~~defendants ~~Network’s~~filed ~~former~~a ~~Executive~~motion ~~Vice~~to ~~President~~dismiss ofthe ~~Network~~Second ~~Development;~~Amended ~~Marc Rouanne~~Complaint, ~~DISH Network’s former Executive Vice President~~ and ~~Chief~~on ~~Network~~March ~~Officer;~~20, ~~and Stephen Bye~~2025, ~~DISH~~the ~~Network’s~~Court ~~former~~granted ~~Executive Vice President and Chief Commercial Officer. After~~ the ~~defendants filed a~~ motion towithout ~~dismiss,~~granting ~~the~~ plaintiffs ~~filed~~permission ato further ~~amended complaint, asserting the same theory, on February 23, 2024~~amend. ~~The~~On ~~new~~April ~~complaint drops Erik Carlson~~18, ~~John Swieringa~~2025, ~~Paul~~the ~~Orban~~plaintiffs ~~and~~filed ~~James~~a ~~Allen~~notice asof ~~individual defendants~~appeal.

DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Quantum Technology Innovations LLC

On June 5, 2024, Quantum Technology Innovations, LLC filed a complaint in the United States District Court for the Eastern District of Texas against DISH Network alleging infringement of United States Patent No. 7,650,376, entitled “Content Distribution System for Distributing Content Over a Network, with Particular Applicability to Distributing High-Bandwidth Content.” The plaintiff is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On August 8, 2024, Quantum Technology Innovations dismissed its complaint without prejudice. This matter is now concluded.

Realtime Data LLC and Realtime Adaptive Streaming LLC

On June 6, 2017, Realtime Data LLC d/b/a IXO (“Realtime”) filed an amended complaint in the United States District Court for the Eastern District of Texas (the “Original Texas Action”) against EchoStar, DISH Network; our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C. (then known as EchoStar Technologies L.L.C.), Sling TV L.L.C., ~~and~~ Sling Media L.L.C.; and EchoStar’s wholly-owned subsidiary Hughes Network Systems, L.L.C. (“HNS”); and Arris Group, Inc. Realtime’s initial complaint in the Original Texas Action, filed on February 14, 2017, had named only EchoStar and HNS as defendants.

The amended complaint in the Original Texas Action alleges infringement of United States Patent No. 8,717,204 (the “204 patent”), entitled “Methods for encoding and decoding data”; United States Patent No. 9,054,728 (the “728 patent”), entitled “Data compression systems and methods”; United States Patent No. 7,358,867 (the “867 patent”), entitled “Content independent data compression method and system”; United States Patent No. 8,502,707 (the “707 patent”), entitled “Data compression systems and methods”; United States Patent No. 8,275,897 (the “897 patent”), entitled “System and methods for accelerated data storage and retrieval”; United States Patent No. 8,867,610 (the “610 patent”), entitled “System and methods for video and audio data distribution”; United States Patent No. 8,934,535 (the “535 patent”), entitled “Systems and methods for video and audio data storage and distribution”; and United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth sensitive data compression and decompression.”

Realtime alleges that DISH Network’s, Sling TV L.L.C.’s, Sling Media L.L.C.’s and Arris Group, Inc.’s streaming video products and services compliant with various versions of the H.264 video compression standard infringe the 897 patent, the 610 patent and the 535 patent, and that the data compression system in HNS’ products and services infringes the 204 patent, the 728 patent, the 867 patent, the 707 patent and the 759 patent.

29On July 19, 2017, the Court severed Realtime’s claims against DISH Network, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C. and Arris Group, Inc. (alleging infringement of the 897 patent, the 610 patent and the 535 patent) from the Original Texas Action into a separate action in the United States District Court for the Eastern District of Texas (the “Second Texas Action”). On August 31, 2017, Realtime dismissed the claims against DISH Network, Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. from the Second Texas Action and refiled these claims (alleging infringement of the 897 patent, the 610 patent and the 535 patent) against Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. in a new action in the United States District Court for the District of Colorado (the “Colorado Action”). Also on August 31, 2017, Realtime dismissed DISH Technologies L.L.C. from the Original Texas Action, and on September 12, 2017, added it as a defendant in an amended complaint in the Second Texas Action. On November 6, 2017, Realtime filed a joint motion to dismiss the Second Texas Action without prejudice, which the Court entered on November 8, 2017.

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On July 19, 2017, the Court severed Realtime’s claims against DISH Network, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C. and Arris Group, Inc. (alleging infringement of the 897 patent, the 610 patent and the 535 patent) from the Original Texas Action into a separate action in the United States District Court for the Eastern District of Texas (the “Second Texas Action”). On August 31, 2017, Realtime dismissed the claims against DISH Network, Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. from the Second Texas Action and refiled these claims (alleging infringement of the 897 patent, the 610 patent and the 535 patent) against Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. in a new action in the United States District Court for the District of Colorado (the “Colorado Action”). Also on August 31, 2017, Realtime dismissed DISH Technologies L.L.C. from the Original Texas Action, and on September 12, 2017, added it as a defendant in an amended complaint in the Second Texas Action. On November 6, 2017, Realtime filed a joint motion to dismiss the Second Texas Action without prejudice, which the Court entered on November 8, 2017.

On October 10, 2017, Realtime Adaptive Streaming LLC (“Realtime Adaptive Streaming”) filed suit against our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C., as well as Arris Group, Inc., in a new action in the United States District Court for the Eastern District of Texas (the “Third Texas Action”), alleging infringement of the 610 patent and the 535 patent. Also on October 10, 2017, an amended complaint was filed in the Colorado Action, substituting Realtime Adaptive Streaming as the plaintiff instead of Realtime, and alleging infringement of only the 610 patent and the 535 patent, but not the 897 patent. On November 6, 2017, Realtime Adaptive Streaming filed a joint motion to dismiss the Third Texas Action without prejudice, which the court entered on November 8, 2017. Also on November 6, 2017, Realtime Adaptive Streaming filed a second amended complaint in the Colorado Action, adding our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C., as well as Arris Group, Inc., as defendants.

As a result, neither DISH Network nor any of its subsidiaries is a defendant in the Original Texas Action; the Court has dismissed without prejudice the Second Texas Action and the Third Texas Action; and our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. as well as Arris Group, Inc., are defendants in the Colorado Action, which now has Realtime Adaptive Streaming as the named plaintiff. Following settlements with the plaintiff, EchoStar and HNS were dismissed from the Original Texas Action in February 2019, and Arris Group, Inc. was dismissed from the Colorado Action in March 2021.

On July 3, 2018, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of each of the asserted patents. On January 31, 2019, the United States Patent and Trademark Office agreed to institute proceedings on DISH Network’s petitions, and it held trial on the petitions on December 5, 2019. On January 17, 2020, the United States Patent and Trademark Office terminated the petitions as time-barred, but issued a final written decision invalidating the 535 patent to third parties that had timely joined in DISH Network’s petition (and, on January 10, 2020, issued a final written decision invalidating the 535 patent in connection with a third party’s independent petition). On March 16, 2020, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed a notice of appeal from the terminated petitions to the United States Court of Appeals for the Federal Circuit. On June 29, 2020, the United States Patent and Trademark Office filed a notice of intervention in the appeal. On March 16, 2021, the Court of Appeals dismissed the appeal for lack of jurisdiction. On April 29, 2021, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed a petition for rehearing, which was denied on June 28, 2021. On January 12, 2021, Realtime Adaptive Streaming filed a notice of dismissal of its claims on the 535 patent.

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On July 3, 2018, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of each of the asserted patents. On January 31, 2019, the United States Patent and Trademark Office agreed to institute proceedings on DISH Network’s petitions, and it held trial on the petitions on December 5, 2019. On January 17, 2020, the United States Patent and Trademark Office terminated the petitions as time-barred, but issued a final written decision invalidating the 535 patent to third parties that had timely joined in DISH Network’s' petition (and, on January 10, 2020, issued a final written decision invalidating the 535 patent in connection with a third party’s independent petition). On March 16, 2020, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed a notice of appeal from the terminated petitions to the United States Court of Appeals for the Federal Circuit. On June 29, 2020, the United States Patent and Trademark Office filed a notice of intervention in the appeal. On March 16, 2021, the Court of Appeals dismissed the appeal for lack of jurisdiction. On April 29, 2021, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and DISH Technologies L.L.C. filed a petition for rehearing, which was denied on June 28, 2021. On January 12, 2021, Realtime Adaptive Streaming filed a notice of dismissal of its claims on the 535 patent.

On July 30, 2021, the District Court granted summary judgment in favor of DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C., holding that the remaining asserted patent, the 610 patent, is invalid because it claims patent-ineligible abstract subject matter. Realtime Adaptive Streaming appealed that ruling to the United States Court of Appeals for the Federal Circuit, and on May 11, 2023, that Court affirmed the District Court’s summary judgment order. Independently, on September 21, 2021, in connection with an ex parte reexamination of the validity of the 610 patent, an examiner at the United States Patent and Trademark Office issued a final office action rejecting each asserted claim of the 610 patent as invalid over the cited prior art. On April 19, 2023, the Patent Trial and Appeal Board rejected Realtime Adaptive Streaming’s appeal and affirmed the examiner’s rejection of the asserted claims of the 610 patent. Realtime did not further appeal the Patent Trial and Appeal Board’s determination and, thus, the asserted claims of the 610 patent were canceled. As a result, DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. no longer face any possible exposure from this matter, and the liability phase of this case is concluded.

On January 21, 2022, the District Court granted the motion by DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. to have the case declared “exceptional,” and on September 20, 2022, awarded them $3.9 million in attorneys’ fees. Realtime Adaptive Streaming filed a notice of appeal to the United States Court of Appeals for the Federal Circuit from the exceptionality and fee award orders, and on August 23, 2024, that Court vacated the exceptionality finding and remanded for further consideration of the issue. On October 23, 2024, DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. filed a petition with the United States Court of Appeals for the Federal Circuit seeking rehearing en banc.24

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On January 21, 2022, the District Court granted the motion by DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. to have the case declared “exceptional,” and on September 20, 2022, awarded them $3.9 million in attorneys’ fees. Realtime Adaptive Streaming filed a notice of appeal to the United States Court of Appeals for the Federal Circuit from the exceptionality and fee award orders, and on August 23, 2024, that Court vacated the exceptionality finding and remanded for further consideration of the issue. On November 26, 2024, the United States Court of Appeals for the Federal Circuit denied DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C.’s petition seeking rehearing en banc. On February 5, 2025, on remand, the District Court denied the motion to declare the case exceptional. On March 6, 2025, DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. filed a notice of appeal of that order.

SafeCast Limited

On June 27, 2022, SafeCast Limited filed a complaint against DISH Network in the United States District Court for the Western District of Texas. The complaint alleges that DISH Network infringes U.S. Patent No. 9,392,302, entitled “System for providing improved facilities in time-shifted broadcasts” (the “302 patent”). On the same day, it brought complaints in the same court asserting infringement of the same patent against AT&T, Google, HBO, NBCUniversal, Paramount and Verizon. On October 24, 2022, in response to the parties’ joint motion, the Court ordered the case against DISH Network transferred to the United States District Court for the District of Colorado. On December 1, 2022, SafeCast filed an amended complaint naming our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C. as defendants and withdrawing the allegations as to DISH Network. The plaintiff is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On June 22, 2023, DISH Network L.L.C. and DISH Technologies L.L.C. filed a petition with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 302 patent, and on June 26, 2024, the United States Patent and Trademark Office agreed to institute proceedings on that petition. On August 28, 2023, the Court stayed the case pending resolution of the petition. On October 3, 2024, in connection with a third party’s petition citing different prior art, the United States Patent and Trademark Office invalidated all claims asserted against DISH Network L.L.C. and DISH Technologies L.L.C. but that decision remains subject to a potential appeal.

WeOn ~~intend~~December to1, ~~vigorously~~2022, ~~defend~~SafeCast ~~this~~filed ~~case. In~~an ~~the~~amended ~~event~~complaint ~~that~~naming aour ~~court~~wholly-owned ~~ultimately~~subsidiaries ~~determines~~DISH ~~that~~Network weL.L.C. ~~infringe~~and ~~the~~DISH ~~asserted~~Technologies ~~patent,~~L.L.C. weas ~~may~~defendants beand ~~subject~~withdrawing tothe ~~substantial~~allegations ~~damages,~~as ~~which~~to ~~may~~DISH ~~include~~Network. The ~~treble~~plaintiff ~~damages,~~is ~~and/or~~ an ~~injunction~~entity that ~~could~~seeks ~~require us~~ to ~~materially~~license ~~modify~~a ~~certain~~patent ~~features~~portfolio ~~that~~without weitself ~~currently~~practicing ~~offer to consumers. We cannot predict with~~ any ~~degree~~ of ~~certainty~~ the ~~outcome~~claims ofrecited ~~the suit or determine the extent of any potential liability or damages~~therein.

~~Sound~~On ~~View~~June ~~Innovations~~22, ~~LLC~~2023, DISH Network L.L.C. and DISH Technologies L.L.C. filed a petition with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 302 patent, and on June 26, 2024, the United States Patent and Trademark Office agreed to institute proceedings on that petition. On August 28, 2023, the Court stayed the case pending resolution of the petition. On October 3, 2024, in connection with a third-party’s petition citing different prior art, the United States Patent and Trademark Office invalidated all claims asserted against DISH Network L.L.C. and DISH Technologies L.L.C. Because SafeCast Limited did not appeal that decision, on January 27, 2025, the United States Patent and Trademark Office issued a certificate canceling the challenged claims. As a result, DISH Network L.L.C. and DISH Technologies L.L.C. have moved to terminate their now-moot petition before the United States Patent and Trademark Office, and to have the district court litigation dismissed.

OnWe ~~December~~intend ~~30,~~to ~~2019,~~vigorously ~~Sound~~defend ~~View~~this ~~Innovations, LLC filed one complaint against our wholly-owned subsidiaries DISH Network L~~case.~~L.C.~~ In ~~and~~the ~~DISH~~event ~~Technologies~~that ~~L.L.C. and~~ a ~~second~~court ~~complaint~~ultimately ~~against~~determines ~~our~~that ~~wholly-owned~~we ~~subsidiary~~infringe ~~Sling TV L.L.C. in~~ the ~~United~~asserted ~~States District Court for the District of Colorado. The complaint against DISH Network L.L.C. and DISH Technologies L.L.C. alleges infringement of United States Patent No 6,502,133 (the “133~~ patent”), ~~entitled~~we ~~“Real-Time~~may ~~Event~~be ~~Processing~~subject ~~System~~to ~~with~~substantial ~~Analysis Engine Using Recovery Information” and both complaints allege infringement of United States Patent No. 6~~damages,~~708,213~~ ~~(the~~which ~~“213~~may ~~patent),~~include ~~entitled~~treble ~~“Method for Streaming Multimedia Information Over Public Networks”; United States Patent No. 6~~damages,~~757,796~~ ~~(the~~and/or ~~“796~~an ~~patent”),~~injunction ~~entitled~~that ~~“Method~~could ~~and~~require ~~System~~us ~~for~~to ~~Caching~~materially ~~Streaming~~modify ~~Live~~certain ~~Broadcasts~~features ~~transmitted~~that ~~Over~~we acurrently ~~Network”;~~offer ~~and~~to ~~United States Patent No~~consumers. We ~~6,725,456~~cannot ~~(the~~predict ~~“456~~with ~~patent”),~~any ~~entitled~~degree ~~“Methods~~of ~~and~~certainty ~~Apparatus~~the ~~for~~outcome ~~Ensuring Quality~~ of ~~Service in an Operating System.” All but~~ the ~~133~~suit ~~patent~~or ~~are~~determine ~~also asserted in~~ the ~~complaint~~extent ~~against~~of ~~Sling TV L.L.C. The plaintiff is an entity that seeks to license a patent portfolio without itself practicing~~ any ofpotential ~~the~~liability ~~claims~~or ~~recited therein~~damages.

On May 21, 2020, June 3, 2020, June 5, 2020 and July 10, 2020, DISH Network L.L.C., DISH Technologies L.L.C. and Sling TV L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of, respectively, the 213 patent, the 133 patent, the 456 patent and the 796 patent. On November 25, 2020, the United States Patent and Trademark Office declined to review the validity of the 213 patent, and on September 29, 2021, denied a request for rehearing of that decision. On January 19, 2021, the United States Patent and Trademark Office agreed to institute proceedings on the 456 patent but declined to review the 133 patent. On February 24, 2021, the United States Patent and Trademark Office agreed to institute proceedings on the 796 patent.

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Sound View Innovations, LLC

On ~~January~~December 1830, ~~2022~~2019, ~~the~~Sound ~~United~~View ~~States~~Innovations, ~~Patent~~LLC ~~and~~filed ~~Trademark~~one ~~Office~~complaint ~~issued~~against aour ~~final~~wholly-owned ~~written~~subsidiaries ~~decision~~DISH ~~holding~~Network ~~that~~L.L.C. ~~the~~and ~~challenged~~DISH ~~claim~~Technologies ofL.L.C. ~~the~~and ~~456~~a ~~patent~~second iscomplaint ~~patentable,~~against ~~and~~our onwholly-owned ~~February~~subsidiary 8,Sling ~~2022,~~TV itL.L.C. ~~issued~~in athe ~~final~~United ~~written~~States ~~decision~~District ~~holding~~Court ~~that~~for the ~~challenged~~District ~~claims~~ of ~~the 796 patent are patentable~~Colorado. OnThe ~~March~~complaint ~~22,~~against ~~2022,~~ DISH Network L.L.C., and DISH Technologies L.L.C. ~~and~~alleges ~~Sling~~infringement TVof ~~L.L.C.~~United ~~filed~~States aPatent ~~notice~~No of6,502,133 ~~appeal~~(the to“133 ~~the~~patent”), ~~United~~entitled ~~States~~“Real-Time ~~Court~~Event ofProcessing ~~Appeals~~System ~~for~~with ~~the~~Analysis ~~Federal~~Engine ~~Circuit~~Using ~~from~~Recovery ~~the~~Information” ~~adverse~~and ~~final~~both ~~written~~complaints ~~decision~~allege ~~regarding~~infringement of United States Patent No. 6,708,213 (the ~~456~~“213 patent), ~~and~~entitled on“Method ~~April~~for 8,Streaming ~~2022,~~Multimedia ~~they~~Information ~~filed~~Over aPublic ~~notice~~Networks”; ofUnited ~~appeal~~States toPatent No. 6,757,796 (the ~~same~~“796 ~~court~~patent”), ~~from~~entitled ~~the~~“Method ~~adverse~~and ~~final~~System ~~written~~for ~~decision~~Caching ~~regarding~~Streaming ~~the~~Live ~~796~~Broadcasts ~~patent. The~~transmitted ~~appeal~~Over ona Network”; and United States Patent No. 6,725,456 (the “456 patent”), ~~was~~entitled ~~voluntarily~~“Methods ~~dismissed~~and onApparatus ~~December~~for 6,Ensuring ~~2022~~Quality of Service in an Operating System.” ~~The~~All ~~Federal~~but ~~Circuit~~the ~~heard~~133 ~~oral~~patent ~~argument~~are onalso asserted in the ~~796~~complaint ~~patent~~against ~~appeal~~Sling onTV ~~October~~L.L.C. The 3,plaintiff ~~2023,~~is ~~and~~an ~~affirmed~~entity ~~the~~that ~~United~~seeks ~~States~~to ~~Patent~~license ~~and~~a ~~Trademark~~patent ~~Office’s~~portfolio ~~adverse~~without ~~final~~itself ~~written~~practicing ~~decision~~any onof ~~October~~the 5,claims ~~2023.~~recited therein.

