AST SpaceMobile Q2 2026 Earnings: Revenue Ramps as Deployment Costs Rise

AST SpaceMobile (NASDAQ: ASTS) reported Q2 2026 revenue of $31.5 million, up from $1.2 million a year earlier, while diluted net loss per share widened to $0.77 from $0.41. Gateway deliveries and completed U.S. government milestones drove the revenue increase, but a $125.9 million loss on involuntary conversion contributed to substantially higher operating expenses. The company also continued to invest heavily in satellites, launch capacity, spectrum, and ground infrastructure.

Core financial results

Revenue expanded from a small prior-year base as product revenue reached $24.4 million and service revenue rose to $7.1 million. However, the cost structure expanded much faster in absolute dollars: total operating expenses increased to $329.1 million from $74.0 million, including $84.1 million of depreciation, amortization, and stock-based compensation.

The loss attributable to common stockholders widened to $230.9 million. In addition to the involuntary-conversion loss, engineering services costs rose to $87.3 million from $28.6 million and general and administrative costs increased to $63.9 million from $27.2 million.

Adjusted operating expenses were $119.1 million, compared with $91.2 million in Q1 2026. The approximately 31% sequential increase reflected higher adjusted engineering costs, cost of revenue, general and administrative spending, and research and development expenses.

Business and network progress

Product revenue increased to $24.4 million from $50,000, while service revenue rose to $7.1 million from $1.1 million. The company attributed the overall quarterly revenue to gateway deliveries and milestones completed for U.S. government customers.

Contracted revenue backlog reached approximately $1.30 billion across commercial partners and U.S. government awards. AST SpaceMobile also reported multiple U.S. government awards with an aggregate value exceeding $125 million. Backlog is not the same as recognized revenue, so the timing and execution of these contracts will remain important to future quarterly results.

The network expanded to 13 spacecraft in orbit after the launches of BlueBirds 11, 12, and 13. AST SpaceMobile said BlueBirds 14 through 16 were nearing shipment, while BlueBirds 17 through 46 were in various stages of production and assembly. The company is preparing for beta service with selected mobile-network partners in 2026 and has activated an initial 3,000 digital cells across the continental United States.

Commercial partnerships now include more than 60 mobile network operators collectively covering over 3 billion subscribers. Integration and testing are underway in several European countries and in markets including Canada, Japan, and Saudi Arabia, subject to final regulatory approvals. Nearly 50 gateways are also in various stages of completion, installation, or planning.

Revenue is scaling before the cost base normalizes

The quarter illustrates the gap between AST SpaceMobile’s emerging revenue base and the spending required to deploy its network. Revenue increased by more than $30 million year over year, but operating expenses rose by $255.1 million, and adjusted expenses also increased sequentially.

The $125.9 million involuntary-conversion loss was a major contributor to the reported loss and was added back in the operating cash-flow reconciliation. Even excluding that item, rising engineering, administrative, and revenue-delivery costs show that the company remains in an intensive network-construction phase. Revenue growth will need to accelerate as satellites, gateways, and commercial services move into operation for this cost base to be absorbed more effectively.

Cash flow and balance sheet

AST SpaceMobile ended June 30 with approximately $2.72 billion of cash, cash equivalents, and restricted cash. Cash and cash equivalents alone were $2.29 billion, while property and equipment, net, had increased to $2.07 billion from $1.40 billion at the end of 2025.

The cash-flow statement covers the first six months of 2026 rather than Q2 alone. During that period, operating activities used $145.2 million of cash, compared with $72.0 million a year earlier. Purchases of property and equipment reached $859.2 million, contributing to total investing cash outflow of $979.7 million. Financing activities provided $1.07 billion.

Long-term debt, net, increased to $2.96 billion from $2.21 billion at year-end 2025. In July, after the quarter ended, the company raised $1.15 billion of gross proceeds through new 1.625% convertible senior notes. Including that transaction, AST SpaceMobile reported more than $3.7 billion of pro forma cash, cash equivalents, and restricted cash.

Full-year guidance

AST SpaceMobile reaffirmed its full-year 2026 revenue guidance and said it remained on track to achieve the range. With first-half revenue of $46.3 million, the guidance implies that approximately $103.7 million to $153.7 million must be recognized during the second half.

Meeting the range therefore depends on the planned quarterly revenue ramp, including further gateway deliveries and completion of commercial or government contract milestones.

Recent insider transactions

The supplied insider records include several direct share sales by senior executives during Q2. These transactions are presented objectively; the records do not establish the reasons for the sales.

Risks investors should monitor

• Second-half revenue execution: First-half revenue represented less than one-third of the low end of full-year guidance, leaving a meaningful ramp dependent on deliveries and contract milestones.
• Launch, production, and regulatory timing: The beta-service plan requires additional satellite launches, ground infrastructure, network testing, and final regulatory approvals across multiple markets.
• High deployment spending: First-half property and equipment purchases reached $859.2 million, while adjusted operating expenses continued to rise sequentially.
• Backlog conversion: The $1.30 billion backlog supports longer-term revenue visibility, but recognized revenue will depend on contract performance and timing.
• Debt and financing costs: Long-term debt increased during the first half, and Q2 interest expense rose to $26.1 million from $5.7 million a year earlier. The July convertible-note offering further increased the company’s financing obligations.

Summary

AST SpaceMobile’s Q2 2026 results showed that gateway deliveries and government work are beginning to produce a larger revenue base, while satellite deployment and network development continue to generate substantial expenses and capital requirements. The central issue for coming quarters is whether the company can execute the second-half revenue ramp while advancing launches, regulatory approvals, and beta service without allowing operating and financing costs to outpace commercialization progress.