MIDLAND, Texas, May 12, 2025--(BUSINESS WIRE)--AST SpaceMobile, Inc. ("AST SpaceMobile") (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, and designed for both commercial and government applications, is providing its business update and results for the first quarter ended March 31, 2025.

"AST SpaceMobile continues to execute on our bold strategy, progressing at an accelerated pace toward fulfilling our important mission of connecting the unconnected worldwide," said Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile. "Today, we are at an inflection point for the company. We have ramped up manufacturing capacity and are now able to announce our plans to support five scheduled orbital launches over the next six to nine months. Commercially, we have also expanded our U.S. Government opportunity and are in a position to start generating meaningful revenue during 2025."

Business Update

Announced multi-provider satellite orbital launch plan with five contracted launches over the next six to nine months

Anticipate orbital launches every one to two months on average during 2025 and 2026 First Block 2 BlueBird satellite expected to ship in Q2 2025, with orbital launch scheduled during July 2025 On track with satellite manufacturing of 40 Block 2 BlueBird satellites and the procurement of components and materials needed to complete fully assembled microns and phased arrays for over 50 satellites in total Satellite manufacturing expected to reach a cadence of six satellites per month during 2025, with phased array equivalent cadence reaching the target during Q3 2025 Manufacturing and orbital launch schedules support continuous cellular broadband coverage goals in key markets such as the United States, Europe, Japan, the U.S. Government and other strategic markets during 2026 Advanced SpaceMobile network commercialization efforts, with expected second half 2025 revenue opportunity of $50.0 million to $75.0 million

Company plans to activate initial cellular broadband capabilities across the United States, Europe and Japan with AT&T, Rakuten, Verizon, and Vodafone using premium low-band wireless spectrum Ramping up activities under the previously announced $43.0 million U.S. Space Development Agency contract and signed a new contract with the Defense Innovation Unit (DIU) for up to $20.0 million in revenue, via a prime contractor, for SpaceMobile capabilities with multiple U.S. Government agencies in support of government communications over land, sea, and air Gateway equipment bookings from MNO partners of $13.6M in Q1 2025, with expected gateway equipment bookings of approximately $10.0 million, on average, per quarter during 2025, as a precursor to the rollout of SpaceMobile Service Two-way broadband video call completed by Rakuten Mobile in front of a live audience using unmodified smartphones on the SpaceMobile network enabled by a Block 1 BlueBird satellite in orbit today, following successful video calls with AT&T, Vodafone, and Verizon Continued to make strong progress on regulatory approvals and spectrum-related topics with partners and key industry groups

Received Special Temporary Authority from the FCC for FirstNet evaluation on public safety’s Band 14 spectrum, supporting mission-critical capabilities with direct-to-device cellular broadband connectivity Established coordination agreement with the U.S. National Science Foundation covering satellite and ground-based astronomy operations Well positioned to complete full regulatory authorizations for commercial service in the United States and Europe Signed definitive agreements for long-term access to up to 45 MHz of premium lower mid-band spectrum in the U.S. for direct-to-device applications Robust balance sheet with $874.5 million in cash, cash equivalents, and restricted cash as of March 31, 2025, with continued access to diverse capital markets

Completed initial clearances for quasi-governmental funding with the Export-Import Bank of the United States (EXIM) and the International Finance Corporation (IFC), beginning six to nine month diligence and documentation phase for over $500.0 million in potential new non-dilutive capital

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First Quarter 2025 Financial Highlights

As of March 31, 2025, we had cash, cash equivalents, and restricted cash of $874.5 million Total operating expenses for the first quarter of 2025 were $63.7 million, including $18.8 million of depreciation and amortization and stock-based compensation expense. This represents an increase of $3.1 million as compared to $60.6 million in the fourth quarter of 2024 due to a $2.5 million increase in depreciation and amortization expense, a $2.5 million increase in general and administrative costs, and a $1.8 million increase in research and development costs, partially offset by a $3.7 million decrease in engineering services costs Adjusted operating expenses(1) for the first quarter of 2025 were $44.9 million, an increase of $4.1 million as compared to $40.8 million in the fourth quarter of 2024, due to a $1.8 million increase in research and development costs, a $1.7 million increase in Adjusted general and administrative costs(1), and a $0.6 million increase in Adjusted engineering services costs(1) As of March 31, 2025, we have incurred approximately $584.1 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of $133.3 million. The capitalized costs include costs of satellite materials for BlueBird satellites, advance launch payments, capital advances, Block 1 and BlueWalker 3 satellites, assembly and integration facilities including assembly and test equipment, and ground antennas

(1) See reconciliation of Adjusted operating expenses to Total operating expenses, Adjusted engineering services costs to Engineering services costs and Adjusted general and administrative costs to General and administrative costs in the tables accompanying this press release.