On ~~April~~May 2021, ~~2022~~2020, June 3, 2020, June 5, 2020 and July 10, 2020, DISH Network L.L.C., DISH Technologies L.L.C. and Sling TV L.L.C. filed apetitions ~~petition~~ with the United States Patent and Trademark Office ~~requesting~~challenging ~~ex parte reexamination of~~ the validity of, ~~one~~respectively, of the ~~asserted~~213 ~~claims~~patent, of the ~~213~~133 patent, ~~and~~the ~~reexamination~~456 ~~was~~patent ~~ordered~~and onthe ~~June~~796 ~~16, 2022~~patent. On ~~January~~November 1825, ~~2023~~2020, ~~they~~the ~~filed~~United ~~another~~States ~~petition~~Patent ~~requesting~~and exTrademark ~~parte~~Office ~~reexamination~~declined ofto review the validity of the ~~four~~213 ~~additional~~patent, ~~asserted~~and ~~claims~~on ofSeptember ~~the~~29, ~~213 patent~~2021, ~~and~~denied ~~reexamination~~a ~~was~~request ~~ordered~~for onrehearing ~~April~~of ~~17,~~that ~~2023~~decision. On ~~November~~January 1319, ~~2023~~2021, the United States Patent and Trademark Office ~~confirmed~~agreed ~~the~~to ~~patentability~~institute ofproceedings on the ~~claim~~456 ~~challenged~~patent inbut ~~our~~declined ~~first~~to ~~petition~~review the 133 patent. On ~~October~~February 1724, ~~2024~~2021, the ~~Court ordered that the stay of the case, which had been entered for the pendency of the petitions before the~~ United States Patent and Trademark Office, ~~would~~agreed ~~remain~~to ininstitute ~~place~~proceedings ~~pending~~on the ~~outcome~~796 ~~of Sound View’s appeal in a parallel action against Hulu~~patent.

WeOn ~~intend~~January to18, ~~vigorously~~2022, ~~defend~~the ~~these~~United ~~cases. In~~States ~~the~~Patent ~~event~~and ~~that~~Trademark Office issued a ~~court~~final ~~ultimately~~written ~~determines~~decision holding that wethe ~~infringe~~challenged claim of the ~~asserted~~456 ~~patents,~~patent weis ~~may~~patentable, beand ~~subject~~on toFebruary ~~substantial~~8, ~~damages~~2022, ~~which~~it ~~may~~issued ~~include~~a ~~treble~~final ~~damages,~~written ~~and/or~~decision anholding ~~injunction~~ that ~~could~~the ~~require~~challenged usclaims toof ~~materially~~the ~~modify~~796 ~~certain~~patent ~~features~~are ~~that~~patentable. On weMarch ~~currently~~22, ~~offer~~2022, toDISH ~~consumers~~Network L. WeL.C., ~~cannot~~DISH ~~predict~~Technologies ~~with~~L.L.C. ~~any~~and ~~degree~~Sling TV L.L.C. filed a notice of ~~certainty~~appeal to the ~~outcome~~United States Court of Appeals for the ~~suit~~Federal orCircuit ~~determine~~from the ~~extent~~adverse final written decision regarding the 456 patent, and on April 8, 2022, they filed a notice of ~~any~~appeal ~~potential~~to ~~liability~~the orsame ~~damages~~court from the adverse final written decision regarding the 796 patent. The appeal on the 456 patent was voluntarily dismissed on December 6, 2022.

TQThe ~~Delta~~Federal Circuit heard oral argument on the 796 patent appeal on October 3, ~~LLC~~2023, and affirmed the United States Patent and Trademark Office’s adverse final written decision on October 5, 2023.

On ~~July~~April 1720, ~~2015~~2022, ~~TQ Delta, LLC (“TQ Delta”) filed a complaint against us,~~ DISH Network ~~and~~L.L.C., ~~our wholly-owned subsidiary~~ DISH ~~Network~~Technologies L.L.C. inand ~~the~~Sling ~~United~~TV ~~States District Court for the District of Delaware~~L. ~~The~~L.C. ~~Complaint~~filed ~~alleges~~a ~~infringement~~petition ofwith the United States Patent ~~No.~~and ~~6,961,369~~Trademark ~~(the~~Office ~~“369~~requesting ~~patent”),~~ex ~~which~~parte isreexamination ~~entitled~~of ~~“System~~the ~~and~~validity ~~Method~~of ~~for~~one ~~Scrambling~~of the ~~Phase~~asserted claims of the ~~Carriers~~213 inpatent, aand ~~Multicarrier~~reexamination ~~Communications~~was ~~System”;~~ordered ~~United~~on ~~States~~June ~~Patent~~16, No2022. ~~8,718,158~~ On ~~(the~~November ~~“158~~13, ~~patent”)~~2023, ~~which~~the isUnited ~~entitled~~States ~~“System~~Patent and ~~Method~~Trademark ~~for~~Office ~~Scrambling~~confirmed the ~~Phase~~patentability of the ~~Carriers~~challenged inclaim. On aJanuary ~~Multicarrier~~18, ~~Communications~~2023, ~~System”;~~DISH ~~United~~Network ~~States Patent No~~L. 9L.C.,~~014,243~~ ~~(the~~DISH ~~“243~~Technologies ~~patent”),~~L.L.C. ~~which is entitled “System~~ and ~~Method~~Sling ~~for~~TV ~~Scrambling~~L.L.C. ~~Using~~filed a ~~Bit~~second ~~Scrambler~~petition ~~and~~requesting aex ~~Phase~~parte ~~Scrambler”;~~reexamination ~~United~~of ~~States~~the ~~Patent~~validity ~~No. 7,835,430~~of (the ~~“430~~four ~~patent”),~~other ~~which~~asserted isclaims ~~entitled~~of ~~“Multicarrier~~the ~~Modulation~~213 ~~Messaging~~patent, ~~for~~reexamination ~~Frequency~~was ~~Domain~~ordered ~~Received~~on ~~Idle~~April 17, ~~Channel~~2023 ~~Noise~~and ~~Information”;~~it ~~United~~remains ~~States~~pending. On ~~Patent~~October ~~No.~~17, 82024,~~238,412~~ (the ~~“412~~Court ~~patent”),~~ordered ~~which~~that isthe ~~entitled~~stay ~~“Multicarrier~~of ~~Modulation Messaging for Power Level per Subchannel Information”; United States Patent No. 8,432,956 (~~the ~~“956 patent”)~~case, which ishad ~~entitled~~been ~~“Multicarrier~~entered ~~Modulation~~for ~~Messaging~~the ~~for~~pendency ~~Power~~of ~~Level~~the ~~per~~original ~~Subchannel~~petitions ~~Information”;~~before ~~and~~the United States Patent ~~No.~~and 8Trademark Office,~~611,404~~ ~~(the~~would ~~“404~~remain ~~patent”),~~in ~~which~~place ispending ~~entitled~~the ~~“Multicarrier~~outcome ~~Transmission~~of ~~System~~Sound ~~with~~View’s ~~Low~~appeal ~~Power~~in ~~Sleep~~a ~~Mode~~parallel ~~and~~action ~~Rapid-On~~against ~~Capability~~Hulu.”

We intend to vigorously defend these cases. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

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On September 9, 2015, TQ Delta filed a first amended complaint that added allegations of infringement of United States Patent No. 9,094,268 (the “268 patent”), which is entitled “Multicarrier Transmission System With Low Power Sleep Mode and Rapid-On Capability.” On May 16, 2016, TQ Delta filed a second amended complaint that added EchoStar Corporation and its then wholly-owned subsidiary EchoStar Technologies L.L.C. as defendants. TQ Delta alleges that our satellite TV service, Internet service, set-top boxes, gateways, routers, modems, adapters and networks that operate in accordance with one or more Multimedia over Coax Alliance Standards infringe the asserted patents.

TQ Delta ~~has filed actions in the same court alleging infringement of the same patents against Comcast Corp.~~, Cox Communications, Inc., DirecTV, Time Warner Cable Inc. and Verizon Communications, Inc. TQ Delta is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.LLC

On July 1417, ~~2016~~2015, TQ Delta, ~~stipulated~~LLC to(“TQ ~~dismiss~~Delta”) ~~with~~filed ~~prejudice~~a ~~all~~complaint ~~claims~~against ~~related~~us, toDISH ~~the~~Network ~~369~~and ~~patent~~our ~~and~~wholly-owned ~~the~~subsidiary ~~956~~DISH ~~patent~~Network L. OnL.C. ~~July 20,~~in ~~2016,~~the weUnited ~~filed~~States ~~petitions~~District ~~with~~Court for the District of Delaware. The Complaint alleges infringement of United States Patent No. 6,961,369 (the “369 patent”), which is entitled “System and ~~Trademark~~Method ~~Office~~for ~~challenging~~Scrambling the ~~validity~~Phase of ~~all~~the ofCarriers ~~the~~in ~~patent~~a ~~claims~~Multicarrier ofCommunications ~~the~~System”; ~~404~~United ~~patent~~States ~~and~~Patent No. 8,718,158 (the ~~268~~“158 patent”), ~~that~~which ~~have~~is ~~been~~entitled ~~asserted~~“System ~~against~~and ~~us. Third~~Method ~~parties~~for ~~filed~~Scrambling ~~petitions~~the ~~with~~Phase of the Carriers in a Multicarrier Communications System”; United States Patent No. 9,014,243 (the “243 patent”), which is entitled “System and ~~Trademark~~Method ~~Office~~for ~~challenging~~Scrambling ~~the~~Using ~~validity~~a ofBit ~~all~~Scrambler ofand a Phase Scrambler”; United States Patent No. 7,835,430 (the “430 patent”), ~~claims~~which ~~that~~is ~~have~~entitled ~~been~~“Multicarrier ~~asserted~~Modulation ~~against~~Messaging usfor inFrequency ~~the~~Domain ~~action. On~~Received ~~November~~Idle 4,Channel ~~2016,~~Noise ~~the~~Information”; United States Patent ~~and~~No. ~~Trademark~~8,238,412 ~~Office~~(the ~~agreed~~“412 topatent”), ~~institute~~which ~~proceedings~~is onentitled ~~the~~“Multicarrier ~~third-party~~Modulation ~~petitions~~Messaging ~~related~~for toPower ~~the~~Level ~~158~~per ~~patent~~Subchannel Information”; United States Patent No. 8,432,956 (the ~~243~~“956 patent”), ~~the~~which ~~412~~is ~~patent~~entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; and United States Patent No. 8,611,404 (the ~~430~~“404 patent”), which is entitled “Multicarrier Transmission System with Low Power Sleep Mode and Rapid-On Capability.”

On ~~December~~September 209, ~~2016~~2015, ~~pursuant~~TQ toDelta filed a ~~stipulation~~first amended complaint that added allegations of ~~the~~infringement ~~parties~~of United States Patent No. 9,094,268 (the ~~Court~~“268 ~~stayed~~patent”), ~~the~~which ~~case~~is ~~until~~entitled ~~the~~“Multicarrier ~~resolution~~Transmission ofSystem ~~all~~With ~~petitions~~Low toPower ~~the~~Sleep ~~United~~Mode ~~States~~and ~~Patent~~Rapid-On Capability.” On May 16, 2016, TQ Delta filed a second amended complaint that added EchoStar Corporation and ~~Trademark~~its ~~Office~~then ~~challenging~~wholly-owned subsidiary EchoStar Technologies L.L.C. as defendants. TQ Delta alleges that our satellite TV service, Internet service, set-top boxes, gateways, routers, modems, adapters and networks that operate in accordance with one or more Multimedia over Coax Alliance Standards infringe the ~~validity~~asserted ofpatents. ~~all~~TQ Delta has filed actions in the same court alleging infringement of the ~~patent~~same ~~claims~~patents atagainst ~~issue~~Comcast Corp. On, ~~January 19~~Cox Communications, ~~2017~~Inc., ~~the~~DirecTV, ~~United~~Time ~~States~~Warner ~~Patent~~Cable Inc. and ~~Trademark~~Verizon ~~Office~~Communications, ~~granted~~Inc. TQ ~~our~~Delta ~~motions~~is an entity that seeks to ~~join~~license ~~the~~an ~~instituted~~acquired ~~petitions~~patent onportfolio ~~the~~without ~~430~~itself ~~and~~practicing ~~158~~any ~~patents~~of the claims recited therein.

On ~~February~~July 914, ~~2017~~2016, ~~the~~TQ ~~United~~Delta ~~States~~stipulated ~~Patent and Trademark Office agreed~~ to ~~institute~~dismiss ~~proceedings~~with onprejudice ~~our~~all ~~petition~~claims related to the ~~404~~369 patent, and onthe ~~February~~956 13patent. On July 20, ~~2017~~2016, DISH Network filed petitions with the United States Patent and Trademark Office ~~agreed~~challenging tothe ~~institute~~validity ~~proceedings~~of onall ~~our~~of ~~petition~~the ~~related~~patent toclaims of the 404 patent and the 268 patent that have been asserted against DISH Network. OnThird ~~February~~parties ~~27,~~filed ~~2017,~~petitions with the United States Patent and Trademark Office ~~granted~~challenging ~~our~~the ~~motions~~validity toof ~~join~~all of the ~~instituted~~patent ~~petitions~~claims onthat ~~the~~have ~~243~~been ~~and~~asserted ~~412~~against ~~patents~~us in the action. On ~~October~~November 264, ~~2017~~2016, the United States Patent and Trademark Office ~~issued~~agreed ~~final~~to ~~written~~institute ~~decisions~~proceedings on the third-party petitions ~~challenging~~related to the 158 patent, the 243 patent, the 412 patent and the 430 patent,. On ~~and~~December it20, ~~invalidated~~2016, ~~all~~pursuant ofto ~~the~~a ~~asserted~~stipulation ~~claims~~ of ~~those~~the ~~patents. On February 7~~parties, ~~2018,~~ the ~~United~~Court ~~States~~stayed ~~Patent~~the ~~and~~case ~~Trademark~~until ~~Office~~the ~~issued~~resolution ~~final~~of ~~written~~all ~~decisions on the~~ petitions ~~challenging~~to the ~~404~~United ~~patent,~~States Patent and itTrademark ~~invalidated~~Office ~~all~~challenging of the ~~asserted~~validity ~~claims~~ of ~~that~~all ~~patent~~of on the ~~basis~~patent ofclaims ~~our~~at ~~petition~~issue. On ~~February~~January 1019, ~~2018~~ 2017, the United States Patent and Trademark Office ~~issued~~granted aDISH ~~final~~Network’s ~~written~~motions ~~decision~~to onjoin ~~our~~the ~~petition~~instituted ~~challenging~~petitions on the ~~268~~430 ~~patent,~~ and it158 ~~invalidated all of the asserted claims~~patents.

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(Unaudited)

On February 9, 2017, the United States Patent and Trademark Office agreed to institute proceedings on DISH Network’s petition related to the 404 patent, and on February 13, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petition related to the 268 patent. On February 27, 2017, the United States Patent and Trademark Office granted DISH Network’s motions to join the instituted petitions on the 243 and 412 patents. On October 26, 2017, the United States Patent and Trademark Office issued final written decisions on the petitions challenging the 158 patent, the 243 patent, the 412 patent and the 430 patent, and it invalidated all of the asserted claims of those patents.

On February 7, 2018, the United States Patent and Trademark Office issued final written decisions on the petitions challenging the 404 patent, and it invalidated all of the asserted claims of that patent on the basis of DISH Network’s petition. On February 10, 2018, the United States Patent and Trademark Office issued a final written decision on DISH Network’s petition challenging the 268 patent, and it invalidated all of the asserted claims.

On March 12, 2018, the United States Patent and Trademark Office issued a final written decision on a third-party petition challenging the 268 patent, and it invalidated all of the asserted claims. TQ Delta filed notices of appeal from the final written decisions adverse to it. On May 9, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the 430 patent and the 412 patent. On July 10, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 404 patent. On July 15, 2019, the United States Court of Appeals for the Federal Circuit affirmed the invalidity of the asserted claims of the 268 patent. On November 22, 2019, the United States Court of Appeals for the Federal Circuit reversed the invalidity finding on the 243 patent and the 158 patent, and then, on March 29, 2020, denied a petition for panel rehearing as to those findings. On April 13, 2021, the Court lifted the stay, and the case is proceeding on the 243 patent and the 158 patent. On April 23 and April 26, 2021, the United States Patent and Trademark Office issued orders granting requests for ex parte reexamination of, respectively, the 243 patent and the 158 patent, but on July 27, 2023 and October 11, 2023, respectively, the United States Patent and Trademark Office confirmed the challenged claims of the 243 patent and the 158 patent. In a proposed supplemental report, TQ Delta’s damages expert contends that TQ Delta is entitled to $251 million in damages.

Uniloc 2017 LLC

On January 31, 2019, Uniloc 2017 LLC (“Uniloc”) filed a complaint against our wholly-owned subsidiary Sling TV L.L.C. in the United States District Court for the District of Colorado. The Complaint alleges infringement of United States Patent No. 6,519,005 (the “005 patent”), which is entitled “Method of Concurrent Multiple-Mode Motion Estimation for Digital Video”; United States Patent No. 6,895,118 (the “118 patent”), which is entitled “Method of Coding Digital Image Based on Error Concealment”; United States Patent No. 9,721,273 (the “273 patent”), which is entitled “System and Method for Aggregating and Providing Audio and Visual Presentations Via a Computer Network”); and United States Patent No. 8,407,609 (the “609 patent”), which is entitled “System and Method for Providing and Tracking the Provision of Audio and Visual Presentations Via a Computer Network.” Uniloc is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein.

On June 25, 2019, Sling TV L.L.C. filed a petition with the United States Patent and Trademark Office challenging the validity of all of the asserted claims of the 005 patent. On July 19, 2019 and July 22, 2019, respectively, Sling TV L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of all asserted claims of the 273 patent and the 609 patent. On August 12, 2019, Sling TV L.L.C. filed a petition with the United States Patent and Trademark Office challenging the validity of all of the asserted claims of the 118 patent. On October 18, 2019, pursuant to a stipulation of the parties, the Court entered a stay of the trial proceedings. 28

On January 9, 2020, the United States Patent and Trademark Office agreed to institute proceedings on the petition challenging the 005 patent. On January 15, 2020, the United States Patent and Trademark Office agreed to institute proceedings on the petition challenging the 273 patent. On February 4, 2020, the United States Patent and Trademark Office agreed to institute proceedings on the petition challenging the 609 patent. On February 25, 2020, the United States Patent and Trademark Office declined to institute proceedings on the petition challenging the 118 patent.

