Highlights

  • Second quarter 2026 revenue reached $31.5 million versus $1.2 million, while the net loss to common stockholders was $230.9 million.
  • Operating expenses included a $125.9 million loss on involuntary conversion after the BB7 satellite was de-orbited.
  • Cash and restricted cash totaled about $2.7 billion, and a further convertible note offering was completed in July 2026.
  • Block 2 satellites BB8 to BB13 launched in June and August, and about 45 satellites are targeted for early 2027.

AST SpaceMobile (NASDAQ:ASTS) shares were trading near their 52-week low at USD 41.24 on October 21, 2026, up 0.28%. The satellite communications company reported second quarter 2026 results in a Form 10-Q filed on August 10, 2026, covering a satellite loss, new convertible debt and a larger launch campaign.

Based in Midland, Texas, AST SpaceMobile is a Delaware corporation building what it describes as a global cellular broadband network in space that connects directly to everyday smartphones. It plans to offer the SpaceMobile Service through mobile network operators using a revenue-sharing model, and it also pursues government applications of its satellite technology. The company reports one operating segment, calls itself early stage, and has not yet launched the SpaceMobile Service or earned revenue from it. Its fiscal year ends December 31.

Revenue Rises, Net Loss Widens

Revenue for the quarter ended June 30, 2026 was $31.5 million, compared with $1.2 million a year earlier. Products revenue, mainly gateway equipment and software sold to mobile network operators, was $24.4 million, and services revenue from U.S. government agreements was $7.1 million.

Operating expenses rose to $329.1 million from $74.0 million. The largest item was a $125.9 million loss on involuntary conversion, representing the BB7 write-off net of insurance recoveries. BB7 was placed in a lower than planned orbit on April 19, 2026 and de-orbited. The company has received insurance proceeds for part of the loss and expects a replacement launch under its launch contract. Engineering services costs climbed to $87.3 million, general and administrative costs to $63.9 million, and depreciation and amortization to $20.7 million.

The net loss before allocation to noncontrolling interest was $299.9 million, and the loss attributable to common stockholders was $230.9 million, or $0.77 per share, versus $99.4 million, or $0.41. For six months, the loss attributable to common stockholders was $421.9 million, or $1.43 per share. Interest expense rose to $26.1 million.

Funding, Spectrum and Legal Exposure

Cash, cash equivalents and restricted cash were about $2.7 billion at June 30, including $434.6 million of restricted cash. Six-month operating cash use was $145.2 million and investing outflows were $979.7 million, including a $100.0 million spectrum-related payment now held in escrow by court order. Financing provided $1,068.3 million. Management believes cash will cover the next 12 months and considers the company fully funded for roughly 90 satellites, but says it plans to raise more capital and that additional equity or convertible issuance could dilute stockholders.

In February 2026, it issued $1,075.0 million of 2.25% convertible notes due 2036 and, in July 2026, $1,150.0 million of 1.625% convertible notes due 2034. It repurchased about $296.5 million of 2032 convertible notes using proceeds from share offerings and ended its at-the-market program in March after selling 874,045 shares for $80.3 million in the first quarter.

The Ligado spectrum usage rights transaction, which would give access to up to 45 MHz of mid-band spectrum in the United States and Canada, still awaits regulatory approvals and other conditions. The filing notes that Inmarsat's pending appeal over its regulatory support obligations could impair approval if overturned. A $550.0 million Sound Point delayed-draw loan facility remains undrawn and available until October 5, 2026, with an option to extend, subject to funding conditions.

Launch Campaign and Outlook

The company launched its first Block 2 satellite, BB6, in December 2025, followed by BB8, BB9 and BB10 on June 17, 2026 and BB11, BB12 and BB13 on August 5. Management is targeting about 45 satellites in early 2027, with timing contingent on assembly, testing and launch availability. It plans limited service with 25 satellites, continuous coverage in key markets with roughly 45 to 60, and about 90 for broader coverage.

It estimates average capital costs of $21.0 million to $23.0 million per Block 2 satellite and reports capacity to assemble up to six per month. A $45.0 million prepayment from Verizon is now due after regulatory approvals received on April 22, 2026.