IntrinsicIntrinsic
← All summaries

AST SpaceMobile, Inc.

ASTS
Financials & Chart →

Business Summary

AST SpaceMobile, Inc. is developing the first global Cellular Broadband network in space, designed to provide connectivity directly to everyday smartphones (2G/4G-LTE/5G devices) for commercial use and for government applications . The company's business model involves partnering with Mobile Network Operators (MNOs) to offer the SpaceMobile Service to their end-user customers, typically through a revenue-sharing arrangement, without requiring users to purchase new equipment . The company also generates revenue from agreements with the U.S. government, either directly or through prime contractors, for non-communication and communication applications utilizing its satellite technology . Additionally, revenue is generated from the sale of gateway equipment, software, and related services to MNOs for ground infrastructure development .

The company's competitive advantages include a large addressable market, with approximately 5.8 billion mobile subscribers moving in and out of coverage, 3.4 billion people without Cellular Broadband coverage, and 300.0 million people without any connectivity . The SpaceMobile Service is designed to deliver Cellular Broadband coverage at a competitive cost, augmenting MNOs' terrestrial networks and serving as a backup in disaster scenarios . AST SpaceMobile has definitive commercial agreements with AT&T, Verizon, Vodafone, and STC, and partnerships with over 50 MNOs globally, representing nearly 3 billion subscribers . The technology provides Cellular Broadband directly to unmodified devices using a large phased array, backed by approximately 3,850 patent and patent pending claims . The satellites are designed for high functionality, power, and redundancy, featuring the largest commercial phased array ever deployed in LEO and a custom ASIC chip expected to deliver up to 120 Mbps peak data rates per beam and up to 10,000 MHz of processing bandwidth per Block 2 BB satellite . The company also benefits from cost advantages due to greater control over manufacturing, owning the IP and controlling the manufacturing process for approximately 95% of Block 2 BB satellite sub-systems . Furthermore, the satellites are capable of supporting both commercial and government applications, allowing for optimized capacity monetization .

For the fiscal year ended December 31, 2025, AST SpaceMobile reported total revenues of $70.918 million , a significant increase from $4.418 million in 2024 . Products revenues accounted for $44.389 million , primarily from sales of gateway equipment and software to MNOs, while services revenues were $26.529 million , mainly from U.S. government agreements. The company incurred a gross profit of $35.702 million (calculated as total revenues of $70.918 million minus cost of revenues - products of $33.032 million and cost of revenues - services of $2.184 million), resulting in a gross margin of approximately 50.3% . Total operating expenses were $358.631 million , leading to an operating loss of $287.713 million . The net loss attributable to common stockholders was $341.940 million , and diluted EPS was $(1.34) . Cash and cash equivalents stood at $2.335.683 million , with restricted cash of $444.277 million (sum of current restricted cash of $0.877 million and non-current restricted cash of $443.400 million). Total debt was $2.264.435 million , and net debt (total debt minus cash and cash equivalents and restricted cash) was $(51.525) million .

Year-over-year, total revenues increased by $66.500 million , or approximately 1505% , driven by a substantial increase in products revenues from $0.5 million in 2024 to $44.389 million in 2025 , and services revenues from $3.918 million in 2024 to $26.529 million in 2025 . Operating expenses increased by $111.451 million, or 45% , primarily due to a $49.0 million increase in engineering services costs and a $40.1 million increase in general and administrative costs . Depreciation and amortization decreased by $12.2 million, or 19% , due to lower depreciation for Block 1 BB satellites and the BW3 test satellite being fully depreciated. Interest expense increased by $17.4 million to $36.1 million , while interest income increased by $35.1 million to $49.2 million . Other expense, net, increased by $116.3 million to $114.4 million , largely due to a $100.0 million induced conversion expense related to convertible note repurchases .