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On December 28, 2020, the United States Patent and Trademark Office issued a final written decision upholding the validity of the challenged claims of the 273 patent. Sling TV L.L.C. appealed that decision to the United States Court of Appeals for the Federal Circuit, and on February 2, 2022, the Federal Circuit vacated the final written decision and remanded to the United States Patent and Trademark Office to reconsider its ruling. On remand, on September 7, 2022, the United States Patent and Trademark Office issued a revised final written decision finding all challenged claims of the 273 patent invalid. Uniloc filed a notice of appeal of that revised final written decision to the United States Court of Appeals for the Federal Circuit, and on September 4, 2024, that court affirmed the United States Patent and Trademark Office’s invalidity finding.

On January 5, 2021, the United States Patent and Trademark Office issued a final written decision invalidating all challenged claims of the 005 patent. On January 19, 2021, the United States Patent and Trademark Office issued a final written decision invalidating all challenged claims of the 609 patent (and a second final written decision invalidating all challenged claims of the 609 patent based on a third party’s petition). Uniloc did not appeal those decisions. Thus, the sole remaining asserted patent is the 118 patent.

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(Unaudited)

U.S. Bank Trust Company

On April 26, 2024, U.S. Bank Trust Company, in its capacity as Trustee under the Indentures for DISH DBS Corporation’s 5.75% Senior Secured Notes due 2028 and 7.75% Senior Notes due 2026, filed an action in state court in New York City against DISH DBS Corporation, DISH Network L.L.C., EchoStar Intercompany Receivable Company L.L.C., DISH DBS Issuer LLC, and DBS Intercompany Receivable L.L.C. In its complaint, the Trustee contends that certain intracompany asset transfers in January 2024 breached the Indentures for those Notes, and that the transfers were intentional and constructive fraudulent transfers under the Colorado Uniform Fraudulent Transfer Act. The Trustee seeks a declaratory judgment that DISH DBS Corporation breached the Indentures and that an Event of Default occurred under the DBS Indentures. It further asks the Court to unwind certain intracompany asset transfers and to award damages. On May 13, 2024, the defendants removed the case to the United States District Court for the Southern District of New York and, on June 28, 2024, filed a motion to dismiss the complaint. Rather than opposing the motion, on July 18, 2024, the Trustee filed an amended complaint, which added a new declaratory judgment claim challenging certain intercompany advances. The defendants filed a renewed motion to dismiss the amended complaint on August 15, 2024.

On May 13, 2024, the defendants removed the case to the United States District Court for the Southern District of New York and, on June 28, 2024, filed a motion to dismiss the complaint. Rather than opposing the motion, on July 18, 2024, the Trustee filed a first amended complaint, which added a new declaratory judgment claim challenging certain intercompany advances and new factual allegations challenging a certification of compliance with the DBS Indentures. On January 22, 2025, with permission from the Court, the Trustee filed a second amended complaint, which added allegations regarding the debt issued by DBS SubscriberCo, a related intercompany loan, and the DIRECTV transaction.

We intend to vigorously defend this case. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.

Vermont National Telephone Company

36On September 23, 2016, the United States District Court for the District of Columbia unsealed a qui tam complaint that, on May 13, 2015, Vermont National Telephone Company (“Vermont National”) filed against DISH Network; DISH Network’s wholly-owned subsidiaries, American AWS-3 Wireless I L.L.C., American II, American III, and DISH Wireless Holding L.L.C.; Charles W. Ergen (DISH Network’s Chairman) and Cantey M. Ergen (a member of DISH Network’s Board of Directors, at that time); Northstar Wireless; Northstar Spectrum; Northstar Manager, LLC; SNR Wireless; SNR HoldCo; SNR Wireless Management, LLC; and certain other parties. The complaint alleges violations of the federal civil False Claims Act (the “FCA”) based on, among other things, allegations that Northstar Wireless and SNR Wireless falsely claimed bidding credits of 25% in the AWS-3 Auction when they were allegedly under the de facto control of DISH Network and, therefore, were not entitled to the bidding credits as designated entities under applicable FCC rules. Vermont National participated in the AWS-3 Auction through its wholly-owned subsidiary, VTel Wireless. The complaint was unsealed after the United States Department of Justice notified the District Court that it had declined to intervene in the action. Vermont National seeks to recover on behalf of the United States government approximately $10 billion, which reflects the $3.3 billion in bidding credits that Northstar Wireless and SNR Wireless claimed in the AWS-3 Auction, trebled under the FCA. Vermont National also seeks civil penalties of not less than $5,500 and not more than $11,000 for each violation of the FCA. On March 2, 2017, the United States District Court for the District of Columbia entered a stay of the litigation until such time as the United States Court of Appeals for the District of Columbia (the “D.C. Circuit”) issued its opinion in SNR Wireless LicenseCo, LLC, et al. v. F.C.C. The D.C. Circuit issued its opinion on August 29, 2017 and remanded the matter to the FCC for further proceedings.

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(Unaudited)

Thereafter, the District Court maintained the stay until October 26, 2018. On February 11, 2019, the District Court granted Vermont National’s ~~Telephone~~unopposed ~~Company~~motion for leave to file an amended complaint. On March 28, 2019, the defendants filed a motion to dismiss Vermont National’s amended complaint, and on March 23, 2021, the District Court granted the motion to dismiss. On April 21, 2021, Vermont National filed a notice of appeal to the United States Court of Appeals for the DC Circuit and, on May 17, 2022, that court reversed the District Court’s dismissal of the complaint. On June 16, 2022, the Defendants-Appellees filed a petition for rehearing or rehearing en banc, but on August 17, 2022, that petition was denied.

On ~~September~~August 2325, ~~2016~~2023, the ~~United~~FCC ~~States~~provided ~~District Court for the District of Columbia unsealed~~ a ~~qui~~sworn ~~tam~~declaration ~~complaint~~stating that, ~~on May 13, 2015, Vermont National Telephone Company (~~“~~Vermont~~the ~~National”)~~FCC ~~filed~~considers ~~against~~… ~~DISH~~SNR ~~Network; DISH Network’s wholly-owned subsidiaries, American AWS-3 Wireless I L.L.C., American II, American III,~~ and ~~DISH Wireless Holding L.L.C.; Charles W. Ergen (DISH Network’s Chairman) and Cantey M. Ergen (a member of DISH Network’s Board of Directors, at that time);~~ Northstar ~~Wireless;~~to ~~Northstar~~have ~~Spectrum;~~fully ~~Northstar Manager, LLC; SNR Wireless; SNR HoldCo; SNR Wireless Management, LLC;~~ and ~~certain~~timely ~~other~~satisfied ~~parties. The~~their ~~complaint~~obligations ~~alleges~~to ~~violations~~pay ofmoney ~~the~~to ~~federal civil False Claims Act (~~the ~~“FCA”)~~Government ~~based~~arising ~~on,~~from ~~among other things, allegations that Northstar Wireless and SNR Wireless falsely claimed bidding credits of 25% in~~ the AWS-3 Auction.” On ~~when~~that ~~they~~basis, ~~were~~on ~~allegedly~~September ~~under the de facto control of DISH Network and~~22, ~~therefore~~2023, ~~were~~the ~~not~~Defendants ~~entitled~~filed toa ~~the~~motion ~~bidding~~seeking ~~credits~~partial assummary ~~designated~~judgment ~~entities~~of ~~under~~no ~~applicable FCC rules~~damages. ~~Vermont~~On ~~National~~September ~~participated~~26, in2023, the ~~AWS-3~~Court ~~Auction~~denied ~~through~~the ~~its~~motion ~~wholly-owned~~as ~~subsidiary, VTel Wireless~~premature. ~~The~~On ~~complaint~~March ~~was~~8, ~~unsealed~~2024, ~~after~~ the United States ~~Department~~filed ofa ~~Justice~~motion ~~notified~~to ~~the~~exercise ~~District~~its ~~Court~~statutory ~~that~~prerogative ~~it had declined~~ to intervene in the ~~action. Vermont~~case ~~National~~for ~~seeks~~the topurpose ~~recover on behalf~~ of ~~the~~moving ~~United~~to ~~States~~dismiss ~~government~~it ~~approximately~~with ~~$10 billion~~prejudice, ~~which~~stating ~~reflects the $3.3 billion in bidding credits~~ that ~~Northstar Wireless and SNR Wireless claimed in~~ the ~~AWS-3~~case ~~Auction,~~is ~~trebled~~“unlikely ~~under~~to ~~the~~vindicate ~~FCA. Vermont National also seeks civil penalties of not less than $5,500 and not more than $11,000 for each violation of~~ the ~~FCA. On March 2, 2017, the~~ United States’ ~~District~~interests ~~Court~~and ~~for~~would ~~the~~needlessly ~~District~~expend ~~of Columbia entered a stay of~~ the ~~litigation~~Government’s ~~until~~and ~~such~~this ~~time as the United States~~ Court’s ~~of Appeals for the District of Columbia (the “D~~resources.~~C. Circuit~~”) In ~~issued~~a ~~its~~report ~~opinion~~and inrecommendation ~~SNR Wireless LicenseCo, LLC, et al. v. F.C.C. The D.C. Circuit~~ issued ~~its opinion~~ on ~~August~~April 297, ~~2017~~2025, ~~and~~a ~~remanded~~magistrate ~~the~~judge ~~matter~~recommended tothat the ~~FCC~~government’s ~~for~~motion ~~further~~be ~~proceedings~~granted.

Thereafter, the District Court maintained the stay until October 26, 2018. On February 11, 2019, the District Court granted Vermont National’s unopposed motion for leave to file an amended complaint. On March 28, 2019, the defendants filed a motion to dismiss Vermont National’s amended complaint, and on March 23, 2021, the District Court granted the motion to dismiss. On April 21, 2021, Vermont National filed a notice of appeal to the United States Court of Appeals for the DC Circuit and, on May 17, 2022, that court reversed the District Court’s dismissal of the complaint. On June 16, 2022, the Defendants-Appellees filed a petition for rehearing or rehearing en banc, but on August 17, 2022, that petition was denied. On August 25, 2023, the FCC provided a sworn declaration stating that “the FCC considers SNR and Northstar to have fully and timely satisfied their obligations to pay money to the Government arising from the AWS-3 Auction.” On that basis, on September 22, 2023, the Defendants filed a motion seeking partial summary judgment of no damages. On September 26, 2023, the Court denied the motion as premature. On March 8, 2024, the United States filed a motion to exercise its statutory prerogative to intervene in the case for the purpose of moving to dismiss it with prejudice, stating that the case is “unlikely to vindicate the United States’ interests and would needlessly expend the Government’s and this Court’s resources.”

DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of this proceeding or determine the extent of any potential liability or damages.

Other

In addition to the above actions, we are subject to various other legal proceedings and claims that arise in the ordinary course of business, including, among other things, disputes with programmers regarding fees. In our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect our financial condition, results of operations or liquidity, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.

379. Segment Reporting

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We currently operate one primary business segment, Pay-TV. See Note 1 for further information. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. “OIBDA,” defined as “Operating income (loss)” plus “Depreciation and amortization,” is the primary measure used by our CODM to evaluate segment operating performance. The CODM regularly reviews budget-to-actual variances of OIBDA when evaluating segment performance and allocating resources to each segment. The CODM is not regularly provided assets on a segment basis; therefore, such information is not presented.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)


	For the Three Months Ended
	March 31,
Pay-TV	2025		2024

	(In thousands)
Revenue
Revenue from external customers:
Service revenue	$	2,514,466	$	2,687,040
Equipment sales and other revenue		12,033		20,297
Total Revenue		2,526,499		2,707,337
Operating Expenses
Cost of services:
Programming		1,215,454		1,284,189
Connectivity services (1)		98,318		100,821
Other (2)		282,081		314,935
Total cost of services		1,595,853		1,699,945
Cost of sales - equipment and other		9,404		14,763
Selling, general and administrative expenses:
Subscriber acquisition costs		86,513		120,753
Selling, general and administrative expenses		152,484		164,692
Total selling, general and administrative expenses		238,997		285,445

OIBDA (3)		682,245		707,184

Depreciation and amortization		59,038		70,680
Total costs and expenses		1,903,292		2,070,833

Operating income (loss)	$	623,207	$	636,504

Unallocated Amounts
Interest income		84,981		59,327
Interest expense, net of amounts capitalized		(243,239)		(184,854)
Other, net		(490)		(569)
Total other income (expense)		(158,748)		(126,096)

Income (loss) before income taxes		464,459		510,408
Income tax (provision) benefit, net		(113,921)		(124,867)
Net income (loss)	$	350,538	$	385,541

Purchases of property and equipment, net of refunds	$	37,359	$	26,693

9.(1) ~~Disaggregation~~“Connectivity ofservices” ~~Revenue~~is the cost to deliver our services and products to customers, which includes, among other things, satellite and transmission, and other related costs.

(2)	“Other” primarily consists of variable costs including call center, manufacturing, dealer incentive, bad debt, billing and other variable costs, as well as costs to retain our subscribers.

(3)

OIBDA is a non-GAAP measure and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability of our business segments on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions for those business segments, as well as in evaluating operating performance in relation to our competitors.

~~The revenue from customers disaggregated by major revenue source was as follows:~~32

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
Category:	2024		2023		2024		2023
	(In thousands)
Pay-TV subscriber and related revenue	$	2,590,379	$	2,761,678	$	7,922,880	$	8,541,867
Pay-TV equipment sales and other revenue		11,423		21,709		45,417		139,090
Total	$	2,601,802	$	2,783,387	$	7,968,297	$	8,680,957

The revenue from external customers disaggregated by major revenue source was as follows:


	For the Three Months Ended
	March 31,
Category:	2025		2024

	(In thousands)
Pay-TV subscriber and related revenue	$	2,514,466	$	2,687,040
Pay-TV equipment sales and other revenue		12,033		20,297
Total	$	2,526,499	$	2,707,337

10.

Revenue Recognition

Contract Balances

Our ~~valuation~~allowance ~~and~~for ~~qualifying~~credit ~~accounts~~losses ~~as of September 30, 2024~~ were as follows:


	For the ~~Nine~~Three Months Ended
	~~September~~March 3031, ~~2024~~
	~~(In thousands)~~2025		2024
Balance at beginning of period	$	34,884
	(In thousands)
Current period provision for expected credit losses		53,747
Balance, beginning of period	$	42,270	$	34,884
Write-offs charged against allowance		(38,781)
Current period provision for expected credit losses		12,710		16,602
Balance at end of period	$	49,850
Write-offs charged against allowance		(8,627)		(17,193)

Balance, end of period	$	46,353	$	34,293

Contract liabilities arise when we bill our customers and receive consideration in advance of providing the service. Contract liabilities are recognized as revenue when the service has been provided to the customer. Contract liabilities are recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets.

The following table summarizes our contract liability balances:


	As of
	~~September~~March 3031,		December 31,
	~~2024~~2025		~~2023~~2024
	(In thousands)
Contract liabilities	$	~~392~~376,~~484~~600	$	~~427~~386,~~319~~638

Our beginning of period contract liability recorded as customer contract revenue during ~~2024~~2025 was $~~424~~384 million.

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(Unaudited)

Performance Obligations

We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue.

Contract Acquisition Costs

The following table presents the activity in our contract acquisition costs, net.:


	For the Three Months Ended				~~For the Nine Months Ended~~
	~~September~~March 3031,				~~September 30,~~
	~~2024~~2025		~~2023~~2024		~~2024~~		~~2023~~
	(In thousands)
Balance at beginning of period	$	158,695	$	198,454	$	175,685	$	230,146
Balance, beginning of period	$	148,172	$	175,685
Additions		2111,~~007~~085		2013,~~923~~955		~~55,391~~		~~57,317~~
Amortization expense		(2320,~~289~~824)		(3026,~~309~~349)		~~(74,663)~~		~~(98,395)~~
Balance at end of period	$	156,413	$	189,068	$	156,413	$	189,068
Balance, end of period	$	138,433	$	163,291

11.

Related Party Transactions

Related Party Transactions with DISH Network, our parent, and EchoStar, our ultimate parent.

The following table summarizes our notes receivable balances with DISH Network:


	As of ~~September 30, 2024~~
Notes Receivable - DISH Network	Principal		Interest		Total
	March 31, 2025				December 31, 2024
	(In thousands)
Notes Receivable - DISH Network	Principal		Accrued Interest Receivable		Principal		Accrued Interest Receivable
Intercompany Loan - DISH Network - 2028 Tranche	$	2,844,401	$	56,888	$	2,901,289
	(In thousands)
Q2 2024 Notes Receivable - DISH Network (1)		1,550,005		—		1,550,005
Intercompany Loan - DISH Network - 2028 Tranche	$	2,844,401	$	56,888	$	2,844,401	$	14,222
Q3 2024 Notes Receivable - DISH Network (1)		484,483		—		484,483
Q2 2024 Notes Receivable - DISH Network (1)		1,603,485		—		1,576,518		—
Total Notes Receivable - DISH Network	$	4,878,889	$	56,888	$	4,935,777
Q3 2024 Notes Receivable - DISH Network (1)		501,199		—		492,770		—

Total Notes Receivable - DISH Network	$	4,949,085	$	56,888	$	4,913,689	$	14,222

(1)	Interest is recorded monthly as paid in kind.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

“Intercompany Loan – DISH Network”

Concurrently with the issuance of the 5 1/4% Senior Secured Notes due 2026 and the 5 3/4% Senior Secured Notes due 2028 (our “Senior Secured Notes”) and using the proceeds thereof, we made the Intercompany Loan to DISH Network to be used by DISH Network to finance the purchase of certain wireless spectrum licenses and for general corporate purposes, including the buildout of wireless infrastructure. The Intercompany Loan was isinitially secured by~~: (i)~~ DISH Network’s interest in the ~~cash~~wireless ~~proceeds~~spectrum oflicenses for the 3.45-3.55 GHz Licenses up to the total loan; ~~and~~amount ~~(ii)~~outstanding anincluding interest paid in kind. Pursuant to the terms of the Intercompany Loan, under certain circumstances, DISH Network wireless spectrum licenses ~~acquired~~(valued ~~using~~based ~~such~~upon ~~proceeds. Such~~a ~~collateral~~third-party valuation) may be ~~replaced~~substituted byfor ~~other~~the ~~then~~collateral. During the first quarter of 2025, DISH Network exercised its right to exchange certain of the 3.45-~~existing~~3.55 ~~wireless~~GHz ~~spectrum~~Licenses ~~licenses~~for ~~held~~certain ~~directly~~other orpreviously ~~indirectly~~unencumbered bywireless ~~DISH~~spectrum ~~Network~~licenses of ~~equivalent~~equal or greater value (based upon athe most recent third-party valuation). The Intercompany Loan ~~will~~matures ~~mature~~ in two tranches, with the first tranche maturing on December 1, 2026 (the “2026 Tranche”) and the second tranche maturing on December 1, 2028 (the “2028 Tranche”). The aggregate principal amount of the Intercompany Loan was initially $5.250 billion, and on February 11, 2022, we advanced an additional $1.5 billion to DISH Network under the 2026 Tranche. Interest accrues and is payable semiannually, and interest payments with respect to the Intercompany Loan ~~are~~were, at DISH Network’s option, payable in kind for the first two years from the issuance date of November 2021. In the third year, ~~beginning~~post ~~November~~issuance ~~2023~~date, a minimum of 50% of each interest payment due with respect to each tranche of the Intercompany Loan ~~must~~were required to be paid in cash. ~~Thereafter,~~Currently ~~beginning~~and ~~in November 2024~~prospectively, interest payments must be paid in cash. Interest accrues: (a) when paid in cash, at a fixed rate of 0.25% per annum in excess of the interest rate applicable to, in the case of the 2026 Tranche, the 5 1/4% Senior Secured Notes due 2026, and in the case of the 2028 Tranche, the 5 3/4% Senior Secured Notes due 2028 (each, the “Cash Accrual Rate” with respect to the applicable tranche); and (b) when paid in kind, at a rate of 0.7550% per annum in excess of the Cash Accrual Rate for the applicable tranche.

