AST SpaceMobile, Inc. (ASTS): Results of Operations and Financial Condition
AST SpaceMobile, Inc. (ASTS) filed an SEC Form 8-K — Results of Operations and Financial Condition. PRESS RELEASE EXHIBIT 99.1 AST SpaceMobile Provides Business Update and Second Quarter 2026 Results Signed partnerships with over 60 MNO partners globally who collectively cover over 3 billion subscribers Comprehensive spectrum strategy with shared MNO spectrum and controlled MSS
How this was made
The 30-second read
Why it matters
Traders can use the disclosed backlog level, in-orbit spacecraft count, beta activation progress, and the stated 2026 revenue range to update near-term expectations for revenue ramp and financing/dilution risk.
Market read
Primary disclosure with quantified operating progress, backlog, and explicit 2026 revenue guidance, plus a recent convertible notes raise.
What to watch
The excerpt does not include full operating expense and cash burn detail, and beta service timing and regulatory approvals for integrations remain execution-dependent.
AST SpaceMobile reported $31.5 million of second-quarter revenue, maintained full-year 2026 revenue guidance of $150.0 million to $200.0 million, and highlighted a fortified balance sheet following a $1.150 billion convertible senior notes offering.
Revenue was reported as consistent with the planned 2026 quarterly ramp and the company reaffirmed full-year guidance, while operating expenses rose to $329.1 million, including a $125.9 million loss on involuntary conversion, and adjusted operating expenses increased from the first quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $31.5 million | – | – |
| Total operating expensesGAAP | $329.1 million | an increase of $165.0 million | – |
| Depreciation and amortization and stock-based compensation expense included in total operating expensesGAAP | $84.1 million | – | – |
| Loss on involuntary conversion increase in total operating expensesGAAP | $125.9 million | – | – |
| General and administrative costs increase in total operating expensesGAAP | $20.3 million | – | – |
| Cost of revenues increase in total operating expensesGAAP | $11.9 million | – | – |
| Engineering services costs increase in total operating expensesGAAP | $3.2 million | – | – |
| Depreciation and amortization expense increase in total operating expensesGAAP | $3.1 million | – | – |
| Research and development costs increase in total operating expensesGAAP | $0.6 million | – | – |
| Adjusted operating expensesnon-GAAP | $119.1 million | an increase of $27.9 million | – |
| Adjusted engineering services costs increasenon-GAAP | $12.3 million | – | – |
| Adjusted cost of revenues increasenon-GAAP | $11.9 million | – | – |
| Adjusted general and administrative costs increasenon-GAAP | $3.1 million | – | – |
| Research and development costs increase in adjusted operating expensesnon-GAAP | $0.6 million | – | – |
| Adjusted operating expenses, excluding Adjusted cost of revenuesnon-GAAP | $95.9 million | – | – |
| Cash, cash equivalents, and restricted cashother | approximately $2.7 billion | – | – |
| Gross capitalized property and equipment costs incurredother | approximately $2.3 billion | – | – |
| Accumulated depreciation and amortizationGAAP | $211.9 million | – | – |
Full year 2026 outlook
- Revenue$150.0 million to $200.0 million
- NoteOn track to achieve full year 2026 revenue guidance of $150.0 million to $200.0 million.
What drove it
- Second-quarter revenue was driven by gateway deliveries and U.S. Government milestones met.
- Revenue backlog increased to approximately $1.30 billion in aggregate contracted revenue with commercial partners and contract awards with the United States Government.
- The company received multiple awards from the U.S. Government with an aggregate value of over $125 million supporting multiple national-security applications.
- Signed partnerships with over 60 MNO partners globally that collectively cover over 3 billion subscribers.
- BlueBird 8-13 orbital launches increased the network to 13 in-orbit spacecraft.
- The company activated initial 3,000 digital cells across the Continental United States as it progressed toward beta service in 2026.
Concerns
- Total operating expenses increased by $165.0 million from the first quarter of 2026 to $329.1 million.
- The increase in total operating expenses included a $125.9 million loss on involuntary conversion.
- Adjusted operating expenses increased by $27.9 million from the first quarter of 2026 to $119.1 million.
- Beta service, network integration and testing activities remain subject to final regulatory approvals in the cited markets.
- Revenue was driven by gateway deliveries and U.S. Government milestones, while commercial beta service is still in preparation.
What to watch
- Progress toward initiation of beta services with select strategic partners in 2026.
- Readiness to ship BlueBirds 14, 15, and 16 and production progress from BlueBird 17 through BlueBird 46.
- Conversion of approximately $1.30 billion of aggregate contracted revenue backlog into reported revenue.
- Additional U.S. Government awards and progress on the preliminary selection of the Rakuten and AST SpaceMobile joint venture for the J-LEO initiative.
- Expansion of the global gateway footprint, with nearly 50 gateways in various stages of completion, installation, and planning.
Balance sheet and cash flow
- As of June 30, 2026, cash, cash equivalents, and restricted cash were approximately $2.7 billion.
- Over $3.7 billion in pro forma cash, cash equivalents, restricted cash as of June 30, 2026.
- In July 2026, raised $1.150 billion of gross proceeds from a new 1.625% convertible senior notes offering, with an effective conversion price of $149.20 per share and effective dilution of less than 2%.
- As of June 30, 2026, the company had incurred approximately $2.3 billion of gross capitalized property and equipment costs and accumulated depreciation and amortization of $211.9 million.
