EchoStar Corporation (SATS) shares plummeted 10.68% in pre-market trading on Friday following the release of disappointing second-quarter financial results for 2025. The satellite and wireless services provider reported a wider-than-expected loss and missed revenue estimates, overshadowing the announcement of a major satellite contract.

For the second quarter, EchoStar posted a loss of $1.06 per diluted share, exceeding analysts' expectations of a $1.04 loss. The company's revenue came in at $3.72 billion, falling short of the $3.83 billion forecast by analysts and down from $3.95 billion in the same period last year. This underperformance indicates ongoing challenges in the company's core businesses and has sparked concern among investors.

Despite the earnings setback, EchoStar announced a significant contract with MDA Space Ltd. for the world's first 3GPP 5G compliant non-terrestrial network using low Earth orbit (LEO) satellites. The initial contract is valued at approximately $1.3 billion, with potential to increase to $2.5 billion. However, this long-term project, set to commence commercial services in 2029, appears to have done little to offset investors' immediate concerns about the company's current financial performance. The market's sharp negative reaction suggests that investors are more focused on EchoStar's present challenges rather than its future prospects in the evolving satellite communication sector.