MIDLAND, Texas, August 11, 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 second quarter ended June 30, 2025.

"We are confirming our fully-funded plan to deploy 45 to 60 satellites into orbit by 2026 to support continuous service in the US, Europe, Japan, and other strategic markets, including the U.S. Government. We also have planned orbital launches every one to two months on average during 2025 and 2026," commented Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile. "In orbit today, we have six satellites, five fully operational and one test satellite, for both commercial and government applications. We have completed the assembly of microns for phased arrays of eight Block 2 BlueBird satellites, and we are on target to complete 40 satellites equivalent of microns by early 2026 to support full voice, data, and video space-based cellular broadband services."

Abel added, "Following our recent announcement on L/S-Band spectrum access, we now have a path for premium spectrum on a global basis, which is uniquely valuable with our innovative technology backed by over 3,700 patent and patent pending claims to support up to 120 Mbps peak data rates per cell globally."

Business Update

Preparing to deploy nationwide intermittent service in the United States by the end of 2025, followed by the United Kingdom, Japan, and Canada in Q1 2026

Continued expectations for revenue of $50.0 million to $75.0 million in the second half 2025, from government and commercial customers Completed assembly of microns for phased arrays of eight Block 2 BlueBird satellites and expect to complete assembly of 40 satellites equivalent of microns by early 2026

Anticipating at least five orbital launches by end of Q1 2026, with orbital launches every one to two months on average to reach goal of 45 to 60 satellites launched during 2025 and 2026 FM1 is expected to be ready to ship in August 2025 with a mutually determined launch date thereafter, becoming AST SpaceMobile’s seventh satellite in orbit Company manufacturing footprint with 95% vertical integration to grow to over 400,000 square feet by end of 2025 across Texas, Europe and other locations globally, supported by a global workforce of over 1,200 people Expanded spectrum strategy with agreement to acquire 60 MHz of global S-Band spectrum priority rights, augmenting existing 3GPP cellular spectrum strategy and strengthening position within wireless ecosystem

S-Band spectrum access positions AST SpaceMobile to further grow subscriber capacity and bring additional services to targeted markets around the world Received Court approval for L-Band definitive documentation, providing AST SpaceMobile long-term access to up to 45 MHz of L-Band, premium lower mid-band spectrum, in the U.S. and Canada, subject to regulatory approvals Both S-Band and L-Band spectrum strategies further enable a true broadband experience directly from space to everyday smartphones, with up to 120 Mbps peak data speeds Advanced commercialization efforts with expansion of partnerships, derived from agreements with more than 50 mobile network operators globally, which have nearly 3.0 billion existing subscribers, while receiving additional U.S. Government contract awards

Vi partnership seeks to expand space-based mobile connectivity and solutions for consumer, enterprise, and IoT sectors in India, one of the world's largest telecom markets SatCo, the AST SpaceMobile and Vodafone jointly-owned European distribution entity, received expressions of interest from network operators in 21 of 27 EU member states for a sovereign direct-to-device mobile broadband satellite service Demonstrated first tactical non-terrestrial network (NTN) connectivity over standard mobile devices, with participation from multiple branches of U.S. armed forces under previously announced contract with the Defense Innovation Unit (DIU) Signed two additional early-stage contracts for the U.S. Government end customer, bringing the total to eight contracts to date with the U.S. Government as an end customer Over $1.5 billion in balance sheet cash, cash equivalents, and restricted cash (as of June 30, 2025), pro forma for convertible notes offering and sales under the now terminated ATM facility

Raised $575.0 million of gross proceeds from new 7-year convertible senior notes offering, with a 2.375% coupon and effective conversion price of $120.12 per share of Class A common stock Managed long-term capital structure with two repurchase transactions of the 4.25% convertible senior notes issued in January 2025, reducing that debt level to $100.0 million Secured $100.0 million equipment financing, to support growth from non-dilutive financial capital using equipment as collateral, with $25.0 million initially drawn Secured non-recourse, delayed draw term loan to fund $550 million of spectrum payments due upon FCC approval for long-term access to up to 45 MHz of L-Band spectrum Progressing through diligence and documentation phase for quasi-governmental funding with Export-Import Bank of the United States (EXIM) and International Finance Corporation (IFC)

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Second Quarter 2025 Financial Highlights

