AST SpaceMobile Inc (NASDAQ: ASTS) reported second-quarter 2026 revenue of $31.5 million, more than doubling its first-quarter figure on the back of US government contract milestones and commercial gateway deliveries.
The company reiterated its full-year 2026 revenue guidance of $150 million to $200 million, with revenue expected to build sequentially and be weighted toward the fourth quarter.
Three new US government contract awards were secured during the period, carrying a funded near-term value of over $100 million and pushing the company’s total revenue backlog to approximately $1.3 billion.
AST SpaceMobile also received a preliminary award for the J-LEO project in Japan, with a total expected value of up to $1 billion in nondilutive, non-debt government capital.
President Scott Wisniewski addressed expectations for government revenue growth, stating, “We see this opportunity scaling into a recurring multibillion-dollar-a-year opportunity starting in 2027.”
On the question of 2027 revenue targets, Wisniewski added, “Nothing has changed on our expectation and goal of approaching $1 billion of revenue in our first full year of commercial service.”
The company strengthened its balance sheet through a $1.15 billion convertible notes offering, bringing pro forma cash, equivalents, and restricted cash to over $3.7 billion as of June 30, 2026.
Adjusted operating expenses on a non-GAAP basis climbed to $119.1 million in Q2 2026, up from $91.2 million in Q1, driven primarily by workforce growth and facility expansion.
Capital expenditures surged to approximately $610 million in Q2 2026, compared to roughly $257 million in Q1, reflecting high costs tied to launch contracts and satellite production.
For the third quarter of 2026, the company guided capital expenditures in the range of $350 million to $425 million and adjusted operating expenses, excluding cost of revenues, between $105 million and $115 million.
The estimated average capital cost per satellite remains between $21 million and $23 million across the planned constellation of over 90 BlueBird satellites, a range CFO Andrew Johnson said “holds up for the first constellation of 90 satellites.”
AST SpaceMobile’s ASIC chip is now in full production and is expected to nearly double peak data speeds to nearly 200 Mbps, with AI-enabled spectrum management potentially improving user experience by up to ten times.
Manufacturing is being scaled to a target of six satellites per month, with BlueBirds 14 through 16 ready to ship and production completed through BlueBird 46, supporting a plan to have 45 satellites in orbit by early 2027.
CEO Abel Avellan explained the company’s competitive edge in winning the J-LEO award, saying, “We have the only platform that has demonstrated and is delivering broadband capability today.”
Commercial service revenue is not expected to begin until next year, with beta trials targeted for later in 2026, leaving near-term revenue dependent on government contracts and infrastructure sales.
The company’s MNO partner ecosystem has expanded to over 60 partners covering 3 billion subscribers, reinforcing the global scale of its planned broadband network.
Regarding potential US carrier joint venture activity, Wisniewski confirmed that existing agreements with AT&T and Verizon are unaffected, noting, “The joint venture frees up a third and fourth customer for us in the United States.”
With 10 launches booked across two providers and a cadence targeting one to two launches per month on average, AST SpaceMobile is not factoring Blue Origin’s return to flight into its near-term planning following a launch anomaly in May.
