AST SpaceMobile Provides Business Update and First Quarter 2026 Results

Network deployment continues with next orbital launch in mid-June with BlueBird 8, BlueBird 9 and BlueBird 10 on a Falcon 9 launch vehicle Vertical integration reaching scale with BlueBird 11 through BlueBird 33 in advanced stages of production and assembly Achieved 98.9 Mbps peak data speeds using in-orbit Block 1 BlueBird satellite over international waters FCC authorizes commercial SpaceMobile Service in the United States with grant of Supplemental Coverage from Space for direct-to-device broadband connectivity MIDLAND, Texas--(BUSINESS WIRE)-- AST SpaceMobile, Inc. ( ASTS ) (“AST SpaceMobile”) , 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, 2026. “AST SpaceMobile is accelerating manufacturing, regulatory progress, commercial partnerships, and government programs, furthering our position as the only technology positioned to capture the massive direct to device broadband opportunity in full,” commented Abel Avellan, AST SpaceMobile’s Chairman and Chief Executive Officer. “BlueBird 8, BlueBird 9, and BlueBird 10 will be launched into low Earth orbit in mid-June, and we are in advanced stages of production and assembly of BlueBird 11 through BlueBird 33. “Our network deployment for 2026 is targeting approximately 45 satellites in orbit, supported by our manufacturing cadence and multi-partner launch strategy,” added Avellan. “We have a robust global spectrum portfolio, the industry’s largest global commercial ecosystem, and a fortress balance sheet, positioning us for success as we create the space-based cellular broadband market.” Business Update Network deployment targeting approximately 45 BlueBird satellites in orbit during 2026, supported by our manufacturing cadence and agreements with multiple launch providers, including Blue Origin, SpaceX, and others BlueBird 8, BlueBird 9, and BlueBird 10 on track for delivery to Cape Canaveral and an expected orbital launch in mid-June on a Falcon 9 launch vehicle Vertically integrated production, supported by over 500,000 sq ft of manufacturing and operations space, is reaching scale with BlueBird 11 through BlueBird 33 in advanced stages of production and assembly and phased arrays completed through BlueBird 28 BlueBird 6 continues to operate as expected following successful deployment of the largest-ever phased array in low Earth orbit Continued momentum of network deployment and commercialization efforts across partner ecosystem ahead of scaled commercial service activation, beginning with scaled ground integration efforts in the United States, Canada, United Kingdom, India, Brazil, Spain, Germany, France, Romania, Saudi Arabia, Japan, New Zealand, the Philippines, Cote d’Ivoire, Kenya, Nigeria, and Senegal, targeting a combined population of 2.9 billion people FCC grant of Supplemental Coverage from Space authorizes provision of commercial SpaceMobile Service in the United States for direct-to-device broadband connectivity leveraging a network of up to 248 satellites Commercial partner ecosystem continues to expand through agreements with Telus in Canada in addition to existing partner Bell Canada and Axian Telecom in Africa, in addition to existing partners Vodacom, Orange and MTN – totaling nearly 60 global mobile network operator partners who cover over 3 billion subscribers New record achieved with 98.9 Mbps peak data speeds from in-orbit Block 1 BlueBird satellite directly to an unmodified smartphone over international waters Block 2 BlueBird satellite in orbit today is expected to nearly double the peak data speeds recently achieved using our on-orbit Block 1 BlueBird satellites Developing AI edge computing and AI spectrum management features for on-orbit capabilities, with BlueBird integration targeted by year-end On track to achieve full year 2026 revenue guidance of $150.0 million to $200.0 million, primarily driven by mobile network partners and the U.S. Government First quarter revenue was $14.7 million, consistent with plans for quarterly revenue ramp during 2026 Approximately half of the full year 2026 revenue guidance is expected to be achieved from existing contracted revenue backlog Won three new awards since March 2026 with the U.S. Government through prime contractors, as a result of successful on-orbit milestone activities Company has the key assets – intellectual property, partnerships, balance sheet cash, access to shared MNO and MSS spectrum, over 500,000 square feet of manufacturing and operations space globally – to build and launch over 100 BlueBird satellites to enable global coverage of