AST SpaceMobile Inc Earnings - Q3 2025 Analysis & Highlights

Byline: AST SpaceMobile's Q3 2025 earnings call highlighted commercial momentum with Verizon and Saudi Telecom Group, manufacturing progress, a comprehensive spectrum strategy, and a strengthened financial position. Key discussion points included revenue commitments, satellite manufacturing and launch plans, spectrum strategy, and financial outlook.

Key Financial Results:

  • Q3 2025 revenue was $14.7 million, driven by gateway hardware sales and achievements in commercial and US government service milestones.
  • The company has secured over $1 billion in aggregate contracted revenue commitments from commercial partners.
  • Cash, cash equivalents, and restricted cash as of September 30, 2025, were approximately $3.2 billion, pro forma for recent financial transactions and available liquidity under the ATM facility.
  • Second half 2025 revenue is expected to be in the range of $50 million to $75 million.

    • Business Segment Results:

  • Approximately $15 million of recognized revenue was generated from US government contracts and delivery and installation of gateway equipment.
  • The company expects to book over $10 million of new gateway equipment sales per quarter on average.
  • Replenished the pipeline of gateway bookings with approximately $14 million in new gateway equipment sales during Q3.

    • Capital Allocation:

  • The company is funded from cash on hand to enable continued service in key strategic markets worldwide.
  • Capital expenditures for Q3 2025 were approximately $259 million.
  • The company estimates capital expenditures to increase slightly in Q4 2025 to a range of $275 million to $325 million.
  • The average capital costs, including direct materials and launch costs, for the constellation of over 90 Block 2 BlueBird satellites, will fall in the range of $21 million to $23 million per satellite.

    • Industry Trends and Dynamics:

  • The company is building the first and only global cellular broadband network in space to operate directly with everyday, unmodified mobile devices.
  • Space-based cellular broadband connectivity is an industry that AST SpaceMobile invented.
  • There are nearly six billion mobile phones in use today around the world, but many still experience gaps in coverage.
  • Billions of people lack cellular broadband and remain unconnected from the global economy.

    • Competitive Landscape:

  • AST SpaceMobile has built moats around multiple aspects of its business, including its extensive IP portfolio, satellite technology, partner ecosystem, comprehensive global spectrum strategy, and strong capital base.
  • The company has the largest and most diverse commercial partner ecosystem in the industry.
  • AST SpaceMobile owns and shares spectrum profiles, including access to 1,150 megahertz of low-band and mid-band tunable MNO spectrum globally.
  • The company has rights to access over 80 megahertz of fair and high-quality spectrum in the United States alone.

    • Growth Opportunities and Strategies:

  • The company is deepening its commercial ecosystem with customer partners.
  • AST SpaceMobile is advancing partners and ecosystem network integration as it progresses towards service activation in key partner markets.
  • The company is scaling manufacturing and launch operations.
  • The company intends to further deepen ties in Europe through the SatCo joint venture with Vodafone.
  • The company plans to deploy services next year with two of the major US mobile network operators, together with AT&T.

    • Financial Guidance and Outlook:

  • The company expects to continue scaled deployment efforts early next year, progressing to activation of an intermittent nationwide service by early 2026, and continued service later in 2026.
  • The company anticipates five orbital launches by the end of Q1 2026, with launches every one to two months on average, to reach its goal of 45 to 60 satellites launched by the end of 2026.
  • The company believes it can enable continuous SpaceMobile service across key markets with the launch and operation of approximately 45 to 60 BlueBird satellites.
  • The company is reiterating its belief that it has a revenue opportunity for 2025 in the range of $50 million to $75 million.

    • Manufacturing and Launch:

  • BlueBird 8 to 19 are in various stages of production, and the company is on schedule to complete 40 satellite equivalents by early 2026, bringing the total to BlueBird 46.
  • The company expects to exit calendar 2025 at a manufacturing cadence of six satellites per month.
  • BlueBird 6 has been shipped to its launch site in India, with launch expected in the first half of December.
  • BlueBird 7 is expected to ship to Cape Canaveral later this month, with launch anticipated shortly thereafter.
  • The company anticipates its noble ASIC chip will be integrated into its Block 2 BlueBird satellite during Q1 2026, enabling peak data transmission speeds of up to 120 megabytes per second.

    • Spectrum Strategy:

  • AST SpaceMobile owns and shares spectrum profiles, including access to 1,150 megahertz of low-band and mid-band tunable MNO spectrum globally.
  • The company has developed its comprehensive spectrum strategy by balancing cost and disciplined capital allocation.
  • The company's robust portfolio of spectrum creates a durable competitive advantage for AST SpaceMobile.