TLDR
- AST SpaceMobile stock jumped 13% in premarket trading after updating satellite launch timeline
- Company plans to deploy 45-60 satellites by 2026 with launches every 1-2 months starting 2025
- Expects intermittent U.S. service by end of 2025, expanding to UK, Japan, and Canada by Q1 2026
- Posted wider Q2 loss of 41 cents per share versus 21 cents expected, revenue missed at $1.15 million
- Still projects $50-75 million revenue in second half of 2025 from government and commercial customers
AST SpaceMobile stock soared in premarket trading Tuesday after the satellite company outlined a clearer roadmap for deploying its space-based cellular network. Shares climbed 13% as investors digested the company’s updated launch schedule.
The Texas-based company provided fresh details on its ambitious plan to build the first global cellular broadband network in space. AST SpaceMobile now expects at least five orbital launches of its Block 2 BlueBird satellites by the end of Q1 2026.
CEO Abel Avellan said the company plans orbital launches every one to two months on average during 2025 and 2026. Each launch will carry between six and eight satellites at an estimated cost of $21-23 million per satellite.
The updated timeline puts AST SpaceMobile on track to have 45-60 satellites in orbit by 2026. That represents a more concrete path forward for a company that has faced delays in its original deployment schedule.
AST SpaceMobile originally planned to launch its first 20 satellites in 2023. To date, it has launched five commercial satellites and one test model into orbit.
Funding and Revenue Projections
The company appears to have the financial backing to execute its plan. Avellan told analysts that AST SpaceMobile’s more than $1.5 billion balance sheet should be sufficient to fund the satellite fleet deployment.
Expected near-term government and commercial revenue will also help finance operations. The company still projects $50-75 million in revenue during the second half of 2025.
That revenue guidance remains intact despite disappointing Q2 results. AST SpaceMobile reported a loss of 41 cents per share for the quarter ended June 30, wider than the 21-cent loss analysts expected.
Revenue fell to $1.15 million from $15 million a year earlier. The $1.15 million figure came in well below Wall Street estimates of $5.56 million.
The revenue decline reflects the company’s early-stage operations as it ramps up its satellite constellation. AST SpaceMobile generated just $1.2 million in revenue for the June quarter.
Service Timeline Takes Shape
AST SpaceMobile expects to reach intermittent service in the United States by year-end 2025. Service will then expand to Canada, Japan, and the UK by the first quarter of 2026.
The company has completed assembly of microns for phased arrays of eight Block 2 BlueBird satellites. Assembly of 40 satellites equivalent of microns should be finished by early 2026.
These satellites will deliver 5G-quality voice, data, and video coverage worldwide through partnerships with major telecom companies. Backers include Vodafone, AT&T, Verizon, and Google.
AST SpaceMobile faces stiff competition from established players in the satellite internet space. The company is racing against Elon Musk’s SpaceX Starlink business and Apple-backed Globalstar.
Amazon’s Project Kuiper also represents a formidable competitor in the direct-to-device satellite market. Each company is working to capture market share in this emerging sector.
Oppenheimer analyst Timothy Horan maintains a Perform rating on the stock with no price target. He expressed skepticism about the company’s ability to meet service milestones despite the updated timeline.
Cantor Fitzgerald analyst Colin Canfield takes a more optimistic view with an Overweight rating and $30 price target. He sees potential upside from government contracts and the company’s digital payload technology.
AST SpaceMobile stock has risen more than tenfold since the start of 2024 after announcing telecom partnerships and launching its first commercial satellites. The latest premarket gains suggest investors remain willing to bet on the company’s space-based ambitions.
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