AST SpaceMobile (ASTS) Q2 2026 Earnings Call: Q&A Summary

Q: Greg Pendy from Clear Street asked what factors contributed to winning the Rakuten joint venture.

A: Abel Avellan, Chairman and CEO, stated that AST SpaceMobile is the only platform demonstrating operational broadband capability, offers a ground-based data architecture, and has a long-standing partnership with Rakuten.

Q: Greg Pendy asked how much of the $1.3 billion backlog is comprised of government contracts.

A: Scott Wisniewski, President, stated that a minority of the overall backlog is government, though government contracts represent the primary recent additions.

Q: Mike Crawford from B. Riley Securities asked how many of the first 46 BlueBirds will have L-band or S-band connectivity and about the spectrum mix of a 90-satellite constellation.

A: Abel Avellan stated that current production is focused on low-band systems at a rate of 6 per month, with mid-band capabilities starting production later in the year for early 2027 launches.

Q: Mike Crawford asked how a U.S. MNO joint venture affects existing agreements with AT&T and Verizon and relationships with T-Mobile.

A: Scott Wisniewski stated that existing agreements remain unaffected and the joint venture opens up new customer opportunities while the network remains carrier agnostic.

Q: Colin Canfield from Cantor Fitzgerald asked about revenue recognition for commercial service and commercial operator feedback on partial constellation deployments.

A: Scott Wisniewski stated that operators want the service immediately, commercial service revenue recognition will begin when commercial service starts next year with about 45 satellites, and gateway revenues exceed $100 million.

Q: Colin Canfield asked about the market structure in Europe and customer appetite for multi-sourcing supply chains.

A: Scott Wisniewski stated that their unique comms and non-communications technology is very attractive, and international governments are increasingly placing bets on resilient communication capabilities.

Q: Michael Funk from Bank of America asked how many launches are contracted for 2026 and 2027 excluding Blue Origin.

A: Scott Wisniewski stated that 10 launches are booked with two providers targeting a cadence of every month or two, supporting the initial 45 satellites by early 2027.

Q: Michael Funk asked for the current build cost per satellite and expected trends over the next 12 months.

A: Andrew Johnson, CFO, stated that the cost per satellite consistently falls between $21 million and $23 million, including launch and direct labor, which is expected to hold for the first constellation.

Q: Chris Schoell from UBS asked what operational steps are needed to tap into AI edge compute, federal emergency, and IoT markets, and how to think about funding needs.

A: Abel Avellan stated that these opportunities leverage their high power and antenna gain architecture, with compute capabilities being added starting on satellite 47 and 48.

Q: Chris Schoell asked how much spectrum is currently accessible and what alternatives exist to secure additional airwaves.

A: Abel Avellan stated that they can tune satellites across nearly 1,200 megahertz of capacity, with the 100 megahertz in the U.S. coming from Ligado spectrum acquisition and MNO partner access.

Q: Louie DiPalma from William Blair asked how to model 2027 revenue approaching $1 billion based on the $1.3 billion backlog.

A: Scott Wisniewski stated that reaching up to $1 billion in the first full year of commercial service remains the goal, supported by government revenue contributing up to half, alongside infrastructure and ramping commercial services.

Q: Louie DiPalma asked about the timing for consumer beta trials and coverage percentages with 25 satellites.

A: Scott Wisniewski stated that consumer-ready capabilities are targeted for later in 2026 while deferring go-to-market specifics to partners, and 25 satellites will provide roughly half-day coverage.

Q: Bryan Clark from Deutsche Bank asked about working relationships with the U.S. JV and discussions with T-Mobile or Deutsche Telekom.

A: Abel Avellan stated they plan to maintain current partner contracts while expanding relationships with all operators directly and through the joint venture.

Q: Chris Quilty from Quilty Analytics asked if upper C-band is supported in the current ASIC or requires a second revision.

A: Abel Avellan stated that C-band is already built into the ASIC architecture, with a third generation in development to include L-band, MSS, mid-band, and C-band.

Q: Chris Quilty asked whether government radar applications are active or passive and if they use company or government spectrum.

A: Abel Avellan stated that radar applications in the U.S. utilize government spectrum in lower bands, leveraging the large phased array and sensitivity of the satellites.

Q: Scott Searle from ROTH Capital asked about the architectural commonality of the J-LEO constellation and capital requirements from AST SpaceMobile.

A: Abel Avellan stated that the Japanese satellites are identical to the rest of the constellation and can be used globally with the same gateway architecture, with Japan committing $1 billion in non-dilutive, non-debt capital covering roughly half the investment.

Q: Scott Searle asked about other percolating opportunities for dedicated sovereign constellations.

A: Scott Wisniewski stated that discussions are ongoing with other parties, and resilient communication capabilities represent an attractive area for future network expansion.