Core Insights - AST SpaceMobile is developing a space-based cellular network aimed at providing 4G and 5G signals directly to over five billion smartphones globally, transforming a science fiction concept into practical utility [1] Group 1 - The company is positioned to erase the connectivity gap by leveraging satellite technology to enhance mobile communication [1]

When evaluating stocks concerning new technology, such as AST Spacemobile (NASDAQ: ASTS ), what I find most important is to get a grasp of what the future business model could look like and imagine how itNine to 5 by day. Hobbyist stock trader by night. I got an MBA and a CFA ... so that should count for something. I only care about my own greedy interests and I love feeding trolls. Not your financial advisor. Information for entertainment purposes only. Diamond hands are forever.Analyst’s Disclosure: I/we ...

Core Viewpoint - AST SpaceMobile, Inc. reported disappointing first-quarter 2025 results, with both adjusted earnings and revenues falling short of the Zacks Consensus Estimate [1] Financial Performance - The net loss for the quarter was $45.7 million, equating to a loss of 20 cents per share, compared to a net loss of $19.7 million or 16 cents per share in the same quarter last year. This result missed the Zacks Consensus Estimate by 3 cents [3] - Quarterly revenues increased to $0.72 million from $0.5 million in the year-ago quarter, but still missed the Zacks Consensus Estimate of $4 million [5] Operating Expenses - Total operating expenses rose to $63.7 million from $56 million in the year-ago quarter, driven by increased research and development costs and engineering services costs. Adjusted operating expenses for the first quarter of 2025 were $44.9 million [6] Cash Flow and Liquidity - In the first quarter of 2025, the company utilized $28.5 million of cash from operating activities, an improvement from $48.1 million in the year-ago quarter. As of March 31, 2025, the company had $874.4 million in cash, cash equivalents, and restricted cash, alongside $462.2 million in long-term debt [7] Macroeconomic Impact - Unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility, tariffs, and geopolitical conflicts, are negatively affecting the company's operations, leading to fluctuations in satellite material prices and increased capital costs [2]

Company Performance - AST SpaceMobile reported a quarterly loss of $0.20 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.17, and compared to a loss of $0.16 per share a year ago, indicating an earnings surprise of -17.65% [1] - The company posted revenues of $0.72 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 82.05%, and this is an increase from year-ago revenues of $0.5 million [2] - Over the last four quarters, AST SpaceMobile has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - AST SpaceMobile shares have increased by approximately 22.1% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $7.9 million, and for the current fiscal year, it is -$0.84 on revenues of $57.15 million [7] Industry Outlook - The Wireless Equipment industry, to which AST SpaceMobile belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AST SpaceMobile's stock performance [5]

Financial Data and Key Metrics Changes - The company reported non-GAAP adjusted cash operating expenses of $44.9 million for Q1 2025, an increase from $40.8 million in Q4 2024, driven by higher R&D and administrative costs [27][28]. - Capital expenditures for Q1 2025 were approximately $124 million, up from $86 million in Q4 2024, primarily for materials and launch contracts [28][29]. - The company ended Q1 2025 with $874.5 million in cash, a significant increase from $567.5 million at the end of Q4 2024, due to successful financing initiatives [34][35]. Business Line Data and Key Metrics Changes - The company plans to deploy over 60 satellites during 2025 and 2026, with five orbital launches scheduled over the next six to nine months [7][17]. - Gateway equipment bookings reached $13.6 million in Q1 2025, with expectations of approximately $10 million in bookings per quarter throughout 2025 [20]. Market Data and Key Metrics Changes - The company is focusing on key markets such as the United States, Europe, and Japan for initial service activation, leveraging partnerships with major mobile network operators [13][19]. - The company received special temporary authority from the FCC for FirstNet direct-to-device satellite connectivity, enhancing its service offerings for public safety [14][20]. Company Strategy and Development Direction - The company is at an inflection point, accelerating the launch and scaling of its network while beginning to recognize revenue from commercial and government contracts [6][17]. - The strategy includes a dual approach of utilizing low-band spectrum in partnership with MNOs and acquiring mid-band spectrum to enhance service capabilities [61][62]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to execute at scale, citing strong demand for space-based cellular broadband connectivity [10][31]. - The company anticipates a revenue opportunity in 2025 ranging from $50 million to $75 million, contingent on successful satellite launches and gateway equipment sales [33]. Other Important Information - The company is working on non-dilutive financing options from quasi-governmental sources, with potential funding exceeding half a billion dollars [36]. - The company is also exploring an equipment loan facility of $50 million to $100 million to support manufacturing expansion [35]. Q&A Session Summary Question: Any further details to share on the Legato transaction? - The transaction involves acquiring usage rights for 45 megahertz of mid-band spectrum in the U.S., which is seen as crucial for enhancing service capabilities [39][40]. Question: What is the outlook for the defense use case? - Government demand for space-based solutions is surging, with several contract awards validating the technology and opening paths for revenue [42][43]. Question: Do you plan to submit any proposals for the $25 billion Golden Dome project? - The company believes its technology is well-positioned to contribute to national security goals outlined in the Golden Dome project [45][46]. Question: Are shareholders expected to be invited to future launches? - Shareholders will be invited to future launches, although the upcoming launch in India will not accommodate attendees [47]. Question: What are the short-term plans for Europe following recent communication outages? - The service aims to provide cellular broadband connectivity directly to devices, enhancing safety during emergencies [49][50]. Question: Can you give an update on the commercial launch in the U.S.? - A commercial service is expected to be available by early 2026, with ongoing discussions with carriers like AT&T and Verizon [96].

