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ASTS Reports Wider-Than-Expected Q2 Loss Despite Revenue Growth
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Key Takeaways
ASTS Q2 revenues surged to $31.5 million on gateway deliveries and government contracts.
ASTS' Product revenues rose to $24.4M, while Services revenues reached $7.09M on contract milestones.
ASTS posted a 44-cent adjusted loss as operating expenses rose, despite $2.29 billion in cash.
AST SpaceMobile, Inc. (ASTS - Free Report) reported lackluster second-quarter 2026 results, with both top and bottom lines missing the Zacks Consensus Estimate.
The company reported strong year-over-year revenue growth, driven by gateway deliveries and U.S. government contracts. It continued to expand satellite production and partnerships and advance its network deployment. However, higher operating and launch costs continued to weigh on its bottom line.
Net Income
On a GAAP basis, the company recorded a net loss of $230.9 million or a loss of 77 cents per share compared with a net loss of $99.4 million or a loss of 41 cents per share in the year-ago quarter. Despite healthy top-line growth, higher total operating expenses pressured the bottom line.
Excluding non-recurring items, non-GAAP net loss for the reported quarter was 44 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 28 cents.
AST SpaceMobile, Inc. Price, Consensus and EPS Surprise
Quarterly revenues surged to $31.5 million from $1.16 million in the year-ago quarter, driven by solid growth in both Product and Service segments. However, the top line missed the Zacks Consensus Estimate of $34.1 million.
In the second quarter, Product revenues increased to $24.4 million from $0.05 million, primarily driven by the delivery of commercial gateway equipment to Mobile Network Operator partners. Services revenues also increased to $7.09 million from $1.11 million in the prior-year quarter, reflecting increased revenue recognized from U.S. government contracts and the achievement of related contractual milestones.
Other Details
In the June quarter, total operating expenses rose to $329.1 million from $74 million in the year-ago quarter. This was due to increased general and administrative costs and engineering services expenses. Adjusted operating expenses for the second quarter were $119.1 million.
Cash Flow & Liquidity
During the first six months of 2026, the company utilized $145.2 million of cash for operating activities compared with a cash utilization of $72 million in the year-ago period. As of June 30, 2026, it had $2.29 billion in cash and cash equivalents with $2.96 billion in long-term debt.
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.
Analog Devices, Inc. (ADI - Free Report) is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release second-quarter fiscal 2027 earnings on Aug. 27. The Zacks Consensus Estimate for earnings is pegged at $2.63 per share, implying growth of 16% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 17.48%. The company delivered an average earnings surprise of 7.22% in the last four reported quarters.
View the Zacks #1 Rank List
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ASTS Reports Wider-Than-Expected Q2 Loss Despite Revenue Growth
Key Takeaways
AST SpaceMobile, Inc. (ASTS - Free Report) reported lackluster second-quarter 2026 results, with both top and bottom lines missing the Zacks Consensus Estimate.
The company reported strong year-over-year revenue growth, driven by gateway deliveries and U.S. government contracts. It continued to expand satellite production and partnerships and advance its network deployment. However, higher operating and launch costs continued to weigh on its bottom line.
Net Income
On a GAAP basis, the company recorded a net loss of $230.9 million or a loss of 77 cents per share compared with a net loss of $99.4 million or a loss of 41 cents per share in the year-ago quarter. Despite healthy top-line growth, higher total operating expenses pressured the bottom line.
Excluding non-recurring items, non-GAAP net loss for the reported quarter was 44 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 28 cents.
AST SpaceMobile, Inc. Price, Consensus and EPS Surprise
AST SpaceMobile, Inc. price-consensus-eps-surprise-chart | AST SpaceMobile, Inc. Quote
Revenues
Quarterly revenues surged to $31.5 million from $1.16 million in the year-ago quarter, driven by solid growth in both Product and Service segments. However, the top line missed the Zacks Consensus Estimate of $34.1 million.
In the second quarter, Product revenues increased to $24.4 million from $0.05 million, primarily driven by the delivery of commercial gateway equipment to Mobile Network Operator partners. Services revenues also increased to $7.09 million from $1.11 million in the prior-year quarter, reflecting increased revenue recognized from U.S. government contracts and the achievement of related contractual milestones.
Other Details
In the June quarter, total operating expenses rose to $329.1 million from $74 million in the year-ago quarter. This was due to increased general and administrative costs and engineering services expenses. Adjusted operating expenses for the second quarter were $119.1 million.
Cash Flow & Liquidity
During the first six months of 2026, the company utilized $145.2 million of cash for operating activities compared with a cash utilization of $72 million in the year-ago period. As of June 30, 2026, it had $2.29 billion in cash and cash equivalents with $2.96 billion in long-term debt.
Zacks Rank
AST SpaceMobile currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.
Analog Devices, Inc. (ADI - Free Report) is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release second-quarter fiscal 2027 earnings on Aug. 27. The Zacks Consensus Estimate for earnings is pegged at $2.63 per share, implying growth of 16% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 17.48%. The company delivered an average earnings surprise of 7.22% in the last four reported quarters.