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AST SpaceMobile (ASTS)
NASDAQ:ASTS
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AST SpaceMobile
(NASDAQ:ASTS)
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Rating:54Neutral
Price Target:―
AST SpaceMobile's overall score reflects a company with promising strategic initiatives but facing significant financial and operational challenges. The financial performance is notably weak, characterized by negative profitability and cash flow issues. Technical indicators suggest some upward momentum, but valuation metrics and regulatory hurdles present concerns. Despite these challenges, positive developments in strategic partnerships and a solid cash position offer potential upside.
Positive Factors
Strategic Partnerships
These partnerships with major telcos like AT&T and Vodafone enhance AST SpaceMobile's market reach and revenue potential, providing a strong foundation for future growth.
Financial Position
A robust cash position reduces financial risk and provides the capital needed for satellite production and expansion, supporting long-term strategic initiatives.
Satellite Manufacturing and Launch
Scaling satellite production and securing launch capacity are crucial for network expansion, enabling AST SpaceMobile to meet growing demand and enhance service offerings.
Negative Factors
Profitability Challenges
Persistent profitability issues indicate operational inefficiencies and high expenses, which could hinder long-term financial sustainability and growth.
Cash Flow Issues
Negative cash flow highlights cash management challenges, potentially limiting the company's ability to fund operations and strategic initiatives without external support.
Regulatory Challenges
Pending regulatory approvals could delay full commercial rollout, impacting revenue generation and market competitiveness in the near to medium term.
AST SpaceMobile (ASTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.48B
Dividend YieldN/A
Average Volume (3M)11.87M
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth249.43%
EPS Growth-50.21%
CountryUS
Employees578
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.41
Shares Outstanding271,914,980
10 Day Avg. Volume15,547,082
30 Day Avg. Volume11,869,794
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.46
Enterprise Value/Revenue2.28K
Enterprise Value/Gross Profit-328.06
Enterprise Value/Ebitda-23.23
Forecast
1Y Price Target
$53.70Price Target Upside-20.75% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering8
AST SpaceMobile Business Overview & Revenue Model
Company DescriptionAST SpaceMobile, Inc. operates space-based cellular broadband network for mobile phones. Its SpaceMobile service provides mobile broadband services for users traveling in and out of areas without terrestrial mobile services on land, at sea, or in flight. The company is headquartered in Midland, Texas.
How the Company Makes MoneyAST SpaceMobile makes money primarily through partnerships with mobile network operators (MNOs) who pay for access to its satellite network to enhance their service offerings. The company enters into agreements with MNOs, allowing them to use its satellite infrastructure to provide broader and more reliable coverage to their customers. This model allows AST SpaceMobile to earn revenue through service fees or revenue-sharing agreements with these operators. Additionally, the company may explore direct service offerings and strategic partnerships to expand its revenue streams as its network becomes operational.
AST SpaceMobile Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlights AST SpaceMobile's significant progress in manufacturing, partnerships, and spectrum acquisition, supported by strong financials. However, increased expenses and regulatory hurdles pose challenges. The overall sentiment is balanced with optimism for future growth.Q2-2025 Updates
Positive Updates
Manufacturing and Satellite Launch Progress
AST SpaceMobile has completed the assembly of microns and phased arrays for eight Block 2 BlueBird satellites and expects to reach a manufacturing cadence of six satellites per month during 2025. They plan to launch 45 to 60 satellites during 2025 and 2026, aiming for continuous coverage in key markets.
Commercial and Government Partnerships
The company has agreements with over 50 MNO partners, representing nearly 3 billion subscribers globally. They have also completed key milestones under U.S. government contracts, demonstrating their satellite technology for non-terrestrial network connectivity.
Spectrum Acquisition and Strategy
AST SpaceMobile announced an agreement to acquire 60 megahertz of global S-Band spectrum priority rights, complementing their L-Band spectrum strategy in the U.S. and Canada. This acquisition enhances their ability to offer services globally, subject to regulatory approvals.
Financial Strength and Capital Raising
The company is well-capitalized with over $1.5 billion in cash following convertible note and ATM facility transactions. They also converted $360 million of outstanding convertible notes into equity, reducing their debt.
Revenue Opportunities
AST SpaceMobile expects revenue in the second half of 2025 to range between $50 million to $75 million, driven by government contracts, gateway sales, and potential commercialization efforts.
Negative Updates
Increased Operating and Capital Expenses
Non-GAAP adjusted operating expenses increased to $51.7 million in Q2, up from $44.9 million in Q1, driven by transaction expenses and increased general and administrative costs. Capital expenditures also rose to $323 million due to satellite material procurement and launch payments.
Regulatory and Spectrum Challenges
While AST SpaceMobile acquired global S-Band spectrum rights, the process of obtaining country-level regulatory approvals is ongoing, posing potential delays in service deployment.
