By William Gavin
Investors had been excited early Monday about speed breakthroughs at the satellite company. But the after-hours earnings report showed a sizable revenue miss.
AST SpaceMobile shares have more than tripled in a year.
AST SpaceMobile's had been riding high on investor optimism about the company's satellite speeds, but now they're on track to give back a good portion of those gains back.
Although the satellite company maintained its full-year guidance of revenue between $150 million and $200 million, AST SpaceMobile (ASTS) posted first-quarter revenue well below expectations. It generated just $14.7 million in the March quarter, compared to the $39 million forecast by Wall Street, according to FactSet.
That's against a net loss of $191 million attributable to shareholders, compared to a $45.7 million loss in the first quarter of 2025 and the $86.8 million expected by analysts, according to FactSet.
AST SpaceMobile posted a loss per share of 66 cents, a steeper loss than the 20 cents a share it reported in the year-ago quarter. Analysts had expected a loss of 24 cents a share, according to FactSet.
AST SpaceMobile has $3.5 billion in cash and cash equivalents as of March 31.
The results disappointed investors. AST SpaceMobile shares fell by more than 9% in Monday's extended session. They had risen 10% in the regular session.
AST SpaceMobile and its stock have exploded in popularity over the last few years as investors have rallied around a bullish view of the company's future. Shares have tripled over the last 12 months, which coupled with the company's financial performance, have led some to label AST SpaceMobile as a meme stock.
The satellite company plans to offer what it calls the &#34;first and only space-based cellular broadband network&#34; for consumer and commercial applications. AST SpaceMobile has made some progress on that front, inking deals with dozens of mobile network operators and successfully launching seven satellites to orbit.
The company said Monday that its older Block 1 BlueBird satellites are capable of providing a peak download speed of 98.9 megabits per second. It added that its next-generation satellites should nearly double that speed.
See more: The 'SpaceX mafia' is here. Elon Musk's big IPO could launch a constellation of new companies.
Currently, AST SpaceMobile's revenue is driven by its work with the U.S. government and deliveries of its gateway ground stations. It aims to begin commercial services in the second half of this year.
Between 45 and 60 satellites will be needed to enable continuous satellite-internet coverage across its target markets, including the U.S. and Japan, according to the company. On Monday, the company reaffirmed its plans to launch 45 satellites by the end of the year.
To get there, AST SpaceMobile plans to launch its satellites on several rockets this year. In a statement, CEO Abel Avellan said three satellites are set to be launched to orbit in mid-June, while more than 20 additional spacecraft are in production.
The company will need to rely on a few launch partners, including Blue Origin and SpaceX. Blue Origin expects to carry up to eight satellites to orbit at a time, though it failed to send the BlueBird 7 satellite to the proper orbit last month.
Read more: Rocket Lab's stock rises upon new signs its business is expanding rapidly
Executing on its 2026 launch plans is crucial for AST SpaceMobile, according to Deutsche Bank analyst Edison Yu, who said in a note last month that the company's stock performance will be based on whether the company can stick to its plans and launch commercial operations by the first half of 2027.
&#34;Failure to accelerate the launch cadence during 2026 will sow doubt inthe minds of investors and raise concerns that ASTS' [mobile network operator] partners might not stick with the company,&#34; Yu wrote. He rates the stock at buy.
If the company can keep to its schedule, it could carve out a &#34;healthy share&#34; of the direct-to-device market, Yu said. But competition will likely be stiff.
SpaceX's Starlink has been offering satellite-internet services for years and has more than 10,000 satellites in orbit. Amazon (AMZN) is, like AST SpaceMobile, still developing its Leo business but recently announced a deal to acquire Globalstar (GSAT), which would give it additional satellites and spectrum licenses.
See more: How the Globalstar purchase could turn Amazon's Leo into a satellite powerhouse
-William Gavin
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(END) Dow Jones Newswires
05-11-26 1732ET

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ASTS

AST SpaceMobile's stock fell over 9% after disappointing earnings, reporting first-quarter revenue of $14.7 million, significantly below the $39 million forecast. The company also posted a net loss of $191 million, exceeding analyst expectations. Despite maintaining its full-year revenue guidance of $150-$200 million, investor optimism waned as the stock, which had tripled in the past year, faced challenges. AST SpaceMobile aims to launch 45 satellites by year-end to support its satellite-internet services, but competition from established players like SpaceX and Amazon looms large.

AST SpaceMobile's stock drops as earnings come with a big disappointment