March 18, 2020 Dear EchoStar Corporation Shareholder, 2019 was a successful year for EchoStar with many accomplishments across the business and around the world. We focused on initiatives to drive long-term growth and to capitalize on the growing global demand for broadband Internet services and connectivity solutions. This year, we significantly expanded services in Central and South America, grew our presence in Europe, Africa, the Middle East and southwest Asia, and continued the construction of our next-generation, Ultra High Density Satellite. Additionally, the completed spin-off to DISH Network has enabled us to sharpen our focus on the growing broadband and connectivity markets and other strategic opportunities, while also increasing shareholder value. Notable highlights include: • Completed spin-off of satellite and other non-strategic assets to DISH Network returning approximately $800 million to our shareholders. • Launched a new project with Facebook, bringing satellite-enabled Community Wi-Fi Hotspots to previously unserved communities in Brazil, Colombia and Mexico. • Commenced our strategic joint venture arrangement with Al Yah Satellite Communications Company PrJSC (Yahsat) to expand our commercial satellite broadband services in Brazil. • Expanded the footprint of HughesNet®, our high-speed satellite Internet service, into two new countries in Latin America, Chile and Mexico. • Increased sales of our JUPITER™ System for broadband satellite implementations, which represents more than 50% global share of deployed very small aperture terminals (VSATs), with contracts from major operators like SES and Eutelsat. • Expanded development and deployment of EchoStar Mobile Satellite Services in Europe using our EchoStar XXI S-band satellite and acquired Helios Wire Corporation (renamed EchoStar Global) to further our efforts to build a next generation hybrid 5G/IoT network using S-band technologies. • Continued construction of EchoStar XXIV/JUPITER 3, our Ultra High Density Satellite, designed to augment capacity for our growing HughesNet® service across the Americas as well as for aeronautical and enterprise broadband services, with a planned 2021 launch. EchoStar continues to rank as one of the world’s leading satellite operators, owning and/or leasing 10 satellites or payloads. Last year, HughesNet® continued to build on its success as the #1 consumer satellite Internet service, reaching over 1.4 million subscribers in the Americas with approximately 69% U.S. market share and approximately 237,000 subscribers in Central and South America. We are well positioned to take advantage of the full economic potential of our high-growth consumer business, reinforcing our global leadership overall in satellite network services and technologies. We intend to utilize our expertise and success in the Americas to propel growth internationally across both consumer and enterprise markets. Year over year our consolidated revenue and adjusted EBITDA grew by 7% and 5%, respectively. Our Hughes segment revenue and adjusted EBITDA, which represents the significant majority of our total revenue and adjusted EBITDA, each increased 8% in 2019. Our balance sheet remained strong at year end with approximately $2.5 billion of cash and marketable securities. Throughout 2019, we advanced our mission to be the global connectivity provider for people, enterprises and things. Looking forward at the dawn of the new decade, we plan to leverage our innovations in technologies and services to pursue strategic opportunities for long-term growth – whether organically, by acquisition or through strategic partner alliances. Across our industry, winning companies are those that never cease creating new opportunities and breaking new ground. At EchoStar, the innovative spirit of our experienced and diverse workforce will continue to drive our success. Thank you for your continued support. Sincerely, Charles W. Ergen Chairman of the Board of Directors [This page intentionally left blank] Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019. OR 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: 001-33807 EchoStar Corporation (Exact name of registrant as specified in its charter) Nevada 26-1232727 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 100 Inverness Terrace East, Englewood, Colorado 80112-5308 (Address of principal executive offices) (Zip Code) (303) 706-4000 Not Applicable (Registrant’s telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b) of the Act: Class A common stock $0.001 par value The NASDAQ Stock Market LLC (Title of each class) (Name of each exchange on which registered) SATS (Ticker symbol) Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No 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. 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 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. (Check one): Large accelerated filer Accelerated filer Emerging growth company Non-accelerated filer Smaller reporting 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 June 30, 2019, the aggregate market value of Class A common stock held by non-affiliates of the registrant was $2.1 billion based upon the closing price of the Class A common stock as reported on the NASDAQ Global Select Market as of the close of business on that date. As of February 10, 2020, the registrant’s outstanding common stock consisted of 50,115,719 shares of Class A common stock and 47,687,039 shares of Class B common stock, each $0.001 par value. DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement to be filed in connection with its 2020 Annual Meeting of Shareholders are incorporated by reference in Part III. [This page intentionally left blank] TABLE OF CONTENTS Disclosure Regarding Forward Looking Statements i PART I Item 1. Business 1 Item 1A. Risk Factors 14 Item 1B. Unresolved Staff Comments 33 Item 2. Properties 34 Item 3. Legal Proceedings 34 Item 4. Mine Safety Disclosures 34 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35 Item 6. Selected Financial Data 36 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 62 Item 8. Financial Statements and Supplementary Data 63 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 64 Item 9A. Controls and Procedures 64 Item 9B. Other Information 65 PART III Item 10. Directors, Executive Officers and Corporate Governance 66 Item 11. Executive Compensation 66 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 66 Item 13. Certain Relationships and Related Transactions, and Director Independence 66 Item 14. Principal Accounting Fees and Services 66 PART IV Item 15. Exhibits, Financial Statement Schedules 67 Item 16. Form 10-K Summary 73 Signatures 74 Index to Consolidated Financial Statements F-1 [This page intentionally left blank] DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS This Annual Report on Form 10-K (“Form 10-K”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about our estimates, expectations, plans, objectives, strategies, financial condition, expected impact of regulatory developments and legal proceedings, opportunities in our industries and businesses and other trends and projections for the next fiscal quarter