As of June 30, 2025, we had cash, cash equivalents, and restricted cash of $939.4 million. Total operating expenses for the second quarter of 2025 were $74.0 million, including $22.2 million of depreciation and amortization and stock-based compensation expense. This represents an increase of $10.3 million as compared to $63.7 million in the first quarter of 2025 due to a $8.9 million increase in general and administrative costs, a $1.4 million increase in engineering services costs, and a $0.8 million increase in depreciation and amortization expense, partially offset by a $0.8 million decrease in research and development costs Adjusted operating expenses(1) for the second quarter of 2025 were $51.7 million, an increase of $6.8 million as compared to $44.9 million in the first quarter of 2025, due to a $5.5 million increase in Adjusted general and administrative costs(1) and a $2.1 million increase in Adjusted engineering services costs(1), partially offset by a decrease of $0.8 million in research and development costs As of June 30, 2025, we had incurred approximately $906.9 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of $145.3 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, August 11, 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 and Form 10-Q filed with the SEC on May 12, 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 and Form 10-Q filed with the SEC on May 12, 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.

Second Quarter 2025 Financial Results

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands, except share data)   As of  June 30, 2025   December 31, 2024   ASSETS  Current assets:  Cash and cash equivalents  $ 923,647   $ 564,988  Restricted cash   15,753    2,546  Prepaid expenses   10,233    7,887  Other current assets   23,591    24,825  Total current assets   973,224    600,246   Non-current assets:  Property and equipment, net   761,606    337,669  Operating lease right-of-use assets, net   15,037    14,014  Other non-current assets   131,495    2,632  TOTAL ASSETS  $ 1,881,362   $ 954,561   LIABILITIES AND STOCKHOLDERS' EQUITY  Current liabilities:  Accounts payable  $ 22,703   $ 17,004  Accrued expenses and other current liabilities   42,735    12,195  Contract liabilities   43,054    41,968  Current operating lease liabilities   2,208    1,856  Current portion of long-term debt   7,616    2,919  Total current liabilities   118,316    75,942   Non-current liabilities:  Warrant liabilities   109,485    41,248  Non-current operating lease liabilities   13,277    12,652  Long-term debt, net   482,534    155,573  Total liabilities   723,612    285,415   Commitments and contingencies   Stockholders' Equity:  Class A Common Stock, $.0001 par value; 800,000,000 shares authorized; 250,511,819 and 208,173,198 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively.   24    20  Class B Common Stock, $.0001 par value; 200,000,000 shares authorized; 11,227,292 shares issued and outstanding as of June 30, 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 June 30, 2025 and December 31, 2024, respectively.   8    8  Additional paid-in capital   1,501,070    969,004  Accumulated other comprehensive income (loss)   1,108    (176 ) Accumulated deficit   (634,845 )   (489,745 ) Noncontrolling interest   290,381    190,031  Total stockholders' equity   1,157,750    669,146   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 1,881,362   $ 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 June 30,   For The Six Months

Ended June 30,  2025   2024   2025   2024   Revenues  $ 1,156   $ 900   $ 1,874   $ 1,400   Operating expenses:  Engineering services costs   28,598    21,202    55,802    40,719  General and administrative costs   27,242    17,839    45,626    30,126  Research and development costs   6,393    4,460    13,528    8,711  Depreciation and amortization   11,720    20,392    22,678    40,336  Total operating expenses   73,953    63,893    137,634    119,892   Other income (expense):  Loss on remeasurement of warrant liabilities   (65,032 )   (66,140 )   (68,238 )   (47,926 ) Interest expense   (5,657 )   (4,936 )   (10,393 )   (9,332 ) Interest income   8,017    2,698    16,213    4,872  Other income (expense), net   308    252    (443 )   250  Total other income (expense), net   (62,364 )   (68,126 )   (62,861 )   (52,136 )  Loss before income tax expense   (135,161 )   (131,119 )   (198,621 )   (170,628 ) Income tax expense   (742 )   (231 )   (910 )   (526 ) Net loss before allocation to noncontrolling interest   (135,903 )   (131,350 )   (199,531 )   (171,154 )  Net loss attributable to noncontrolling interest   (36,509 )   (58,800 )   (54,431 )   (78,874 ) Net loss attributable to common stockholders  $ (99,394 )  $ (72,550 )  $ (145,100 )  $ (92,280 ) Net loss per share attributable to holders of Class A Common Stock  Basic and diluted  $ (0.41 )  $ (0.51 )  $ (0.62 )  $ (0.70 ) Weighted-average number of shares  Basic and diluted   241,985,507    141,185,500    233,101,209    131,316,319