SpaceMobile Service Dedicated micron production facility in Texas is now fully operational, with capacity to support over 10 satellites’ worth of microns per month Innovative technology backed by shared MNO spectrum, controlled MSS spectrum, and IP with approximately 3,900 patent and patent pending claims Robust balance sheet with approximately $3.5 billion in cash, cash equivalents, and restricted cash as of March 31, 2026 First Quarter 2026 Financial Highlights First quarter revenue of $14.7 million driven by gateway deliveries and U.S. Government milestones met Total operating expenses for the first quarter of 2026 were $164.1 million, including $73.0 million of depreciation and amortization and stock-based compensation expense. This represents an increase of $37.5 million as compared to $126.6 million in the fourth quarter of 2025 due to a $37.9 million increase in engineering services costs, a $17.4 million increase in general and administrative costs, and a $1.9 million increase in depreciation and amortization expense, partially offset by a $17.8 million decrease in cost of revenues mainly attributable to decreased volume of gateway deliveries and a $1.9 million decrease in research and development costs Adjusted operating expenses(1) for the first quarter of 2026 were $91.2 million, a decrease of $4.5 million as compared to $95.7 million in the fourth quarter of 2025 due to a $17.6 million decrease in Adjusted cost of revenues(1) and a $1.9 million decrease in research and development costs, partially offset by a $9.2 million increase in Adjusted engineering services costs(1) and a $5.8 million increase in Adjusted general and administrative costs(1). Our Adjusted operating expenses, excluding Adjusted cost of revenues(1) for the first quarter of 2026 was $79.8 million, compared to $66.8 million in the fourth quarter of 2025 As of March 31, 2026, we had cash, cash equivalents, and restricted cash of approximately $3.5 billion As of March 31, 2026, we had incurred approximately $1.8 billion of gross capitalized property and equipment costs and accumulated depreciation and amortization of $191.0 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 “Non-GAAP Financial Measures” below for additional information. See reconciliation of Adjusted operating expenses to Total operating expenses; Adjusted cost of revenues to Cost of revenues; Adjusted engineering services costs to Engineering services costs; Adjusted general and administrative costs to General and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues to Total operating expenses 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 cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues. 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 ( ASTS ) will hold a quarterly business update conference call at 5:00 p.m. (Eastern Time) on Monday, May 11, 2026. 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 ( ASTS ) AST SpaceMobile ( ASTS ) 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 ( ASTS ) 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 ( ASTS ) 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 ( ASTS ) 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 ( ASTS ) 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 ( ASTS ); 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 2, 2026. AST SpaceMobile ( ASTS ) cautions that the foregoing list of factors is not exclusive. AST SpaceMobile ( ASTS ) 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 2, 2026. 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 ( ASTS ) 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 2026 Financial Results AST SPACEMOBILE, INC. ( ASTS ) CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands, except share data) As of March 31, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 3,029,591 $ 2,335,683 Restricted cash 873 877 Accounts receivable, net (includes related party accounts receivable of $10,095 and $2,091 at March 31, 2026 and December 31, 2025, respectively) 27,453 37,726 Inventory 16,756 12,007 Prepaid expenses 10,673 11,955 Other current assets 67,253 60,264 Total current assets 3,152,599 2,458,512 Non-current assets: Restricted cash 428,400 443,400 Property and equipment, net 1,638,262 1,398,761 Intangible assets, net 267,693 245,093 Operating lease right-of-use assets, net 19,316 19,420 Other non-current assets (includes related party loan receivable of $18,481 and $18,187 at March 31, 2026 and December 31, 2025, respectively) 544,871 449,201 TOTAL ASSETS $ 6,051,141 $ 5,014,387 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 60,850 $ 46,763 Accrued