Non-GAAP Financial Measures

We refer to certain non-GAAP financial measures in this press release, including Adjusted operating expenses, Adjusted engineering services costs and Adjusted general and administrative costs. We believe these non-GAAP financial measures are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measures. Reconciliation of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release.

Conference Call Information

AST SpaceMobile will hold a quarterly business update conference call at 5:00 p.m. (Eastern Time) on Monday, May 12, 2025. The call will be accessible via a live webcast on the Events page of AST SpaceMobile’s Investor Relations website at https://ast-science.com/investors/. An archive of the webcast will be available shortly after the call.

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

Forward-Looking Statements

This communication contains "forward-looking statements" that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "may," "will," "would," "potential," "projects," "predicts," "continue," or "should," or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.

Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 BlueBird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on March 3, 2025.

AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K filed with the SEC on March 3, 2025. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

First Quarter 2025 Financial Results

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands, except share data)  As of  March 31, 2025   December 31, 2024   ASSETS  Current assets:  Cash and cash equivalents  $ 873,778   $ 564,988  Restricted cash   680    2,546  Prepaid expenses   6,126    7,887  Other current assets   14,021    24,825  Total current assets   894,605    600,246   Non-current assets:  Property and equipment, net   450,822    337,669  Operating lease right-of-use assets, net   13,415    14,014  Other non-current assets   10,817    2,632  TOTAL ASSETS  $ 1,369,659   $ 954,561   LIABILITIES AND STOCKHOLDERS' EQUITY  Current liabilities:  Accounts payable  $ 10,778   $ 17,004  Accrued expenses and other current liabilities   26,216    12,195  Contract liabilities   41,758    41,968  Current operating lease liabilities   1,767    1,856  Current portion of long-term debt   3,699    2,919  Total current liabilities   84,218    75,942   Non-current liabilities:  Warrant liabilities   44,453    41,248  Non-current operating lease liabilities   12,112    12,652  Long-term debt, net   462,203    155,573  Total liabilities   602,986    285,415   Commitments and contingencies   Stockholders' Equity:  Class A Common Stock, $.0001 par value; 800,000,000 shares authorized; 236,916,393 and 208,173,198 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.   23    20  Class B Common Stock, $.0001 par value; 200,000,000 shares authorized; 11,227,292 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.   4    4  Class C Common Stock, $.0001 par value; 125,000,000 shares authorized; 78,163,078 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.   8    8  Additional paid-in capital   1,103,921    969,004  Accumulated other comprehensive income (loss)   98    (176 ) Accumulated deficit   (535,451 )   (489,745 ) Noncontrolling interest   198,070    190,031  Total stockholders' equity   766,673    669,146   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 1,369,659   $ 954,561

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in thousands, except share and per share data)  For the Three Months ended
March 31,  2025   2024   Revenues  $ 718   $ 500   Operating expenses:  Engineering services costs   27,204    19,511  General and administrative costs   18,384    12,287  Research and development costs   7,135    4,257  Depreciation and amortization   10,958    19,945  Total operating expenses   63,681    56,000   Other income (expense):  (Loss) gain on remeasurement of warrant liabilities   (3,206 )   18,214  Interest expense   (4,736 )   (4,511 ) Interest income   8,196    2,289  Other (expense) income, net   (751 )   (2 ) Total other income (expense), net   (497 )   15,990   Loss before income tax expense   (63,460 )   (39,510 ) Income tax expense   (168 )   (294 ) Net loss before allocation to noncontrolling interest   (63,628 )   (39,804 )  Net loss attributable to noncontrolling interest   (17,922 )   (20,074 ) Net loss attributable to common stockholders  $ (45,706 )  $ (19,730 ) Net loss per share attributable to holders of Class A Common Stock  Basic and diluted  $ (0.20 )  $ (0.16 ) Weighted-average number of shares of Class A Common Stock outstanding  Basic and diluted   223,974,396    121,447,138

AST SPACEMOBILE, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

(Dollars in thousands)  For the Three Months ended

March 31,  2025   2024   Net loss before allocation to noncontrolling interest  $ (63,628 )  $ (39,804 )  Other comprehensive loss  Foreign currency translation adjustments   382    (216 )  Total other comprehensive loss   382    (216 )  Total comprehensive loss before allocation to noncontrolling interest   (63,246 )   (40,020 )  Comprehensive loss attributable to noncontrolling interest   (17,814 )   (20,184 )  Comprehensive loss attributable to common stockholders  $ (45,432 )  $ (19,836 )

