Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) AST SpaceMobile's financial statements show **$1.88 billion** in assets, increased liabilities, and a **$99.4 million** net loss [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached **$1.88 billion**, liabilities **$723.6 million**, and equity **$1.16 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $973,224 | $600,246 | | Cash and cash equivalents | $923,647 | $564,988 | | **Property and equipment, net** | $761,606 | $337,669 | | **TOTAL ASSETS** | **$1,881,362** | **$954,561** | | **Total Current Liabilities** | $118,316 | $75,942 | | **Long-term debt, net** | $482,534 | $155,573 | | Warrant liabilities | $109,485 | $41,248 | | **TOTAL LIABILITIES** | **$723,612** | **$285,415** | | **TOTAL STOCKHOLDERS' EQUITY** | **$1,157,750** | **$669,146** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue was **$1.2 million**, operating expenses rose to **$74.0 million**, resulting in a **$99.4 million** net loss Statement of Operations Summary - Three Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $1,156 | $900 | | Total operating expenses | $73,953 | $63,893 | | Loss on remeasurement of warrant liabilities | ($65,032) | ($66,140) | | Net loss attributable to common stockholders | ($99,394) | ($72,550) | | Net loss per share (Basic and diluted) | ($0.41) | ($0.51) | Statement of Operations Summary - Six Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $1,874 | $1,400 | | Total operating expenses | $137,634 | $119,892 | | Loss on remeasurement of warrant liabilities | ($68,238) | ($47,926) | | Net loss attributable to common stockholders | ($145,100) | ($92,280) | | Net loss per share (Basic and diluted) | ($0.62) | ($0.70) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 cash flows show **$72.0 million** used in operations, **$430.6 million** in investing, and **$875.6 million** from financing, increasing cash by **$371.9 million** Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($72,024) | ($64,274) | | Net cash used in investing activities | ($430,622) | ($61,770) | | Net cash provided by financing activities | $875,627 | $325,743 | | **Net increase in cash, cash equivalents and restricted cash** | **$371,866** | **$199,470** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business progress, debt increases, purchase commitments, equity raising, and the Ligado spectrum transaction - The company launched five Block 1 BB satellites in September 2024 and has conducted successful tests, including video calls with partners like Vodafone, AT&T, and Verizon, and for U.S. government applications. Initial noncontinuous service is expected in select markets[19](index=19&type=chunk) - Revenue for Q2 2025 was **$1.2 million**, derived from U.S. government contracts and resale of gateway equipment. The company has not yet generated revenue from its core SpaceMobile Service[29](index=29&type=chunk) - As of June 30, 2025, the company had purchase commitments of approximately **$383.3 million** for satellite components and R&D, plus **$145.0 - $175.0 million** for future launches[73](index=73&type=chunk) - The company entered into a strategic agreement with Ligado for long-term access to mid-band spectrum in the U.S. and Canada. This involves a **$550.0 million** contingent payment, annual usage payments, and the issuance of **4.7 million penny warrants**[131](index=131&type=chunk)[132](index=132&type=chunk) - Subsequent to the quarter end, the company entered a joint venture with Vodafone for European service distribution and agreed to acquire S-Band spectrum priority rights for **$64.5 million**[137](index=137&type=chunk)[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses operational progress, financial results, and liquidity, highlighting satellite development, increased net loss, and funding for future launches [Overview](index=47&type=section&id=Overview) The company is building a space-based Cellular Broadband network, successfully tested, and now focuses on launching over **60** Block 2 BB satellites for continuous service - The company plans to launch **over 60 Block 2 BB satellites** during 2025 and 2026, with a cadence of **one launch every one to two months** on average[162](index=162&type=chunk)[163](index=163&type=chunk) - Management believes a total of **25 satellites (5 Block 1, 20 Block 2)** will enable noncontinuous service in key markets, while **45-60 satellites** will provide continuous coverage in markets like the US, Europe, and Japan[167](index=167&type=chunk) - The company has secured agreements for **substantially all materials needed to complete 40 Block 2 satellites** and **key components for 53 satellites**[165](index=165&type=chunk) [Results of Operations](index=58&type=section&id=Results%20of%20Operations) Q2 2025 revenues increased to **$1.2 million**, operating expenses rose **16%** to **$74.0 million**, widening the net loss to **$99.4 million** Comparison of Results - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $1,156 | $900 | $256 | 28% | | Engineering services costs | $28,598 | $21,202 | $7,396 | 35% | | General and administrative costs | $27,242 | $17,839 | $9,403 | 53% | | Research and development costs | $6,393 | $4,460 | $1,933 | 43% | | Depreciation and amortization | $11,720 | $20,392 | ($8,672) | (43)% | | **Net loss attributable to common stockholders** | **($99,394)** | **($72,550)** | **($26,844)** | **37%** | [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$939.4 million** in cash, sufficient to fund operations and launch **20** Block 2 satellites, supported by significant capital raises - The company believes it is **fully funded** for operating expenses and capital expenditures to design, manufacture, and launch **20 Block 2 BB satellites**[230](index=230&type=chunk) - In July 2025, the company issued **$575.0 million** of **2.375% Convertible Notes due 2032** and repurchased **$360.0 million** of its **4.25% Convertible Notes**[178](index=178&type=chunk)[180](index=180&type=chunk)[262](index=262&type=chunk) - The company terminated its **2024 and 2025 ATM Equity Programs** after raising gross proceeds of approximately **$400 million** and **$500 million**, respectively[92](index=92&type=chunk)[95](index=95&type=chunk)[251](index=251&type=chunk) - A **non-recourse $550.0 million Sound Point Credit Facility** has been arranged to fund the Ligado spectrum transaction, contingent on regulatory and other approvals[238](index=238&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposure is largely unchanged, with new fixed-rate debt instruments introducing additional interest rate risk - The company's market risk is largely unchanged, with the main addition being interest rate risk exposure from new fixed-rate debt instruments: the **$460.0 million** 2032 **4.25% Convertible Notes** and the **$25.0 million** Trinity Capital Equipment Loan[280](index=280&type=chunk)[281](index=281&type=chunk) [Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were **effective as of June 30, 2025**[282](index=282&type=chunk) - **No material changes** to internal control over financial reporting occurred during the quarter ended June 30, 2025[283](index=283&type=chunk) Part II. Other Information [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings, with two class action complaints related to the de-SPAC merger dismissed in April 2025 - Putative class action complaints in Delaware Court of Chancery related to the de-SPAC merger were **voluntarily dismissed** by plaintiffs and the case was **dismissed by the court in April 2025**[287](index=287&type=chunk) [Risk Factors](index=79&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2024 Form 10-K and Q1 2025 Form 10-Q - **No material changes from the risk factors previously disclosed** in the 2024 Form 10-K and Q1 2025 Form 10-Q[288](index=288&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) None [Other Information](index=79&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the quarter - **No directors or officers adopted or terminated a Rule 10b5-1 trading plan** during the quarter[292](index=292&type=chunk) [Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report, including governance documents and material contracts

