Why Is AST SpaceMobile (ASTS) Down 25.8% Since Last Earnings Report?

Company Overview - AST SpaceMobile, Inc. reported a wider-than-expected net loss of $99.4 million or 41 cents per share for Q2 2025, compared to a loss of $72.6 million or 51 cents per share in the same quarter last year, missing the Zacks Consensus Estimate of a loss of 19 cents [3][5] - Quarterly revenues increased to $1.2 million from $0.9 million year-over-year, but still fell short of the Zacks Consensus Estimate of $5 million [5] Financial Performance - Total operating expenses rose to $73.9 million from $63.9 million in the year-ago quarter, driven by increased research and development and engineering services costs [6] - For the first half of 2025, the company utilized $72 million in cash for operating activities, up from $64.3 million in the prior year, and had $923.6 million in cash and cash equivalents as of June 30, 2025, with long-term debt of $482.5 million [7] Market Conditions - Unfavorable macroeconomic conditions, including rising inflation, higher interest rates, and geopolitical conflicts, have negatively impacted the company's operations, leading to fluctuations in satellite material prices and increased capital costs [4] Estimates and Outlook - Since the earnings release, there has been a 17.07% upward trend in estimates revisions for the stock, indicating a potentially positive outlook [8] - AST SpaceMobile holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11] Industry Comparison - AST SpaceMobile is part of the Zacks Wireless Equipment industry, where competitor Motorola reported revenues of $2.77 billion for the last quarter, reflecting a year-over-year increase of 5.2% [12] - Motorola's earnings per share for the same period were $3.57, up from $3.24 a year ago, and it is expected to post earnings of $3.84 per share for the current quarter, indicating a change of 2.7% from the previous year [13]