The Intercompany Loan is repayable by DISH Network in whole or in part, at any time or from time to time, at a price equal to 100% of the principal amount thereof, plus accrued but unpaid interest thereon. We may use the proceeds of any such pre-payment for general corporate purposes, including refinancing of indebtedness, but may not use any such prepaid amounts to make a cash dividend or distribution to DISH Network prior to the repayment in full of the Intercompany Loan. The 5 1/4% Senior Secured Notes due 2026 and the 5 3/4% Senior Secured Notes due 2028 are subordinated to our existing and certain future unsecured notes with respect to certain realizations under the Intercompany Loan and any collateral pledged as security therefor. Any material amendments or modifications to the terms of the Intercompany Loan will require the written consent of the holders of a majority of the then-outstanding 5 1/4% Senior Secured Notes due 2026 and the 5 3/4% Senior Secured Notes due 2028.

~~As of December 31, 2023, the receivable including capitalized paid in kind interest was $7.496 billion.~~ On January 10, 2024, we, in our capacity as “Lender” under the terms of the Loan and Security Agreement related to the Intercompany Loan between DISH Network and us, have consummated the assignment pursuant to such terms, without any modification or amendment thereto, of our receivable in respect to the 2026 Tranche of $4.7 billion to DBS Intercompany Receivable L.L.C. DBS Intercompany Receivable L.L.C. has subsequently assigned its rights as lender thereunder to EchoStar Intercompany Receivable Company L.L.C., our ultimate parent, EchoStar’s direct wholly-owned subsidiary, such that amounts owed in respect of the 2026 Tranche will now be paid by DISH Network to EchoStar Intercompany Receivable L.L.C.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

During the three months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024, we recorded $4243 million and $~~110~~50 million, respectively, of “Interest income” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). ~~During~~As ~~the~~of ~~nine~~March ~~months~~31, ~~ended~~2025 ~~September~~and 30December 31, 2024 ~~and 2023~~, wethe ~~recorded~~total ~~$136~~Intercompany ~~million~~Loan ~~and~~– ~~$331~~2028 ~~million,~~Tranche ~~respectively,~~amount ofoutstanding ~~“Interest~~plus ~~income”~~interest onpaid ~~our~~in ~~Condensed~~kind ~~Consolidated~~was ~~Statements~~$2.844 ~~of Operations and Comprehensive Income (Loss)~~billion. AsThis ofis ~~September~~recorded ~~30,~~in ~~2024 and December 31, 2023,~~ “Notes Receivable – DISH Network” on our Condensed Consolidated Balance Sheets ~~related to the Intercompany Loan – 2028 Tranche was $2~~.~~844 billion and $7.496 billion, respectively, including interest paid in kind, respectively.~~ In addition, as of ~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~2024, “Interest receivable – DISH Network” on our Condensed Consolidated Balance Sheets was $57 million ~~which must be paid in cash~~ and $3714 million, ~~($18~~respectively, ~~million~~ which ~~was~~must ~~paid~~be ~~in cash and $19 million which was~~ paid in ~~kind), respectively~~cash.

“Q2 2024 Notes Receivable – DISH Network”

~~Our~~In ~~ordinary~~June ~~course~~2024, ~~business~~we ~~practice~~and ~~routinely~~DISH ~~involves~~Network ~~entities~~entered ~~within~~into ~~our~~an ~~corporate~~intercompany ~~family~~loan ~~making~~(the ~~intercompany~~“Q2 ~~loans,~~2024 ~~which~~Notes ~~are~~Receivable ~~part~~– DISH Network”) with an initial principal amount of ~~our~~$1.508 ~~routine~~billion. ~~cash~~The ~~management~~Q2 ~~system,~~2024 ~~and~~Notes ~~consistent~~Receivable ~~with~~– ~~many~~DISH ~~years~~Network ofmatures ~~past~~on ~~practice~~August 13, 2028. ~~Such~~ ~~advances~~Interest ~~are~~accrues ~~obligations~~and ofis ~~the~~payable ~~recipient~~monthly ~~entity~~and interest payments shall be payable “in kind” and anshall ~~asset~~be added to the principal amount of the ~~advancing~~loan ~~entity~~on ~~within~~each ~~our~~interest ~~corporate~~payment ~~family,~~date. ~~and~~The ~~historically~~interest ~~are~~rate ~~short~~with ~~duration~~respect into ~~nature. Effective~~the ~~for~~Q2 2024 Notes Receivable – DISH Network is at a variable rate. During the ~~quarter~~three months ended ~~June~~March 3031, ~~2024~~2025, we recorded $27 million of “Interest income” related to the above on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). As of March 31, 2025, the total Q2 2024 Notes Receivable – DISH Network ~~determined~~amount ~~that~~outstanding ~~the~~plus ~~balance~~interest ofpaid ~~such~~in ~~intercompany~~kind ~~loans~~was ~~previously~~$1.603 ~~classified~~billion. This asis ~~current~~recorded in “~~Advances~~Notes toReceivable ~~affiliates~~– DISH Network” on our Condensed Consolidated Balance Sheets ~~has become longer-term in nature~~.

AsQ3 ~~a result, in June~~ 2024, ~~we and DISH Network entered into an intercompany loan (the “Q2 2024~~ Notes Receivable – DISH Network”) with an initial principal amount of $1.508 billion. The Q2 2024 Notes Receivable – DISH Network matures on August 13, 2028. Interest accrues and is payable monthly and interest payments shall be payable “in kind” and shall be added to the principal amount of the loan on each interest payment date. The interest rate with respect to the Q2 2024 Notes Receivable – DISH Network is at a variable rate subject to adjustments based on, among other things, the weighted average cost of borrowing. During the three and nine months ended September 30, 2024, we recorded $26 million and $47 million, respectively, of “Interest income” related to the above on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). As of September 30, 2024, the total Q2 2024 Notes Receivable – DISH Network amount outstanding plus interest paid in kind was $1.550 billion. This is recorded in “Notes Receivable – DISH Network, including interest” on our Condensed Consolidated Balance Sheets.

In September 2024, we and DISH Network entered into an intercompany loan (the “Q3 2024 Notes Receivable – DISH Network”) with an initial principal amount of $481 million. The Q3 2024 Notes Receivable – DISH Network matures on November 13, 2028. Interest accrues and is payable monthly and interest payments shall be payable “in kind” and shall be added to the principal amount of the loan on each interest payment date. The interest rate with respect to the Q3 2024 Notes Receivable – DISH Network is at a variable rate. During the three months ended March 31, 2025, we recorded $8 million of “Interest income” related to the above on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). As of March 31, 2025, the total Q3 2024 Notes Receivable – DISH Network amount outstanding plus interest paid in kind was $501 million. This is recorded in “Notes Receivable – DISH Network” on our Condensed Consolidated Balance Sheets.

During the three months ended September 30, 2024, we and DISH Network entered into an intercompany loan (the “Q3 2024 Notes Receivable – DISH Network”) with an initial principal amount of $481 million. The Q3 2024 Notes Receivable – DISH Network matures on November 13, 2028. Interest accrues and is payable monthly and interest payments shall be payable “in kind” and shall be added to the principal amount of the loan on each interest payment date. The interest rate with respect to the Q3 2024 Notes Receivable – DISH Network is at a variable rate subject to adjustments based on, among other things, the weighted average cost of borrowing. During each of the three and nine months ended September 30, 2024, we recorded $5 million of “Interest income” related to the above on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). As of September 30, 2024, the total Q3 2024 Notes Receivable – DISH Network amount outstanding plus interest paid in kind was $484 million. This is recorded in “Notes Receivable – DISH Network, including interest” on our Condensed Consolidated Balance Sheets.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

“Cost of services”

During each of the three months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024, we incurred expenses of $52 million for satellite capacity leased from DISH Network, and telemetry, tracking and control (“TT&C”) and other professional services provided to us by DISH Network. ~~During the nine months ended September 30, 2024 and 2023, we incurred expenses of $156 million and $154 million, respectively, for satellite capacity leased from~~ DISH Network, ~~and telemetry, tracking and control (“TT&C”) and other professional services provided to us by DISH Network. DISH Network~~ is a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The primary agreements pertaining to these expenses are discussed below.

Satellite Capacity Leased from DISH Network. We lease satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Satellites” in Note 6 for further information. The term of each lease is set forth below:

● EchoStar X, XI, XIV and XVI. We lease all available capacity on the EchoStar X, XI, XIV and XVI satellites from a wholly-owned subsidiary of DISH Network. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life..

● EchoStar XXIII. OnWe ~~March~~lease ~~1, 2023, we began leasing~~ certain capacity on the EchoStar XXIII satellite from a wholly-owned subsidiary of DISH Network on a month to month basis.

● Nimiq 5. DISH Network ~~has~~had a 15-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location with the option to renew on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. We ~~are~~were receiving transponder service on all 32 of the DBS transponders on this satellite from DISH Network ~~via a lease and have exercised our option to renew for a one-year period through September 2024~~. AsThe ~~discussed in Note 6, “Property and Equipment,” the~~ Nimiq 5 ~~satellite~~ lease iswas accounted for as a finance lease until the fourth quarter of 2024. Expenses related to this lease ~~are~~were recorded in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During ~~each of~~ the three months ended ~~September~~March 3031, 2024 ~~and 2023~~, we recorded $9 million of “Depreciation and amortization” expense ~~and~~related ~~less~~to ~~than~~Nimiq $15 ~~million~~ and $1 million of “Interest expense, net of amounts capitalized,.” ~~respectively,~~During ~~related~~October to2024, ~~Nimiq~~DISH 5.Network ~~During~~extended ~~each of~~ the ~~nine~~Nimiq ~~months~~5 ~~ended~~lease ~~September 30, 2024~~ and ~~2023~~, weas ~~recorded~~a ~~$26~~result ~~million~~ of ~~“Depreciation~~the ~~and~~new ~~amortization”~~terms, ~~expense~~our ~~and~~lease $1is ~~million~~accounted ~~and~~for $4as ~~million~~an ofoperating ~~“Interest~~lease. ~~expense,~~We ~~net~~are ofcurrently ~~amounts~~receiving ~~capitalized,”~~transponder ~~respectively,~~service ~~related~~on to31 ~~Nimiq~~of 5.the ~~Subsequent~~DBS totransponders ~~September~~on ~~30,~~this ~~2024,~~satellite wefrom ~~extended the Nimiq 5 lease with~~ DISH Network and asthis anumber ~~result, beginning in the fourth quarter of 2024, we~~ will ~~account~~periodically ~~for~~decrease ~~the~~to ~~Nimiq~~16 5transponders ~~lease~~in ~~as an operating lease~~2026.

TT&C Agreement. We receive TT&C services from a wholly-owned subsidiary of EchoStar for certain satellites (the “TT&C Agreement”). The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months’ notice.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

TT&C Agreement. We receive TT&C services from a wholly-owned subsidiary of EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months’ notice.

“Selling, general and administrative expenses”

During the three months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023, we incurred $8 million and $3 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. During the nine months ended September 30,~~ 2024 ~~and 2023~~, we incurred $186 million and $74 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Other Agreements

Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to our parent’s broadband, wireless and other operations. During the three months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024, the pass through costs associated with these services were $33 million and $3135 million, respectively. ~~During the nine months ended September 30, 2024 and 2023, the pass through costs associated with these services were $102 million and $97 million, respectively.~~

Related Party Transactions with NagraStar ~~L.L.C.~~

We own a 50% interest in NagraStar, a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Certain payments related to NagraStar are recorded in “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In addition, certain other payments are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Condensed Consolidated Balance Sheets or expensed as “Selling, general and administrative expenses” or “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses and liabilities” on our Condensed Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method.

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DISH DBS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

(Unaudited)

The table below summarizes our transactions with NagraStar:

For the Three Months Ended

~~For the Nine Months Ended~~

~~September~~March 3031,

~~September 30,~~

~~2024~~2025

~~2023~~2024

~~2024~~

~~2023~~

(In thousands)

Purchases (including fees):

Purchases from NagraStar

7,~~596~~201

8,~~972~~602

~~24,723~~

~~28,012~~

As of

~~September~~March 3031,

December 31,

~~2024~~2025

~~2023~~2024

(In thousands)

Amounts Payable and Commitments:

Amounts payable to NagraStar

54,~~095~~749

95,~~821~~569

Commitments to NagraStar

~~1,798~~547

~~1,727~~883

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Item 2.MANAGEMENT’S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

You should read the following ~~management~~Management’s ~~narrative~~Narrative ~~analysis~~Analysis of our ~~results~~Results of ~~operations~~Operations together with the condensed consolidated financial statements and notes to our financial statements included elsewhere in this Quarterly Report on Form 10-Q. This management’s narrative analysis is intended to help provide an understanding of our financial condition, changes in financial condition and results of our operations and contains forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed in our Annual Report on Form 10-K for the year ended December 31, ~~2023~~2024 and this Quarterly Report on Form 10-Q under the caption “Item 1A. Risk Factors.” Furthermore, such forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q, and we expressly disclaim any obligation to update any forward-looking statements.

Overview

~~Recent Developments~~Segments

~~DIRECTV~~We ~~Transaction~~currently operate one business segment, Pay-TV.

OnOur ~~September~~Pay-TV ~~29,~~business ~~2024,~~strategy ~~EchoStar~~is ~~and~~to ~~DIRECTV~~be ~~Holdings,~~the ~~LLC~~best ~~(“DTV”),~~provider ~~entered~~of ~~into~~video anservices ~~Equity~~in ~~Purchase~~the ~~Agreement~~United (States by providing products with the ~~“Purchase~~best ~~Agreement”)~~technology, outstanding customer service, and great value. We ~~Pursuant~~offer topay-TV services under the ~~terms~~DISH® brand and ~~subject~~the toSLING® ~~the~~brand ~~conditions~~(collectively ~~set~~“Pay-TV” ~~forth~~services). We inpromote ~~the~~our ~~Purchase~~Pay-TV ~~Agreement,~~services ~~DTV~~by ~~agreed~~providing our subscribers with a better “price-to-value” ~~acquire~~relationship and experience than those available from ~~EchoStar~~other ~~all~~subscription oftelevision ~~its~~service ~~issued~~providers. The ~~and~~DISH ~~outstanding~~branded ~~equity~~pay-TV ~~interests~~service consists of, ~~DISH~~among ~~DBS~~other ~~Corporation~~things, Federal Communications Commission (“~~DISH DBS~~FCC”), ~~which~~licenses ~~operates~~authorizing ~~its~~us ~~Pay-TV~~to ~~business~~use direct broadcast satellite (~~the~~“DBS”) and Fixed Satellite Service (“~~Business~~FSS”) spectrum, our owned and ~~such~~leased ~~acquisition~~satellites, ofreceiver ~~the~~systems, ~~Business~~broadcast ~~the~~operations, ~~“DIRECTV~~a ~~Transaction”).~~leased ~~Prior~~fiber tooptic ~~the~~network, ~~closing~~in-home ofservice ~~the~~and ~~DIRECTV~~call ~~Transaction~~center ~~(the~~operations, and certain other assets utilized in our operations (“~~DIRECTV~~DISH ~~Closing~~TV”). We also design, ~~EchoStar~~develop ~~will~~and ~~complete~~distribute ~~the~~receiver ~~Pre-Closing~~systems ~~Restructuring,~~and asprovide ~~defined~~digital inbroadcast ~~the~~operations, ~~Purchase~~including ~~Agreement~~satellite uplinking/ downlinking, transmission and ~~the~~other ~~Pre-Closing~~services ~~Reorganization,~~to asthird-party ~~defined~~pay-TV inproviders. The ~~the~~SLING ~~Purchase~~branded ~~Agreement,~~pay-TV ~~following~~services ~~which~~consist of, among other things, ~~DISH~~multichannel, ~~DBS~~live-linear ~~will~~and ~~hold~~on-demand ~~all~~streaming of over-the-top ~~properties~~(“OTT”) Internet-based domestic, ~~rights~~international, ~~assets~~Latino and ~~liabilities~~Freestream ~~primarily~~video ~~related~~programming services (“SLING TV”). We market our SLING TV services to ~~the~~consumers ~~Business~~who do not subscribe to traditional satellite and cable pay-TV services, ~~except~~as ~~for~~well ~~certain~~as ~~excluded~~to ~~assets~~current and ~~excluded~~recent ~~liabilities.~~traditional pay-TV subscribers who desire a lower cost alternative.

~~During~~Economic ~~the~~Environment period between signing of the Purchase Agreement and the DIRECTV Closing, DISH DBS and its subsidiaries are not permitted to declare or pay dividends or otherwise cause or permit any leakage (which includes, among other things, cash payments and certain other value transfers by DISH DBS and its subsidiaries, on the one hand, to EchoStar, DISH Network or certain other related persons, on the other hand), other than (i) certain permitted cash transfers prior to September 30, 2025 in an aggregate amount not to exceed the permitted cash transfer cap set forth in the Purchase Agreement, and (ii) certain permitted tax sharing payments, in each case, on terms and conditions as set forth in the Purchase Agreement. The permitted cash transfer cap is initially equal to $1.52 billion, calculated in accordance with the Purchase Agreement, (“Permitted Transfer Cap”) and is subject to certain adjustments set forth in the Purchase Agreement, including transaction expenses and certain accrued interest adjustments and adjustments tied to certain key performance indicators.

