What AST SpaceMobile (ASTS) Said on Its Q3 Earnings Call

Key Points

• AST SpaceMobile reported $42.3 million in Q3 revenue and maintained its 2026 revenue forecast of $150 million to $200 million. It expects fourth-quarter capital spending of $400 million to $500 million.
• The company is targeting intermittent service in the U.S. and several international markets before year-end 2026, with end-user beta trials expected in early 2027. It aims to produce six satellites per month by December and have about 45 BlueBirds in orbit by mid-2027.
• AST highlighted funding and expansion plans, including approximately $1 billion in Japanese subsidies for a mid-band network and a proposed reusable rocket program expected to begin launches in late 2028. It also reported more than $3.2 billion in cash, equivalents and restricted cash at September 30.

AST SpaceMobile NASDAQ: ASTS reported $42.3 million in third-quarter revenue and reiterated its full-year 2026 revenue forecast, as it prepares to activate intermittent satellite service in the United States and other key markets before year-end.

The company also outlined plans to build its own reusable rocket, scale satellite production and use approximately $1 billion in Japanese subsidies to help finance a mid-band satellite network. Management said launch agreements cover more than 100 BlueBird satellites expected to be deployed during 2027 and 2028.

Chairman and CEO Abel Avellan said the company is targeting an output rate of six satellites per month in December and approximately 45 BlueBirds in orbit by mid-2027. The company reported more than $3.2 billion in cash, equivalents and restricted cash as of September 30, including proceeds from a July convertible debt offering.

Service rollout and satellite production

AST SpaceMobile plans to introduce intermittent nationwide coverage with partners in the United States, Canada, Japan, Saudi Arabia and the United Kingdom before the end of 2026, Avellan said. The company is building a network intended to connect directly to unmodified mobile phones.

President Scott Wisniewski distinguished the initial network activation for partners from customer trials. He said beta trials for end users are expected in early 2027 and would ideally use about 25 satellites, with some flexibility around that number.

CFO and Chief Legal Officer Andy Johnson said AST believes continuous service in key markets could be enabled with approximately 45 to 60 operational BlueBird satellites, while approximately 90 could support additional strategic markets worldwide.

Avellan said BlueBirds 11, 12 and 13 are operating in orbit. BlueBirds 14 through 16 were shipped to Cape Canaveral in September and are awaiting confirmation of a SpaceX launch date. Three more satellites were expected to ship in November for a Blue Origin launch anticipated in early 2027, with six additional satellites shipping in December and January for expected dual-use launches in the first quarter.

The company is moving to a new application-specific integrated circuit, or ASIC, starting with BlueBird 34 instead of BlueBird 50. Avellan said the chip would provide 10 times the processing capability of the first-block BlueBirds currently in orbit, increasing traffic capacity per satellite and reducing the cost per gigabyte delivered.

Blacklift and government opportunities

AST plans to begin launches of Blacklift, its proposed 20-ton reusable rocket, in late 2028. The rocket is designed to carry up to five BlueBird satellites per launch and would supplement rather than replace agreements with SpaceX, Blue Origin and other providers, Avellan said.

Wisniewski said the company expects several hundred million dollars of incremental capital spending on Blacklift in 2027. AST is working with Firefly on engine technology and rocket integration; he said the transaction includes cash, stock and payments over time. Management did not provide a 2028 spending estimate or a break-even timeline for the program.

The company also announced an approximately $100 million U.S. Space Force contract for advanced sensing capabilities. Wisniewski described it as a step toward a potentially larger airborne moving target indication program.

In Japan, AST and partner Rakuten secured approximately $1 billion in non-dilutive funding for a mid-band constellation. Wisniewski said most proceeds are expected in 2027, ahead of investment in spacecraft and launches. AST will own 49% of the joint venture, which will receive revenue from three targeted exclusive Asian markets. Outside Japan, remaining satellite capacity will be available to global partners, with a low-single-digit net revenue share to the venture.

AST is also pursuing approximately $1.2 billion in additional quasi-governmental financing. Wisniewski said the pipeline includes subsidies and potential debt financing, with the largest component on a timeframe extending into mid-2027.

Revenue outlook and spending

Third-quarter revenue came primarily from commercial gateway deliveries and U.S. government service milestones, Johnson said. AST maintained its full-year revenue forecast of $150 million to $200 million, while noting potential upside depending on milestone timing and the Japan program.

Wisniewski reiterated the company’s expectation that revenue in the 12 months following commercial service launch could approach $1 billion. He said government and international progress had increased management’s confidence in that opportunity, but the company did not issue a calendar-year 2027 revenue forecast.

Third-quarter adjusted operating expenses rose to $133.6 million from $119.1 million in the prior quarter. Excluding adjusted cost of revenue, expenses were $109.4 million, within the company’s forecast range. For the fourth quarter, AST expects that measure to rise to $130 million to $140 million.

Capital expenditures were approximately $310 million in the third quarter, below the company’s prior guidance largely because of the timing of launch payments. AST forecasts fourth-quarter capital spending of $400 million to $500 million.

About AST SpaceMobile (NASDAQ:ASTS)

AST SpaceMobile, Inc develops a space-based cellular broadband network designed to connect directly with standard mobile phones, without requiring users to purchase specialized satellite devices. Its planned services include voice calls, text messaging and mobile broadband, delivered through partnerships with mobile network operators and integrated with their existing networks.

The company is developing and deploying its BlueBird satellite system to provide coverage in areas where terrestrial cellular networks are unavailable or limited.

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