Shares of AST SpaceMobile (NASDAQ:ASTS) fell more than 12% in premarket trading on Tuesday after the company reported a first-quarter loss that came in significantly worse than Wall Street forecasts.
The sharp decline came despite updates on upcoming satellite launches and recent regulatory approvals tied to the company’s direct-to-device broadband network ambitions.
AST SpaceMobile reported a quarterly loss of $0.66 per share, substantially wider than analyst expectations for a loss of $0.21 per share.
Revenue for the quarter totaled $14.73 million, also missing market projections of $37.48 million.
Company Accelerates Satellite Deployment Plans
Chief Executive Officer Abel Avellan said the company continues to accelerate both manufacturing and regulatory activities as it seeks to expand its position in the satellite-based mobile broadband market.
According to Avellan, AST SpaceMobile is currently targeting a constellation of approximately 45 satellites in orbit by 2026.
The company also confirmed that its BlueBird 8, 9 and 10 satellites remain scheduled for a mid-June launch aboard a SpaceX Falcon 9 rocket.
Meanwhile, AST SpaceMobile said vertical integration efforts continue to expand, with satellites 11 through 33 already in advanced stages of assembly.
Bank of America Lowers Price Target
Following the earnings release, Bank of America maintained its Neutral rating on AST SpaceMobile but reduced its price target to $95 from $100.
“Our revised PO is based on a longer revenue ramp as satellite launches are pushed out,” analysts at the bank said.
“Enthusiasm around LEO businesses is undoubtably positive and ASTS’ strong mobile service operator (MSO) relationships are a solid foundation to build revenue. However, rising competitive threats and recent launch delays offset longer term potential and near-term headline driven performance and keep us Neutral,” they added.
Regulatory Progress Supports Long-Term Network Plans
AST SpaceMobile recently said it achieved peak download speeds of 98.9 Mbps using its in-orbit Block 1 BlueBird satellite during testing over international waters.
The company expects its newer Block 2 satellites currently under development to nearly double those peak speeds.
AST also recently secured supplemental coverage authority from the Federal Communications Commission, allowing the company to offer commercial direct-to-device broadband services in the United States.
The approval supports AST SpaceMobile’s long-term plan to operate a network of up to 248 satellites.
Operating Expenses Increase as Revenue Guidance Maintained
The company ended the quarter with approximately $3.5 billion in cash and cash equivalents as of March 31.
Total operating expenses rose to $164.1 million during the quarter, driven primarily by higher engineering services costs and increased administrative spending.
Management reiterated its full-year 2026 revenue guidance of between $150 million and $200 million.
The midpoint of the forecast, $175 million, remains below analyst expectations of approximately $181.1 million.
AST SpaceMobile said roughly half of projected annual revenue is expected to come from its existing contracted backlog with mobile network partners and the U.S. government.