AsDuring ~~set~~2024 ~~forth~~and in the ~~Reorganization~~first ~~Plan,~~three ~~immediately~~months ~~prior~~of ~~to the DIRECTV Closing~~2025, ~~DISH~~we ~~DBS~~experienced ~~will~~inflationary ~~distribute~~pressures ~~the~~in ~~Intercompany~~our ~~Loan~~commodity –and ~~2028~~labor ~~Tranche,~~costs ~~defined~~resulting ~~below~~from ~~(see~~the ~~Note~~macroeconomic 11environment in the ~~Notes~~United toStates, ~~our~~which ~~Condensed~~has ~~Consolidated~~impacted ~~Financial Statements) to~~ our ~~seller~~overall ~~subsidiary~~operating results. In ~~At the DIRECTV Closing~~addition, ~~our~~changes ~~seller subsidiary will sell and transfer to DTV all of the issued and outstanding equity interests of DISH DBS~~ in ~~exchange~~trade ~~for~~policies, aincluding, ~~total~~but ~~cash~~not ~~purchase~~limited ~~price~~to, oftariffs ~~$1.00 plus the assumption of net debt of DISH DBS~~ and ~~its~~other ~~subsidiaries~~restrictions, ~~that~~could isincrease, ~~outstanding~~among asother ~~of the DIRECTV Closing. Additionally~~things, ~~effective~~our ~~with the DIRECTV Closing~~costs, ~~certain~~disrupt ~~other~~our ~~intercompany~~supply ~~amounts~~chain ~~between DISH DBS~~ and ~~DISH~~negatively ~~Network~~affect ~~(in~~our ~~addition~~business, tooperations ~~the~~and ~~Intercompany~~financial ~~Loan – 2028 Tranche) will be subject to cancellation~~condition.

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As of September 30, 2024, the balance of the DISH DBS intercompany receivables for the Intercompany Loan – 2028 Tranche and other intercompany amounts totaled $4.606 billion, not including Permitted Transfer Cap receivables of up to $1.52 billion and certain other amounts of residual capital remaining based on performance. Upon the completion of the DIRECTV Transaction, DISH DBS will become a direct and wholly-owned subsidiary of DTV.

~~Completion~~LIQUIDITY ofAND ~~the~~CAPITAL DIRECTV Transaction is subject to satisfaction or waiver of closing conditions set forth in the Purchase Agreement, including, but not limited to, the receipt of governmental approvals and the success of the DISH DBS Exchange Offers, as detailed and defined in Note 7 in the Notes to our Condensed Consolidated Financial Statements. The DISH DBS Exchange Offers expired at 5:00 p.m., New York City time on November 12, 2024, and the DISH DBS Exchange Offers have been terminated due to the failure to satisfy the Minimum Series Exchange Condition and the Acquisition Consent Threshold Condition, each as defined in the Exchange Offering Memorandum (as defined below). Pursuant to the terms of the Purchase Agreement, DIRECTV may terminate the Purchase Agreement by November 22, 2024 due to the failure to consummate the DISH DBS Exchange Offers by November 12, 2024 or the failure to satisfy the Acquisition Consent Threshold Condition.RESOURCES

~~Asset~~Operational ~~Transfer~~Liquidity

~~Concurrently~~We ~~with~~make ~~the~~general ~~issuance~~investments ofin ~~the~~property 5such ~~1/4%~~as, ~~Senior~~among ~~Secured~~others, ~~Notes~~satellites, ~~due~~set-top ~~2026~~boxes, information technology and ~~the~~facilities 5that ~~3/4%~~support ~~Senior~~our ~~Secured~~Pay-TV ~~Notes~~business. For ~~due~~some ~~2028~~of ~~and~~these ~~using~~investments, ~~the~~changes ~~proceeds~~in ~~thereof~~trade policies, weincluding, ~~made~~but ~~two~~not ~~advances~~limited to, ~~DISH~~tariffs ~~Network~~and ~~pursuant~~other torestrictions, acould ~~Loan~~increase, among other things, our costs, disrupt our supply chain and ~~Security~~negatively ~~Agreement~~affect ~~dated~~our ~~November~~business, 26operations and financial condition. Moreover, ~~2021~~since ~~(the~~we ~~“Intercompany~~are ~~Loan”)~~a tosubscriber-based becompany, ~~used~~we byalso ~~DISH~~make ~~Network~~subscriber-specific investments to ~~finance~~acquire new subscribers and retain existing subscribers. While the ~~purchase~~general ofinvestments ~~certain~~may ~~wireless~~be ~~spectrum~~deferred ~~licenses~~without ~~and~~impacting ~~for~~the ~~general~~business ~~corporate~~in ~~purposes~~the short-term, ~~including~~ the ~~buildout~~subscriber-specific ofinvestments ~~wireless~~are ~~infrastructure~~less discretionary. ~~The~~Our ~~aggregate~~overall ~~principal~~objective ~~amount~~is ofto ~~the~~generate ~~Intercompany~~sufficient ~~Loan~~cash ~~was~~flow ~~initially~~over ~~$5.250~~the ~~billion,~~life ~~and~~of oneach ~~February 11,~~subscriber ~~2022,~~to weprovide ~~advanced~~ an ~~additional~~adequate ~~$1.5~~return ~~billion~~against tothe ~~DISH~~upfront ~~Network~~investment. AsOnce ofthe ~~December~~upfront ~~31,~~investment ~~2023~~has been made for each subscriber, the ~~receivable~~subsequent ~~including~~cash ~~capitalized~~flow ~~paid~~is ingenerally ~~kind~~positive, ~~interest~~but ~~was~~there ~~$7.496~~can ~~billion~~be no assurance that over time we will recoup or earn a return on the upfront investment.

OnThere ~~January~~are ~~10,~~a ~~2024,~~number ~~we,~~of infactors that impact our ~~capacity~~future ascash ~~“Lender”~~flow ~~under~~compared to the ~~terms~~cash offlow ~~the~~we ~~Loan~~generate ~~and~~at ~~Security~~a ~~Agreement~~given ~~related~~point toin ~~the~~time. The ~~Intercompany~~first ~~Loan~~factor ~~between~~is ~~DISH~~our ~~Network~~churn rate and ~~us,~~how ~~have~~successful ~~consummated~~we ~~the~~are ~~assignment~~at ~~pursuant~~retaining toour ~~such~~current ~~terms,~~subscribers. To ~~without~~the ~~any~~extent ~~modification~~we orlose ~~amendment~~subscribers ~~thereto,~~from of our ~~receivable~~existing inbase, ~~respect~~the topositive ~~the~~cash ~~first~~flow ~~tranche~~from ~~which~~that ~~matures~~base onis ~~December~~correspondingly 1,reduced. The ~~2026~~second ~~(“2026~~factor ~~Tranche”)~~is ofhow ~~$4.7~~successful ~~billion~~we ~~(the~~are ~~“Intercompany~~at ~~Loan~~maintaining –our ~~2026~~service ~~Tranche”)~~margins. To tothe ~~DBS~~extent ~~Intercompany~~our ~~Receivable~~“Cost ~~L.L.C. DBS~~of ~~Intercompany~~services” ~~Receivable~~grow ~~L.L.C. has~~faster ~~subsequently~~than ~~assigned~~our ~~its~~“Service ~~rights~~revenue,” asthe ~~lender~~amount ~~thereunder~~of ~~to EchoStar~~cash ~~Intercompany~~flow ~~Receivable~~that ~~Company~~is ~~L.L.C.,~~generated ~~our~~per ~~ultimate~~existing ~~parent,~~subscriber ~~EchoStar’s~~is ~~direct~~reduced. Our ~~wholly~~Pay-~~owned~~TV ~~subsidiary,~~service ~~such~~margins ~~that~~have ~~amounts~~been ~~owed~~reduced inby, ~~respect~~among ofother ~~the~~things, ~~2026~~higher ~~Tranche~~programming ~~will~~costs. The ~~now~~third befactor ~~paid~~is bythe ~~DISH~~rate ~~Network~~at ~~to EchoStar~~which ~~Intercompany~~we ~~Receivable~~acquire Lnew subscribers.~~L.C.~~ AsThe offaster ~~September~~we ~~30,~~acquire ~~2024~~new subscribers, the more our ~~remaining~~positive ~~intercompany~~ongoing ~~receivable~~cash ~~(the~~flow ~~“Intercompany~~from ~~Loan~~existing –subscribers ~~2028~~is ~~Tranche”)~~offset ~~amount~~by ~~outstanding~~the ~~plus~~negative ~~interest~~upfront ~~paid~~cash inflow ~~kind~~associated ~~was~~with ~~$2.844~~acquiring ~~billion~~new subscribers. Conversely, ~~not~~the ~~including~~slower ~~accrued~~we ~~interest~~acquire ~~receivable~~subscribers, ofthe ~~$57~~more ~~million~~our ~~which~~operating ~~must~~cash beflow ~~paid~~is toenhanced us in ~~cash~~that period.

~~EchoStar~~Finally, ~~Merger~~our ~~with~~future ~~DISH~~cash ~~Network~~flow is impacted by, among other things, the rate at which we make general investments, investments in satellites, incur litigation expense, make cash interest payments, and any cash flow from financing activities. In addition, declines in our Pay-TV subscriber base and any decrease in subscriber-related margins negatively impact our cash flow, and there can be no assurance that our subscriber declines will not continue.

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Segments

We currently operate one business segment, Pay-TV.

Our Pay-TV business strategy is to be the best provider of video services in the United States by providing products with the best technology, outstanding customer service, and great value. We offer pay-TV services under the DISH® brand and the SLING® brand (collectively “Pay-TV” services). We promote our Pay-TV services by providing our subscribers with a better “price-to-value” relationship and experience than those available from other subscription television service providers. The DISH branded pay-TV service consists of, among other things, FCC licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/ downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear and on-demand streaming over-the-top (“OTT”) Internet-based domestic, international, Latino and Freestream video programming services (“SLING TV”). We market our SLING TV services to consumers who do not subscribe to traditional satellite and cable pay-TV services, as well as to current and recent traditional pay-TV subscribers who desire a lower cost alternative.

Future Capital Requirements

We expect to fund our future working capital, capital expenditures, other investments, and debt service requirements for the next twelve months from cash generated from operations, existing ~~cash,~~ restricted and unrestricted cash, cash equivalents and marketable investment securities balances, and cash generated through raising additional capital. We do not currently have cash, cash equivalents, marketable investment securities balances and/or projected future cash flows to fully fund our 2026 debt maturities. We will need to refinance or restructure all or a portion of such obligations prior to maturity.

Our capital expenditures vary depending on, among other things, the number of satellites leased or under construction at any point in time and could increase materially as a result of increased competition, significant satellite failures, or economic weakness and uncertainty. Our DISH TV subscriber base has been declining and there can be no assurance that our DISH TV subscriber base will not continue to decline and that the pace of such decline will not accelerate. In the event that our DISH TV subscriber base continues to decline, it will have a material adverse long-term effect on our cash flow.

Volatility in the financial markets has made it more difficult at times for issuers of high-yield indebtedness, such as us, to access capital markets at favorable terms or at all. These developments may have a significant effect on our cost of financing and our liquidity position.

We have made cash distributions and the intercompany loans to partially finance the development of EchoStar’s 5G Network Deployment, including, but not limited to, the purchase of wireless spectrum licenses and the retail wireless business to date, and we may make additional funds available to EchoStar in the form of cash distributions or loans to finance, in whole or in part, EchoStar’s future efforts. These factors, including, but not limited to, debt maturities, continuing investment in our business, financing acquisitions and other strategic transactions, may require us to raise additional capital in the future which may not be available on favorable terms, or at all.40

Economic Environment

During 2023 and the first nine months of 2024, we experienced inflationary pressures in our commodity and labor costs resulting from the macroeconomic environment in the United States, which has significantly impacted our overall operating results.

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Operational Liquidity

We ~~make~~have ~~general~~made ~~investments~~cash indistributions ~~property~~and ~~such~~intercompany ~~as,~~loans ~~among~~to ~~others,~~partially ~~satellites,~~finance ~~set-top~~the ~~boxes,~~development ~~information~~of ~~technology~~DISH ~~and~~Network’s ~~facilities~~5G ~~that~~Network, ~~support our Pay-TV business. Moreover~~including, ~~since~~but wenot ~~are~~limited ~~a subscriber-based company~~to, wethe ~~also~~purchase ~~make~~of ~~subscriber-specific~~wireless ~~investments~~spectrum tolicenses ~~acquire new subscribers~~ and ~~retain~~the ~~existing~~wireless ~~subscribers. While~~business ~~the~~to ~~general~~date, ~~investments~~and we may bemake ~~deferred~~additional ~~without~~funds ~~impacting~~available ~~the~~to ~~business~~DISH Network in the ~~short-term,~~form ~~the~~of ~~subscriber-specific~~cash ~~investments~~distributions ~~are~~or ~~less~~loans ~~discretionary. Our overall objective is~~ to ~~generate~~finance, ~~sufficient~~in ~~cash~~whole ~~flow~~or ~~over~~in ~~the~~part, ~~life~~DISH ofNetwork’s ~~each~~future ~~subscriber~~efforts. These tofactors, ~~provide~~including, anbut ~~adequate~~not ~~return~~limited ~~against~~to, ~~the~~debt ~~upfront~~maturities, ~~investment. Once~~continuing ~~the upfront~~ investment ~~has~~in ~~been~~our ~~made for each subscriber~~business, ~~the~~financing ~~subsequent~~acquisitions ~~cash~~and ~~flow~~other isstrategic ~~generally positive~~transactions, ~~but~~will ~~there~~require ~~can~~us beto noraise ~~assurance~~additional ~~that~~capital ~~over~~in ~~time~~the wefuture ~~will~~which ~~recoup~~may ornot ~~earn~~be aavailable ~~return~~ on ~~the~~favorable ~~upfront~~terms, ~~investment~~or at all.

There are a number of factors that impact our future cash flow compared to the cash flow we generate at a given point in time. The first factor is our churn rate and how successful we are at retaining our current subscribers. To the extent we lose subscribers from our existing base, the positive cash flow from that base is correspondingly reduced. The second factor is how successful we are at maintaining our service margins. To the extent our “Cost of services” grow faster than our “Service revenue,” the amount of cash flow that is generated per existing subscriber is reduced. Our Pay-TV service margins have been reduced by, among other things, higher programming costs. The third factor is the rate at which we acquire new subscribers. The faster we acquire new subscribers, the more our positive ongoing cash flow from existing subscribers is offset by the negative upfront cash flow associated with acquiring new subscribers. Conversely, the slower we acquire subscribers, the more our operating cash flow is enhanced in that period.

Finally, our future cash flow is impacted by, among other things, the rate at which we make general investments, incur litigation expense, and any cash flow from financing activities. In addition, declines in our Pay-TV subscriber base and any decrease in subscriber-related margins negatively impact our cash flow, and there can be no assurance that our subscriber declines will not continue.

Availability of Credit and Effect on Liquidity

The ability to raise capital has generally existed for us despite economic weakness and uncertainty. While modest fluctuations in the cost of capital will not likely impact our current operational plans, significant fluctuations could have a material adverse effect on our business, results of operations and financial condition.

Debt Issuances and Maturity

~~Our~~Term 5Loan ~~7/8%~~Due Senior Notes due 2024 with remaining balance of approximately $1.983 billion mature on November 15, 2024. We expect to fund this obligation from our current restricted cash and cash equivalents balances on hand. 2025

During the three months ended March 31, 2025, we redeemed approximately $167 million of our Term Loan Due 2025. The remaining balance of approximately $333 million is paid monthly and the final payment is due September 30, 2025. We expect to fund this obligation from our current restricted and unrestricted cash, cash equivalents and marketable investment securities balances on hand and/or projected future cash flows.

Covenants and Restrictions Related to our Long-Term Debt

We are subject to the covenants and restrictions set forth in the indentures related to our long-term debt. In particular, the indentures related to our outstanding senior notes and senior secured notes contain restrictive covenants that, among other things, impose limitations on our ability to: (i) incur additional indebtedness; (ii) enter into sale and leaseback transactions; (iii) pay dividends or make distributions on our capital stock or repurchase our capital stock; (iv) make certain investments; (v) create liens; (vi) enter into certain transactions with affiliates; (vii) merge or consolidate with another company; and (viii) transfer or sell assets. Should we fail to comply with these covenants, all or a portion of the debt under the senior notes, senior secured notes and our other long-term debt could become immediately payable. The senior notes and senior secured notes also provide that the debt may be required to be prepaid if certain change-in-control events occur.

As of the date of filing of this Quarterly Report on Form 10-Q, we were in compliance with the covenants and restrictions related to our ~~respective~~ long-term debt ~~recorded on our Condensed Consolidated Balance Sheets as of September 30, 2024~~.

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New Accounting Pronouncements

See Note 2 in the Notes to our Condensed Consolidated Financial Statements for further information.

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EXPLANATION OF KEY METRICS AND OTHER ITEMS

Service revenue. “Service revenue” consists principally of Pay-TV subscriber revenue. Certain of the amounts included in “Service revenue” are not recurring on a monthly basis.

Equipment sales and other revenue. “Equipment sales and other revenue” principally includes the non-subsidized sales of Pay-TV equipment and the licensing of certain intellectual property.

Cost of services. “Cost of services” principally includes Pay-TV programming expenses and other operating costs related to our Pay-TV services.

Cost of sales - equipment and other. “Cost of sales – equipment and other” principally includes the cost of the non-subsidized sales of Pay-TV equipment. Costs are generally recognized as products are delivered to customers and the related revenue is recognized.

Selling, general and administrative expenses. “Selling, general and administrative expenses” consists primarily of direct sales costs, advertising and selling costs, third-party commissions related to the acquisition of subscribers and employee-related costs associated with administrative services such as legal, information systems, and accounting and finance. In addition, “Selling, general and administrative expenses” includes costs related to the installation of equipment for our new Pay-TV subscribers and the cost of subsidized sales of Pay-TV equipment for new subscribers.

Interest expense, net of amounts capitalized. “Interest expense, net of amounts capitalized” primarily includes interest expense associated with our long-term debt (net of capitalized interest), prepayment premiums, amortization of debt discounts and debt issuance costs associated with our long-term debt, and interest expense associated with our finance lease obligations.

Other, net. The main components of “Other, net” are gains and losses realized on the sale and/or conversion of ~~investments~~marketable and non-marketable investment securities, impairment of marketable and non-marketable investment securities, unrealized gains and losses from changes in fair value of certain marketable and non-marketable investment securities and equity in earnings and losses of our affiliates.

~~Earnings~~Operating income before ~~interest, taxes,~~ depreciation and amortization (“~~EBITDA~~OIBDA”). ~~EBITDA~~ OIBDA is defined as “~~Net~~Operating income (loss)” plus “~~Interest expense, net of amounts capitalized” and net of “Interest income,” “Income tax (provision) benefit, net” and “~~Depreciation and amortization.” This “non-GAAP measure” is reconciled to “~~Net~~Operating income (loss)” in our discussion of “Results of Operations” below.

Operating income before depreciation and amortization (“OIBDA”). OIBDA is defined as “Operating income (loss)” plus “Depreciation and amortization.” This “non-GAAP measure” is reconciled to “Operating income (loss)” in our discussion of “Results of Operations” below.

DISH TV subscribers. We include customers obtained through direct sales, independent third-party retailers and other independent third-party distribution relationships in our DISH TV subscriber count. We also provide DISH TV services to hotels, motels and other commercial accounts. For certain of these commercial accounts, we divide our total revenue for these commercial accounts by $34.99, and include the resulting number, which is substantially smaller than the actual number of commercial units served, in our DISH TV subscriber count.

SLING TV subscribers. We include customers obtained through direct sales and third-party marketing agreements in our SLING TV subscriber count. SLING TV subscriber additions are recorded net of disconnects. SLING TV customers receiving SLING TV Freestream service, or service for no charge, under certain new subscriber promotions, are excluded from our SLING TV subscriber count. For customers who subscribe to multiple SLING TV packages, each customer is only counted as one SLING TV subscriber.