Financial Data and Key Metrics Changes - In Q1 2025, non-GAAP adjusted cash operating expenses were $44.9 million, up from $40.8 million in Q4 2024, reflecting an increase of $4.1 million due to higher R&D and administrative costs [28][29] - Capital expenditures for Q1 2025 were approximately $124 million, compared to $86 million in Q4 2024, driven by costs related to satellite manufacturing and launch contracts [30] - The company ended Q1 2025 with $874.5 million in cash, a significant increase from $567.5 million at the end of Q4 2024, primarily due to funds raised from convertible notes and an ATM facility [36] Business Line Data and Key Metrics Changes - The company plans to deploy over 60 satellites during 2025 and 2026, with five orbital launches scheduled over the next six to nine months [6][16] - Gateway equipment bookings in Q1 2025 amounted to $13.6 million, with expectations of approximately $10 million in bookings per quarter throughout 2025 [20] Market Data and Key Metrics Changes - The company is focusing on key markets such as the United States, Europe, and Japan for initial service activation, leveraging partnerships with major mobile network operators [13][19] - The company received special temporary authority from the FCC for FirstNet Direct to device satellite connectivity, enhancing its service offerings for public safety [14] Company Strategy and Development Direction - The company is at an inflection point, accelerating the launch and scaling of its network while beginning to recognize revenue from satellite services [5][16] - The strategy includes a focus on vertical integration and rapid satellite manufacturing to meet the growing demand for space-based cellular broadband connectivity [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to execute at scale, with expectations for revenue to ramp up towards the end of 2025 and into 2026, estimating a revenue opportunity of $50 million to $75 million for 2025 [34][38] - The management highlighted the importance of connectivity as a human right and the company's mission to provide reliable broadband services, especially in emergency situations [16][52] Other Important Information - The company is working on a strategic acquisition of spectrum rights, which is expected to enhance its service capabilities in the U.S. market [41][42] - The company is also exploring non-dilutive financing options to support its operational plans, including potential funding from quasi-governmental sources [37] Q&A Session Summary Question: Any further details to share on the Legato transaction? - The company is acquiring usage rights for 45 megahertz of mid-band spectrum in the U.S., which is seen as crucial for enhancing service capabilities [41][42] Question: What is the outlook for the defense use case? - Government demand for space-based solutions is increasing, and the company has secured several contracts that validate its technology and open paths for revenue [44][45] Question: Do you plan to submit any proposals for the announced $25 billion Golden Dome project? - The company believes its technology can significantly contribute to the goals outlined in the Golden Dome project [46][47] Question: Are shareholders expected to be invited to future launches this fall? - The company plans to invite shareholders to future launches, although the upcoming launch in July will not include invitations due to logistical reasons [48][49] Question: What are the short-term plans for Europe following recent communication outages? - The company aims to provide cellular broadband connectivity directly to devices, enhancing safety during emergencies, and is working with Vodafone for service distribution in Europe [50][52] Question: Can you discuss the nature of the higher launch costs? - Higher launch costs are attributed to increased demand for rapid service deployment and tariff impacts on materials, but the company remains focused on expediting satellite launches [55][56] Question: How does the spectrum strategy impact MNO agreements? - The company maintains a focus on user experience while enhancing service capabilities through a combination of low-band and mid-band spectrum [66][67] Question: What is the status of beta tests with carrier partners? - Initial activations have begun in the U.S., Europe, and Japan, with successful video capabilities demonstrated, indicating readiness for broader service offerings [72][73] Question: When might we see a commercial launch in the U.S.? - A commercial service is expected to be available by early 2026, with ongoing discussions for agreements with major carriers [92][93]

Forward Looking Statements Transforming how the world connects NASDAQ: ASTS Business Update – First Quarter 2025 May 12, 2025 ast-science.com ast-science.com Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile's strategies and future financial performance, including AST's future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 BlueBird satellites, anticipated dema ...

