Record partnerships, a $1.3 billion backlog, and a growing satellite constellation strengthen the company’s direct-to-device leadership
AST SpaceMobile (ASTS) reported another milestone quarter as the company continued executing its ambitious plan to build the world’s first space-based cellular broadband network that connects directly to everyday smartphones without requiring specialized hardware. The second-quarter update highlighted rapid progress across satellite deployment, manufacturing, commercial partnerships, government programs, and network infrastructure, reinforcing the company’s position in the emerging direct-to-device communications market.
Chairman and CEO Abel Avellan emphasized that AST SpaceMobile’s competitive advantage extends well beyond its satellite constellation. He pointed to the company’s proprietary technology platform, vertically integrated manufacturing capabilities, extensive intellectual property portfolio, and comprehensive spectrum strategy as the foundation for long-term leadership in the rapidly evolving space-based connectivity industry.
One of the company’s biggest milestones is the continued expansion of its satellite network. Following the successful launch of BlueBird satellites 11, 12, and 13, AST SpaceMobile now has 13 spacecraft in orbit, representing approximately 20,000 square feet of deployed aperture hardware—the largest phased arrays ever deployed in low Earth orbit. The company expects BlueBirds 14, 15, and 16 to be shipped shortly, while satellites 17 through 46 are already in various stages of production and assembly.
The company also continues to strengthen its commercial ecosystem. AST SpaceMobile has now signed partnerships with more than 60 mobile network operators (MNOs) worldwide, collectively serving over 3 billion subscribers. Management believes its partner-first strategy, which enables carriers to extend coverage directly from space while maintaining existing terrestrial infrastructure, positions the company as the preferred direct-to-device partner for operators globally.
AST SpaceMobile’s spectrum strategy also continues to evolve. By combining shared mobile network operator spectrum with controlled mobile satellite spectrum, the company is targeting approximately 100 MHz of spectrum access in the United States and more than 60 MHz globally, depending on each market. Combined with proprietary semiconductor technology capable of processing up to 10 GHz of bandwidth per satellite, management believes future Block 2 satellites will deliver up to ten times the throughput of the current generation while supporting peak download speeds approaching 200 Mbps.
Beyond consumer connectivity, AST SpaceMobile is pursuing opportunities in government communications, emergency response, Internet of Things (IoT), AI edge computing, radar applications, and national security. During the quarter, the company received more than $125 million in U.S. government contract awards supporting multiple defense-related initiatives. It also announced preliminary selection alongside Rakuten for Japan’s J-LEO initiative, which could ultimately provide approximately $1 billion in non-dilutive government funding.
Commercial execution also continued to accelerate. Network integration and testing are underway with major telecommunications partners including Vodafone, Orange, Telefónica, Deutsche Telekom, Vodafone Ukraine, as well as operators in Canada, Japan, and Saudi Arabia, pending final regulatory approvals. Meanwhile, nearly 50 gateway facilities are currently under construction, installation, or planning worldwide to support future commercial operations.
The company is preparing to begin beta service during 2026, initially offering scaled, non-commercial connectivity with strategic carrier partners in select markets. Management disclosed that approximately 3,000 digital cells have already been activated across the continental United States as network infrastructure continues to expand.
Financially, AST SpaceMobile reported second-quarter revenue of $31.5 million, driven by commercial gateway deliveries and government milestone payments. Revenue backlog increased to approximately $1.30 billion, consisting of contracted commercial agreements and U.S. government awards. Management reaffirmed its full-year 2026 revenue guidance of $150 million to $200 million.
To support its aggressive expansion plans, AST SpaceMobile significantly strengthened its financial position. The company ended the quarter with approximately $2.7 billion in cash, cash equivalents, and restricted cash. Following a successful $1.15 billion convertible senior notes offering completed in July, pro forma liquidity increased to more than $3.7 billion, providing substantial capital to continue manufacturing satellites, expand vertical integration, secure launch capacity, and accelerate deployment of its global direct-to-device network.
As AST SpaceMobile transitions from development into commercial deployment, investors are increasingly focused on execution. With a rapidly expanding constellation, growing carrier relationships, strong government support, and one of the industry’s largest liquidity positions, the company appears well positioned to capitalize on what management believes is a multi-billion-dollar opportunity in global satellite-enabled cellular connectivity.