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

(Dollars in thousands)  For The Three Months

Ended June 30,   For The Six Months

Ended June 30,  2025   2024   2025   2024   Net loss before allocation to noncontrolling interest  $ (135,903 )  $ (131,350 )  $ (199,531 )  $ (171,154 ) Other comprehensive loss  Foreign currency translation adjustments   1,396    (123 )   1,777    (339 ) Total other comprehensive income (loss)   1,396    (123 )   1,777    (339 ) Total comprehensive loss before allocation to noncontrolling interest   (134,507 )   (131,473 )   (197,754 )   (171,493 ) Comprehensive loss attributable to noncontrolling interest   (36,123 )   (58,854 )   (53,938 )   (79,038 ) Comprehensive loss attributable to common stockholders  $ (98,384 )  $ (72,619 )  $ (143,816 )  $ (92,455 )

AST SPACEMOBILE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)  For The Six Months

Ended June 30,  2025   2024   Cash flows from operating activities:  Net loss before allocation to noncontrolling interest   $ (199,531 )  $ (171,154 ) Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities:  Depreciation and amortization    22,678    40,336  Amortization of debt issuance costs    721    1,901  Loss on disposal of property and equipment    -    2,221  Loss on remeasurement of warrant liabilities    68,238    47,926  Stock-based compensation    18,351    13,807  Paid-in-kind ("PIK") interest expense    497    2,959  Changes in operating assets and liabilities:  Prepaid expenses and other current assets    (1,982 )   (10,128 ) Accounts payable and accrued expenses    20,675    (14,873 ) Operating lease right-of-use assets and operating lease liabilities    (59 )   (21 ) Contract liabilities    1,086    21,780  Other assets and liabilities    (2,698 )   972  Net cash used in operating activities    (72,024 )   (64,274 )  Cash flows from investing activities:  Purchase of property and equipment    (430,622 )   (61,770 ) Net cash used in investing activities    (430,622 )   (61,770 )  Cash flows from financing activities:  Proceeds from debt    473,498    145,000  Repayments of debt    (926 )   (124 ) Payment for debt issuance costs    (6,516 )   (5,162 ) Proceeds from issuance of common stock    462,776    189,921  Payments for third party equity issuance costs    (9,843 )   (2,757 ) Issuance of equity under employee stock plan    7,193    105  Employee taxes paid for stock-based compensation awards    (6,027 )   (1,240 ) Purchase of capped call transactions    (44,528 )   -  Net cash provided by financing activities    875,627    325,743   Effect of exchange rate changes on cash, cash equivalents and restricted cash    (1,115 )   (229 )  Net increase in cash, cash equivalents and restricted cash    371,866    199,470  Cash, cash equivalents and restricted cash, beginning of period    567,534    88,097  Cash, cash equivalents and restricted cash, end of period   $ 939,400   $ 287,567   Supplemental disclosure of cash flow information:  Non-cash activities:  Right-of-use assets obtained in exchange for operating lease liabilities   $ 1,505   $ -  Non-cash investing and financing activities:  Purchases of property and equipment in accounts payable and accrued expenses   $ 22,155   $ 8,073  PIK interest paid through issuance of PIK notes    497    2,959  Deferred asset acquisition costs paid by issuance of penny warrants    121,156    -  2034 Convertible Notes settled by issuance of Class A Common Stock    139,620    -  Cash paid for:  Interest   $ 813   $ 4,422  Income taxes, net    1,323    902

AST SPACEMOBILE, INC.

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

(Dollars in thousands)  For the Three Months Ended June 30, 2025  GAAP Reported   Stock-Based Compensation Expense   Adjusted  Engineering services costs  $ 28,598   $ (3,341 )  $ 25,257  General and administrative costs   27,242    (7,184 )   20,058  Research and development costs   6,393       6,393  Depreciation and amortization   11,720       11,720  Total operating expenses  $ 73,953   $ (10,525 )  $ 63,428  Less: Depreciation and amortization         (11,720 ) Adjusted operating expenses        $ 51,708

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

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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