MIDLAND, Texas--(BUSINESS WIRE)--AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, and designed for both commercial and government applications, is providing its business update and results for the third quarter ended September 30, 2026.
“We advanced several important initiatives to support the global expansion of our space-based cellular broadband network and expect to work with all major mobile network operators in the United States and Europe, providing potential expansion of our commercial ecosystem of over 60 mobile network operators representing over 3 billion subscribers,” commented Abel Avellan, AST SpaceMobile's Chairman and Chief Executive Officer. “We expanded our international commercial footprint, strengthened mobile network operator partnerships, and secured additional spectrum and regulatory authorizations. We also announced Blacklift, our proprietary 20-ton rocket, which is intended to provide greater control over launch availability, deployment schedules, and attractive ownership economics.”
“On the manufacturing front, we are transitioning to full-scale ASIC integration beginning with BlueBird 34, while advancing production through BlueBird 51,” added Avellan. “We expect to achieve a production rate of six ASIC satellites per month in December of this year.”
“Looking ahead, our priorities are to advance service readiness across our initial markets, complete the transition to ASIC-enabled production, and scale our constellation deployment. Through our partner-first strategy, we are expanding our scope of service and positioning AST SpaceMobile to become the direct-to-device partner of choice for mobile network operators, technology leaders and the United States Government, extending our total addressable market well beyond traditional direct-to-device cellular broadband. With additional launch capacity and manufacturing output expected to increase, we are focused on accelerating constellation deployment and capitalizing on this expanded opportunity.”
Business Update
- Advancing to service readiness with initial, intermittent nationwide coverage expected in key markets by year-end 2026, leveraging key mobile network infrastructure, spectrum, customer relationships and AST SpaceMobile technology leadership
- First step of coverage roll-out to strategic partners in the United States, Canada, Japan, Saudi Arabia and United Kingdom
- Expecting to work with all major mobile network operators in the United States and Europe, providing potential expansion of commercial ecosystem of over 60 mobile network operators representing over 3 billion subscribers
- Successfully validated first-ever satellite beam handovers between ground-based and space-based cellular broadband networks with partner AT&T in the United States
- Shared MNO spectrum and controlled MSS spectrum targeting ~100 MHz access in the U.S. and 60+ MHz access globally on a market-by-market basis
- Granted authorization for commercial service in Brazil with a combined 50 MHz of S-band and low band spectrum
- Satellite manufacturing reaches monthly capacity run-rate in December 2026 with next-generation ASIC microns pulled forward to BlueBird 34 from BlueBird 50
- ASIC chip enables a 10x improvement in processing bandwidth compared to in-orbit Block 1 BlueBird satellites
- Now in production through BlueBird 51 in Texas, with two dedicated factories running full shifts to reach run-rate production in December
- BlueBirds are on the move with BlueBirds 11, 12, and 13 unfolded successfully and in operations in orbit; BlueBirds 14, 15, and 16 shipped to Cape Canaveral in September 2026 awaiting SpaceX launch date confirmation; BlueBirds 17, 18, and 19 expected to ship by end of November 2026 for a Blue Origin launch expected in early Q1 2027; and BlueBirds 20, 21, 22, 23, 24, and 25 shipping in December and January for expected DPAS-rated dual-use launches during Q1 2027
- Targeting approximately 45 BlueBird satellites in orbit by middle 2027
- Launch agreements now covering in total over 100 BlueBird satellites expected to be deployed cumulatively between 2027 and 2028, and announced Blacklift, AST SpaceMobile’s purpose-built rocket to ensure regular unconstrained access to orbit starting in late 2028
- Agreements now covering in total over 100 BlueBird satellites expected to be deployed cumulatively between 2027 and 2028
- Access to further launches for U.S. Government missions alongside its Defense Priorities and Allocations System (DPAS) rated program
- Building Blacklift, a 20-ton rocket leveraging an engine architecture with over a decade of development and proven flight heritage, enabling up to five BlueBird satellites per launch