Satellite Network Development - The company is building the first global Cellular Broadband network in space, accessible by everyday smartphones, utilizing a constellation of high-powered satellites in low Earth orbit (LEO) [120]. - The Block 1 BB satellites launched on September 12, 2024, have ten times higher throughput than the BW3 test satellite, with successful tests conducted for voice and video calls using standard smartphones [126]. - The next generation Block 2 BB satellites are designed to deliver up to 10 times the bandwidth capacity of Block 1 BB satellites, with a communication array over 2,400 square feet [132]. - The company has launched agreements with multiple service providers to accelerate the launch of over 60 Block 2 BB satellites during 2025 and 2026 [133]. - The phased satellite deployment plan aims to provide SpaceMobile Service to commercially attractive MNO markets, minimizing capital requirements for initiating and operating commercial services [134]. - Company plans to launch a total of 25 BB satellites, including five Block 1 and 20 Block 2 satellites, to achieve noncontinuous SpaceMobile Service in targeted markets [136]. - The company anticipates launching additional satellites beyond the initial 90 to enhance coverage and system capacity in response to market demand [136]. Financial Performance - Revenue for the three months ended March 31, 2025, increased by $0.2 million, or 44%, to $0.7 million compared to the same period in 2024 [157]. - Total operating expenses for the three months ended March 31, 2025, were $63.7 million, an increase of $7.7 million, or 14%, compared to the same period in 2024 [156]. - Engineering services costs rose by $7.7 million, or 39%, to $27.2 million for the three months ended March 31, 2025, driven by increased payroll and related costs [159]. - General and administrative costs increased by $6.1 million, or 50%, to $18.4 million for the three months ended March 31, 2025, primarily due to higher consulting and professional service expenses [160]. - Research and development costs increased by $2.9 million, or 68%, to $7.1 million for the three months ended March 31, 2025, mainly for the development of Block 2 BB satellites [161]. - Interest income increased by $5.9 million to $8.2 million for the three months ended March 31, 2025, driven by a higher cash and cash equivalents balance [165]. - Net loss attributable to noncontrolling interest decreased to $17.9 million for the three months ended March 31, 2025, compared to $20.1 million in the same period of 2024 [169]. Government Contracts and Agreements - The company has entered into agreements with the U.S. government, including a contract with the Space Development Agency expected to generate $43 million and another with the Defense Innovation Unit for up to $20 million [123]. - Company entered into a contract with the DIU expected to generate up to approximately $20.0 million in revenue for SpaceMobile capabilities with U.S. government agencies [139]. - A $45.0 million commercial payment from Verizon is contingent upon receiving regulatory approvals for the SpaceMobile Service [197]. Cash and Financing Activities - As of March 31, 2025, the company had $874.5 million of cash and cash equivalents on hand, including $0.7 million of restricted cash [170]. - Cash, cash equivalents, and restricted cash increased to $874.5 million as of March 31, 2025, compared to $212.4 million in the same period of 2024 [198]. - Cash used in operating activities decreased to $28.5 million for the three months ended March 31, 2025, from $48.1 million in the same period of 2024, reflecting a $19.6 million improvement [199]. - Cash used in investing activities rose to $120.5 million for the three months ended March 31, 2025, compared to $39.6 million in the same period of 2024, driven by increased property and equipment purchases [200]. - Cash provided by financing activities increased to $455.9 million for the three months ended March 31, 2025, from $212.2 million in the same period of 2024, primarily due to a $338.0 million increase in net proceeds from debt issuance [201]. - The company issued $460.0 million in aggregate principal amount of 2032 Convertible Notes, with a fixed interest rate of 4.25% per year, maturing on March 1, 2032 [194]. - The company entered into a $5.0 million term loan with a fixed interest rate of 4.20% per annum until December 2026, secured by property in Midland, Texas [187]. - A new loan agreement was established on August 14, 2023, providing for a $15.0 million principal term loan, with interest accruing at the Prime Rate plus 0.75% [189]. Spectrum and Licensing - Company has secured long-term access to up to 45 MHz of lower mid-band spectrum in the U.S. and Canada for satellite applications through a collaboration with Ligado LLC [138]. - The company entered into a binding agreement with Ligado LLC for long-term access to up to 45 MHz of lower mid-band spectrum in the U.S. and Canada [175]. - The Framework Agreement with Ligado LLC includes a payment of $350.0 million in cash and an option for an additional $200.0 million [179]. - The company has received initial licenses from the FCC for the operation of Block 1 BB satellites and is in the process of obtaining additional approvals for the SpaceMobile Service [129]. Capital Expenditures and Commitments - Contractual commitments with third parties as of March 31, 2025, totaled approximately $300.0 million related to procurement of BB satellite components and capital improvements [183]. - The estimated average capital costs for a constellation of over 90 Block 2 BB satellites increased to approximately $21.0 million to $23.0 million per satellite [171]. - Company has completed production of various components and subsystems for multiple Block 2 BB satellites and plans to assemble up to six Block 2 BB satellites per month by 2025 [135]. Depreciation and Amortization - Total depreciation and amortization expense decreased by $9.0 million, or 45%, to $11.0 million for the three months ended March 31, 2025 [162]. Future Outlook - The company expects to recognize revenue from government contracts starting in Q1 2024 and from the resale of gateway equipment to MNOs beginning in Q4 2024 [131]. - The company expects existing cash and cash equivalents to meet anticipated cash requirements for the next 12 months, although actual results may vary [202]. - The company has no off-balance sheet arrangements as of March 31, 2025 [207].