expenses and other current liabilities 72,715 69,246 Current contract liabilities 25,861 19,887 Current operating lease liabilities 3,038 2,449 Current portion of long-term debt 8,236 11,999 Total current liabilities 170,700 150,344 Non-current liabilities: Warrant liabilities - 7,471 Non-current operating lease liabilities 16,838 17,479 Non-current contract liabilities 207,093 207,093 Long-term debt, net 2,963,296 2,207,583 Other non-current liabilities 32,386 32,092 Total liabilities 3,390,313 2,622,062 Commitments and contingencies Stockholders' Equity: Class A Common Stock, $.0001 par value; 800,000,000 shares authorized; 298,454,029 and 285,449,911 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. 27 27 Class B Common Stock, $.0001 par value; 200,000,000 shares authorized; 11,215,111 and 11,227,292 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. 3 4 Class C Common Stock, $.0001 par value; 125,000,000 shares authorized; 78,163,078 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively. 8 8 Additional paid-in capital 3,100,929 2,671,770 Accumulated other comprehensive income 1,105 1,351 Accumulated deficit (1,022,697 ) (831,685 ) Noncontrolling interest 581,453 550,850 Total stockholders' equity 2,660,828 2,392,325 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 6,051,141 $ 5,014,387 AST SPACEMOBILE, INC. ( ASTS ) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data) For the Three Months ended March 31, 2026 2025 Revenues: Products revenues (includes related party revenues of $7,852 and $0 for the three months ended March 31, 2026 and 2025, respectively) $ 13,406 $ 375 Services revenues 1,329 343 Total revenues 14,735 718 Operating expenses: Cost of revenues (exclusive of items shown separately below) Cost of revenues - products (includes related party cost of revenues of $4,870 and $0 for the three months ended March 31, 2026 and 2025, respectively) 11,063 - Cost of revenues - services 586 - Engineering services costs 84,097 27,204 General and administrative costs 43,657 18,384 Research and development costs 7,129 7,135 Depreciation and amortization 17,615 10,958 Total operating expenses 164,147 63,681 Other (expense) income: Loss on remeasurement of warrant liabilities (1,174 ) (3,206 ) Interest expense (24,278 ) (4,736 ) Interest income 26,998 8,196 Other (expense) income, net (100,546 ) (751 ) Total other (expense) income, net (99,000 ) (497 ) Loss before income tax expense (248,412 ) (63,460 ) Income tax expense (1,169 ) (168 ) Net loss before allocation to noncontrolling interest (249,581 ) (63,628 ) Net loss attributable to noncontrolling interest (58,569 ) (17,922 ) Net loss attributable to common stockholders $ (191,012 ) $ (45,706 ) Net loss per share attributable to holders of Class A Common Stock Basic and diluted $ (0.66 ) $ (0.20 ) Weighted-average number of shares Basic and diluted 290,689,457 223,974,396 AST SPACEMOBILE, INC. ( ASTS ) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (Dollars in thousands) For the Three Months ended March 31, 2026 2025 Net loss before allocation to noncontrolling interest $ (249,581 ) $ (63,628 ) Other comprehensive (loss) income Foreign currency translation adjustments (368 ) 382 Total other comprehensive (loss) income (368 ) 382 Total comprehensive loss before allocation to noncontrolling interest (249,949 ) (63,246 ) Comprehensive loss attributable to noncontrolling interest (58,691 ) (17,814 ) Comprehensive loss attributable to common stockholders $ (191,258 ) $ (45,432 ) AST SPACEMOBILE, INC. ( ASTS ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) For the Three Months ended March 31, 2026 2025 Cash flows from operating activities: Net loss before allocation to noncontrolling interest $ (249,581 ) $ (63,628 ) Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities: Depreciation and amortization 17,615 10,958 Amortization of debt issuance costs 2,046 309 Amortization of debt commitment fee 2,200 - Write off of unamortized debt issuance costs 63 - Loss on disposal of property and equipment 1,842 - Induced conversion expense on convertible notes 88,654 - Loss on remeasurement of warrant liabilities 1,174 3,206 Stock-based compensation 55,353 7,826 Non-cash interest expense 698 497 Non-cash interest income (301 ) - Loss from equity method investment 4,908 - Changes in operating assets and liabilities: Accounts receivable 10,273 1,275 Prepaid expenses and other current assets (5,816 ) 9,345 Inventory (4,749 ) (9 ) Accounts payable and accrued expenses 24,048 715 Contract liabilities 5,974 (210 ) Other assets and liabilities (2,459 ) 1,170 Net cash used in