[Form 8-K Current Report](index=1&type=section&id=Form%208-K) [Results of Operation and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operation%20and%20Financial%20Condition) AST SpaceMobile provided supplementary disclosures on July 24, 2025, including preliminary financial information and an ATM program update, related to proposed convertible notes and common stock offerings - The company announced a proposed offering of convertible senior notes due 2032 (the "New Notes Offering") and a registered direct offering of its Class A common stock[6](index=6&type=chunk) - The disclosures in this section are intended to supplement and update information from prior SEC filings[6](index=6&type=chunk) [Liquidity Update](index=2&type=section&id=Liquidity%20Update) As of June 30, 2025, the company reported preliminary cash of **$939.4 million** and total consolidated debt of **$278.6 million**, subject to finalization Preliminary Financial Position as of June 30, 2025 | Metric | Amount (Approx. in USD) | | :--- | :--- | | Total Cash, Cash Equivalents, and Restricted Cash | $939.4 million | | Total Consolidated Indebtedness | $278.6 million | | - Existing Convertible Notes (Principal) | $235.0 million | | - Senior Secured Indebtedness | $43.6 million | - The provided financial information is a preliminary estimate and has not been audited, reviewed, or compiled by independent auditors; the final figures may change[7](index=7&type=chunk) [ATM Program Update](index=2&type=section&id=ATM%20Update) The company terminated its 2025 ATM program on July 23, 2025, having sold approximately **13.6 million shares** for **$488.7 million** in net proceeds - The 2025 ATM Program was terminated on July 23, 2025, after having utilized virtually its entire **$500.0 million** capacity[8](index=8&type=chunk) 2025 ATM Program Results (as of July 16, 2025) | Metric | Value | | :--- | :--- | | Shares Sold | ~13.6 million | | Aggregate Net Proceeds | $488.7 million | [Other Events](index=3&type=section&id=Item%208.01%20Other%20Events) On July 24, 2025, the company announced a proposed **$500.0 million** private offering of convertible notes and a registered direct stock offering to fund a **$135.0 million** note repurchase - Announced a proposed private offering of **$500.0 million** of Convertible Senior Notes due 2032 to qualified institutional buyers[10](index=10&type=chunk)[12](index=12&type=chunk) - Announced a proposed registered direct offering of Class A common stock to fund a concurrent repurchase of up to **$135.0 million** of its Existing Convertible Notes[10](index=10&type=chunk)[12](index=12&type=chunk) [Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits filed with the Form 8-K, including press releases on proposed financing activities and the interactive data file Exhibits Filed | Exhibit No. | Description | | :--- | :--- | | 99.1 | Press release on the proposed private offering of $500.0 million of Convertible Senior Notes due 2032 | | 99.2 | Press release on the proposed repurchase of up to $135.0 million of convertible notes funded by a concurrent registered direct offering of Class A common stock | | 104 | Cover Page Interactive Data File |

