AST SpaceMobile, Inc. (ASTS Quick QuoteASTS - Free Report) centered its third-quarter 2026 earnings call on plans to activate intermittent satellite broadband service before year-end, expand launch capacity and accelerate satellite manufacturing.

Analysts pressed for clarity on deployment timing, commercialization and the economics of in-house launches.

ASTS Targets Initial Service Before Year-End

Founder, chairman and CEO Abel Avellan said the company remains on track to activate intermittent nationwide coverage in the United States and other key markets by the end of 2026.

Initial partners span the United States, Canada, Japan, Saudi Arabia and the United Kingdom. Avellan also highlighted a successful satellite-to-terrestrial network handover demonstration with AT&T.

During questions from William Blair, president and chief strategy officer Scott Wisniewski clarified that the first activation provides partners with coverage when satellites pass overhead. End-user beta trials are expected in early 2027, preferably with about 25 satellites operating.

AST SpaceMobile Sets a Faster Manufacturing Pace

Avellan said AST SpaceMobile expects to reach production of six ASIC-equipped BlueBird satellites per month in December. The company has manufacturing work underway through BlueBird 51.

The next-generation ASIC will enter production starting with BlueBird 34 rather than BlueBird 50, delivering a tenfold improvement in processing bandwidth relative to Block 1 spacecraft.

Management targets roughly 45 BlueBird satellites in orbit by mid-2027. During the Q&A, Avellan confirmed that BlueBird 11 deployed successfully despite taking longer to unfold, and said its deployment did not require a satellite redesign.

ASTS Expands Launch Options With Blacklift

Avellan described Blacklift as a reusable 20-ton rocket designed to carry as many as five BlueBird satellites into low Earth orbit per launch, beginning in late 2028.

The project draws on Firefly Aerospace engine technology. Wisniewski said ASTS expects several hundred million dollars of incremental capital expenditures in 2027 to advance the project.

Analysts from BofA Securities and Deutsche Bank questioned technical risks and the economics of internal launches. Management emphasized simplified rocket design and potential long-term cost reductions but did not provide a breakeven timetable.

AST SpaceMobile Adds Sovereign and Defense Funding

Wisniewski detailed approximately $1 billion of nondilutive Japanese funding for the J-LEO satellite program with Rakuten. Most funding proceeds are expected during 2027.

The company also announced a U.S. Space Force contract expected to generate approximately $100 million in revenue for advanced space-based sensing capabilities.

In response to Deutsche Bank, Wisniewski described a separate $1.2 billion pipeline of quasi-governmental financing for 2027, comprising subsidies and debt-related support. He described these financing discussions as active.

ASTS Reaffirms Revenue Outlook Amid Rising Costs

Chief financial officer Andrew Johnson reiterated the 2026 revenue target of $150 million to $200 million, supported by gateway deliveries and government milestones. He identified potential upside from additional contract activity.

Third-quarter revenues of $42.32 million missed the Zacks Consensus Estimate of $44.47 million. The reported loss of 44 cents per share was wider than the consensus loss of 41 cents.

AST SpaceMobile, Inc. Price, Consensus and EPS Surprise

AST SpaceMobile, Inc. price-consensus-eps-surprise-chart | AST SpaceMobile, Inc. Quote

Fourth-quarter adjusted operating expenses excluding adjusted cost of revenues are expected to be $130 million to $140 million. Capital spending is expected to be $400 million to $500 million, following third-quarter capital expenditures of approximately $310 million.

AST SpaceMobile Faces Questions on Revenue Timing

Cantor Fitzgerald pressed management on potential 2027 revenue contributions. Wisniewski reiterated an opportunity approaching $1 billion in the 12 months following commercial service commencement, rather than offering a calendar-year 2027 forecast.

He indicated that gateway sales and government contracts should contribute to revenue, while international arrangements and commercial service introduce additional variables.

Berenberg also questioned the cash implications of Japan's joint venture. Wisniewski maintained that the net subsidy for satellite manufacturing and launches was approximately $1 billion after the program's various cash and noncash components.

ASTS Maintains Its Deployment Focus

Management's emphasis remained on transitioning from satellite development toward service availability, higher manufacturing throughput and sustained deployment.

Next milestones include service activation, scheduled launches and converting contracts into revenue.

Zacks Rank and Style Scores for ASTS

ASTS currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term ranking rather than the stronger positioning associated with Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks. You can see the complete list of today’s Zacks #1 Rank stocks here.

Its Value, Growth and VGM Scores are F, while its Momentum Score is A. Under the Zacks scoring framework, these grades reflect unfavorable valuation and growth characteristics, alongside strong price momentum. However, the weak composite VGM Score indicates an unfavorable overall combination of value, growth and momentum attributes. The Zacks Rank remains subject to change as analysts revise their earnings estimates following the latest quarterly results.