AST SpaceMobile(US:ASTS)2025-08-11 20:52Part I. Financial Information Financial Statements AST SpaceMobile's financial statements show $1.88 billion in assets, increased liabilities, and a $99.4 million net loss Condensed Consolidated Balance Sheets 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 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 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 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 markets19 - 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 Service29 - 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 launches73 - 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 warrants131132 - 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 million137138 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses operational progress, financial results, and liquidity, highlighting satellite development, increased net loss, and funding for future launches 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 average162163 - 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 Japan167 - The company has secured agreements for substantially all materials needed to complete 40 Block 2 satellites and key components for 53 satellites165 Results of Operations 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 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 satellites230 - 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 Notes178180262 - The company terminated its 2024 and 2025 ATM Equity Programs after raising gross proceeds of approximately $400 million and $500 million, respectively9295251 - A non-recourse $550.0 million Sound Point Credit Facility has been arranged to fund the Ligado spectrum transaction, contingent on regulatory and other approvals238 Quantitative and Qualitative Disclosures About Market Risk 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 Loan280281 Controls and Procedures 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, 2025282 - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025283 Part II. Other Information Legal Proceedings 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 2025287 Risk Factors 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-Q288 Unregistered Sales of Equity Securities and Use of Proceeds None Other Information 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 quarter292 Exhibits This section lists the exhibits filed as part of the Quarterly Report, including governance documents and material contracts