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Pay-TV subscribers. Our Pay-TV subscriber count includes all DISH TV and SLING TV subscribers discussed above. For customers who subscribe to both our DISH TV services and our SLING TV services, each subscription is counted as a separate Pay-TV subscriber.

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Pay-TV average monthly revenue per subscriber (“Pay-TV ARPU”). We are not aware of any uniform standards for calculating ARPU and believe presentations of ARPU may not be calculated consistently by other companies in the same or similar businesses. We calculate Pay-TV average monthly revenue per Pay-TV subscriber, or Pay-TV ARPU, by dividing average monthly Pay-TV “Service revenue,” for the period by our average number of Pay-TV subscribers for the period. The average number of Pay-TV subscribers is calculated for the period by adding the average number of Pay-TV subscribers for each month and dividing by the number of months in the period. The average number of Pay-TV subscribers for each month is calculated by adding the beginning and ending Pay-TV subscribers for the month and dividing by two. SLING TV subscribers on average purchase lower priced programming services than DISH TV subscribers, and therefore, as SLING TV subscribers increase as a percentage of total Pay-TV subscribers, it has had a negative impact on Pay-TV ARPU.

DISH TV average monthly subscriber churn rate (“DISH TV churn rate”). We are not aware of any uniform standards for calculating subscriber churn rate and believe presentations of subscriber churn rates may not be calculated consistently by different companies in the same or similar businesses. We calculate our “DISH TV churn rate” for any period by dividing the number of DISH TV subscribers who terminated service during the period by the average number of DISH TV subscribers for the same period, and further dividing by the number of months in the period. The average number of DISH TV subscribers is calculated for the period by adding the average number of DISH TV subscribers for each month and dividing by the number of months in the period. The average number of DISH TV subscribers for each month is calculated by adding the beginning and ending DISH TV subscribers for the month and dividing by two.

DISH TV SAC. Subscriber acquisition cost measures are commonly used by those evaluating traditional companies in the pay-TV industry. We are not aware of any uniform standards for calculating the “average subscriber acquisition costs per new DISH TV subscriber activation,” or DISH TV SAC, and we believe presentations of pay-TV SAC may not be calculated consistently by different companies in the same or similar businesses. Our DISH TV SAC is calculated using all costs of acquiring DISH TV subscribers (e.g., subsidized equipment, advertising, installation, commissions and direct sales, etc.), which are included in “Selling, general and administrative expenses,” plus capitalized payments made under certain sales incentive programs and the value of equipment capitalized under our lease program for new DISH TV subscribers, divided by gross new DISH TV subscriber activations. We include all new DISH TV subscribers in our calculation, including DISH TV subscribers added with little or no subscriber acquisition costs.

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Pay-TV

We offer Pay-TV services under the DISH brand and the SLING brand. As of ~~September~~March 3031, ~~2024~~2025, we had 87.~~031~~397 million Pay-TV subscribers in the United States, including 5.~~888~~503 million DISH TV subscribers and 21.~~143~~894 million SLING TV subscribers. We promote our Pay-TV services by providing our subscribers with better service, technology and value than those available from other subscription television service providers. We offer a wide selection of video services under the DISH TV brand, with access to hundreds of channels depending on the level of subscription. Our standard programming packages generally include programming provided by national cable networks. We also offer programming packages that include local broadcast networks, specialty sports channels, premium movie channels and Latino and international programming. We market our SLING TV services to consumers who do not subscribe to traditional satellite and cable pay-TV services, as well as to current and recent traditional pay-TV subscribers who desire a lower cost alternative. Our SLING TV services require an Internet connection and are available on multiple streaming-capable devices including, among others, streaming media devices, TVs, tablets, computers, game consoles and phones. We offer SLING domestic, SLING International, SLING Latino and SLING Freestream video programming services.

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Trends

Competition

Competition has intensified in recent years as the pay-TV industry has matured. We and our competitors increasingly must seek to attract a greater proportion of new subscribers from each other’s existing subscriber bases rather than from first-time purchasers of pay-TV services. We face substantial competition from established pay-TV providers and broadband service providers and increasing competition from companies providing/facilitating the delivery of video content via the Internet to computers, televisions, and other streaming and mobile devices, including wireless service providers. In recent years, industry consolidation and convergence has created competitors with greater scale and multiple product/service offerings. These developments, among others, have contributed to intense and increasing competition, and we expect such competition to continue. We incur significant costs to retain our existing DISH TV subscribers, generally as a result of upgrading their equipment to next generation receivers, primarily including our Hopper® receivers, and by providing retention credits. Our DISH TV subscriber retention costs may vary significantly from period to period.

Many of our competitors have been especially aggressive by offering discounted programming and services for both new and existing subscribers, including, but not limited to, bundled offers combining broadband, video and/or wireless services and other promotional offers. Certain competitors have been able to subsidize the price of video services with the price of broadband and/or wireless services.

Our Pay-TV services also face increased competition from programmers and other companies who distribute video directly to consumers over the Internet, as well as traditional satellite television providers, cable companies and large telecommunications companies that are rapidly increasing their Internet-based video offerings and direct-to-consumer exclusive and non-exclusive content. We also face competition from providers of video content, many of which are providers of programming content to us, that distribute content over the Internet including services with live-linear television programming, as well as single programmer offerings and offerings of large libraries of on-demand content, including in certain cases original content. These product offerings include, but are not limited to, : Netflix, Hulu, Apple+, Prime Video, YouTube TV, Disney+, ESPN+, Paramount+, Max, STARZ, Peacock, Fubo, Philo and Tubi and certain bundles of these offerings.

Significant changes in consumer behavior regarding the means by which consumers obtain video entertainment and information in response to digital media competition could have a material adverse effect on our business, results of operations and financial condition or otherwise disrupt our business. In particular, consumers have shown increased interest in viewing certain video programming in any place, at any time and/or on any broadband or Internet-connected device they choose. Online content providers may cause our subscribers to disconnect our DISH TV services (“cord cutting”), downgrade to smaller, less expensive programming packages (“cord shaving”) or elect to purchase through these online content providers a certain portion of the services that they would have historically purchased from us.

Mergers and acquisitions, joint ventures and alliances among cable television providers, telecommunications companies, programming providers and others may result in, among other things, greater scale and financial leverage and increase the availability of offerings from providers capable of bundling video, broadband and/or wireless services in competition with our services and may exacerbate the risks described under the caption “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 and elsewhere in our public filings. These transactions may affect us adversely by, among other things, making it more difficult for us to obtain access to certain programming networks on nondiscriminatory and fair terms, or at all. 44

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In particular, consumers have shown increased interest in viewing certain video programming in any place, at any time and/or on any broadband or Internet-connected device they choose. Online content providers may cause our subscribers to disconnect our DISH TV services (“cord cutting”), downgrade to smaller, less expensive programming packages (“cord shaving”) or elect to purchase through these online content providers a certain portion of the services that they would have historically purchased from us.

Mergers and acquisitions, joint ventures and alliances among cable television providers, telecommunications companies, programming providers and others may result in, among other things, greater scale and financial leverage and increase the availability of offerings from providers capable of bundling video, broadband and/or wireless services in competition with our services and may exacerbate the risks described under the caption “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 and elsewhere in our public filings. These transactions may affect us adversely by, among other things, making it more difficult for us to obtain access to certain programming networks on nondiscriminatory and fair terms, or at all.

Our Pay-TV subscriber base has been declining due to, among other things, the factors described above. There can be no assurance that our Pay-TV subscriber base will not continue to decline and that the pace of such decline will not accelerate. As our Pay-TV subscriber base continues to decline, it could have a material adverse long-term effect on our business, results of operations, financial condition and cash flow.

Programming

Our ability to compete successfully will depend, among other things, on our ability to continue to obtain desirable programming and deliver it to our subscribers at competitive prices. Programming costs represent a large percentage of our “Cost of services” and the largest component of our total expense. We expect these costs to continue to increase due to contractual price increases and the renewal of long-term programming contracts on less favorable pricing terms and certain programming costs are rising at a much faster rate than wages or inflation. In particular, the rates we are charged for retransmitting local broadcast channels have been increasing substantially and may exceed our ability to increase our prices to our subscribers. Our ability to provide services under these agreements and negotiate acceptable terms depends on, among other things, the number of subscribers we have, our actual, perceived or anticipated financial condition and our negotiating power against each programmer, which can vary depending on the size and scale of such programmer. Going forward, our margins may face pressure if we are unable to renew our long-term programming contracts on acceptable pricing and other economic terms or if we are unable to pass these increased programming costs on to our subscribers.

Increases in programming costs have caused us to increase the rates that we charge to our subscribers, which could in turn cause our existing Pay-TV subscribers to disconnect our services or cause potential new Pay-TV subscribers to choose not to subscribe to our services. Additionally, even if our subscribers do not disconnect our services, they may purchase through new and existing online content providers a certain portion of the services that they would have historically purchased from us.

Furthermore, our net Pay-TV subscriber additions, gross new DISH TV subscriber activations, and DISH TV churn rate may be negatively impacted if we are unable to renew our long-term programming carriage contracts. In the past, our net Pay-TV subscriber additions, gross new DISH TV subscriber activations, and DISH TV churn rate have been negatively impacted as a result of programming interruptions and threatened programming interruptions in connection with the scheduled expiration of programming carriage contracts with content providers. There can be no assurance that the removal of any channels will not have a material adverse effect on our business, results of operations and financial condition or otherwise disrupt our business.

We cannot predict with any certainty the impact to our net Pay-TV subscriber additions, gross new DISH TV subscriber activations, and DISH TV churn rate resulting from programming interruptions or threatened programming interruptions that may occur in the future. As a result, we may at times suffer from periods of lower net Pay-TV subscriber additions or higher net Pay-TV subscriber losses.

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Other Developments

Adaptive Bitrate Streaming Patents

Through our subsidiaries, we hold dozens of issued United States and foreign patents that relate to Adaptive Bitrate Streaming. On September 9, 2022, the chief administrative law judge at the United States International Trade Commission (“ITC”) issued an Initial Determination holding that the video streaming in certain Peloton, NordicTrack and Mirror exercise equipment infringes four of those patents, and recommended that the ITC prevent the importation of the infringing products. On March 8, 2023, the ITC issued its Final Determination, which affirmed the Initial Determination for three of the four patents in all material aspects, and issued the recommended exclusion and cease and desist orders, which will become effective after a Presidential review period. On February 9, 2023, we entered into a confidential license agreement covering Mirror exercise equipment that resolves our litigation involving those products. On May 1, 2023, we entered into a $75 million license agreement covering Peloton exercise equipment that resolves our litigation involving those products. During the second quarter of 2023, we recorded the $75 million license agreement in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). On March 6, 2024, we entered into a license agreement covering NordicTrack exercise equipment that resolves our litigation involving those products and received the initial payment.

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RESULTS OF OPERATIONS

Three Months Ended ~~September~~March 3031, ~~2024~~2025 Compared to the Three Months Ended ~~September~~March 3031, ~~2023~~2024.


	For the Three Months Ended
	~~September~~March 3031,						Variance
Statements of Operations Data	~~2024~~2025			~~2023~~2024			Amount			%
	(In thousands)
Revenue:
Service revenue	$	2,~~590~~514,~~379~~466		$	2,~~761~~687,~~678~~040		$	(~~171~~172,~~299~~574)		(6.24)
Equipment sales and other revenue		1112,~~423~~033			2120,~~709~~297			(108,~~286~~264)		(4740.47)
Total revenue		2,~~601~~526,~~802~~499			2,~~783~~707,~~387~~337			(~~181~~180,~~585~~838)		(6.57)

Costs and Expenses:
Costs and expenses:
Cost of services		1,~~675~~595,~~206~~853			1,~~749~~699,~~627~~945			(74104,~~421~~092)		(46.31)
% of Service revenue		6463.75	%		63.43	%
Cost of sales - equipment and other		189,~~157~~404			2414,~~881~~763			(65,~~724~~359)		(2736.03)
Selling, general and administrative expenses		~~273~~238,~~792~~997			~~356~~285,~~125~~445			(8246,~~333~~448)		(2316.13)
% of Total revenue		109.5	%		1210.85	%
Depreciation and amortization		7359,~~290~~038			70,~~474~~680			2(11,~~816~~642)		4(16.05)
Total costs and expenses		21,~~040~~903,~~445~~292			2,~~201~~070,~~107~~833			(~~160~~167,~~662~~541)		(78.31)

Operating income (loss)		~~561~~623,~~357~~207			~~582~~636,~~280~~504			(2013,~~923~~297)		(32.61)

Other Income (Expense):
Other income (expense):
Interest income		7984,~~312~~981			~~112~~59,~~715~~327			~~(33~~25,~~403)~~654		~~(29~~43.6)2
Interest expense, net of amounts capitalized		(~~184~~243,~~543~~239)			(184,~~407~~854)			(~~136~~58,385)		(031.16)
Other, net		(~~3,270~~490)			65(569)			~~(3,335)~~79		*13.9
Total other income (expense)		(~~108~~158,~~501~~748)			(71126,~~627~~096)			(3632,~~874~~652)		(5125.59)

Income (loss) before income taxes		~~452~~464,~~856~~459			510,~~653~~408			(5745,~~797~~949)		(119.30)
Income tax (provision) benefit, net		(113,~~029~~921)			(~~121~~124,~~899~~867)			810,~~870~~946		78.38
Effective tax rate		2524.05	%		2324.95	%
Net income (loss)	$	~~339~~350,~~827~~538		$	~~388~~385,~~754~~541		$	(4835,~~927~~003)		(129.61)

Other Data:
Other data:
Pay-TV subscribers, as of period end (in millions)		87.~~031~~397			8.~~840~~178			(0.~~809~~781)		(9.26)
DISH TV subscribers, as of period end (in millions)		5.~~888~~503			6.~~720~~258			(0.~~832~~755)		(12.41)
SLING TV subscribers, as of period end (in millions)		21.~~143~~894			21.~~120~~920			(0.~~023~~026)		(1.14)
Pay-TV subscriber additions (losses), net (in millions)		(0.~~043~~381)			(0.~~064~~348)			(0.~~021~~033)		32(9.85)
DISH TV subscriber additions (losses), net (in millions)		(0.~~188~~183)			(0.~~181~~213)			(0.~~007)~~030		(314.9)1
SLING TV subscriber additions (losses), net (in millions)		(0.~~145~~198)			(0.~~117~~135)			(0.~~028~~063)		23(46.97)
Pay-TV ARPU	$	~~108~~110.8864		$	~~105~~107.2538		$	3.6326		3.40
DISH TV subscriber additions, gross (in millions)		0.~~075~~046			0.~~142~~079			(0.~~067~~033)		(4741.28)
DISH TV churn rate		1.4736	%		1.5853	%		(0.1117)	%	(711.01)
DISH TV SAC	$	~~985~~1,149		$	1,~~065~~054		$	~~(80)~~95		(79.5)0
Purchases of property and equipment	$	20,567		$	37,314		$	(16,747)		(44.9)
Purchases of property and equipment, net of refunds	$	37,359		$	26,693		$	10,666		40.0
EBITDA	$	631,377		$	652,819		$	(21,442)		(3.3)
OIBDA	$	682,245		$	707,184		$	(24,939)		(3.5)
OIBDA	$	634,647		$	652,754		$	(18,107)		(2.8)

* Percentage is not meaningful.

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Pay-TV Subscribers

DISH TV subscribers. We lost approximately ~~188~~183,000 net DISH TV subscribers during the three months ended ~~September~~March 3031, ~~2024~~2025 compared to the loss of approximately ~~181~~213,000 net DISH TV subscribers during the same period in ~~2023~~2024. This ~~increase~~decrease in net DISH TV subscriber losses primarily resulted from a lower ~~gross new~~ DISH TV ~~subscriber~~churn ~~activations~~rate, partially offset by a lower gross new DISH TV ~~churn~~subscriber ~~rate~~activations.

SLING TV subscribers. We ~~added~~lost approximately ~~145~~198,000 net SLING TV subscribers during the three months ended ~~September~~March 3031, ~~2024~~2025 compared to the ~~addition~~loss of approximately ~~117~~135,000 net SLING TV subscribers during the same period in ~~2023~~2024. The ~~change~~increase in net SLING TV ~~subscribers~~subscriber losses was primarily related to ~~higher~~lower SLING TV subscriber activations ~~and lower SLING TV subscriber disconnects in 2024~~ due to our emphasis on acquiring higher quality subscribers and higher SLING TV subscriber disconnects in 2025. We continue to experience increased competition, including competition from other subscription video on-demand and live-linear OTT service providers, many of which are providers of our content and offer football and other seasonal sports programming direct to subscribers on an a la carte basis.

DISH TV subscribers, gross. During the three months ended ~~September~~March 3031, ~~2024~~2025, we activated approximately 7546,000 gross new DISH TV subscribers compared to approximately ~~142~~79,000 gross new DISH TV subscribers during the same period in ~~2023~~2024, a decrease of 4741.28%. This decrease in our gross new DISH TV subscriber activations was primarily related to lower marketing expenditures, the lack of demand, and shifting consumer behavior ~~and lower marketing expenditures~~, as well as increased competitive pressures, including, but not limited to, live-linear OTT service providers, aggressive short term introductory pricing and bundled offers combining broadband, video and/or wireless services and other discounted promotional offers, and direct-to-consumer offerings by certain of our programmers. Our gross new DISH TV subscriber activations continue to be negatively impacted by an emphasis on acquiring higher quality subscribers.

DISH TV churn rate. Our DISH TV churn rate for the three months ended ~~September~~March 3031, ~~2024~~2025 was 1.4736% compared to 1.5853% for the same period in ~~2023~~2024. Our DISH TV churn rate for the three months ended ~~September~~March 3031, ~~2024~~2025 was positively impacted by our emphasis on acquiring and retaining higher quality subscribers. Our DISH TV churn rate continues to be adversely impacted by external factors, such as, among other things, cord cutting, shifting consumer behavior and increased competitive pressures, including, but not limited to, live-linear OTT service providers, aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers. Our DISH TV churn rate is also impacted by internal factors, such as, among other things, our ability to consistently provide outstanding customer service, price increases, our ability to control piracy and other forms of fraud and the level of our retention efforts.

Our net Pay-TV subscriber additions, gross new DISH TV subscriber activations and DISH TV churn rate have been negatively impacted as a result of programming interruptions and threatened programming interruptions in connection with the scheduled expiration of programming carriage contracts with content providers. We cannot predict with any certainty the impact to our net Pay-TV subscriber additions, gross new DISH TV subscriber activations, and DISH TV subscriber churn rate resulting from programming interruptions or threatened programming interruptions that may occur in the future. As a result, we may at times suffer from periods of lower net Pay-TV subscriber additions or higher net Pay-TV subscriber losses.