Significant operational developments during the period include the launch of five Block 1 BB satellites on September 12, 2024 , and the successful deployment of their communications phased array antennas and Q/V antennas in October 2024 . In January 2025, the first SpaceMobile video call was made with Vodafone using unmodified smartphones . February 2025 saw voice and video call tests with AT&T and Verizon, and non-communication application tests for the U.S. government . In April 2025, a two-way broadband video call was conducted with Rakuten, Inc. . On July 21, 2025, the first VoLTE call and SMS over satellite were made with AT&T , and on October 2, 2025, Canada's first space-based 4G VoLTE call, broadband data, and video streaming were achieved with Bell Canada . The first Block 2 BB satellite (BB6) was launched on December 23, 2025 and successfully deployed on February 10, 2026 . The company also entered into definitive agreements with Ligado Networks LLC on March 22, 2025, for long-term access to up to 45 MHz of lower mid-band satellite spectrum in the United States and Canada , and completed the acquisition of an entity holding S-Band ITU priority rights for up to 60 MHz of mid-band satellite spectrum globally on September 25, 2025 . Definitive commercial agreements were signed with Verizon on October 8, 2025 , and a ten-year commercial agreement with Saudi Telecom Company (STC) on October 29, 2025 . A reseller agreement was also entered into with SatCo, a jointly-owned European satellite service business with Vodafone, on December 18, 2025, for exclusive distribution in Europe, UK, and other markets .

Business Outlook

Management expects to continue testing for SpaceMobile Service automation, including beta testing, prior to the rollout of initial noncontinuous SpaceMobile Service in select markets such as the United States, Europe, and Japan . The company plans to launch approximately 45 to 60 Block 2 BB satellites by the end of 2026, at an average cadence of one launch every one to two months . This launch campaign is intended to enable Continuous SpaceMobile Service coverage across key markets including the United States, Europe, Japan, and other strategic markets, as well as to facilitate U.S. government applications . The company believes it is fully funded for the costs necessary to manufacture and launch a constellation of approximately 90 BB satellites .

A major growth area is the expansion of the SpaceMobile Service globally through partnerships with MNOs. The company has definitive commercial agreements with AT&T and Verizon to provide service to their end users in the continental United States (excluding Alaska) and Hawaii . A ten-year commercial agreement with Saudi Telecom Company (STC) was signed on October 29, 2025, to enable direct-to-device satellite mobile connectivity across Saudi Arabia and key regional markets . Additionally, a reseller agreement with SatCo, a jointly-owned European satellite service business with Vodafone, was entered into on December 18, 2025, for exclusive distribution of SpaceMobile Service to MNOs in Europe, the UK, and certain other markets . The company also has an agreement with Vodafone to provide services outside of SatCo's covered markets . These agreements are expected to provide significant opportunities to rapidly roll out the SpaceMobile Service and gain market share in the direct-to-device segment .

Another significant growth vector is the enhancement of the network through spectrum acquisitions. The definitive agreements with Ligado Networks LLC, approved by the Bankruptcy Court on June 23, 2025, are expected to provide long-term access to up to 45 MHz of lower mid-band satellite spectrum in the United States and Canada . Furthermore, the acquisition of an entity holding S-Band ITU priority rights on September 25, 2025, is expected to enhance the network by up to 60 MHz of mid-band satellite spectrum globally . These spectrum enhancements are crucial for delivering high-speed Cellular Broadband services.

Operationally, the company is accelerating its manufacturing, assembly, integration, and testing to reach a production run rate of up to six Block 2 BB satellites per month . Planned investments to increase this capacity have been completed . The Block 2 BB satellites are designed to deliver up to 10 times the bandwidth capacity of Block 1 BB satellites , with the larger phased array providing greater spectrum reuse, enhanced signal strength, and increased capacity, thereby reducing the number of satellites needed for service coverage . The introduction of the AST5000 Application Specific Integrated Circuit (ASIC) chip in Block 2 BB satellites is expected to achieve materially greater throughput capacity of up to 40 MHz per beam, support 120 Mbps peak data rates, and up to 10,000 MHz of processing bandwidth per satellite, while requiring less power and offering a lower overall unit cost . Until the ASIC chip is introduced, Block 2 BB satellites will continue to be manufactured and launched based on a Field Programmable Gate Arrays (FPGA) chip .

The company plans to continue making significant investments in research and development to bring the SpaceMobile Service to market for commercial and government applications . This includes expanding capabilities, capacity, and automation, including the use of Artificial Intelligence (AI) in component manufacturing and assembly, installation, and testing of satellites . Investments are also being made in the supply chain to increase vertical integration, reduce dependency on single suppliers, secure timely material supply, and control costs . The average capital costs for a constellation of over 90 Block 2 BB satellites are estimated to be approximately $21.0 million to $23.0 million per satellite, with initial launches being higher and costs trending down over time .

