AST SpaceMobile (ASTS) Q2 FY26 earnings call: guidance and Q&A

When can investors expect meaningful government revenue, and can you elaborate on the constellation's radar capabilities?

Government revenue is scaling up, with over $100 million in recent contract awards. The opportunity is expected to become a recurring multi-billion dollar per year opportunity starting in 2027. Radar applications leverage the large phased array and sensitivity of the satellites, using government spectrum in the lower bands, and are already built and in orbit.

“this opportunity is going to start scaling up into a recurring multibillion dollar a year opportunity starting in 2027.”

asked by David from New Jersey · answered by Scott Wisniewski

How does AST SpaceMobile's ownership of spectrum assets affect the company?

Spectrum is like fuel for the business, and combined with the large phased array and intellectual property, it enables efficient utilization. This allows for scaling into new applications, multiplying the total addressable market beyond direct-to-device. AST SpaceMobile was the first direct-to-device operator to own spectrum and has the largest combined spectrum access.

“So ownership of spectrum is super strategic for us. We were the first company in direct-to-device that started this trend of direct-to-device operators to own spectrum.”

asked by Lydon from New Zealand · answered by Abel Avellan

What are the demand drivers for the 400,000 square feet manufacturing expansion in Texas, and what is the target BlueBird production rate per month?

The company is currently producing 6 satellites per month and aims to expand this to supply enough capacity for government and non-government applications. The additional manufacturing space will support producing even larger satellites for communications, radar, GPS, AI, cloud computing, and IoT, extending capabilities to close to 1 million square feet.

“Well, we're currently getting to 6 per month. We want to expand that in order to be able to supply enough capacity for our government and nongovernment applications.”

asked by Kevin from Vancouver · answered by Abel Avellan

What made AST SpaceMobile stand out in the competitive Rakuten JV process, and what is the government portion of the $1.3 billion backlog?

AST SpaceMobile is the only platform demonstrating broadband capability in operation, offers an architecture that keeps data and management on the ground for nations, and has a long-standing partnership with Rakuten. The government portion of the $1.3 billion backlog is a minority, but it is expected to scale most significantly in the near term.

“But fundamentally, we have the only platform that can deliver broadband that is in operation and that has demonstrated the ability to basically deliver seamless connectivity between terrestrial and space on a scalable basis.”

asked by Gregory Pendy from Clear Street · answered by Abel Avellan

How many of the first 46 BlueBirds will have L-band or S-band, and how does the potential U.S. MNO JV affect agreements with AT&T, Verizon, and T-Mobile?

The current Microns (up to #46) are low-band systems, with mid-band capability starting production later this year for early 2027 launches. The U.S. MNO JV does not affect existing agreements and is seen as freeing up third and fourth customers, as AST SpaceMobile is carrier agnostic and aims to be available to all operators.

“Well, our existing agreements are not affected. And frankly, as we said when this was announced, the joint venture, frankly, frees up a third and fourth customer for us in the United States.”

asked by Michael Crawford from B. Riley Securities · answered by Scott Wisniewski

How should investors think about 2027 revenue, particularly commercial service revenue recognition with partial constellation deployment?

The company's goal of approaching $1 billion in revenue for the first full year of commercial service (2027) remains unchanged, with contributions from government, infrastructure, and ramping commercial service. Revenue recognition for commercial service will begin when the service launches, which the company is pushing for with as few as 45 satellites in orbit.

“So we still -- nothing's changed on our expectation and our goal of reaching -- approaching $1 billion of revenue in our first year of commercial service.”

asked by Colin Canfield from Cantor Fitzgerald · answered by Scott Wisniewski

How many launches are contracted for 2026-2027, and what is the current and trending build cost per satellite?

Ten launches are booked with two different providers, targeting a cadence of every month or two on average, aiming for 45 satellites by early 2027. The average capital cost per satellite for the 90-satellite constellation remains consistent at $21 million to $23 million, including launch and direct labor, with hopes to reduce costs over time.

“We have 10 launches booked with 2 different providers, and we're targeting a cadence of every month or 2 on average.”

asked by Michael Funk from Bank of America · answered by Scott Wisniewski

What operational steps are needed to tap into new markets like AI edge computing, and what are the funding needs?

All new opportunities leverage the existing architecture's power generation and antenna gain. AI compute capability is being integrated into satellites starting with BlueBird 47 and 48 later this year. IoT, radar, and emergency services are already part of the architecture. These are incremental opportunities utilizing existing intellectual property. The recent convertible debt offering provides sufficient funding for the foreseeable future.

“In AI compute, we are starting to add that capability into our satellites. We mentioned that we're on satellite 46 in production now. We're starting to add the compute capability on satellite 47, 48, so later in the year, we integrate it to our system.”

asked by Christopher Schoell from UBS · answered by Abel Avellan

Is C-band a reference design in the current ASIC, or will it require a Rev 2? Do different satellite designs (phased arrays) still needed for multiple bands?

C-band is already built into the ASIC architecture, and a third generation will include L-band, MSS, mid-band, and C-band. Different phased arrays are kept per block of spectrum (low-band, mid-band, and future C-band).

“Chris, no, we are working -- that C-band is already built into our ASIC architecture. And we're working on a third generation that will include both the L-band, MSS, mid-band and C-band.”

asked by Christopher Quilty from Quilty Analytics · answered by Abel Avellan