- Expanding AST SpaceMobile’s scope of service and total addressable market as the partner of choice for global mobile network operators, technology leaders, and the United States Government
- Third quarter revenue grew to $42.3 million from commercial and United States government customers, consistent with plans for quarterly revenue ramp during 2026
- Awarded U.S. Space Force Contract for advanced space-based sensing capabilities (SB-AMTI) with approximately $100 million in revenue, with 16 U.S. Government awards to date
- Growing international partnership strategy through combined S-band spectrum and IMT spectrum allocations in markets like Brazil and Colombia
- Largest phased arrays in LEO with ASIC microns address a dramatically expanded total addressable market (TAM) across a growing set of capabilities beyond direct-to-device
- Remain on target to achieve revenue guidance of $150.0 million to $200.0 million, with upside based on recent contract signatures
- Fortress balance sheet with approximately $3.2 billion in cash, cash equivalents, and restricted cash to be reinforced with near-term non-dilutive capital
- J-LEO agreement with Japan Ministry of Internal Affairs and Communications and partner Rakuten features approximately $1.0 billion in non-dilutive funding for manufacturing and launch of satellites
- Additional pipeline of approximately $1.2 billion in non-dilutive U.S. quasi-governmental financing for 2027, across multiple agencies
Third Quarter 2026 Financial Highlights
- Third quarter revenue of $42.3 million driven by gateway deliveries and U.S. Government milestones met
- Total operating expenses for the third quarter of 2026 were $211.0 million, including $77.4 million of depreciation and amortization and stock-based compensation expense. This represents a decrease of $118.1 million as compared to $329.1 million in the second quarter of 2026 due to a $125.9 million loss on involuntary conversion in the second quarter, and an $8.2 million decrease in general and administrative costs, partially offset by a $8.5 million increase in engineering services costs, a $4.4 million increase in depreciation and amortization expense, a $1.7 million increase in cost of revenues, and a $1.3 million increase in research and development costs
- Adjusted operating expenses(1) for the third quarter of 2026 were $133.6 million, an increase of $14.5 million as compared to $119.1 million in the second quarter of 2026 due to an $11.0 million increase in Adjusted engineering services costs(1), a $1.3 million increase in research and development costs, a $1.2 million increase in Adjusted general and administrative costs(1), and a $1.0 million increase in Adjusted cost of revenues(1). Our Adjusted operating expenses, excluding Adjusted cost of revenues(1) for the third quarter of 2026 were $109.4 million, compared to $95.9 million in the second quarter of 2026
- As of September 30, 2026, we had cash, cash equivalents, and restricted cash of approximately $3.2 billion
- As of September 30, 2026, we have incurred approximately $2.6 billion of gross capitalized property and equipment costs and accumulated depreciation and amortization of $236.8 million. The capitalized costs include costs of satellite materials for BlueBird satellites, advance launch payments, capital advances, satellites in orbit, assembly and integration facilities including assembly and test equipment, and ground antennas
(1) See “Non-GAAP Financial Measures” below for additional information. See reconciliation of Adjusted operating expenses to Total operating expenses; Adjusted cost of revenues to Cost of revenues; Adjusted engineering services costs to Engineering services costs; Adjusted general and administrative costs to General and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues to Total operating expenses in the tables accompanying this press release. |
Non-GAAP Financial Measures
We refer to certain non-GAAP financial measures in this press release, including Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues. We believe these non-GAAP financial measures are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measures. Reconciliation of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release.
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference call at 5:00 p.m. (Eastern Time) on Monday, November 9, 2026. The call will be accessible via a live webcast on the Events page of AST SpaceMobile’s Investor Relations website at https://ast-science.com/investors/. An archive of the webcast will be available shortly after the call.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.
Forward-Looking Statements
This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.
Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST SpaceMobile’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 BlueBird satellites, anticipated timing and performance of AST SpaceMobile’s Blacklift rocket, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) AST SpaceMobile’s ability to consummate the proposed transactions with Firefly Aerospace, Inc., to develop and build its own rockets on time, or at all, using the licensed engine technology, to develop, manufacture and deliver satellites for the J-LEO Constellation to meet the service standards and timeline required by the grant received by RAST, and to accurately estimate the costs necessary to fund the J-LEO Constellation; (iv) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (v) changes in applicable laws or regulations; (vi) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vii) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (viii) other risks and uncertainties indicated in the Company’s filings with the Securities and Exchange Commission (“SEC”), including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on March 2, 2026, and the future reports that it may file from time to time with the SEC.
AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K filed with the SEC on March 2, 2026, and the future reports that it may file from time to time with the SEC. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Third Quarter 2026 Financial Results
AST SPACEMOBILE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands, except share data) | ||||||||
As of | ||||||||
September 30, 2026 | December 31, 2025 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,798,911 | $ | 2,335,683 | ||||
Restricted cash | 6,169 | 877 | ||||||
Accounts receivable, net (includes related party accounts receivable of $4,380 and $2,091 at September 30, 2026 and December 31, 2025, respectively) | 104,062 | 37,726 | ||||||
Inventory | 78,988 | 12,007 | ||||||
Prepaid expenses | 17,660 | 11,955 | ||||||
Other current assets | 70,917 | 60,264 | ||||||
Total current assets | 3,076,707 | 2,458,512 | ||||||
Non-current assets: | ||||||||
Restricted cash | 428,400 | 443,400 | ||||||
Property and equipment, net | 2,354,879 | 1,398,761 | ||||||
Intangible assets, net | 321,737 | 245,093 | ||||||
Operating lease right-of-use assets, net | 25,657 | 19,420 | ||||||
Other non-current assets (includes related party loan receivable of $19,087 and $18,187 at September 30, 2026 and December 31, 2025, respectively) | 562,868 | 449,201 | ||||||
TOTAL ASSETS | $ | 6,770,248 | $ | 5,014,387 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 69,802 | $ | 46,763 | ||||
Accrued expenses and other current liabilities | 132,150 | 69,246 | ||||||
Current contract liabilities | 11,217 | 19,887 | ||||||
Current operating lease liabilities | 3,425 | 2,449 | ||||||
Current portion of long-term debt | 8,788 | 11,999 | ||||||
Total current liabilities | 225,382 | 150,344 | ||||||
Non-current liabilities: | ||||||||
Warrant liabilities | - | 7,471 | ||||||
Non-current operating lease liabilities | 22,809 | 17,479 | ||||||
Non-current contract liabilities | 252,093 | 207,093 | ||||||
Long-term debt, net | 4,083,709 | 2,207,583 | ||||||
Other non-current liabilities | 23,664 | 32,092 | ||||||
Total liabilities | 4,607,657 | 2,622,062 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity: | ||||||||
Class A Common Stock, $0.0001 par value; 800,000,000 shares authorized; 300,649,177 and 285,449,911 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively. | 27 | 27 | ||||||
Class B Common Stock, $0.0001 par value; 200,000,000 shares authorized; 11,215,111 and 11,227,292 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively. | 3 | 4 | ||||||
Class C Common Stock, $0.0001 par value; 125,000,000 shares authorized; 78,163,078 shares issued and outstanding as of September 30, 2026 and December 31, 2025. | 8 | 8 | ||||||