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)  For the Three Months ended

March 31,  2025   2024   Cash flows from operating activities:  Net loss before allocation to noncontrolling interest   $ (63,628 )  $ (39,804 ) Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities:  Depreciation and amortization    10,958    19,945  Amortization of debt issuance costs    309    900  Loss (gain) on remeasurement of warrant liabilities    3,206    (18,214 ) Stock-based compensation    7,826    4,933  Paid-in-kind ("PIK") interest expense    497    -  Changes in operating assets and liabilities:  Prepaid expenses and other current assets    10,611    (8,306 ) Accounts payable and accrued expenses    715    (8,396 ) Operating lease right-of-use assets and operating lease liabilities    (30 )   (8 ) Contract liabilities    (210 )   -  Other assets and liabilities    1,200    828  Net cash used in operating activities    (28,546 )   (48,122 )  Cash flows from investing activities:  Purchase of property and equipment    (120,456 )   (39,568 ) Net cash used in investing activities    (120,456 )   (39,568 )  Cash flows from financing activities:  Proceeds from debt    449,248    110,000  Repayments of debt    (65 )   (62 ) Payment for debt issuance costs    (6,400 )   (5,162 ) Proceeds from issuance of common stock    56,265    108,100  Payments for third party equity issuance costs    (1,463 )   (382 ) Issuance of equity under employee stock plan    4,181    -  Employee taxes paid for stock-based compensation awards    (1,373 )   (314 ) Purchase of capped call transactions    (44,528 )   -  Net cash provided by financing activities    455,865    212,180   Effect of exchange rate changes on cash, cash equivalents and restricted cash    61    (147 )  Net increase in cash, cash equivalents and restricted cash    306,924    124,343  Cash, cash equivalents and restricted cash, beginning of period    567,534    88,097  Cash, cash equivalents and restricted cash, end of period   $ 874,458   $ 212,440   Supplemental disclosure of cash flow information:  Non-cash investing and financing activities:  Purchases of property and equipment in accounts payable and accrued expenses   $ 12,906   $ 5,734  PIK interest paid through issuance of PIK notes    497    -  Convertible notes settled by issuance of Class A Common Stock    139,620    -  Cash paid for:  Interest   $ 3,887   $ 2,205  Income taxes, net    700    710

AST SPACEMOBILE, INC.

RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED MEASURES (UNAUDITED)

(Dollars in thousands)  For the Three Months Ended March 31, 2025  GAAP Reported   Stock-Based Compensation Expense   Adjusted  Engineering services costs  $ 27,204   $ (4,018 )  $ 23,186  General and administrative costs   18,384    (3,808 )   14,576  Research and development costs   7,135       7,135  Depreciation and amortization   10,958       10,958  Total operating expenses  $ 63,681   $ (7,826 )  $ 55,855  Less: Depreciation and amortization         (10,958 ) Adjusted operating expenses        $ 44,897

For the Three Months Ended December 31, 2024  GAAP Reported   Stock-Based Compensation Expense   Adjusted  Engineering services costs  $ 30,945   $ (8,347 )  $ 22,598  General and administrative costs   15,889    (3,075 )   12,814  Research and development costs   5,348       5,348  Depreciation and amortization   8,460       8,460  Total operating expenses  $ 60,642   $ (11,422 )  $ 49,220  Less: Depreciation and amortization         (8,460 ) Adjusted operating expenses        $ 40,760

Adjusted operating expenses, Adjusted engineering services costs and Adjusted general and administrative costs are alternative financial measures used by management to evaluate our operating performance as a supplement to our most directly comparable U.S. GAAP financial measure. We define Adjusted operating expense as Total operating expenses adjusted to exclude amounts of stock-based compensation expense and depreciation and amortization expense. We define Adjusted engineering services costs and Adjusted general and administrative costs as engineering services costs and general and administrative costs adjusted to exclude stock-based compensation expenses.

We believe Adjusted operating expenses, Adjusted engineering services costs and Adjusted general and administrative costs are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. Adjusted operating expenses, Adjusted engineering services costs, and Adjusted general and administrative costs are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measure of Total operating expenses, Engineering services costs and General and administrative costs.

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Contacts

Investor Contact: 
Scott Wisniewski
[email protected]

Media Contact: 
Allison
Eva Murphy Ryan
917-547-7289
[email protected]

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