Risk Factors

The company faces substantial risks, including the possibility that the SpaceMobile Service may not be completed on time or at all, with costs potentially exceeding expectations . Significant additional capital will be required for operating and capital expenditures beyond the currently funded constellation size, and there is no assurance that these funds will be available on favorable terms or at all . The Ligado Transaction, which provides long-term access to up to 45 MHz of lower mid-band spectrum in the United States and Canada, may not be consummated due to ongoing litigation or failure to obtain regulatory approvals . If the Ligado Transaction closes, the company will face regulatory, technological, and adoption risks regarding the use of Ligado's spectrum, including the continued effectiveness of Ligado's licenses and potential interference from other users . The debt financing associated with the Ligado Transaction, including the $550.0 million Sound Point Credit Facility and the $420.0 million UBS Loan Facility, poses risks due to significant debt service requirements, restrictive covenants, and the potential for lenders to take control of collateral upon default . The company's multi-class stock structure concentrates voting power with the founder, Chairman, and CEO, Abel Avellan, limiting other investors' influence on important transactions . There is also a risk of future dilution for stockholders from equity offerings, exercise of penny warrants, and conversion of convertible notes, which may be substantial given the capital needs of the business . The Tax Receivable Agreement requires substantial cash payments to TRA Holders, which could materially exceed actual tax benefits and adversely affect financial condition . International operations expose the company to risks such as geopolitical conflicts, instability of international economies, and foreign currency exchange rate fluctuations .

