AST SpaceMobile (ASTS) Q3 2026 Earnings Call Transcript

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DATE

Monday, Nov. 9, 2026

CALL PARTICIPANTS

• Investor Relations Manager – Maxwell Colbert
• Chairman and Chief Executive Officer – Abel Avellan
• President – Scott Wisniewski
• Chief Financial Officer and Chief Legal Officer – Andrew Johnson

TAKEAWAYS

• Revenue — $42.3 million in the third quarter, driven by commercial gateway deliveries and the achievement of United States government service milestones.
• Full Year Revenue Guidance — $150 million to $200 million for 2026, with management indicating potential upside depending on the timing of fourth-quarter milestones.
• Cash Position — $3.2 billion in cash, cash equivalents, and restricted cash as of Sept. 30, 2026, which includes proceeds from a $1.15 billion convertible notes offering.
• Production Rate — 6 ASIC satellites per month target for December 2026, as the company scales manufacturing through BlueBird 51 at its Midland facilities.
• Processing Bandwidth — 10-fold improvement (10x) for the next-generation ASIC compared to Block 1 BlueBirds, increasing processing power to 10 gigahertz.
• Satellite Deployment Plan — 45 BlueBird satellites targeted for orbit by mid-2027, with total agreements covering more than 100 satellites for deployment between 2027 and 2028.
• J-LEO Funding — $1 billion in non-dilutive subsidies secured from the Japan Ministry of Internal Affairs and Communications for mid-band satellite manufacturing and launch.
• Government Contract Awards — $100 million contract from the U.S. Space Force for advanced space-based sensing capabilities, representing the company’s 16th government award.
• Capital Expenditures — $310 million in the third quarter, which fell below the guided range of $350 million to $425 million due to shifts in the timing of launch payments.
• Fourth Quarter CapEx Guidance — $400 million to $500 million, reflecting increased satellite production and active orbital launch plans.
• Adjusted Operating Expenses — $133.6 million in the third quarter, an increase of $14.5 million from the previous quarter primarily due to higher engineering service costs.
• Fourth Quarter Expense Guidance — $130 million to $140 million for adjusted operating expenses excluding cost of revenues, as the company continues to expand its workforce.
• Blacklift Rocket Capacity — 20-ton reusable rocket designed to carry up to five BlueBird satellites per launch, with initial launches planned for late 2028.
• Blacklift Capital Requirements — Several hundred million dollars of incremental capital expenditures expected in 2027 to support the development of the proprietary rocket program.
• Satellite Cost Estimates — $21 million to $23 million per satellite for a constellation of over 90 BlueBirds, subject to fluctuations from geopolitical factors.
• Spectrum Access — 100 megahertz targeted in the United States and more than 60 megahertz globally through a combination of shared and controlled spectrum.
• Non-dilutive Financing Pipeline — $1.2 billion in quasi-governmental financing identified for 2027, including first lien and capital expenditure support debt across multiple agencies.
• Commercial Ecosystem — 60 mobile network operators representing over 3 billion subscribers globally, with management pursuing expansion to all major operators in the United States and Europe.
• Inventory — $79.0 million as of Sept. 30, 2026, compared to $12.0 million at the end of 2025, reflecting the ramp in satellite manufacturing activity.
• Convertible Debt Terms — $1.15 billion in 1.625% senior notes due 2034, featuring a capped call transaction with an effective conversion price of $149.20 per share.

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RISKS

• Johnson stated that the cost per satellite estimates are “subject to fluctuations based on dynamic geopolitical factors that could impact our cost,” indicating potential variability in constellation build-out expenses.
• Johnson warned that estimated changes in adjusted operating expenses and capital expenditures “could be delayed or may not be realized due to a variety of factors,” highlighting uncertainty in spending and operational timelines.
• Avellan noted that for the upcoming Blue Origin launch, the company is limiting the load to three satellites as “risk mitigation as they return to flight,” suggesting potential schedule impacts from launch provider performance.

SUMMARY

AST SpaceMobile, Inc. (ASTS -8.15%) reported third-quarter results and updated its strategic roadmap for the deployment of a space-based cellular broadband network. Management confirmed that the company is on track for nationwide intermittent service activation in the United States and other key markets by year-end 2026. The company secured a $1 billion non-dilutive subsidy for its J-LEO program in Japan and announced Blacklift, a proprietary 20-ton reusable rocket intended to provide unconstrained access to orbit starting in late 2028. The company maintained its full year 2026 revenue guidance and identified a $1.2 billion pipeline for additional non-dilutive quasi-governmental financing in 2027 to support its constellation build-out and technical initiatives.

• Management validated a technological milestone with its strategic partner, as Avellan stated, “we validated the first-ever satellite beam handover between ground-based and space-based cellular broadband networks.”
• The company accelerated its technical transition to improve network capacity, with Avellan noting that pulling forward the ASIC to BlueBird 34 “substantially increased the capability of every satellite we build.”
• The J-LEO program includes a specific commercial structure where Wisniewski indicated the joint venture will receive revenue for “three targeted exclusive markets in Asia” while remaining capacity operates as part of the global mid-band network.
• The company is expanding its addressable market beyond traditional connectivity, as Avellan stated the platform enables “in orbit AI inferences” and applications for “physical AI.”
• Management expects the transition to proprietary launch vehicles to improve project economics, with Wisniewski stating that “launch prices in the market coming down 75% to reach an owner’s economics is very feasible.”
• Manufacturing operations have reached a steady state in Midland, with the company currently in production through BlueBird 51 and two factories running full shifts to meet the December production rate target.

INDUSTRY GLOSSARY

• AMTI: Airborne Moving Target Indication, a capability used for space-based sensing and radar.
• ASIC: Application-Specific Integrated Circuit, a customized chip designed for a particular use rather than general-purpose processing.
• DPAS: Defense Priorities and Allocations System, a U.S. regulation that prioritizes certain contracts for national defense purposes.
• Gateway: Ground-based infrastructure that connects the satellite network to terrestrial telecommunications networks.
• J-LEO</

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