AST SpaceMobile, Inc. Q4 FY2025 earnings call

• In 2025, ASIS - Premobil became revenue - generating, advanced key operations including commercial, government, manufacturing, etc. Raised over $3.5 billion in capital, reported over $70 million revenue and signed over $1 billion of committed revenue. - Unveiled Block 2 Bluebird program, which is larger and higher capacity than previous. Successfully launched and unfolded Bluebird 6, with Bluebird 7 ready to launch. - Plan to ramp satellite manufacturing and launch cadence in 2026, aiming to deploy 45 - 60 satellites into orbit. - Have 95% vertically integrated manufacturing strategy, expanded manufacturing sites in Texas and Florida. - Expanded commercial ecosystem with partnerships like Verizon, STC Group, Orange, etc., securing over $1 billion in contracted revenue. - Made progress in government business with U.S. government using its satellite technology, recently awarded contracts like from the U.S. Space Development Agency.

In 2025, AST Space Mobile became a revenue - generating business. It raised over $3.5 billion in capital, reported over $70 million in revenue for the full year and signed over $1 billion of minimum committed revenue. Operationally, it planned to ramp satellite manufacturing efforts and launch cadence in 2026. Financially, in the fourth quarter of 2025, non - GAAP adjusted operating expenses were $95.7 million vs $67.7 million in Q3. Full - year 2025 revenue was $70.9 million, near the top of the guidance range. In 2026, it expected revenue in the range of $150 to $200 million, driven by gateway deliveries, U.S. government contracted milestones, M&O consulting services, etc. Its balance sheet was fortified with cash, cash equivalents, restricted cash and available liquidity under the ATM facility totaling over $3.9 billion on a pro forma basis as of December 31, 2025.

• 2025 revenue was near the top of the guidance range of $50 - $75 million. - 2026 revenue expected to be in the range of $150 - $200 million, driven by various factors including gateway deliveries, U.S. government milestones, etc. - 2027 expected to have strong outlook for commercial and government service revenue, with opportunity approaching a billion dollars in annual revenue. - 2026 to be an inflection point entering commercial service with initial M&O partners while generating revenue from other strategies.

Q: Any interesting learnings from BB - 6 and 7? Is the production of composite satellites going to be vastly different? Any unforeseen delays?

A: BB - 6 is the largest phase array deployed in space. Production of larger satellites has learned how to operate, deploy, and fly them faster. Stacking satellites for launch is now possible.

Q: With the larger designs complete and being produced, do you anticipate future R&D or new product lines?

A: Core R&D for current satellites is complete, but see opportunities like radar, power generation, spectrum usage multiplication with AI.

Q: Can you share more color on the most recent $1 billion convertible note offering?

A: The offering provides extra flexibility for accelerating deployment of controlled global spectrum, monetizing AI - related commercial opportunities, enhancing government space investments, reducing debt, etc.

Q: As we parse out the comments that you talked about on 2027 revenue potential, how does the team kind of think about the mix of opportunities between government and B2B customers?

A: 2027 revenue goal is weighted towards commercial based on current framework but with upside if government does better.

Q: Would you mind providing just some color on how many satellites beyond BB - 7 are built and ready to ship today, and maybe how many you expect to be built and ready to ship by mid - year?

A: On target to be ready to ship 60 satellites this year with a minimum of 45 into orbit.

Q: Are you in Barcelona for the conference? And will there be more announcements this week besides what you've already announced?

A: In Barcelona for the conference, expect more announcements this week.

Q: What service level – will your network support when you launch the different beta offerings in the summer?

A: Peak data rate directionally proportional to allocated spectrum, initial launch with lower end, spectrum allocation increase leads to enhanced peak data rates.

Q: Looking at your new disclosure, it appears your services gross margins are around 90%. Is this a good way to think about the business longer term? And as revenue generation starts to kick in, can you just remind us how you're thinking about operating leverage and where you believe steady state EBITDA margins can reach for the business?

A: Satellite industry has high margins, services gross margins around 90% show great operating leverage, steady state EBITDA margins could be in 90% area or higher.

Q: I recognize the 10K talks about 90 satellites supporting your longer - term business goals, but does your ability to raise capital maybe incentivize you to perhaps go beyond what is contemplated in the original business plans?

A: Having flexibility from capital, but real goal is to generate revenue and profit from constellation as it launches, and balance sheet is fortified for additional investments but not needing to go beyond raised capital for current goals.