0001193125-26-216950
SEC filingAST SpaceMobile's revenue grew 20x YoY driven by gateway equipment sales, but net loss widened to $191M due to surging operating expenses and $89.8M induced conversion expense.
For the three months ended March 31, 2026, AST SpaceMobile reported total revenues of $14.7 million, a dramatic increase from $0.7 million in the prior-year period, driven by initial sales of gateway equipment and software to mobile network operators (MNOs) ($13.4 million) and revenue from government service contracts ($1.3 million). However, the company remains pre-revenue from its core SpaceMobile service, with no material commercial service yet launched.
Operating expenses escalated sharply to $164.1 million from $63.7 million, reflecting the company's intensive investment in satellite production, headcount growth, and regulatory activities. Engineering services costs rose $56.9 million to $84.1 million, primarily due to increased payroll and stock-based compensation. General and administrative costs increased $25.3 million to $43.7 million, driven by legal expenses related to the Ligado spectrum transaction. Research and development costs were flat at $7.1 million. Depreciation increased 61% to $17.6 million due to satellite and equipment depreciation.
The net loss attributable to common stockholders widened to $191.0 million from $45.7 million, impacted by a $89.8 million induced conversion expense from repurchases of convertible notes, higher interest expense ($24.3 million vs. $4.7 million) from new debt, and $1.2 million loss on warrant remeasurement. Interest income rose to $27.0 million due to higher cash balances.
The company operates as a single segment, but disaggregates revenue into products and services. Products revenue ($13.4 million) surged from $0.4 million as MNOs purchased gateway equipment for commercial readiness. Services revenue ($1.3 million) grew from $0.3 million, driven by completion of U.S. government performance obligations. Both segments are in early stages and not yet generating sufficient scale to cover operating costs.
Management expects to initiate limited, noncontinuous SpaceMobile Service in select markets (U.S., Europe, Japan) in 2026, leveraging its growing satellite constellation. The company targets approximately 45 Block 2 BB satellites launched by year-end 2026, including the replacement for the lost BB7 satellite. A definitive commercial agreement with Verizon is in place, and a $45 million prepayment is due pending regulatory clearances. The Ligado spectrum transaction (providing up to 45 MHz of L-band spectrum) remains subject to regulatory approval, with a $550 million non-recourse credit facility available to fund payments. Management believes existing cash of $3.46 billion is sufficient for the next 12 months and fully funds the planned ~90 BB satellite constellation. Key risks include satellite manufacturing and launch delays, regulatory approvals, and the ability to convert backlog into revenue.