We have not always met our own standards for performing high-quality installations, effectively resolving subscriber issues when they arise, answering subscriber calls in an acceptable timeframe, effectively communicating with our subscriber base, reducing calls driven by the complexity of our business, improving the reliability of certain systems and subscriber equipment and aligning the interests of certain independent third-party retailers and installers to provide high-quality service. Most of these factors have affected both gross new DISH TV subscriber activations as well as DISH TV subscriber churn rate. Our future gross new DISH TV subscriber activations and our DISH TV subscriber churn rate may be negatively impacted by these factors, which could in turn adversely affect our revenue.

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Service revenue. “Service revenue” totaled $2.~~590~~514 billion for the three months ended ~~September~~March 3031, ~~2024~~2025, a decrease of $~~171~~173 million or 6.24% compared to the same period in ~~2023~~2024. The decrease in “Service revenue” compared to the same period in ~~2023~~2024 was primarily related to lower average Pay-TV subscriber base, partially offset by an increase in Pay-TV ARPU, discussed below.

Pay-TV ARPU. Pay-TV ARPU was $~~108~~110.8864 during the three months ended ~~September~~March 3031, ~~2024~~2025 versus $~~105~~107.2538 during the same period in ~~2023~~2024. The $3.6326 or 3.40% increase in Pay-TV ARPU was primarily attributable to the DISH TV and SLING TV programming price increases ~~and higher Pay-TV ad sales revenue~~. The DISH TV and SLING TV programming package price increases were effective in the third and fourth quarter of ~~2023~~2024.

Cost of services. “Cost of services” totaled $1.~~675~~596 billion during the three months ended ~~September~~March 3031, ~~2024~~2025, a decrease of $74104 million or 46.31% compared to the same period in ~~2023~~2024. The decrease in “Cost of services” was primarily attributable to a lower average Pay-TV subscriber base, partially offset by higher programming costs per subscriber. Programming costs per subscriber increased during the three months ended ~~September~~March 3031, ~~2024~~2025 due to rate increases in certain of our programming contracts, including the renewal of certain contracts at higher rates, particularly for local broadcast channels. “Cost of services” represented 6463.75% and 63.43% of “Service revenue” during the three months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024, respectively.

In the normal course of business, we enter into contracts to purchase programming content in which our payment obligations are generally contingent on the number of Pay-TV subscribers to whom we provide the respective content. Our “Cost of services” have and will continue to face further upward pressure from price increases and the renewal of long-term programming contracts on less favorable pricing terms. In addition, our programming expenses will increase to the extent we are successful in growing our Pay-TV subscriber base.

Selling, general and administrative expenses. “Selling, general and administrative expenses” totaled $~~274~~239 million during the three months ended ~~September~~March 3031, ~~2024~~2025, ana $8246 million or 2316.13% decrease compared to the same period in ~~2023~~2024. This change was primarily driven by a decrease in subscriber acquisition costs resulting from lower marketing expenditures and lower gross new DISH TV subscriber activations and a decrease in personnel costs.

~~DISH~~Depreciation TVand ~~SAC~~amortization. ~~DISH~~“Depreciation TVand ~~SAC~~amortization” ~~was~~expense totaled $~~985~~59 million during the three months ended ~~September~~March 3031, ~~2024~~2025, ~~compared~~a to $~~1,065~~12 ~~during~~million ~~the~~or ~~same~~16.5% ~~period~~decrease incompared ~~2023,~~to athe ~~decrease~~same ofperiod ~~$80~~in ~~or 7~~2024.~~5%.~~ This change was primarily ~~attributable~~driven toby a decrease in ~~advertising~~depreciation ~~costs~~expense ~~per~~from ~~subscriber~~equipment ~~and~~leased ato ~~higher percentage of remanufactured receivers being activated on~~ new ~~subscriber~~and ~~accounts,~~existing ~~partially~~DISH ~~offset~~TV bysubscribers ~~higher~~and ~~commission~~the ~~costs~~expiration ~~due~~of to our ~~emphasis~~Nimiq on5 ~~acquiring~~finance ~~higher~~lease ~~quality~~in ~~subscribers~~September 2024.

~~During~~DISH ~~the~~TV ~~three~~SAC. DISH ~~months~~TV ~~ended~~SAC ~~September~~was 30$1,149 ~~2024~~during ~~and 2023,~~ the ~~amount~~three ofmonths ~~equipment~~ended ~~capitalized~~March ~~under~~31, ~~our~~2025 ~~lease~~compared ~~program~~to ~~for~~$1,054 ~~new~~during ~~DISH~~the TVsame ~~subscribers~~period ~~totaled~~in $62024, ~~million~~an ~~and~~increase of $1695 ~~million,~~or ~~respectively~~9.0%. This ~~decrease~~change inwas ~~capital expenditures~~ primarily ~~resulted~~attributable ~~from~~to a ~~decrease~~higher inpercentage ~~gross~~of new ~~DISH~~receivers TVbeing ~~subscriber~~activated ~~activations~~on ~~and~~new asubscriber accounts, higher ~~percentage~~commission ofcosts ~~remanufactured~~due ~~receivers~~to ~~being~~our ~~activated~~emphasis on ~~new~~acquiring ~~subscriber~~higher ~~accounts~~quality subscribers and higher installation costs.

During each of the three months ended March 31, 2025 and 2024, the amount of equipment capitalized under our lease program for new DISH TV subscribers totaled $7 million.

To remain competitive, we upgrade or replace subscriber equipment periodically as technology changes, and the costs associated with these upgrades may be substantial. To the extent technological changes render a portion of our existing equipment obsolete, we would be unable to redeploy all returned equipment and consequently would realize less benefit from the DISH TV SAC reduction associated with redeployment of that returned lease equipment.

Our “DISH TV SAC” may materially increase in the future to the extent that we, among other things, transition to newer technologies, introduce more aggressive promotions, or provide greater equipment subsidies.

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Interest income. “Interest income” totaled $79 million during the three months ended September 30, 2024, a decrease of $33 million compared to the same period in 2023. This decrease was primarily related to the reduction in interest income associated with our Intercompany Loan to DISH Network. On January 10, 2024, $4.7 billion of this receivable was transferred to EchoStar, our ultimate parent. This change was partially offset by the increase in interest income associated with the additional intercompany loans to DISH Network. See Note 11 in the Notes to our Condensed Consolidated Financial Statements for further information.

~~Income~~Interest ~~tax (provision) benefit, net~~income. ~~Our~~“Interest income” ~~tax~~totaled ~~provision was~~ $~~113~~85 million during the three months ended ~~September~~March 3031, ~~2024~~2025, ~~compared~~an toincrease ~~a provision~~ of $~~122~~26 million ~~during~~compared to the same period in ~~2023~~2024. This ~~change~~increase in interest income was primarily ~~related~~associated with the intercompany loans to aDISH ~~decrease~~Network induring ~~“Income~~the ~~(loss)~~second ~~before~~and ~~income~~third ~~taxes~~quarter of 2024,” partially offset by ana ~~increase~~reduction in interest income associated with our ~~effective~~Intercompany ~~tax~~Loan ~~rate~~– 2028 Tranche to DISH Network. See Note 11 in the Notes to our Condensed Consolidated Financial Statements for further information.

57Interest expense, net of amounts capitalized. “Interest expense, net of amounts capitalized” totaled $243 million during the three months ended March 31, 2025, an increase of $58 million or 31.6% compared to the same period in 2024. This increase primarily resulted from a debt issuance in the third quarter of 2024, partially offset by the redemption of debt that matured in November 2024.

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~~Nine~~Income ~~Months~~tax ~~Ended~~(provision) ~~September~~benefit, 30net. Our income tax provision was $114 million during the three months ended March 31, ~~2024~~2025, ~~Compared~~a decrease of $11 million or 8.8% compared to the ~~Nine~~same ~~Months~~period ~~Ended~~in ~~September~~2024. ~~30,~~The ~~2023~~change was primarily related to a decrease in “Income (loss) before income taxes.”


	For the Nine Months Ended
	September 30,						Variance
Statements of Operations Data	2024			2023			Amount			%
	(In thousands)
Revenue:
Service revenue	$	7,922,880		$	8,541,867		$	(618,987)		(7.2)
Equipment sales and other revenue		45,417			139,090			(93,673)		(67.3)
Total revenue		7,968,297			8,680,957			(712,660)		(8.2)

Costs and Expenses:
Cost of services		5,049,403			5,388,456			(339,053)		(6.3)
% of Service revenue		63.7	%		63.1	%
Cost of sales - equipment and other		48,963			64,619			(15,656)		(24.2)
Selling, general and administrative expenses		821,486			1,072,027			(250,541)		(23.4)
% of Total revenue		10.3	%		12.3	%
Depreciation and amortization		214,309			236,206			(21,897)		(9.3)
Total costs and expenses		6,134,161			6,761,308			(627,147)		(9.3)

Operating income (loss)		1,834,136			1,919,649			(85,513)		(4.5)

Other Income (Expense):
Interest income		210,678			344,505			(133,827)		(38.8)
Interest expense, net of amounts capitalized		(554,184)			(567,718)			13,534		2.4
Other, net		(68,135)			(609)			(67,526)		*
Total other income (expense)		(411,641)			(223,822)			(187,819)		(83.9)

Income (loss) before income taxes		1,422,495			1,695,827			(273,332)		(16.1)
Income tax (provision) benefit, net		(366,203)			(416,152)			49,949		12.0
Effective tax rate		25.7	%		24.5	%
Net income (loss)	$	1,056,292		$	1,279,675		$	(223,383)		(17.5)

Other Data:
Pay-TV subscribers, as of period end (in millions)		8.031			8.840			(0.809)		(9.2)
DISH TV subscribers, as of period end (in millions)		5.888			6.720			(0.832)		(12.4)
SLING TV subscribers, as of period end (in millions)		2.143			2.120			0.023		1.1
Pay-TV subscriber additions (losses), net (in millions)		(0.495)			(0.910)			0.415		45.6
DISH TV subscriber additions (losses), net (in millions)		(0.583)			(0.696)			0.113		16.2
SLING TV subscriber additions (losses), net (in millions)		0.088			(0.214)			0.302		*
Pay-TV ARPU	$	108.21		$	103.98		$	4.23		4.1
DISH TV subscriber additions, gross (in millions)		0.230			0.375			(0.145)		(38.7)
DISH TV churn rate		1.46	%		1.69	%		(0.23)	%	(13.6)
DISH TV SAC	$	993		$	1,095		$	(102)		(9.3)
Purchases of property and equipment	$	65,153		$	98,728		$	(33,575)		(34.0)
EBITDA	$	1,980,310		$	2,155,246		$	(174,936)		(8.1)
OIBDA	$	2,048,445		$	2,155,855		$	(107,410)		(5.0)

* Percentage is not meaningful.

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Pay-TV Subscribers

DISH TV subscribers. We lost approximately 583,000 net DISH TV subscribers during the nine months ended September 30, 2024 compared to the loss of approximately 696,000 net DISH TV subscribers during the same period in 2023. This decrease in net DISH TV subscriber losses primarily resulted from a lower DISH TV churn rate, partially offset by lower gross new DISH TV subscriber activations.

SLING TV subscribers. We added approximately 88,000 net SLING TV subscribers during the nine months ended September 30, 2024 compared to the loss of approximately 214,000 net SLING TV subscribers during the same period in 2023. The change in net SLING TV subscribers was primarily related to lower SLING TV subscriber disconnects in 2024 due to our emphasis on acquiring higher quality subscribers, partially offset by lower SLING TV subscriber activations. We continue to experience increased competition, including competition from other subscription video on-demand and live-linear OTT service providers, many of which are providers of our content and offer football and other seasonal sports programming direct to subscribers on an a la carte basis.

DISH TV subscribers, gross. During the nine months ended September 30, 2024, we activated approximately 230,000 gross new DISH TV subscribers compared to approximately 375,000 gross new DISH TV subscribers during the same period in 2023, a decrease of 38.7%. This decrease in our gross new DISH TV subscriber activations was primarily related to the lack of demand, shifting consumer behavior and lower marketing expenditures, as well as increased competitive pressures, including, but not limited to, live-linear OTT service providers, aggressive short term introductory pricing and bundled offers combining broadband, video and/or wireless services and other discounted promotional offers, and direct-to-consumer offerings by certain of our programmers. Our gross new DISH TV subscriber activations continue to be negatively impacted by an emphasis on acquiring higher quality subscribers.

DISH TV churn rate. Our DISH TV churn rate for the nine months ended September 30, 2024 was 1.46% compared to 1.69% for the same period in 2023. Our DISH TV churn rate for the nine months ended September 30, 2024 was positively impacted by our emphasis on acquiring and retaining higher quality subscribers. Our DISH TV churn rate continues to be adversely impacted by external factors, such as, among other things, cord cutting, shifting consumer behavior and increased competitive pressures, including, but not limited to, live-linear OTT service providers, aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers. Our DISH TV churn rate is also impacted by internal factors, such as, among other things, our ability to consistently provide outstanding customer service, price increases, our ability to control piracy and other forms of fraud and the level of our retention efforts. In addition, our DISH TV churn rate for the nine months ended September 30, 2023 was briefly elevated due to the cyber-security incident in the first quarter of 2023.

Our net Pay-TV subscriber additions, gross new DISH TV subscriber activations, and DISH TV churn rate have been negatively impacted as a result of programming interruptions and threatened programming interruptions in connection with the scheduled expiration of programming carriage contracts with content providers. We cannot predict with any certainty the impact to our net Pay-TV subscriber additions, gross new DISH TV subscriber activations, and DISH TV subscriber churn rate resulting from programming interruptions or threatened programming interruptions that may occur in the future. As a result, we may at times suffer from periods of lower net Pay-TV subscriber additions or higher net Pay-TV subscriber losses.

Service revenue. “Service revenue” totaled $7.923 billion for the nine months ended September 30, 2024, a decrease of $619 million or 7.2% compared to the same period in 2023. The decrease in “Service revenue” compared to the same period in 2023 was primarily related to lower average Pay-TV subscriber base, partially offset by an increase in Pay-TV ARPU, discussed below.

Equipment sales and other revenue. “Equipment sales and other revenue” totaled $45 million for the nine months ended September 30, 2024, a decrease of $94 million compared to the same period in 2023. The decrease in “Equipment sales and other revenue” compared to the same period in 2023 was primarily related to a non-recurring $75 million license of our Adaptive Bitrate Streaming patents to Peloton covering certain Peloton products that resolves our litigation involving those products during the second quarter of 2023.

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Pay-TV ARPU. Pay-TV ARPU was $108.21 during the nine months ended September 30, 2024 versus $103.98 during the same period in 2023. The $4.23 or 4.1% increase in Pay-TV ARPU was primarily attributable to the DISH TV and SLING TV programming price increases and higher Pay-TV ad sales revenue. The DISH TV and SLING TV programming package price increases were effective in the fourth quarter of 2023.

Cost of services. “Cost of services” totaled $5.049 billion during the nine months ended September 30, 2024, a decrease of $339 million or 6.3% compared to the same period in 2023. The decrease in “Cost of services” was primarily attributable to a lower average Pay-TV subscriber base and lower variable and retention costs per subscriber, partially offset by higher programming costs per subscriber. Programming costs per subscriber increased during the nine months ended September 30, 2024 due to rate increases in certain of our programming contracts, including the renewal of certain contracts at higher rates, particularly for local broadcast channels. Variable and retention costs per subscriber during the nine months ended September 30, 2023 were negatively impacted by approximately $30 million in cyber-security-related expenses to remediate the incident and provide additional customer support. “Cost of services” represented 63.7% and 63.1% of “Service revenue” during the nine months ended September 30, 2024 and 2023, respectively.

Selling, general and administrative expenses. “Selling, general and administrative expenses” totaled $821 million during the nine months ended September 30, 2024, a $251 million or 23.4% decrease compared to the same period in 2023. This change was primarily driven by a decrease in subscriber acquisition costs resulting from lower marketing expenditures and lower gross new DISH TV subscriber activations and a decrease in personnel costs.

Depreciation and amortization. “Depreciation and amortization” expense totaled $214 million during the nine months ended September 30, 2024, a $22 million or 9.3% decrease compared to the same period in 2023. This change was primarily driven by a decrease in depreciation expense from equipment leased to new and existing DISH TV subscribers.

DISH TV SAC. DISH TV SAC was $993 during the nine months ended September 30, 2024 compared to $1,095 during the same period in 2023, a decrease of $102 or 9.3%. This change was primarily attributable to a decrease in advertising costs per subscriber and a higher percentage of remanufactured receivers being activated on new subscriber accounts, partially offset by higher commission costs due to our emphasis on acquiring higher quality subscribers.

During the nine months ended September 30, 2024 and 2023, the amount of equipment capitalized under our lease program for new DISH TV subscribers totaled $19 million and $43 million, respectively. This decrease in capital expenditures primarily resulted from a decrease in gross new DISH TV subscriber activations and a higher percentage of remanufactured receivers being activated on new subscriber accounts.

Interest income. “Interest income” totaled $211 million during the nine months ended September 30, 2024, a decrease of $134 million compared to the same period in 2023. This decrease was primarily related to the reduction in interest income associated with our Intercompany Loan to DISH Network. On January 10, 2024, $4.7 billion of this receivable was transferred to EchoStar, our ultimate parent. This change was partially offset by the increase in interest income associated with the additional intercompany loans to DISH Network. See Note 11 in the Notes to our Condensed Consolidated Financial Statements for further information.

Other, net. “Other, net” expense totaled $68 million during the nine months ended September 30, 2024, an increase of $68 million compared to the same period in 2023. The nine months ended September 30, 2024 was negatively impacted by a $70 million loss in equity in earnings from our Invidi investment, including $63 million from our portion of Invidi’s goodwill impairment.

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Income tax (provision) benefit, net. Our income tax provision was $366 million during the nine months ended September 30, 2024, compared to a provision of $416 million during the same period in 2023. This change was primarily related to a decrease in “Income (loss) before income taxes,” partially offset by an increase in our effective tax rate.

Non-GAAP Performance Measures and Reconciliation

It is management’s intent to provide non-GAAP financial information to enhance the understanding of our ~~GAAP~~ financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. We believe that providing these non-GAAP measures in addition to the GAAP measures allows management, investors and other users of our financial information to more fully and accurately assess both consolidated and segment performance. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies.

EBITDA

EBITDA is not a measure determined in accordance with GAAP and should not be considered a substitute for operating income, net income or any other measure determined in accordance with GAAP. EBITDA is used as a measurement of operating efficiency and overall financial performance and we believe it is a helpful measure for those evaluating operating performance in relation to our competitors. Conceptually, EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. EBITDA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
	(In thousands)
Net income (loss)	$	339,827	$	388,754	$	1,056,292	$	1,279,675
Interest, net		105,231		71,692		343,506		223,213
Income tax provision (benefit), net		113,029		121,899		366,203		416,152
Depreciation and amortization		73,290		70,474		214,309		236,206
EBITDA	$	631,377	$	652,819	$	1,980,310	$	2,155,246

The changes in EBITDA during the three and nine months ended September 30, 2024, compared to the same periods in 2023, were primarily a result of the factors described in connection with operating revenues and operating expenses, as well as the impact from changes in “Other, net” during the three and nine months ended September 30, 2024.

