AST SpaceMobile — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached $42.3 million, driven by gateway deliveries and U.S. Government milestones, compared to $14.7 million in the same period in 2025.
• Total operating expenses for the third quarter were $211.0 million, a decrease of $118.1 million from $329.1 million in the second quarter of 2026, primarily due to a $125.9 million loss on involuntary conversion in the prior quarter.
• Adjusted operating expenses for the third quarter were $133.6 million, an increase of $14.5 million from $119.1 million in the second quarter of 2026.
• Adjusted operating expenses, excluding adjusted cost of revenues, were $109.4 million for the third quarter, up from $95.9 million in the second quarter.
• Net loss attributable to common stockholders for the three months ended September 30, 2026, was $132.4 million, compared to a net loss of $122.9 million in the same period in 2025.
• As of September 30, 2026, the company held approximately $3.2 billion in cash, cash equivalents, and restricted cash.
• Gross capitalized property and equipment costs totaled approximately $2.6 billion with accumulated depreciation and amortization of $236.8 million.
• Long-term debt, net, increased to $4.08 billion as of September 30, 2026, from $2.21 billion as of December 31, 2025.
• Contract liabilities increased to $263.3 million (current and non-current combined) as of September 30, 2026, from $226.9 million as of December 31, 2025.

Guidance and Future Outlook:

• The company remains on target to achieve full-year revenue guidance of $150.0 million to $200.0 million, with potential upside based on recent contract signatures.
• Nationwide intermittent service activation is expected in the United States and other key markets before the end of 2026.
• Production of ASIC-enabled satellites is transitioning to full scale, with a target run-rate of six ASIC satellites per month by December 2026.
• Approximately 45 BlueBird satellites are targeted to be in orbit by the middle of 2027.
• Launch agreements now cover over 100 BlueBird satellites expected to be deployed cumulatively between 2027 and 2028.
• The proprietary Blacklift rocket is being built to provide regular unconstrained access to orbit starting in late 2028.

Business Segments and Product Lines:

• Revenue sources include commercial customers and the U.S. Government, with the latter including a $100 million Space Force contract for advanced space-based sensing capabilities (SB-AMTI).
• The company has secured 16 U.S. Government awards to date.
• BlueBird satellites 11, 12, and 13 are currently in operations in orbit.
• BlueBirds 14, 15, and 16 were shipped to Cape Canaveral in September 2026 awaiting SpaceX launch confirmation.
• BlueBirds 17, 18, and 19 are expected to ship by the end of November 2026 for a Blue Origin launch in early Q1 2027.
• BlueBirds 20 through 25 are scheduled to ship in December 2026 and January 2027 for DPAS-rated dual-use launches in Q1 2027.
• The company successfully validated the first-ever satellite beam handovers between ground-based and space-based cellular broadband networks with partner AT&T.
• ASIC integration begins with BlueBird 34, offering a 10x improvement in processing bandwidth compared to in-orbit Block 1 satellites.
• The company secured authorization for commercial service in Brazil with 50 MHz of combined S-band and low band spectrum.

Market and Competitive Landscape:

• The company aims to work with all major mobile network operators in the United States and Europe, potentially expanding its commercial ecosystem to over 60 operators representing over 3 billion subscribers.
• The company targets approximately 100 MHz of spectrum access in the U.S. and 60+ MHz globally on a market-by-market basis.
• AST SpaceMobile holds a U.S. priority DPAS rating for its dual-use government and commercial satellite program.
• The company is expanding its international footprint through combined S-band and IMT spectrum allocations in markets like Brazil and Colombia.

Risks and Challenges:

• Forward-looking statements involve risks including the timing of Block 2 BlueBird satellite launches, Blacklift rocket development, and regulatory approvals.
• Risks include the ability to negotiate definitive agreements with mobile network operators and the consummation of transactions with Firefly Aerospace to develop the Blacklift rocket.
• Potential challenges include the ability to finance R&D activities, retain key employees, and compete effectively in the market.
• Risks also encompass changes in applicable laws, economic factors, and the outcome of legal proceedings.

Management Commentary and Tone:

• CEO Abel Avellan stated the company advanced initiatives to support global expansion and expects to work with all major U.S. and European mobile network operators.
• Management highlighted the transition to full-scale ASIC integration and the strategic importance of the Blacklift rocket for launch availability and ownership economics.
• The company emphasized a "partner-first strategy" to expand its scope of service and total addressable market beyond traditional direct-to-device cellular broadband.
• Management expressed confidence in achieving service readiness across initial markets and scaling constellation deployment.

Other Key Points:

• AST SpaceMobile announced the Blacklift, a 20-ton reusable rocket intended to deploy BlueBird satellites into low Earth orbit starting in late 2028, leveraging Miranda and Vira engines.
• The company secured $1.0 billion in non-dilutive funding from the Japan Ministry of Internal Affairs and Communications for the manufacturing and launch of midband satellites.
• An additional pipeline of approximately $1.2 billion in non-dilutive U.S. quasi-governmental financing is expected for 2027.
• The company validated satellite beam handovers with AT&T and secured spectrum authorizations in Brazil.
• The company is operating two dedicated factories in Texas running full shifts to reach production run-rate.