Financial Position - As of March 31, 2025, AST SpaceMobile had cash, cash equivalents, and restricted cash totaling $874.5 million[10] - AST SpaceMobile's total assets as of March 31, 2025, were $1.37 billion, compared to $954.6 million as of December 31, 2024[17] - Cash and cash equivalents at the end of Q1 2025 were $874,458,000, significantly up from $212,440,000 at the end of Q1 2024, marking a 311.5% increase[21] Revenue and Growth - The company anticipates generating revenue between $50.0 million and $75.0 million in the second half of 2025[3] - Revenues for Q1 2025 increased to $718,000 from $500,000 in Q1 2024, representing a 43.6% growth[18] - Gateway equipment bookings from MNO partners reached $13.6 million in Q1 2025, with an expected average of $10.0 million per quarter during 2025[4] - The company has signed a new contract with the Defense Innovation Unit for up to $20.0 million in revenue[4] Operating Expenses - Total operating expenses for Q1 2025 were $63.7 million, an increase of $3.1 million compared to Q4 2024[10] - Adjusted operating expenses for Q1 2025 were $44.9 million, up $4.1 million from $40.8 million in Q4 2024[10] - Total operating expenses rose to $63,681,000 in Q1 2025, compared to $56,000,000 in Q1 2024, an increase of 13.0%[18] - Engineering services costs for Q1 2025 were $27,204,000, up from $19,511,000 in Q1 2024, a rise of 39.0%[22] - Stock-based compensation expense for Q1 2025 was $7,826,000, compared to $4,933,000 in Q1 2024, an increase of 58.5%[22] Losses and Cash Flow - Net loss attributable to common stockholders was $45,706,000 in Q1 2025, up from $19,730,000 in Q1 2024, reflecting a 131.5% increase in losses[18] - The company reported a total comprehensive loss of $45,432,000 for Q1 2025, compared to $19,836,000 in Q1 2024, an increase of 129.0%[19] - Cash used in operating activities decreased to $28,546,000 in Q1 2025 from $48,122,000 in Q1 2024, a reduction of 40.5%[21] - The company incurred a loss of $3,206,000 on the remeasurement of warrant liabilities in Q1 2025, contrasting with a gain of $18,214,000 in Q1 2024[21] Capital Expenditures and Production - The company has incurred approximately $584.1 million in gross capitalized property and equipment costs as of March 31, 2025[10] - AST SpaceMobile is on track to manufacture 40 Block 2 BlueBird satellites, with a target of six satellites per month during 2025[3] - AST SpaceMobile plans to support five scheduled orbital launches over the next six to nine months, with the first Block 2 BlueBird satellite expected to launch in July 2025[3] - Proceeds from debt in Q1 2025 amounted to $449,248,000, significantly higher than $110,000,000 in Q1 2024, indicating a 308.4% increase[21]

Core Viewpoint - AST SpaceMobile, Inc. is expected to report its first-quarter 2025 results on May 12, with anticipated revenue growth and a potential earnings beat based on recent agreements and FCC authorization [1][5][6]. Group 1: Recent Developments - AST SpaceMobile signed an agreement with Ligado Networks to enhance space-based network coverage, gaining access to up to 40 MHz of L-band mobile satellite spectrum in the U.S. and Canada, which will support future processing bandwidth of up to 10,000 MHz per satellite [2]. - Vodafone Group Plc partnered with AST SpaceMobile to create a jointly-owned European satellite service business, SatCo, aimed at providing 100% geographic coverage via space-based cellular broadband for mobile network operators [3]. - The company received special authorization from the FCC for testing services in the U.S., aligning with efforts to bridge the digital divide and enhance emergency communication capabilities [4]. Group 2: Financial Expectations - The Zacks Consensus Estimate for total revenues in the March quarter is $4.33 million, reflecting significant year-over-year growth from $0.50 million [5]. - The consensus estimate for adjusted earnings per share indicates a loss of 15 cents, compared to a loss of 16 cents per share in the same quarter last year [5]. - The earnings ESP for AST SpaceMobile is +2.17%, suggesting a strong likelihood of an earnings beat [6]. Group 3: Company Ranking - AST SpaceMobile currently holds a Zacks Rank of 3, indicating a hold position in the market [7].