Additional paid-in capital | 3,111,685 | 2,671,770 | ||||||
Accumulated other comprehensive income | 1,269 | 1,351 | ||||||
Accumulated deficit | (1,385,986 | ) | (831,685 | ) | ||||
Noncontrolling interest | 435,585 | 550,850 | ||||||
Total stockholders' equity | 2,162,591 | 2,392,325 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,770,248 | $ | 5,014,387 | ||||
AST SPACEMOBILE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data) | ||||||||||||||||
For the Three Months Ended
| For the Nine Months Ended
| |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenues: | ||||||||||||||||
Products revenues (includes related party revenues of $1,422 and $0 for the three months ended September 30, 2026 and 2025, respectively, and $11,192 and $0 for the nine months ended September 30, 2026 and 2025, respectively) | $ | 20,571 | $ | 7,746 | $ | 58,404 | $ | 8,114 | ||||||||
Services revenues | 21,750 | 6,993 | 30,171 | 8,499 | ||||||||||||
Total revenues | 42,321 | 14,739 | 88,575 | 16,613 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of revenues (exclusive of items shown separately below) | ||||||||||||||||
Cost of revenues - products (includes related party cost of revenues of $1,241 and $0 for the three months ended September 30, 2026 and 2025, respectively, and $7,852 and $0 for the nine months ended September 30, 2026 and 2025, respectively) | 22,451 | 5,511 | 55,916 | 5,803 | ||||||||||||
Cost of revenues - services | 2,863 | - | 4,614 | - | ||||||||||||
Engineering services costs | 95,788 | 40,836 | 267,171 | 96,346 | ||||||||||||
General and administrative costs | 55,705 | 29,822 | 163,263 | 75,448 | ||||||||||||
Research and development costs | 9,094 | 5,530 | 23,990 | 19,058 | ||||||||||||
Depreciation and amortization | 25,078 | 12,716 | 63,357 | 35,394 | ||||||||||||
Loss on involuntary conversion | 47 | - | 125,958 | - | ||||||||||||
Total operating expenses | 211,026 | 94,415 | 704,269 | 232,049 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Gain (loss) on remeasurement of warrant liabilities | - | 2,938 | (1,174 | ) | (65,300 | ) | ||||||||||
Interest expense | (30,340 | ) | (7,545 | ) | (80,695 | ) | (17,938 | ) | ||||||||
Interest income | 30,110 | 12,239 | 84,807 | 28,452 | ||||||||||||
Other expense, net | (6,660 | ) | (91,409 | ) | (110,056 | ) | (91,852 | ) | ||||||||
Total other expense, net | (6,890 | ) | (83,777 | ) | (107,118 | ) | (146,638 | ) | ||||||||
Loss before income tax benefit (expense) | (175,595 | ) | (163,453 | ) | (722,812 | ) | (362,074 | ) | ||||||||
Income tax benefit (expense) | 3,785 | (374 | ) | 1,524 | (1,284 | ) | ||||||||||
Net loss before allocation to noncontrolling interest | (171,810 | ) | (163,827 | ) | (721,288 | ) | (363,358 | ) | ||||||||
Net loss attributable to noncontrolling interest | (39,430 | ) | (40,953 | ) | (166,987 | ) | (95,384 | ) | ||||||||
Net loss attributable to common stockholders | $ | (132,380 | ) | $ | (122,874 | ) | $ | (554,301 | ) | $ | (267,974 | ) | ||||
Net loss per share attributable to holders of Class A Common Stock | ||||||||||||||||
Basic and diluted | $ | (0.44 | ) | $ | (0.45 | ) | $ | (1.87 | ) | $ | (1.09 | ) | ||||
Weighted-average number of shares | ||||||||||||||||
Basic and diluted | 300,131,014 | 272,831,168 | 296,662,011 | 246,490,060 | ||||||||||||
AST SPACEMOBILE, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (Dollars in thousands) | ||||||||||||||||
For the Three Months Ended
| For the Nine Months Ended
| |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Net loss before allocation to noncontrolling interest | $ | (171,810 | ) | $ | (163,827 | ) | $ | (721,288 | ) | $ | (363,358 | ) | ||||
Other comprehensive (loss) income | ||||||||||||||||
Foreign currency translation adjustments | (337 | ) | 105 | (176 | ) | 1,883 | ||||||||||
Total other comprehensive (loss) income | (337 | ) | 105 | (176 | ) | 1,883 | ||||||||||
