AST SpaceMobile (ASTS) reported a first-quarter net loss of $191 million, or $0.66 per share, significantly wider than the $45.7 million loss recorded a year earlier. Revenue came in at $14.7 million, missing Wall Street projections, though it marked a substantial increase from the $718,000 reported in the prior-year period. The company's operating expenses surged to $164.1 million, up from $63.7 million, driven by accelerated manufacturing and development costs.
Despite the earnings miss, AST SpaceMobile reiterated its 2026 revenue guidance of $150 million to $200 million, noting that approximately 50% of that target is already covered by contracted backlog with mobile network operators and the U.S. government. The company ended the quarter with $3.46 billion in cash, cash equivalents, and restricted cash, providing a substantial cushion to fund its ambitious satellite deployment plans. However, cash burn remained elevated, with $48.1 million used in operating activities and $379.3 million in investing activities during the quarter.
Satellite Launch Timeline and Regulatory Milestone
The company confirmed that its next three Block 2 BlueBird satellites — BlueBirds 8, 9, and 10 — remain on track for a mid-June launch aboard a SpaceX Falcon 9 rocket. These satellites are critical for transitioning AST's space-based cellular network from pilot projects into commercial service. Meanwhile, BlueBirds 11 through 33 are deep into production and assembly, supporting the company's goal of deploying approximately 45 satellites by 2026.
AST also highlighted a key regulatory achievement: on April 22, it secured U.S. approval for Supplemental Coverage from Space (SCS), which allows satellites to fill coverage gaps where terrestrial networks are unavailable. This approval triggered a $45 million commercial prepayment from Verizon, as stipulated in their existing agreement, providing a near-term revenue lift.
Competitive Landscape and Execution Risks
Competition in the satellite-to-smartphone space is intensifying. T-Mobile recently launched a business internet service that integrates its 5G network with Starlink backup, while Amazon struck an $11.57 billion deal to acquire Globalstar in April, bolstering its satellite ambitions against SpaceX's Starlink. AST's president, Scott Wisniewski, emphasized the company's launch-vehicle-agnostic strategy, noting contracts with SpaceX, Blue Origin, and others to mitigate single-source risks.
However, execution risks remain significant. The company disclosed that BlueBird 7 was de-orbited after Blue Origin's New Glenn 3 launch placed it in a lower-than-intended orbit. Insurance claims have been filed but not yet paid. AST's filing notes that factors such as satellite testing, rocket readiness, launch window availability, logistics, regulatory approvals, and partner agreements are often beyond the company's direct control.
Technology Progress and Financial Outlook
On the technology front, AST reported achieving a peak data speed of 98.9 megabits per second using an in-orbit Block 1 satellite, connecting directly to an unmodified smartphone above international waters. The company has partnerships with nearly 60 mobile network operators, collectively reaching over 3 billion subscribers. Chairman and CEO Abel Avellan stated the company is accelerating manufacturing and highlighted advances in regulatory approvals, commercial deals, and government programs.
During the earnings call, Avellan noted that reaching the 45-satellite milestone triggers a 45-day commissioning phase dedicated to testing and connecting satellites with mobile carriers, with plans to shorten that timeline over time. The company's substantial cash reserves provide breathing room, but schedule risk remains a critical factor as AST works to prove its technology can bridge the gap from a $14.7 million quarterly revenue base to its $150-200 million annual target.
