Q3 Revenue Surges Nearly Twofold! AST SpaceMobile (ASTS.US) Accelerates “To the Skies”: 45 Satellites On Orbit by Mid-2027

According to Zhitong Finance APP, satellite-to-cellular broadband company AST SpaceMobile (ASTS.US) released its financial results for Q3 2026 after the close of the U.S. stock market on November 10th, Beijing time. The company’s revenue soared nearly twofold year-on-year this quarter and disclosed intensive updates across the full “manufacturing—launch—financing—commercialization” industry chain. However, with large-scale constellation investments, net losses have also grown. This “space telecom operator” remains at a critical juncture, burning cash to build its network and waiting for substantial revenue expansion.

Revenue Starts to Materialize, Losses Continue to Widen

The financial report shows Q3 revenue of $42.3 million, up about 188% from $14.7 million in the same period last year, mainly driven by gateway equipment deliveries and milestone completions in U.S. government projects, which aligns with the company’s quarter-by-quarter revenue ramp-up plan through 2026. Net loss attributable to common shareholders widened to $132.4 million (compared to $122.9 million a year earlier); total operating expenses were $211 million, including $77.4 million in depreciation, amortization, and stock-based compensation.

The sequential improvement on expenses is deceptive—total expenses reached $329.1 million in Q2, mainly due to a one-off $125.9 million involuntary conversion loss. Adjusted operating expenses, excluding these, were $133.6 million, up $14.5 million quarter-on-quarter, reflecting ongoing growth in R&D and engineering investment. In terms of cash flow, operating activities consumed $314.5 million of cash in the first nine months of the year, and fixed asset purchases totalled as much as $1.154 billion. As of September 30, the company held about $3.2 billion in cash and restricted cash, while net long-term debt increased to $4.1 billion from $2.2 billion at the beginning of the year.

Commercialization: Key Highlights in Service Launch and Government Orders

The company reaffirmed its full-year revenue guidance of $150–200 million and noted that recently signed contracts may add more upside. It also confirmed the goal to achieve initial, intermittent nationwide coverage by the end of 2026 in key markets including the U.S., Canada, Japan, Saudi Arabia, and the UK, to be opened first to strategic partners. Government business has become a major growth driver—the company won the Advanced Space-Based Sensing Capability (SB-AMTI) contract from the U.S. Space Force, worth about $100 million, and now has accumulated 16 U.S. government contracts. In addition, the company, together with AT&T, has validated seamless handover between terrestrial networks and space-based cellular broadband networks with ordinary smartphones. Through dual-use government and commercial satellite programs, it has been granted U.S. DPAS priority status to secure launch resources.

Internationally, the company announced the J-LEO agreement with Japan’s Ministry of Internal Affairs and Communications and partner Rakuten, securing about $1 billion in non-dilutive funding for the production and launch of mid-band satellites. Another $1.2 billion U.S.-“quasi-governmental” financing channel is poised for 2027 deployment among multiple institutions.

Manufacturing & Launch: Capacity Ramp-Up + In-House Rocket

On the manufacturing side, two factories in Texas are running at full capacity, with production advancing to BlueBird satellite No. 51. Since BlueBird No. 34, it has transitioned to full-scale ASIC integration, with the goal to reach a monthly production capacity of six ASIC satellites by December this year. On-orbit: BlueBird satellites 11, 12, and 13 are already in operation; satellites 14, 15, and 16 arrived at Cape Canaveral in September pending SpaceX launch; satellites 17, 18, and 19 are expected out of the factory by the end of November and will be launched on a Blue Origin rocket in Q1 2027; satellites 20 to 25 will ship in December and January. Management aims to have around 45 BlueBird satellites on-orbit by mid-2027, with launch agreements secured for over 100 satellites between 2027 and 2028.

Even more ambitious, the company simultaneously announced its own reusable rocket, "Blacklift"—a 20-ton-class launch vehicle using Miranda and Vira engines with over a decade of R&D and flight record. Each flight can carry up to five BlueBird satellites and is scheduled for operational launch by the end of 2028. The aim is to end reliance on third-party launches, control deployment pace, and improve launch economics. The company also cautioned that the relevant transaction with Firefly Aerospace may not be completed, and the rocket itself faces risks of not being developed or built on schedule.

Founder, Chairman, and CEO Abel Avellan stated: “We have taken several significant steps to support the global expansion of space-based cellular broadband networks. We are poised to partner with all major mobile network operators in the U.S. and Europe, with a potential commercial ecosystem covering over 60 operators and more than 3 billion users.” He also highlighted that, with a “partner-first” strategy, the service reach and total addressable market (TAM) are expanding beyond traditional direct-to-device cellular broadband.

The narrative focus in this AST SpaceMobile earnings report has shifted from “storytelling” to “meeting deadlines”: nearly doubling year-on-year revenue proves the business model is starting to deliver, while government orders and non-repayable Japanese funding significantly alleviate pressure from dilutive financing. However, the $1.15 billion capex in the first nine months and the doubled long-term debt remind investors that the real test is whether manufacturing and deployment can meet the timelines—especially whether “intermittent nationwide service” can go live as planned by year-end, and whether the goal of 45 satellites in orbit by mid-2027 can be achieved. If the schedule is met, this company will become the world’s first space-based broadband operator for civilian smartphones; if not, the gap between burning cash and rising debt will continue to weigh on valuation.