Analysis
AST SpaceMobile reported second-quarter revenue of $31.5 million, driven by gateway deliveries and U.S. Government milestones met. Management described this revenue level as consistent with its planned quarterly revenue ramp during 2026 and stated that it remains on track for full-year 2026 revenue guidance of $150.0 million to $200.0 million. The company also reported revenue backlog of approximately $1.30 billion in aggregate contracted revenue with commercial partners and U.S. Government contract awards.
The operating cost profile expanded sharply. Total operating expenses were $329.1 million, compared with $164.1 million in the first quarter of 2026. The stated drivers included a $125.9 million loss on involuntary conversion, a $20.3 million increase in general and administrative costs, and an $11.9 million increase in cost of revenues. Adjusted operating expenses were $119.1 million, compared with $91.2 million in the first quarter of 2026, with increases led by adjusted engineering services costs and adjusted cost of revenues.
Operationally, the company emphasized constellation expansion and preparations for beta service. The orbital launch of BlueBird 8-13 brought the network to 13 in-orbit spacecraft, while BlueBirds 14, 15, and 16 are expected to be ready to ship shortly. The company said it activated initial 3,000 digital cells across the Continental United States and is conducting network integration and testing with named MNOs in Europe and other markets, subject to final regulatory approvals.
The balance sheet was a central feature of the update. Cash, cash equivalents, and restricted cash were approximately $2.7 billion as of June 30, 2026, and the company cited over $3.7 billion in pro forma cash, cash equivalents, and restricted cash. In July 2026, AST SpaceMobile raised $1.150 billion of gross proceeds through a new 1.625% convertible senior notes offering. The company also reported approximately $2.3 billion of gross capitalized property and equipment costs incurred, reflecting its satellite, launch, facility, equipment, and ground-antenna investments.
The next reported milestones are execution-oriented: initiation of beta services in 2026, shipping of the next three BlueBird satellites, continued production through BlueBird 46, gateway deployment, and conversion of commercial and government backlog into revenue. Management also highlighted multiple U.S. Government awards with aggregate value of over $125 million and the preliminary selection of the Rakuten and AST SpaceMobile joint venture for a Japanese initiative with total expected value up to approximately $1 billion in non-dilutive, non-debt government capital.
Management, verbatim
With the largest phased arrays ever deployed in low Earth orbit and a native cellular architecture designed to work directly with standard, unmodified smartphones, we believe we are uniquely positioned to deliver scalable direct-to-device connectivity for both commercial and government customers around the world.
Abel Avellan, Chairman and Chief Executive Officer
As we get ready to ship BlueBirds 14, 15, and 16 and continue expanding our constellation with production ongoing through BlueBird 46, we are preparing to initiate beta services with select strategic partners.
Abel Avellan, Chairman and Chief Executive Officer
We are continuing to scale our network, advance vertical integration, and secure additional access to orbit to take advantage of the growing number of opportunities in front of us.
Abel Avellan, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-year revenue and year-over-year revenue change.
- Prior-quarter revenue and quarter-over-quarter revenue change.
- Segment revenue, segment comparisons, and segment margins.
- GAAP gross profit, GAAP gross margin, and non-GAAP gross margin.
- GAAP operating income or loss and non-GAAP operating income or loss.
- GAAP net income or loss and non-GAAP net income or loss.
- GAAP EPS and non-GAAP EPS.
- Operating cash flow and free cash flow.
- Debt balance as of June 30, 2026.
- Share repurchases, dividends, or other capital-return amounts.
- Detailed adjusted cost of revenues, adjusted engineering services costs, adjusted general and administrative costs, and research and development costs for the second quarter.
- Full-year 2026 guidance for gross margin, operating expenses, tax rate, EPS, cash flow, or capital expenditures.
- Previous-quarter outlook for comparison with reported results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
AST SpaceMobile filed an 8-K (Item 2.02) with an attached press release covering Q2 2026 results and business update, including in-orbit progress, partner integration, backlog, and 2026 revenue guidance.
Ticker impact
AST SpaceMobile reported Q2 2026 revenue of $31.5M, raised $1.15B via convertible notes, and said revenue guidance is $150M to $200M for 2026.
Bias toward upside or volatility, as guidance and backlog expansion can offset dilution concerns from the convertible financing.
This is a primary 8-K with new operating metrics (in-orbit count, beta activation, backlog) plus explicit 2026 revenue guidance and a recent capital raise, which typically moves high-expectations space connectivity names. However, the excerpt truncates some financial detail (e.g., full expense line), limiting precision on margin/cash burn.
Market effects
Reinforces the direct-to-device satellite connectivity narrative with quantified partner coverage, backlog, and spectrum strategy, which can influence sentiment across LEO telecom peers.
Limited direct regional read-through, but European MNO integration updates may affect sentiment for European telecom partners’ satellite initiatives.
Global partner and government program references (including USG milestones) support broader investor appetite for space-based cellular infrastructure.
Counterpoint
Convertible financing and the need to scale gateways and spacecraft production could keep dilution and execution risk elevated even with guidance intact.
Key entities
- companyAST SpaceMobile, Inc.
Direct-to-device space-based cellular broadband network provider reporting Q2 2026 results and business update.
- programBlueBird 11-13
Recently launched spacecraft referenced as expanding the in-orbit constellation to 13 spacecraft.
- customer/programU.S. Government milestones and awards
Cited as supporting multiple national-security applications and contributing to backlog and revenue ramp.
