01—Abstract
Summary
Summary of the 10-Q filed August 10, 2026. Cited figures are marked; the original filing is the authoritative source.
AST SpaceMobile, Inc. (ASTS) reported its financial results for the quarter and six months ended June 30, 2026.
The company continues to make significant progress in developing its space-based cellular broadband network. Revenues have seen a substantial increase, driven by product sales of gateway equipment and services related to U.S. government agreements. Despite increased operating expenses, particularly in engineering and general/administrative areas due to expanded headcount and stock-based compensation, the company's cash position remains strong at $2.7 billiona.
The company has made considerable investments in property and equipment, reflecting its ongoing satellite development and launch campaign. A notable event during the period was the loss of the BB7 satellite, partially offset by insurance recoveries.
ASTS successfully launched several Block 2 BB satellites, enhancing its network capabilities with larger phased arrays designed for significantly higher bandwidth. The company also raised substantial capital through multiple convertible note issuances and has outlined plans to fund its continued constellation build-out and operational expenses.
02—Key points
Key Highlights
- Total revenues increased significantly to $31.5 million for the three months ended June 30, 2026, up from $1.2 million in the prior year period, primarily driven by product revenue from gateway equipment sales and increased services revenue from U.S. government agreements.
- Operating expenses more than quadrupled to $329.1 million for the three months ended June 30, 2026, driven by substantial increases in engineering services costs and general and administrative costs, alongside a significant loss on involuntary conversion (BB7 satellite loss).
- The company raised substantial capital through the issuance of convertible senior notes, including $1.075 billion in 2036 2.25% Convertible Notes in February 2026 and $1.15 billion in 2034 1.625% Convertible Notes in July 2026.
- Cash and cash equivalents and restricted cash totaled approximately $2.7 billion as of June 30, 2026, providing a strong liquidity position, which the company believes is sufficient for the next 12 months.
- Significant investments in property and equipment, amounting to $980 million for the six months ended June 30, 2026, are related to the procurement of BB satellite materials, advance launch payments, and capital advances for spectrum rights.
- The company experienced a loss on involuntary conversion of $125.9 million related to the de-orbiting of the BB7 satellite, partially offset by insurance recoveries.
- AST SpaceMobile continues to advance its satellite deployment, launching several Block 2 BB satellites that feature larger phased arrays and are designed to deliver significantly higher bandwidth capacity.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 10, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $31.52M$1.16M | +2626.6% |
| R&D Expenses | $7.77M$6.39M | +21.5% |
| Operating Expenses | $329.10M$73.95M | +345.0% |
| Interest Expense | $23.60M$5.70M | +314.0% |
| Net Income | -$230.91M-$99.39M | −132.3% |
| Shares Outstanding (Basic) | 299.06M241.99M | +23.6% |
| Shares Outstanding (Diluted) | 299.06M241.99M | +23.6% |
05—Questions
Frequently Asked Questions
What is AST SpaceMobile's current revenue situation and what is driving it?
For the three months ended June 30, 2026, AST SpaceMobile reported total revenues of $31.5 million, a substantial increase from $1.2 million in the same period last year. This growth is primarily attributed to a significant rise in 'Products revenues' from the sale of gateway equipment and software to Mobile Network Operators (MNOs), and an increase in 'Services revenues' from completed performance obligations under agreements with the U.S. government.
How has AST SpaceMobile's operational spending changed, and what are the main drivers?
Operating expenses increased significantly to $329.1 million for the three months ended June 30, 2026, compared to $74.0 million in the prior year period. Key drivers for this increase include higher engineering services costs (up $58.7 million), driven by increased headcount and stock-based compensation, and higher general and administrative costs (up $36.7 million) for similar reasons. Additionally, a $125.9 million loss on involuntary conversion related to the BB7 satellite contributed to the overall increase in expenses.
What is the company's liquidity position and its outlook for future funding?
As of June 30, 2026, AST SpaceMobile maintains a strong liquidity position with approximately $2.7 billion in cash, cash equivalents, and restricted cash. The company believes this is sufficient to meet its anticipated cash requirements for the next 12 months. For longer-term funding and constellation build-out, ASTS plans to raise additional capital through various debt and equity instruments, having recently issued significant amounts through convertible senior notes.
Can you explain the significant capital expenditures and investments made by the company?
AST SpaceMobile made substantial investments in property and equipment, totaling $979.7 million for the six months ended June 30, 2026. These expenditures are primarily related to the procurement of BlueBird (BB) satellite materials, advance payments for launch contracts, and capital advances for spectrum usage rights. The company is actively building out its satellite constellation, which is a capital-intensive process.
06—Continue