Total comprehensive loss before allocation to noncontrolling interest | (172,147 | ) | (163,722 | ) | (721,464 | ) | (361,475 | ) | ||||||||
Comprehensive loss attributable to noncontrolling interest | (39,504 | ) | (40,914 | ) | (167,081 | ) | (94,851 | ) | ||||||||
Comprehensive loss attributable to common stockholders | $ | (132,643 | ) | $ | (122,808 | ) | $ | (554,383 | ) | $ | (266,624 | ) | ||||
AST SPACEMOBILE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) | ||||||||
For the Nine Months Ended September 30, | ||||||||
2026 | 2025 | |||||||
Cash flows from operating activities: | ||||||||
Net loss before allocation to noncontrolling interest | $ | (721,288 | ) | $ | (363,358 | ) | ||
Adjustments to reconcile net loss before noncontrolling interest to cash used in operating activities: | ||||||||
Depreciation and amortization | 63,357 | 35,394 | ||||||
Amortization of debt issuance costs | 6,882 | 1,206 | ||||||
Amortization of debt commitment fee | 6,600 | 1,833 | ||||||
Loss on disposal of property and equipment | 2,194 | 1,045 | ||||||
Induced conversion expense on convertible notes | 88,654 | 84,317 | ||||||
Loss on remeasurement of warrant liabilities | 1,174 | 65,300 | ||||||
Stock-based compensation | 171,158 | 32,338 | ||||||
Non-cash interest expense, net | 1,049 | 845 | ||||||
Loss from equity method investment | 8,382 | - | ||||||
Loss on involuntary conversion | 125,958 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (66,336 | ) | (10,091 | ) | ||||
Prepaid expenses and other current assets | (16,670 | ) | (5,148 | ) | ||||
Inventory | (66,981 | ) | (9,823 | ) | ||||
Accounts payable and accrued expenses | 63,879 | 17,728 | ||||||
Contract liabilities | 36,329 | 24,597 | ||||||
Other assets and liabilities | (18,818 | ) | (12,669 | ) | ||||
Net cash used in operating activities | (314,477 | ) | (136,486 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (1,154,196 | ) | (669,045 | ) | ||||
Capital advances to Ligado | (100,000 | ) | - | |||||
Purchase of spectrum intangibles | (60,708 | ) | (27,961 | ) | ||||
Insurance proceeds received from BB7 launch | 32,395 | - | ||||||
Capital contribution to equity method investment | (11,559 | ) | - | |||||
Net cash used in investing activities | (1,294,068 | ) | (697,006 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from debt | 2,195,213 | 1,043,779 | ||||||
Repayments of debt | (31,362 | ) | (2,940 | ) | ||||
Payment for debt issuance costs | (8,349 | ) | (5,907 | ) | ||||
Proceeds from issuance of common stock | 85,723 | 576,617 | ||||||
Payments for third party equity issuance costs | (458 | ) | (11,304 | ) | ||||
Issuance of equity under employee stock plan | 4,853 | 8,043 | ||||||
Employee taxes paid for stock-based compensation awards | (76,362 | ) | (18,679 | ) | ||||
Purchase of capped call transactions | (111,435 | ) | (98,578 | ) | ||||
Payments for debt commitment fee | - | (11,000 | ) | |||||
Proceeds from share issuances to repurchase 2032 4.25% Convertible Notes | 180,537 | 849,827 | ||||||
Payments for repurchase of 2032 4.25% Convertible Notes | (180,537 | ) | (842,805 | ) | ||||
Proceeds from share issuances to repurchase 2032 2.375% Convertible Notes | 433,739 | - | ||||||
Payments for repurchase of 2032 2.375% Convertible Notes | (430,424 | ) | - | |||||
Net cash provided by financing activities | 2,061,138 | 1,487,053 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 927 | (972 | ) | |||||
Net increase in cash, cash equivalents and restricted cash | 453,520 | 652,589 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 2,779,960 | 567,534 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 3,233,480 | $ | 1,220,123 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Non-cash activities: | ||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 8,448 | $ | 3,204 | ||||
Non-cash investing and financing activities: | ||||||||