Company Guidance
During AST SpaceMobile's Second Quarter 2025 Business Update Call, several key metrics and updates were highlighted. The company announced an aggressive plan to achieve continuous coverage in key markets, with 45 to 60 satellite launches planned during 2025 and 2026. This will include at least five orbital launches by the end of Q1 2026, as they aim to reach a manufacturing cadence of six satellites per month. The financials revealed over $1.5 billion in cash on the balance sheet, pro forma for recent convertible note and ATM facility transactions. AST SpaceMobile's second quarter non-GAAP adjusted operating expenses reached $51.7 million, with capital expenditures totaling approximately $323 million, mainly driven by satellite manufacturing and launch costs. The company anticipates a revenue opportunity of $50 million to $75 million in the second half of 2025, linked to satellite deployments and government contracts. Additionally, AST SpaceMobile has secured over 50 agreements with MNO partners, representing nearly 3 billion subscribers globally, indicating a robust commercial ecosystem.AST SpaceMobile Financial Statement Overview
Summary
AST SpaceMobile faces significant financial challenges. Despite some strengths in the balance sheet with low debt levels, the company struggles with profitability and cash flow. The income statement shows deeply negative net profit margins, and cash flows are persistently negative, indicating operational inefficiencies and reliance on external financing.Income Statement
AST SpaceMobile's income statement reveals significant challenges in profitability. With a consistent negative EBIT and EBITDA, the company struggles with operational efficiency. Revenue growth is volatile, and net profit margins are deeply negative, indicating high expenses relative to revenue. The gross profit margin appears positive for the latest period but is overshadowed by the substantial net losses.35
Negative
Balance Sheet
The balance sheet shows a mixed picture of financial stability. The company has a favorable equity ratio with significant stockholders' equity and low debt levels, but the high net debt position indicates reliance on external financing. The debt-to-equity ratio is relatively low, suggesting manageable leverage. However, the consistent erosion of equity through net losses presents a risk to long-term financial health.50
Neutral
Cash Flow
AST SpaceMobile faces cash flow challenges with persistently negative free cash flow, indicating that operational and capital expenditures exceed cash generated from operations. The operating cash flow to net income ratio is negative, showcasing inefficiencies in converting profits into cash. Despite high financing cash flow, the company's free cash flow remains significantly negative, highlighting cash management issues.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.89M | 4.42M | 0.00 | 13.82M | 12.40M | 5.97M |
| Gross Profit | -34.03M | 4.42M | 0.00 | 7.11M | 4.84M | 2.94M |
| EBITDA | -480.53M | -442.98M | -166.53M | -97.57M | -83.83M | -23.47M |
| Net Income | -352.90M | -300.08M | -87.56M | -31.64M | -18.97M | -24.06M |
Balance Sheet | ||||||
| Total Assets | 1.88B | 954.56M | 360.89M | 438.37M | 443.94M | 99.64M |
| Cash, Cash Equivalents and Short-Term Investments | 923.65M | 564.99M | 85.62M | 238.59M | 321.79M | 42.78M |
| Total Debt | 23.10M | 173.00M | 72.87M | 12.53M | 13.16M | 7.04M |
| Total Liabilities | 723.61M | 285.42M | 147.33M | 78.55M | 91.96M | 19.66M |
| Stockholders Equity | 1.16B | 479.12M | 98.99M | 133.53M | 100.28M | 77.50M |
Cash Flow | ||||||
| Free Cash Flow | -676.87M | -300.27M | -267.75M | -213.75M | -134.89M | -53.21M |
| Operating Cash Flow | -133.89M | -126.14M | -148.94M | -156.46M | -80.09M | -22.80M |
| Investing Cash Flow | -542.98M | -174.13M | -118.81M | -31.35M | -54.79M | -30.41M |
| Financing Cash Flow | 1.33B | 779.97M | 116.73M | 102.34M | 416.94M | 69.66M |
AST SpaceMobile Technical Analysis
Positive
67.76
Price Trends
48.32
Positive
43.94
Positive
34.30
Positive
Market Momentum
4.04
Negative
76.50
Negative
96.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASTS, the sentiment is Positive. The current price of 67.76 is above the 20-day moving average (MA) of 47.34, above the 50-day MA of 48.32, and above the 200-day MA of 34.30, indicating a bullish trend. The MACD of 4.04 indicates Negative momentum. The RSI at 76.50 is Negative, neither overbought nor oversold. The STOCH value of 96.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASTS.
AST SpaceMobile Risk Analysis
AST SpaceMobile disclosed 63 risk factors in its most recent earnings report. AST SpaceMobile reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AST SpaceMobile Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $865.52M | 34.34 | 7.49% | ― | 19.67% | 12.32% | |
69 Neutral | $28.12B | 16.66 | 19.63% | 3.45% | 0.98% | ― | |
62 Neutral | $26.14B | 25.05 | 4.31% | 3.16% | -2.39% | 157.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $24.48B | ― | -69.70% | ― | 249.43% | -50.21% | |
54 Neutral | $22.19B | ― | -1.60% | ― | -35.86% | 85.81% | |
52 Neutral | $4.30B | ― | -12.48% | ― | -1.43% | 43.14% |
* Technology Sector Average
ASTS
AST SpaceMobile
67.76
42.85
172.02%
SATS
Echostar
77.12
53.11
221.20%
GILT
Gilat
13.47
8.42
166.73%
ERIC
Telefonaktiebolaget LM Ericsson
8.42
1.16
15.98%
NOK
Nokia
4.90
0.68
16.11%
VSAT
ViaSat
32.06
20.83
185.49%
AST SpaceMobile Corporate Events
Business Operations and StrategyFinancial Disclosures
AST SpaceMobile Reports 2024 Financial Results and Growth
Positive
Mar 4, 2025
AST SpaceMobile announced its business update and financial results for the fourth quarter and full year of 2024, highlighting significant advancements in its commercialization efforts and strategic agreements. The company secured a long-term commercial agreement with Vodafone and a $43 million contract with the U.S. Space Development Agency, enhancing its market position in the direct-to-device satellite communications industry. AST SpaceMobile also achieved operational status for its first five BlueBird satellites and is accelerating satellite manufacturing to expand its network. Financially, the company reported nearly $1 billion in cash and a decrease in operating expenses, positioning it well for future growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.