operating activities (48,058 ) (28,546 ) Cash flows from investing activities: Purchase of property and equipment (261,599 ) (120,456 ) Capital advances to Ligado (100,000 ) - Purchase of spectrum intangibles (17,664 ) - Net cash used in investing activities (379,263 ) (120,456 ) Cash flows from financing activities: Proceeds from debt 1,060,608 449,248 Repayments of debt (18,213 ) (65 ) Payment for debt issuance costs (3,070 ) (6,400 ) Proceeds from issuance of common stock 80,723 56,265 Payments for third party equity issuance costs (458 ) (1,463 ) Issuance of equity under employee stock plan 2,499 4,181 Employee taxes paid for stock-based compensation awards (20,070 ) (1,373 ) Purchase of capped call transactions - (44,528 ) Proceeds from share issuances to repurchase 2032 4.25% Convertible Notes 180,537 - Payments for repurchase of 2032 4.25% Convertible Notes (180,537 ) - Proceeds from share issuances to repurchase 2032 2.375% Convertible Notes 433,739 - Payments for repurchase of 2032 2.375% Convertible Notes (430,424 ) - Net cash provided by financing activities 1,105,334 455,865 Effect of exchange rate changes on cash, cash equivalents and restricted cash 891 61 Net increase in cash, cash equivalents and restricted cash 678,904 306,924 Cash, cash equivalents and restricted cash, beginning of period 2,779,960 567,534 Cash, cash equivalents and restricted cash, end of period $ 3,458,864 $ 874,458 Supplemental disclosure of cash flow information: Non-cash activities Right-of-use assets obtained in exchange for operating lease liabilities $ 310 $ - Non-cash investing and financing activities: Purchases of property and equipment in accounts payable and accrued expenses $ 55,161 $ 12,906 PIK interest paid through issuance of PIK notes - 497 Convertible notes settled by issuance of Class A Common Stock - 139,620 Spectrum intangibles acquisition costs accrued or paid by issuance of shares 10,575 - Settlement of warrant liabilities by issuing shares 8,645 - Cash paid for: Interest $ 10,650 $ 3,887 Income taxes, net 1,016 700 AST SPACEMOBILE, INC. ( ASTS ) RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED MEASURES (UNAUDITED) (Dollars in thousands) For the Three Months Ended March 31, 2026 GAAP Reported Stock-Based Compensation Expense Adjusted Cost of revenues (exclusive of items shown below) $ 11,649 $ (266 ) $ 11,383 Engineering services costs 84,097 $ (39,209 ) 44,888 General and administrative costs 43,657 (15,878 ) 27,779 Research and development costs 7,129 7,129 Depreciation and amortization 17,615 17,615 Total operating expenses $ 164,147 $ (55,353 ) $ 108,794 Less: Depreciation and amortization (17,615 ) Adjusted operating expenses 91,179 Less: Adjusted cost of revenues (11,383 ) Adjusted operating expenses, excluding Adjusted cost of revenues $ 79,796 For the Three Months Ended December 31, 2025 GAAP Reported Stock-Based Compensation Expense Adjusted Cost of revenues (exclusive of items shown below) $ 29,413 $ (459 ) $ 28,954 Engineering services costs 46,164 (10,428 ) 35,736 General and administrative costs 26,231 (4,265 ) 21,966 Research and development costs 9,057 9,057 Depreciation and amortization 15,717 15,717 Total operating expenses $ 126,582 $ (15,152 ) $ 111,430 Less: Depreciation and amortization (15,717 ) Adjusted operating expenses 95,713 Less: Adjusted cost of revenues (28,954 ) Adjusted operating expenses, excluding Adjusted cost of revenues $ 66,759 Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues 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 expenses as Total operating expenses adjusted to exclude amounts of stock-based compensation expense and depreciation and amortization expense. We define Adjusted cost of revenues, Adjusted engineering services costs, and Adjusted general and administrative costs, as cost of revenues, engineering services costs, and general and administrative costs, respectively, adjusted to exclude stock-based compensation expenses. We define Adjusted operating expenses, excluding Adjusted cost of revenues as Total operating expenses adjusted to exclude amounts of stock-based compensation expense, depreciation and amortization expense, and Adjusted cost of revenues. We believe Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues 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 cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues 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, Cost of revenues, Engineering services costs, and General and administrative costs. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511685431/en/ Source: AST SpaceMobile, Inc. ( ASTS )