TLDR
- AST SpaceMobile posted Q3 loss of 45 cents per share on $14.7 million revenue, missing analyst forecasts of 22-cent loss on $19.9 million sales.
- Stock held steady despite the miss, declining only 0.1% after hours while year-to-date gains exceed 225%.
- Company locked in over $1 billion in contracted revenue including $175 million prepayment from stc Group and expanded Verizon partnership.
- AST raised $1.15 billion through convertible notes and maintains $3.2 billion in total liquidity to fund satellite deployment.
- Five orbital launches planned by Q1 2026 with goal of 45-60 satellites operational by end of next year.
AST SpaceMobile delivered third-quarter results that missed Wall Street targets. The satellite communications company reported a loss of 45 cents per share on revenue of $14.7 million.
Analysts expected a smaller 22-cent per share loss. They also projected revenue would hit $19.9 million for the period.
The earnings shortfall barely moved the stock. ASTS shares dropped just 0.1% in after-hours trading to $68.80.
This compares to a year-ago Q3 loss of $1.10 per share on only $1.1 million in revenue. The company has made clear progress in growing its top line.
CEO Abel Avellan highlighted accelerating commercial activity. He noted strong demand for the company’s direct-to-device space-based cellular broadband network.
Billion-Dollar Revenue Pipeline Takes Shape
The company secured two major contract wins during the quarter. AST signed a definitive agreement with stc Group covering Saudi Arabia and key Middle East and North Africa markets.
The stc deal includes a $175 million upfront payment for future services. The contract extends for 10 years.
AST also expanded its Verizon partnership. The agreement aims to deliver 100% geographic coverage across the continental United States.
These contracts pushed total committed revenue past $1 billion. AST now partners with over 50 mobile network operators serving nearly 3 billion subscribers globally.
The company maintained its second-half 2025 revenue guidance of $50 million to $75 million. Wall Street projects 2026 sales will jump to $267 million from expected 2025 revenue of $56.4 million.
Satellite Deployment Accelerates
AST shipped BlueBird 6 to India with launch scheduled for early December. BlueBird 7 heads to Cape Canaveral in November for launch shortly after.
The company plans five orbital launches by end of Q1 2026. Launches will happen every one to two months on average.
AST targets 45 to 60 satellites in orbit by year-end 2026. BlueBird satellites 8 through 19 are in various production stages.
A proprietary ASIC chip with 10 GHz processing bandwidth will integrate during Q1 2026. The company expects to complete assembly of 40 satellite equivalents by early next year.
Initial service activation will cover the continental United States with intermittent nationwide coverage. Canada, Japan, Saudi Arabia, and the United Kingdom will see activations in early 2026.
Financial Strength Supports Growth Plans
AST raised $1.15 billion through a new convertible notes offering. The 10-year notes carry a 2% coupon with a $96.30 per share conversion price.
Total liquidity now exceeds $3.2 billion including cash, cash equivalents, restricted cash, and ATM facility availability. The company reduced its 4.25% convertible notes to $50 million outstanding.
Third quarter operating expenses reached $94.4 million. This included $26.7 million in depreciation, amortization, and stock-based compensation.
ASTS stock has soared over 225% year to date. Analysts estimate 2027 EBITDA at approximately $500 million, with shares trading at roughly 50 times that figure.
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