Core Viewpoint - AST SpaceMobile (ASTS) is set to report its second-quarter 2025 earnings on August 11, 2025, with revenue expectations of $5.15 million and a loss of 19 cents per share, indicating a challenging financial outlook for the company [1][7]. Earnings Performance - The company has experienced a negative earnings surprise of 2.59% on average over the past four quarters, with a significant negative surprise of 17.65% in the last reported quarter [2][3]. Earnings Whispers - ASTS currently has an Earnings Surprise Prediction (ESP) of +26.32% but holds a Zacks Rank of 4 (Sell), indicating low chances of an earnings beat this time [4]. Strategic Collaborations - ASTS has formed a strategic partnership with Vodafone Idea (Vi) to provide satellite-based mobile connectivity in India, which could enhance its service offerings in various sectors [5][8]. Financial Management - The company has retired $225 million of its 2032 convertible notes, reducing its debt burden and freeing up cash for research and development [9]. Competitive Landscape - ASTS operates in a highly competitive mobile satellite services market, facing challenges from major players like SpaceX's Starlink and Globalstar, necessitating continuous innovation to maintain its competitive edge [10]. Market Performance - Over the past year, ASTS shares have increased by 136.3%, outperforming the industry average growth of 31.5% and competitors like Viasat and Iridium [11]. Valuation Metrics - ASTS shares are currently trading at a price/sales ratio of 62.01, significantly higher than the industry average of 3.58, indicating a premium valuation [12]. Future Plans - The company plans to deploy around 60 satellites in the next two years, but it is still in the pre-commercial phase without a consistent revenue source [15]. Macroeconomic Challenges - ASTS faces unfavorable macroeconomic conditions, including rising inflation and higher interest rates, which negatively impact its operations and growth prospects [16]. Industry Competition - Competitors like Viasat and Iridium are ramping up investments in direct-to-device satellite services, posing challenges to ASTS's growth initiatives [17]. Long-term Prospects - While ASTS has a comprehensive patent portfolio and collaborations with major telecom operators, geopolitical volatility and tariff uncertainties may hinder its growth in the near term [18]. Investment Sentiment - The company's premium valuation and downward estimate revisions reflect bearish sentiment regarding its growth potential, suggesting that investors may want to avoid investing in ASTS at this time [19].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against AST SpaceMobile, Inc. (NASDAQ: ASTS) on behalf of long-term stockholders due to a class action complaint filed against the company, alleging breaches of fiduciary duties by the board of directors [2][5]. Group 1: Company Performance and Issues - On April 1, 2024, SpaceMobile announced that the production of five Block 1 BlueBird satellites was delayed due to issues with two suppliers, pushing the expected launch from the first quarter of 2024 to between July and August 2024 [3]. - Following this announcement, SpaceMobile's stock price dropped by $0.62, or 23.6%, closing at $2.01 per share on April 2, 2024, with unusually high trading volume [4]. Group 2: Legal Actions and Allegations - The class action complaint alleges that during the class period from November 14, 2023, to April 1, 2024, SpaceMobile's executives made materially false and misleading statements regarding the company's business and operations, failing to disclose significant production issues with the Block 1 BlueBird satellites [5]. - The complaint specifically states that the defendants did not inform investors about the negative impact on production from suppliers, the incomplete status of the satellites, and the resulting delay in the launch schedule, which rendered previous positive statements misleading [5].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for AST SpaceMobile, Inc. despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate predicts a quarterly loss of $0.19 per share, reflecting a year-over-year change of -35.7% [3]. - Expected revenues are projected at $5.15 million, which is an increase of 472.2% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +26.32% for AST SpaceMobile, suggesting recent bullish sentiment among analysts [12]. - However, the company holds a Zacks Rank of 5, complicating the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, AST SpaceMobile was expected to post a loss of $0.17 per share but actually reported a loss of -$0.20, resulting in a surprise of -17.65% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - AST SpaceMobile does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when evaluating the stock ahead of its earnings release [17].

