AST SpaceMobile reported $14.74 million in quarterly revenue, missing consensus estimates of $20.33 million by 27.5% due to delays in U.S. government contract milestones and gateway deliveries. Net losses reached $122.9 million, about $27 million worse than expected, reflecting accelerating operating expenses. Operating cash flow was negative $363.4 million for the quarter, annualizing to roughly $1.45 billion, while cash balances of $1.2 billion provide about ten months of runway. Operating expenses totaled $94.4 million, driven by engineering services and gateway delivery costs. ASTS secured $1 billion in contracted revenue and partnered with Vodafone to develop an EU constellation, targeting 45–60 satellites by end of 2026.
"What concerned me more was the loss depth. Net losses reached $122.9 million, compared to an expected loss of $94.9 million (implied from the EPS miss). That's a $27 million gap, and it signals operating expenses are accelerating faster than the company guided. Operating expenses hit $94.4 million, driven by higher engineering services and gateway delivery costs. Management flagged these as temporary deployment-phase expenses, but the magnitude warrants close monitoring."
"Operating cash flow deteriorated to negative $363.4 million for the quarter. That annualized burn rate of roughly $1.45 billion is substantial, even for a pre-revenue infrastructure company. The company maintains $1.2 billion in cash as of September 30, which provides roughly 10 months of runway at current burn rates. ASTS secured $1 billion in contracted revenue commitments, a meaningful milestone that validates demand for its space-based cellular broadband network."
Read at 24/7 Wall St.
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