Management Priorities

Management's message emphasizes the ongoing development and deployment of the global Cellular Broadband network in space, accessible directly by everyday smartphones. They highlight the strategic importance of partnerships with over 50 MNOs, representing nearly 3 billion subscribers globally, and definitive commercial agreements with major carriers like AT&T, Verizon, Vodafone, and STC. The company is focused on a phased satellite deployment plan, aiming for noncontinuous SpaceMobile Service in targeted geographical markets with 25 BB satellites (five Block 1 and 20 Block 2 BB satellites) , and Continuous SpaceMobile Service across key markets such as the United States, Europe, and Japan with approximately 45 to 60 BB satellites . The long-term goal is to achieve Continuous SpaceMobile Service in all targeted geographical markets with approximately 90 BB satellites . Management is accelerating manufacturing to reach a production rate of up to six Block 2 BB satellites per month and plans to launch approximately 45 to 60 Block 2 BB satellites by the end of 2026 . They also underscore the importance of their extensive intellectual property portfolio, comprising approximately 3,850 patent and patent pending claims worldwide , and the strategic acquisitions of mid-band spectrum rights from Ligado and S-Band ITU priority rights to enhance network capabilities. The company believes it is fully funded for the costs necessary to manufacture and launch a constellation of approximately 90 BB satellites .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Our Company
  2. [2] Item 1, Business — Our Company
  3. [3] Item 1, Business — Our Company
  4. [4] Item 1, Business — Our Company
  5. [5] Item 1, Business — Competitive Advantage
  6. [6] Item 1, Business — Competitive Advantage
  7. [7] Item 1, Business — Competitive Advantage
  8. [8] Item 1, Business — Competitive Advantage
  9. [9] Item 1, Business — Competitive Advantage
  10. [10] Item 1, Business — Competitive Advantage
  11. [11] Item 1, Business — Competitive Advantage
  12. [12] Item 7, MD&A — Results of Operations
  13. [13] Item 7, MD&A — Results of Operations
  14. [14] Item 7, MD&A — Results of Operations
  15. [15] Item 7, MD&A — Results of Operations
  16. [16] Item 7, MD&A — Results of Operations
  17. [17] Item 7, MD&A — Results of Operations
  18. [18] Item 7, MD&A — Results of Operations
  19. [19] Item 7, MD&A — Results of Operations
  20. [20] Item 7, MD&A — Results of Operations
  21. [21] Item 7, MD&A — Results of Operations
  22. [22] Item 7, MD&A — Liquidity and Capital Resources
  23. [23] Item 3, Fair Value Measurement
  24. [24] Item 7, MD&A — Liquidity and Capital Resources
  25. [25] Item 7, MD&A — Liquidity and Capital Resources
  26. [26] Item 7, MD&A — Results of Operations
  27. [27] Item 7, MD&A — Results of Operations
  28. [28] Item 7, MD&A — Results of Operations
  29. [29] Item 7, MD&A — Results of Operations
  30. [30] Item 7, MD&A — Results of Operations
  31. [31] Item 7, MD&A — Results of Operations
  32. [32] Item 7, MD&A — Results of Operations
  33. [33] Item 7, MD&A — Results of Operations
  34. [34] Item 7, MD&A — Results of Operations
  35. [35] Item 7, MD&A — Results of Operations
  36. [36] Item 7, MD&A — Results of Operations
  37. [37] Item 7, MD&A — Results of Operations
  38. [38] Item 1, Business — Our Company
  39. [39] Item 7, MD&A — Overview
  40. [40] Item 1, Business — Our Company
  41. [41] Item 1, Business — Our Company
  42. [42] Item 1, Business — Our Company
  43. [43] Item 1, Business — Our Company
  44. [44] Item 1, Business — Our Company
  45. [45] Item 1, Business — Our Company
  46. [46] Item 1, Business — Our Company
  47. [47] Item 1, Business — Our Company
  48. [48] Item 1, Business — Our Company
  49. [49] Item 1, Business — Our Company
  50. [50] Item 1, Business — Our Company
  51. [51] Item 1, Business — Our Company
  52. [52] Item 1, Business — Our Company
  53. [53] Item 1, Business — Our Strategy
  54. [54] Item 1, Business — Manufacturing, Assembly and Launch
  55. [55] Item 7, MD&A — Liquidity and Capital Resources
  56. [56] Item 1, Business — Our Company
  57. [57] Item 1, Business — Our Company
  58. [58] Item 1, Business — Our Company
  59. [59] Item 1, Business — Our Company
  60. [60] Item 1, Business — Competitive Advantage
  61. [61] Item 1, Business — Our Company
  62. [62] Item 1, Business — Our Company
  63. [63] Item 1, Business — Manufacturing, Assembly and Launch
  64. [64] Item 7, MD&A — Overview
  65. [65] Item 1, Business — Our Company
  66. [66] Item 1, Business — Our Company
  67. [67] Item 1, Business — Our Company
  68. [68] Item 1, Business — Our Company
  69. [69] Item 1, Business — Our Strategy
  70. [70] Item 1, Business — Our Strategy
  71. [71] Item 1, Business — Our Strategy
  72. [72] Item 7, MD&A — Liquidity and Capital Resources
  73. [73] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  74. [74] Item 1A, Risk Factors — We may not be able to raise additional funds for continued operations, to initiate our SpaceMobile Service and for the Ligado Transaction when we need them on favorable terms or at all.
  75. [75] Item 1A, Risk Factors — The Ligado Transaction may not be consummated, and may be impacted by ongoing litigation.
  76. [76] Item 1A, Risk Factors — Once the Ligado Transaction closes, AST will face regulatory, technological and adoption risks with respect to use and access to Ligado’s spectrum.
  77. [77] Item 1A, Risk Factors — The debt financing raised in connection with the Ligado Transaction poses risks for AST and its shareholders.
  78. [78] Item 1A, Risk Factors — The multi-class structure of our Common Stock has the effect of concentrating voting power with our founder, Chairman and Chief Executive Officer, which will limit an investor’s ability to influence the outcome of important transactions, including a change of control.
  79. [79] Item 1A, Risk Factors — Our stockholders may experience future dilution as a result of future equity offerings, exercise of penny warrants, and conversion of convertible notes and such dilution may be substantial.
  80. [80] Item 1A, Risk Factors — The Tax Receivable Agreement requires us to make cash payments to the TRA Holders in respect of certain tax benefits and such payments may be substantial.
  81. [81] Item 1A, Risk Factors — We face substantial risks associated with our international operations.
  82. [82] Item 7, MD&A — Overview
  83. [83] Item 7, MD&A — Overview
  84. [84] Item 7, MD&A — Overview
  85. [85] Item 7, MD&A — Overview
  86. [86] Item 7, MD&A — Overview
  87. [87] Item 7, MD&A — Overview
  88. [88] Item 7, MD&A — Liquidity and Capital Resources

Analysis on 5/22/2026