Q2 2026 AST SpaceMobile, Inc. Earnings Call Transcript
Key Points
- AST SpaceMobile Inc (ASTS) reported Q2 2026 revenue of $31.5 million, more than doubling Q1 revenue and reiterating full-year guidance of $150-$200 million.
- The company secured three new US government contract awards with a funded near-term value of over $100 million, expanding its revenue backlog to approximately $1.3 billion.
- AST SpaceMobile Inc (ASTS) received a preliminary award for the J-LEO project in Japan, with a total expected value of up to $1 billion in nondilutive, non-debt government capital.
- The company's ASIC chip is in full production, expected to nearly double peak data speeds to nearly 200 Mbps, with future AI-enabled spectrum management potentially improving user experience by up to 10 times.
- AST SpaceMobile Inc (ASTS) strengthened its balance sheet with a $1.15 billion convertible debt offering, bringing pro forma cash to over $3.7 billion, and expanded its MNO partner ecosystem to over 60 partners covering 3 billion subscribers.
- The company is scaling manufacturing to a target of six satellites per month, with BlueBirds 14-16 ready to ship and production through BlueBird 46, supporting the plan to have 45 satellites in orbit by early 2027.
- AST SpaceMobile Inc (ASTS) reported a significant increase in adjusted operating expenses to $119.1 million in Q2 2026, up from $91.2 million in Q1, driven by workforce growth and facility expansion.
- Capital expenditures surged to approximately $610 million in Q2 2026, reflecting high costs associated with launch contracts and satellite production, with Q3 CapEx expected to remain elevated at $350-$425 million.
- The company faces potential launch delays, as it is not betting on Blue Origin's return to flight this year, which could impact the timeline for achieving 45 satellites in orbit by early 2027.
- Commercial service revenue is not expected to begin until next year, with beta trials targeted for later in 2026, meaning near-term revenue remains dependent on government contracts and gateway sales.
- The company's cost per satellite remains high at $21-$23 million, and while it aims to reduce costs over time, geopolitical factors could lead to fluctuations and higher expenses.
- The company's expanding TAM into areas like AI edge compute and RADAR requires additional investments and integration, with capabilities like AI compute only being added to satellites starting at satellite 47, indicating a longer timeline for monetization.
Good day, and thank you for standing by. Welcome to the AST SpaceMobile Second Quarter 2026 Business Update. Please be advised that today's call is being recorded.
I will now turn the conference over to Max Colbert, Investor Relations Manager of AST SpaceMobile. Thank you. You may begin.
Thank you, and good afternoon, everyone. Today, I'm also joined by Chairman and CEO, Abel Avellan; President, Scott Wisniewski; and CFO and Chief Legal Officer, Andy Johnson.
Let me refer you to slide 2 of the presentation, which contains our safe harbor disclaimer. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements on this call. For more information about these risks and uncertainties, please refer to the Risk Factors section of AST SpaceMobile's annual
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