Group 1 - AST SpaceMobile, Inc. (NASDAQ: ASTS) is planning to launch in the second half of fiscal year 2025 while executing government contracts and building its satellite constellation [1] - The upcoming Q2 '25 earnings report is scheduled for August 11, 2025 [1] - Michael Del Monte, an equity analyst with over 5 years of experience, emphasizes that investment recommendations should consider the entire investment ecosystem rather than evaluating a company in isolation [1]

Core Viewpoint - AST SpaceMobile is experiencing a significant market re-evaluation following a definitive agreement with a U.S. government contractor, leading to a surge in stock price and market capitalization, which now exceeds $17 billion [1][2]. Company Overview - AST SpaceMobile's current stock price is $57.67, with a 12-month price forecast averaging $45.34, indicating a potential downside of 21.37% [1]. - The stock has a high forecast of $63.00 and a low forecast of $30.00, based on 8 analyst ratings [1]. Business Model - The company is transitioning from a speculative satellite venture to a critical dual-use infrastructure provider, which may be underappreciated by traditional financial models [3][4]. - AST SpaceMobile's model is built on two pillars: becoming a global utility for consumer communications and serving as a strategic national asset [4][11]. Market Strategy - The company partners with major Mobile Network Operators (MNOs) like Verizon, AT&T, and Vodafone, allowing access to nearly three billion subscribers without incurring direct customer acquisition costs [6][9]. - This strategy aims to solve mobile dead zones by providing seamless, high-speed coverage globally, creating a powerful network effect [7][8]. Financial Position - The recent government contract has transformed AST SpaceMobile into a key partner for national security, establishing a high-margin, recurring revenue stream [12][15]. - The contract includes substantial upfront payments, providing non-dilutive capital that accelerates the satellite constellation's manufacturing and launch schedule [13][14]. Growth Potential - The dual-use model creates a self-reinforcing loop, where government contracts provide financial strength while expanding the network unlocks commercial growth potential [16][17]. - The market is beginning to recognize this shift, as evidenced by the recent stock rally, reflecting growing confidence in the company's ambitious vision [17][18].

Core Viewpoint - AST SpaceMobile's stock is experiencing volatility, with a notable recovery from earlier lows despite a current decline in trading [1][2]. Group 1: Market Reaction - The broader market is facing bearish momentum, particularly in the tech sector, which has negatively impacted AST's stock performance [2]. - Lockheed Martin's disappointing Q2 earnings report has contributed to the negative sentiment surrounding AST, as it missed sales forecasts despite beating earnings estimates [4]. Group 2: Company-Specific Developments - Lockheed Martin reported non-GAAP earnings per share of $7.29, exceeding analyst expectations by $0.82, but its sales of $18.16 billion fell short of forecasts by $380 million [4]. - Coverage on BlackSky Technology has raised concerns about valuations in the space industry, leading to a downgrade from Clear Street and a reduced price target from Canaccord for BlackSky [5]. Group 3: Future Prospects - AST SpaceMobile is rumored to be a tech partner for the Trump administration's "Golden Dome" missile-defense system, which could lead to significant stock gains if confirmed [6][7].

Core Insights - Palantir Technologies has seen its share price more than double year to date, but it is not the best-performing large-cap stock in the market [1] - The top-performing stocks include CoreWeave, Robinhood Markets, and Circle Internet Group, with year-to-date gains of 216%, 197%, and 182% respectively [2] - Analysts on Wall Street are generally skeptical about Palantir and other high-flying stocks, with a consensus 12-month price target for Palantir being 34% lower than its current share price [7][8] Performance Comparison - CoreWeave, Robinhood, and Circle Internet Group are among the top gainers, with significant ties to AI and financial services [3][4] - Other outperformers include NuScale Power, AST SpaceMobile, and Joby Aviation, which are involved in industrials and technology sectors [5] - AngloGold Ashanti is the only stock among the outperformers with a consensus price target reflecting positive upside potential, albeit minimal at less than 3% [9] Analyst Sentiment - The majority of analysts do not have favorable opinions on the stocks outperforming Palantir, with price targets for most being at least 30% below current share prices [8] - The skepticism is largely due to exorbitant valuations of these stocks, including Palantir [10] - AngloGold Ashanti's valuation is more attractive, trading at 10.4 times forward earnings, while Symbotic has a more reasonable price-to-sales ratio of 1.33 despite high earnings multiples [11]

Core Insights - AST SpaceMobile's stock experienced a significant increase of 27.2% in the past week, outperforming the S&P 500 index which rose by 0.6% [1] - The company's valuation has surged due to a recent announcement of $550 million in financing to support a major spectrum licensing deal [3] - AST SpaceMobile's market capitalization is now approximately $14.4 billion, with a valuation of about 37 times this year's expected sales and 234 times expected earnings [4] Financing and Spectrum Deal - AST SpaceMobile secured $550 million in funding through one of its subsidiaries to license wireless spectrum from Ligado Networks [3] - The licensing agreement provides AST access to 40 MHz of L-Band MSS spectrum in the U.S. and Canada, extending for over 80 years, with potential access to an additional 5 MHz [3] Growth Potential - The company's satellite-based cellular broadband network is compatible with existing mobile devices, which could disrupt the consumer telecommunications industry [5] - There is investor excitement regarding AST's potential to secure contracts with U.S. defense agencies and related contractors, indicating further growth opportunities [5]