TLDR
- AST SpaceMobile (ASTS) stock rose 8.64% after announcing a Verizon partnership for 2026 satellite service
- The deal allows direct-to-cell connectivity on standard phones using Verizon’s 850 MHz spectrum
- ASTS is burning $675 million annually with $924 million in cash reserves remaining
- The company previously partnered with AT&T and has Blue Origin launch contracts for 60 satellites
- Market cap approaches $30 billion despite ongoing cash burn concerns
AST SpaceMobile stock jumped 8.64% Thursday after the company announced a commercial partnership with Verizon. The deal brings space-based cellular service to Verizon customers starting in 2026.
Shares closed at $81.21 following the announcement. ASTS stock has climbed over 245% year-to-date as the satellite company moves toward commercial operations.
The partnership expands a strategic relationship first announced in early 2024. Verizon will integrate AST SpaceMobile’s satellite network with its terrestrial infrastructure to extend coverage nationwide.
The service uses Verizon’s 850 MHz premium low-band spectrum. This extends cellular coverage to remote areas beyond traditional cell tower reach.
Direct-to-Phone Satellite Technology
AST SpaceMobile’s technology connects directly to everyday smartphones. No specialized equipment is required for users to access the space-based network.
The company operates what it describes as the largest commercial communications arrays in low Earth orbit. AST SpaceMobile pioneered the direct-to-cell satellite concept and has been demonstrating its technology.
Abel Avellan, AST SpaceMobile founder and CEO, said the agreement extends Verizon’s spectrum into areas needing space-based broadband. Srini Kalapala, Verizon’s senior vice president of technology and product development, called the integration a step forward in connecting everyone regardless of location.
Financial terms were not disclosed. The Verizon deal marks AST SpaceMobile’s second major U.S. carrier partnership in 2025.
The company signed a similar agreement with AT&T in May 2025. That partnership involves launching five satellites into low-Earth orbit for commercial service.
Satellite Deployment Plans
AST SpaceMobile secured a multi-year, multi-launch agreement with Blue Origin. The launches in 2025 and 2026 will deploy approximately 60 next-generation Block 2 BlueBird satellites using New Glenn rockets.
The network operates across multiple spectrum bands. These include premium low-band spectrum, AST SpaceMobile’s licensed L-band and S-band spectrum, and up to 1,150 MHz of partner operators’ spectrum globally.
In August 2025, the company acquired global S-Band spectrum priority rights for $64.5 million. This acquisition enhances its space-based cellular broadband capabilities.
Cash Position and Funding
AST SpaceMobile is burning more than $675 million annually. The company holds $924 million in cash reserves, providing approximately 16 months of runway at current spending levels.
In July 2025, AST SpaceMobile announced a proposed $500 million convertible senior notes offering due 2032. The funds target general corporate purposes and satellite launch funding.
ASTS stock dropped 9.44% in after-hours trading following that announcement. Investors worried about potential dilution from the convertible notes.
The company’s market cap now approaches $30 billion. This valuation provides options for raising additional capital through share sales if needed.
AST SpaceMobile faces competition from SpaceX’s Starlink service in the space-based cellular market. ASTS stock fell 9% in September 2025 after EchoStar sold 5G spectrum licenses to SpaceX.
The Verizon partnership gives AST SpaceMobile access to one of America’s largest wireless carriers. The company now counts two major U.S. telecommunications providers as partners heading into its 2026 commercial launch.
