AST SpaceMobile (NASDAQ:ASTS) said it remains on track with its 2026 deployment and revenue plans as the satellite-to-smartphone company works to scale manufacturing, launch additional BlueBird satellites and move closer to commercial service activation in key markets.
On the company’s first-quarter 2026 business update call, Chairman and CEO Abel Avellan said AST SpaceMobile is transitioning “from R&D stage to fully scaled operational deployment,” citing progress across manufacturing, mobile network operator partnerships, ground network integration, launch planning and capital resources.
The company reported first-quarter revenue of $14.7 million, driven primarily by commercial gateway deliveries and milestones under U.S. government contracts. CFO and Chief Legal Officer Andy Johnson said the result was consistent with internal plans, although revenue declined from the prior quarter because of the timing of customer gateway deployments and government contract milestones.
Revenue Guidance Reaffirmed as Company Targets Larger 2027 Opportunity
AST SpaceMobile reiterated its full-year 2026 revenue guidance of $150 million to $200 million. President Scott Wisniewski said revenue in the quarter came from work with four commercial customers and five existing U.S. government contracts.
Wisniewski said the company expects 2026 revenue to benefit from commercial deployment efforts, additional contract wins and government awards. He also repeated the company’s view that its 2027 revenue opportunity is “approaching $1 billion,” with expected contributions from commercial cellular broadband service and scaled U.S. government use cases.
Johnson said roughly half of the company’s commercial pipeline opportunity for 2026 is already booked or contracted. The remaining portion includes advanced-stage opportunities not yet signed and new business the company expects to secure during the year. He cautioned that revenue timing may vary significantly by quarter depending on contract signings, equipment sales and milestone achievements.
Manufacturing and Launch Plans Remain Central Focus
Avellan said AST SpaceMobile now has more than 500,000 square feet of manufacturing and operations space globally and is in advanced stages of producing and assembling satellites through BlueBird 33. He said phased arrays have been completed through BlueBird 28.
The company continues to target a production cadence of six fully assembled satellites per month. Avellan described AST SpaceMobile’s manufacturing strategy as approximately 95% vertically integrated, with the company producing ASICs, phased arrays and stackable satellite composite structures.
AST SpaceMobile plans to return to the launch pad in mid-June with BlueBirds 8, 9 and 10 aboard a SpaceX Falcon 9 rocket from Cape Canaveral. The company is targeting approximately 45 satellites in orbit by year-end through a combination of launch providers, including SpaceX, Blue Origin and others.
During the Q&A session, Wisniewski addressed the loss of BlueBird 7 in connection with a Blue Origin launch anomaly. He said the company “knew what happened immediately” and is working with Blue Origin as that company proceeds through its investigation. Wisniewski said AST SpaceMobile remains optimistic about Blue Origin returning to the launch pad and emphasized that AST SpaceMobile’s strategy has been to remain launch-vehicle agnostic.
Wisniewski said AST SpaceMobile has contracted launch capacity to meet its 2026 target, describing the plan as involving “a handful of Blue Origin launches and a handful of SpaceX or equivalent launches.” He also said the company expects to launch four satellites on the next New Glenn mission as it ramps stacking capabilities.
Technology Milestone: 98.9 Mbps to Standard Smartphones
Avellan highlighted a recent test in which AST SpaceMobile achieved a peak data speed of 98.9 megabits per second using its in-orbit Block 1 BlueBird satellites. The test was conducted over international waters directly to unmodified off-the-shelf smartphones.
The company said its Block 2 BlueBird satellites are expected to nearly double that peak data speed when enabled with sufficient spectrum on a region-by-region basis. Avellan said the company’s custom ASIC is designed to support up to 10 gigahertz of processing bandwidth per satellite and is expected to help unlock “true space-based cellular functionality.”
AST SpaceMobile also discussed plans to incorporate AI edge computing and AI spectrum management features into future BlueBird satellites, targeting satellites in production by year-end. Avellan said AI spectrum management is intended to dynamically allocate power and spectrum based on predicted user traffic and location as satellites move overhead.
Partnerships, Regulation and Ground Integration Advance
AST SpaceMobile said its ecosystem includes nearly 60 global mobile network operator partners covering more than 3 billion subscribers, including AT&T, Verizon, Vodafone, Rakuten, stc, Bell Canada and Telus. Wisniewski said the company recently signed an agreement with Telus, which also made an equity investment in AST SpaceMobile. Telus and Bell will be the company’s commercial partners in Canada.
In Africa, AST SpaceMobile added Axian Telecom, a Pan-African operator in 11 countries, alongside existing agreements with Vodacom, Orange and MTN. Wisniewski said the company expects additional MNO agreements to be signed with increasing velocity throughout 2026.
Avellan said AST SpaceMobile has secured more than $1.2 billion in contracted revenue commitments from commercial partners. He also pointed to FCC authorization to operate the BlueBird satellite constellation commercially in the United States, enabling direct-to-device connectivity in coordination with Verizon, AT&T and FirstNet.
The company said it is scaling ground network integration efforts in the United States, Canada, the United Kingdom, India, Brazil, Spain, Germany, France, Romania, Saudi Arabia, Japan, New Zealand, the Philippines, Côte d'Ivoire, Kenya, Nigeria and Senegal. AST SpaceMobile said those markets represent a combined population of 2.9 billion people.
Balance Sheet and Spending Outlook
Johnson said AST SpaceMobile ended the first quarter with approximately $3.5 billion in cash, cash equivalents and restricted cash, including proceeds from a February convertible notes offering. He said the balance sheet positions the company to fund the build-out and launch of more than 100 BlueBird satellites, deploy controlled spectrum bands globally, invest in government space opportunities and reduce higher-interest debt. Johnson said the company does not plan to pursue additional convertible debt in 2026.
Non-GAAP adjusted operating expenses were $91.2 million in the first quarter, down from $95.7 million in the fourth quarter of 2025. Excluding adjusted cost of revenues, adjusted operating expenses were $79.8 million, within the company’s prior guidance range.
Capital expenditures were approximately $257 million in the first quarter, below prior guidance because of a shift in launch contract payment timing into the second quarter. For the second quarter, Johnson guided for adjusted operating expenses excluding adjusted cost of revenues of $85 million to $95 million and capital expenditures of $575 million to $650 million, driven primarily by launch payments.
Johnson said AST SpaceMobile continues to estimate average capital costs, including direct materials and launch costs, of $21 million to $23 million per Block 2 BlueBird satellite for more than 90 satellites, excluding certain initial satellites used to validate performance and operations.
“We’re off to a solid start to the year,” Johnson said, adding that the company’s 2026 objectives remain in place as revenue builds and satellite manufacturing increases to support its launch campaign.
About AST SpaceMobile (NASDAQ:ASTS)
AST SpaceMobile is a U.S.-based aerospace company developing a space-based cellular broadband network designed to connect standard mobile phones and other devices directly to satellites. The company's core proposition is “space-to-cell” service: operating a constellation of low-Earth-orbit (LEO) satellites equipped with large, high-power phased-array antennas to provide wide-area mobile broadband without requiring users to buy specialized terminals or handset modifications.
AST SpaceMobile designs, builds and operates satellite payloads and supporting ground infrastructure.
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