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OIBDA

OIBDA, which is presented below, is a non-GAAP measure and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability of our business on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions, as well as in evaluating operating performance in relation to our competitors. OIBDA is calculated by adding back depreciation and amortization expense to operating income (loss).

For the Three Months Ended

~~For the Nine Months Ended~~

~~September~~March 3031,

~~September 30,~~

~~2024~~2025

~~2023~~2024

~~2024~~

~~2023~~

(In thousands)

Operating income (loss)

~~561~~623,~~357~~207

~~582~~636,~~280~~504

~~1,834,136~~

~~1,919,649~~

Depreciation and amortization

7359,~~290~~038

70,~~474~~680

~~214,309~~

~~236,206~~

OIBDA

~~634~~682,~~647~~245

~~652~~707,~~754~~184

~~2,048,445~~

~~2,155,855~~

The changes in OIBDA during the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025, compared to the same ~~periods~~period in ~~2023~~2024, were primarily a result of the factors described in connection with operating revenues and operating expenses.

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GUARANTOR FINANCIAL INFORMATION

Our registered senior notes, consisting of our 5 7~~/8%~~ ~~Senior Notes due 2024, 7~~ 3/4% Senior Notes due 2026, 7 3/8% Senior Notes due 2028, and 5 1/8% Senior Notes due 2029, are fully and unconditionally guaranteed, jointly and severally on a senior unsecured basis by certain of our wholly-owned subsidiaries (the “Guarantors”).

Certain of our wholly-owned subsidiaries are designated as “Unrestricted Subsidiaries” and do not guarantee any of our registered senior notes.

We and our subsidiaries participate with our parent company, DISH Network, in a centralized system for the management of our cash and marketable investment securities. Please see Note 3 to our Condensed Consolidated Financial Statements for further information.

The guarantee of a Guarantor will be deemed automatically discharged and released in accordance with the terms of the applicable indenture: (i) in connection with any direct or indirect sale, conveyance or other disposition of all of the capital stock or all or substantially all of the assets of that Guarantor (including by way of merger or consolidation), if such sale or disposition is made in compliance with the applicable provisions of the indenture; (ii) if such Guarantor is dissolved or liquidated in accordance with the provisions of the indenture; (iii) if we designate any such Guarantor as an “Unrestricted Subsidiary” in compliance with the terms of the indenture; or (iv) with respect to a Guarantor which constitutes a Non-Core Asset (as such term is defined in the applicable indenture), upon the sale or other disposition of certain equity interests of such Guarantor, if such sale or disposition is made in compliance with the applicable provisions of the indenture. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the Guarantors, except those imposed by applicable law.

The rights of holders of the registered senior notes against the Guarantors may be limited under the U.S. Bankruptcy Code or state fraudulent transfer or conveyance law. Under certain circumstances (including a finding that a Guarantor was insolvent at the time its guarantee of the registered senior notes was issued), a court could hold that the obligations of a Guarantor under a guarantee may be voided or are subordinate to other obligations of the Guarantor. Each guarantee contains a provision intended to limit the Guarantor’s liability to the maximum amount that it could incur without causing the incurrence of obligations under its guarantee to be a fraudulent conveyance or transfer under U.S. federal or state law.

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The summarized balance sheet information for the combined obligor group of our registered senior notes is presented in the table below.


	As of
	~~September~~March 3031,		December 31,	~~December 31,~~
	~~2024~~2025		~~2023~~2024
	(In thousands)
Current assets	$	1,~~746~~902,~~060~~323	$	21,~~337~~780,~~400~~162
Noncurrent assets		6,~~396~~408,~~043~~998		96,~~256~~395,~~110~~280
Current liabilities		42,~~408~~146,~~232~~690		42,~~435~~147,~~452~~507
Noncurrent liabilities		1012,~~576~~685,~~209~~923		1012,~~294~~617,~~282~~150
Due from non-guarantors		~~548~~580,~~971~~745		~~589~~594,~~361~~492
Due from related parties		45,~~935~~006,~~718~~956		74,~~945~~928,~~151~~291
Due to non-guarantors		~~330~~2,~~274~~470,232		—2,403,527
Due to related parties		3635,~~816~~990		5534,~~392~~273

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The summarized results of operations information for the combined obligor group of our registered senior notes is presented in the table below.


	For the ~~Nine~~Three Months Ended
	~~September~~March 3031, ~~2024~~2025
	(In thousands)
Total revenues	$	31,~~590~~139,~~788~~883
Operating income		~~574~~207,~~152~~618
Net income		~~120~~52,~~253~~493
Operating expenses to related parties		~~203~~57,~~352~~896
Other income from related parties		~~189~~78,~~560~~475

Other expense to non-guarantors		66,705

Item 4.CONTROLS AND PROCEDURES

Conclusion regarding disclosure controls and procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in internal control over financial reporting

There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1.LEGAL PROCEEDINGS

See Note 8 “Commitments and Contingencies -– Contingencies -– Litigation” in the Notes to our Condensed Consolidated Financial Statements for information regarding certain legal proceedings in which we are involved.

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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, ~~2023~~2024 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, ~~2023~~2024.

Risks Relating to the DIRECTV Transaction

~~Termination~~Changes ofin ~~the~~trade ~~Purchase~~policies, ~~Agreement~~including, orbut ~~failure~~not limited to, ~~otherwise~~tariffs ~~complete~~and ~~the~~other ~~DIRECTV~~restrictions, ~~Transaction~~ could ~~have~~increase, aamong ~~material~~other ~~adverse~~things, ~~impact on~~ our ~~business~~costs, ~~financial~~disrupt ~~condition~~our supply chain and ~~results~~negatively ofaffect our business, operations and financial condition.

~~Termination~~We ofdepend ~~the~~on ~~Purchase~~suppliers, ~~Agreement~~including suppliers with manufacturing in China and other countries, for various materials in our satellite and related infrastructure, for our Pay-TV business. Changes in U.S. or ~~any~~foreign ~~failure~~trade policies, including, but not limited to, ~~otherwise~~new ~~complete~~or ~~the~~increased ~~DIRECTV~~tariffs, ~~Transaction~~export controls, trade restrictions or sanctions, have resulted, and may continue to result in ~~various~~higher ~~adverse~~costs ~~consequences,~~for ~~including:~~equipment we procure.

~~● our not being able to realize the anticipated benefits of the DIRECTV Transaction;~~51

● our business being materially adversely impacted by the failure to pursue other beneficial opportunities due to the focus of management on the DIRECTV Transaction, without realizing any of the anticipated benefits of completing the DIRECTV Transaction; and

● negative reactions from the financial markets, respective customers and other stakeholders possibly related to the above.

If any of the foregoing consequences were to occur as a result of termination of the Purchase Agreement, it could have a material adverse impact on our business, financial condition and results of operations.

The timing of the completion of the DIRECTV Transaction is not certain, and is subject to certain conditions, some of which we cannot control, which could result in the DIRECTV Transaction not being completed or being completed later than we expect, which could have a material adverse impact on our costs and revenues or otherwise reducing the anticipated benefits of the DIRECTV Transaction.

Pursuant to the Purchase Agreement, the completion of the DIRECTV Transaction is subject to certain closing conditions, including, for example, the satisfaction of certain antitrust and other regulatory approvals and the successful exchange of DISH DBS Notes, none of which have been satisfied, and the absence of legal restraints prohibiting the completion of the DIRECTV Transaction. Governmental agencies may not approve the DIRECTV Transaction or may impose conditions to any such approval or require changes to the terms of the DIRECTV Transaction. Any such conditions or changes could have the effect of delaying completion of the DIRECTV Transaction, imposing costs on or limiting our revenues or otherwise reducing the anticipated benefits of the DIRECTV Transaction. Furthermore, under the Purchase Agreement, each party’s obligation to consummate the DIRECTV Transaction is also subject to the accuracy of the representations and warranties of the other party (subject to certain qualifications and exceptions) and the performance in all material respects of the other party’s covenants under the Purchase Agreement, including, with respect to us, certain covenants regarding the operation of our business prior to completion of the DIRECTV Transaction. As a result of these conditions, we cannot provide assurance that the DIRECTV Transaction will be completed on the terms or timeline currently contemplated, or at all. If such conditions are not fulfilled by the Outside Date or, if for any other reason, the DIRECTV Transaction is not completed on or prior to the Outside Date (as defined in the Purchase Agreement), the Purchase Agreement may be terminated and the DIRECTV Transaction may not be completed.

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There is no assurance that we will be able to obtain the required governmental and regulatory approvals to complete the DIRECTV Transaction, which, if delayed or not granted, is likely to delay or jeopardize the DIRECTV Transaction.

~~The~~Supply ~~DIRECTV~~chain ~~Transaction is conditioned on the expiration or termination of the applicable waiting period (or extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976~~disruptions, ascustoms ~~amended~~delays, ~~approval~~new ~~from~~compliance ~~the~~requirements ~~U.S. Federal Communications Commission (“FCC”)~~ and ~~possibly the consent of certain~~ other ~~merger~~challenges ~~control~~may ~~authorities~~cause ~~and~~delays ~~other governmental entities as set forth~~ in ~~the~~infrastructure ~~Purchase~~and ~~Agreement~~customer ~~(collectively~~equipment, ~~“Regulatory~~increase ~~Approval”).~~our ~~These~~operational ~~governmental~~expenses, and ~~regulatory~~impact ~~agencies~~our ~~have~~ability ~~broad~~to ~~discretion~~meet incustomer ~~administering the applicable governing regulations~~demand. AsAlthough awe ~~condition~~attempt to ~~their~~mitigate ~~approval~~these ofrisks ~~the~~through ~~transactions~~alternative ~~contemplated~~sourcing byand ~~the~~operational ~~Purchase Agreement~~efficiencies, ~~those~~these ~~agencies~~efforts may ~~impose requirements, limitations or costs or require divestitures or place restrictions on the conduct of our business. The required approvals may~~ not be ~~obtained~~successful or the required conditions to the DIRECTV Transaction may not be satisfied, or, even if the required approvals are obtained and the conditions to the completion of the DIRECTV Transaction are satisfied, the terms, conditions and timing of such approvals are uncertainsufficient. ~~Any delay in completing the DIRECTV Transaction could have a material adverse impact on our business, financial condition and results of operations.~~

~~The~~If ~~DIRECTV~~we ~~Transaction~~are isunable ~~conditioned~~to onpass ~~the~~increased ~~consummation~~costs ofto acustomers ~~pre-closing~~without ~~reorganization,~~negatively ~~which~~impacting ~~requires~~demand, ~~the~~or ~~completion~~offset ofthem ~~transfers~~through ofother ~~certain~~measures, ~~assets~~our ~~and~~business, ~~liabilities~~financial ~~between~~condition us and ~~certain~~results of ~~our~~operations ~~affiliates,~~could ~~which~~be ~~transfers~~materially ~~may~~adversely ~~require consents from or approval of third parties~~affected.

The Purchase Agreement is conditioned, among other things, upon the consummation of a pre-closing reorganization, which requires, among other things, that certain contracts and other assets, rights and liabilities are to be transferred between DISH DBS and certain of its affiliates in connection with the DIRECTV Transaction, as further described in the Purchase Agreement. The transfer of certain of these contracts and other assets, rights and liabilities may require consents or approvals of third parties or provide other rights to third parties.

Some parties may use consent requirements or other rights to terminate contracts or obtain more favorable contractual terms from us, which, for example, could take the form of price increases for services or assets that we require, forcing us and/or our affiliates to either expend additional resources in order to obtain the services or assets previously provided under the contracts or to make arrangements with new third parties. If we do not obtain required consents or approvals, the DIRECTV Transaction may not be completed, or, if completed, we may not be reflective of the currently intended DIRECTV Transaction and we may be required to seek alternative arrangements, which may not come on a timely basis or at all, or be more costly and/or of lower quality.

The termination, modification, replacement or replication of these contracts or permits or the failure to timely complete the transfer or assignment of these contracts could have a material adverse impact on our business, financial condition and results of operations and on the prospects for completion of the DIRECTV Transaction.

We have and continue to incur substantial transaction-related costs in connection with the DIRECTV Transaction. If the DIRECTV Transaction does not occur, we will not benefit from these transaction related costs.

We have incurred and will continue to incur a number of non-recurring costs associated with the completion of the DIRECTV Transaction and the satisfaction of the related closing conditions, which could be substantial. Nonrecurring transaction costs may include, but are not limited to, fees paid to legal, financial, consulting, investment banking and accounting advisors and costs incurred in connection with obtaining required consents or approvals from governmental authorities or contract counterparties. Such costs may be material and could have a material adverse impact on our business, financial condition and results of operations. Furthermore, if the DIRECTV Transaction does not occur in a timely manner or at all, we may not be able to derive any benefit from such costs.

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The announcement and pendency of the DIRECTV Transaction could have a material adverse impact on our business, financial condition and results of operations.

The announcement and pendency of the DIRECTV Transaction could cause disruptions in and create uncertainty surrounding our business, including affecting our relationships with respective existing and future customers, suppliers, vendors and employees, which could have a material adverse impact on our business, financial condition and results of operations, regardless of whether the DIRECTV Transaction is completed. In particular, we could potentially lose customers, suppliers or vendors, and new contracts with any of these third parties could be delayed, increased or decreased, and we may lose important personnel as a result of the departure of employees who decide to pursue other opportunities in light of the DIRECTV Transaction.

Additionally, uncertainty about the completion and effect of the DIRECTV Transaction on our business, financial condition and results of operations may impair our ability to attract, retain and motivate personnel until the DIRECTV Transaction is completed. Employee retention may be particularly challenging during the pendency of the DIRECTV Transaction, as employees may feel uncertain about their future roles within each company after the completion of the DIRECTV Transaction. If such employees depart because of issues relating to the uncertainty relating to the DIRECTV Transaction or a desire not to continue to be employees of ours or DTV after the completion of the DIRECTV Transaction, this could have a material adverse impact on our business, financial condition and results of operations.

In addition, we have expended, and continue to expend, significant management resources in an effort to complete the DIRECTV Transaction, which are being diverted from our day-to-day operations and future growth plans. In addition, the failure to complete the DIRECTV Transaction may result in negative publicity and/or a negative impression of us in the investment community and may affect our relationship with employees, customers and other partners in the business community.

The Purchase Agreement subjects us to restrictions on our business activities prior to the completion of the DIRECTV Transaction.

The Purchase Agreement subjects us and our subsidiaries to restrictions on our business activities prior to the completion of the DIRECTV Transaction. The Purchase Agreement obligates us generally to, among other things, operate our Pay-TV business in the ordinary course until the completion of the DIRECTV Transaction and to use our commercially reasonable efforts to preserve a substantially intact business organizations, operations and goodwill of the business and maintain in all material respects commercial relationships.

These restrictions on our business activities may adversely affect our ability to execute certain business strategies outside of the ordinary course of business, including paying dividends or making distributions, pursuing attractive business opportunities, making certain investments or acquisitions, hiring or terminating certain employees, selling, leasing, or licensing material real property, settling litigation matters, entering into certain material contracts, selling assets, engaging in capital expenditures, incurring indebtedness or making changes to its business. Such limitations could have a material adverse impact on our business, financial condition and results of operations prior to the completion of the DIRECTV Transaction.

The risks described above may be exacerbated by delays or other adverse developments with respect to the completion of the DIRECTV Transaction. For additional information, see the complete set of terms and conditions of the DIRECTV Transaction included in the Purchase Agreement.

The Purchase Agreement also obligates us to, among other things, incur certain costs, make substantial investments in the Pay-TV business and take other actions, that absent the Purchase Agreement, we may or may not have taken. Absent certain exemptions in the Purchase Agreement, we are obligated to take such actions regardless if the DIRECTV Transaction is completed. These actions may be different than the historical manner in which we ran the business.

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As a holding company, we are dependent on the operations and funds of our subsidiaries.

We are a holding company with no business operations of our own. Our only significant assets are the outstanding equity interests in our subsidiaries. As a result, we rely on cash flows from subsidiaries to meet our obligations, including to service any of our debt obligations. On September 30, 2024, we announced a sale of our Pay-TV business, from which we derive a substantial portion of our cash flow. With the sale of that business, and the interim operating covenants that restrict our access to that cash, we will be required to, among other things, sell our Pay-TV business and transfer at least $400 million of cash (subject to certain upward adjustments) to DTV upon closing of the DIRECTV Transaction and we are prevented from declaring any dividend or otherwise permitting any leakage in excess of $1.520 billion (subject to certain adjustments set forth in the Purchase Agreement, including transaction expenses and certain accrued interest adjustments and adjustments tied to certain key performance indicators) between the signing and closing of the DIRECTV Transaction.

As a result, our ability to fund our Wireless business will be limited to by our cash flow from operations and ability to generate capital from our other businesses.

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Item 6.EXHIBITS

~~(a)~~ Exhibits.



2.1*		Equity Purchase Agreement, dated September 29, 2024, by and between EchoStar Corporation and DirecTV Holdings, LLC (incorporated by reference from Exhibit 2.1 of the Current Report on Form 8-K of EchoStar Corporation filed September 30, 2024).

10.1*		Loan and Security Agreement, dated September 29, 2024, by and among DISH DBS Issuer LLC, as borrower, Alter Domus (US) LLC, as administrative agent, and the lenders party thereto (incorporated by reference from Exhibit 10.1 of the Current Report on Form 8-K of EchoStar Corporation filed September 30, 2024).

22◻		List of Subsidiary Guarantors

31.1◻		Section 302 Certification of Chief Executive Officer.

31.2◻		Section 302 Certification of Chief Financial Officer.

32.1◻		Section 906 Certification of Chief Executive Officer.

32.2◻		Section 906 Certification of Chief Financial Officer.

101◻		The following materials from the Quarterly Report on Form 10-Q of DISH DBS for the quarter ended September 30, 2024, filed on November 14, 2024, formatted in Inline eXtensible Business Reporting Language (“iXBRL”): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Changes in Stockholder’s Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows and (v) related notes to these financial statements.
104◻		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).


22◻		List of Subsidiary Guarantors

31.1◻		Section 302 Certification of Chief Executive Officer.

31.2◻		Section 302 Certification of Chief Financial Officer.

32.1◻		Section 906 Certification of Chief Executive Officer.

32.2◻		Section 906 Certification of Chief Financial Officer.

101◻		The following materials from the Quarterly Report on Form 10-Q of DISH DBS for the quarter ended March 31, 2025, filed on May 13, 2025, formatted in Inline eXtensible Business Reporting Language (“iXBRL”): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Changes in Stockholder’s Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows and (v) related notes to these financial statements.

104◻		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).

◻Filed herewith.

*Incorporated by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	DISH DBS CORPORATION


	By:	/s/ Hamid Akhavan
		Hamid Akhavan
		President and Chief Executive Officer
		(Duly Authorized Officer)

	By:	/s/ Paul W. Orban
		Paul W. Orban
		Executive Vice President and Chief Financial Officer, DISH
		(Principal Financial Officer)

	By:	/s/ James S. Allen
		James S. Allen
		Senior Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

Date: ~~November~~May 1413, ~~2024~~2025

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