Purchases of property and equipment in accounts payable and accrued expenses | $ | 75,305 | $ | 43,726 | ||||
Stock-based compensation capitalized in property and equipment | 8,222 | - | ||||||
PIK interest paid through issuance of PIK notes | - | 497 | ||||||
Deferred asset acquisition costs paid by issuance of penny warrants | - | 121,156 | ||||||
Convertible notes settled by issuance of Class A Common Stock | - | 139,620 | ||||||
Spectrum intangibles acquisition costs accrued or paid by issuance of shares | 14,556 | 64,649 | ||||||
Settlement of warrant liabilities by issuing shares | 8,645 | 101,930 | ||||||
Cash paid for: | ||||||||
Interest | $ | 40,949 | $ | 4,215 | ||||
Income taxes, net | 2,982 | 1,662 | ||||||
AST SPACEMOBILE, INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED MEASURES (UNAUDITED) (Dollars in thousands) | ||||||||||||
For the Three Months Ended September 30, 2026 | ||||||||||||
GAAP Reported | Stock-Based Compensation Expense | Adjusted | ||||||||||
Cost of revenues (exclusive of items shown below) | $ | 25,314 | $ | (1,137 | ) | $ | 24,177 | |||||
Engineering services costs | 95,788 | (27,619 | ) | 68,169 | ||||||||
General and administrative costs | 55,705 | (23,582 | ) | 32,123 | ||||||||
Research and development costs | 9,094 | 9,094 | ||||||||||
Depreciation and amortization | 25,078 | 25,078 | ||||||||||
Loss on involuntary conversion | 47 | 47 | ||||||||||
Total operating expenses | $ | 211,026 | $ | (52,338 | ) | $ | 158,688 | |||||
Less: Depreciation and amortization | (25,078 | ) | ||||||||||
Less: Loss on involuntary conversion | (47 | ) | ||||||||||
Adjusted operating expenses | 133,563 | |||||||||||
Less: Adjusted cost of revenues | (24,177 | ) | ||||||||||
Adjusted operating expenses, excluding Adjusted cost of revenues | $ | 109,386 | ||||||||||
For the Three Months Ended June 30, 2026 | ||||||||||||
GAAP Reported | Stock-Based Compensation Expense | Adjusted | ||||||||||
Cost of revenues (exclusive of items shown below) | $ | 23,567 | $ | (394 | ) | $ | 23,173 | |||||
Engineering services costs | 87,286 | (30,120 | ) | 57,166 | ||||||||
General and administrative costs | 63,901 | (32,953 | ) | 30,948 | ||||||||
Research and development costs | 7,768 | 7,768 | ||||||||||
Depreciation and amortization | 20,664 | 20,664 | ||||||||||
Loss on involuntary conversion | 125,911 | 125,911 | ||||||||||
Total operating expenses | $ | 329,097 | $ | (63,467 | ) | $ | 265,630 | |||||
Less: Depreciation and amortization | (20,664 | ) | ||||||||||
Less: Loss on involuntary conversion | (125,911 | ) | ||||||||||
Adjusted operating expenses | 119,055 | |||||||||||
Less: Adjusted cost of revenues | (23,173 | ) | ||||||||||
Adjusted operating expenses, excluding Adjusted cost of revenues | $ | 95,882 | ||||||||||
Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues are alternative financial measures used by management to evaluate our operating performance as a supplement to our most directly comparable U.S. GAAP financial measure. We define Adjusted operating expenses as Total operating expenses adjusted to exclude amounts of stock-based compensation expense, loss on involuntary conversion, and depreciation and amortization expense. We define Adjusted cost of revenues, Adjusted engineering services costs, and Adjusted general and administrative costs, as cost of revenues, engineering services costs, and general and administrative costs, respectively, adjusted to exclude stock-based compensation expenses. We define Adjusted operating expenses, excluding Adjusted cost of revenues as Total operating expenses adjusted to exclude amounts of stock-based compensation expense, loss on involuntary conversion, depreciation and amortization expense, and Adjusted cost of revenues.
We believe Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measure of Total operating expenses, Cost of revenues, Engineering services costs, and General and administrative costs.