MIDLAND, Texas - AST SpaceMobile, Inc. (NASDAQ:ASTS) shares plunged 13.8% in after-hours trading on Thursday after the space-based cellular broadband company reported a wider-than-expected loss for the third quarter.
The company posted a net loss of $1.10 per share, significantly missing the analyst estimate of a $0.20 per share loss. Revenue came in at $1.1 million, falling short of the $1.8 million consensus forecast.
AST SpaceMobile's operating expenses rose to $66.6 million in Q3, up from $63.9 million in Q2, driven primarily by a $10.3 million increase in research and development costs.
Despite the disappointing results, CEO Abel Avellan highlighted the company's progress, stating, "We achieved many significant milestones in the quarter and continue our momentum with several key pieces now in place." He noted that the first five BlueBird satellites have successfully unfolded and entered initial operations.
The company ended the quarter with a strong balance sheet, reporting $518.9 million in cash, cash equivalents, and restricted cash. This was bolstered by $153.3 million in net proceeds from the redemption of publicly traded warrants.
Looking ahead, AST SpaceMobile has secured orbital launch capacity to enable continuous space-based cellular broadband service coverage in key markets, including the U.S., Europe, and Japan. The company has launch services agreements with Blue Origin and existing launch vehicles for launches during 2025 and 2026, enabling the orbital launch of up to approximately 60 Block 2 BlueBird satellites.
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