TAMPA, Fla. — AST SpaceMobile shares rose more than 8% to $49.76 Aug. 12 after the direct-to-smartphone operator said it has secured all the funding needed to deploy 45–60 satellites, enough to provide continuous coverage in the United States and other key markets.
Reporting second-quarter earnings after the Nasdaq closed Aug. 11, the Texas-based venture said it had more than $1.5 billion on its balance sheet following a series of equity raises.
Combined with expected near-term commercial and government revenue from non-continuous services as the constellation expands, chief financial officer Andrew Johnson said “we are fully funded now to reach the 45 to 60 satellite level.”
Meanwhile, he said AST SpaceMobile continues to make progress on securing more than $500 million from multiple U.S. and international quasi-governmental sources, having cleared initial funding approvals and moving into diligence and documentation.
The company, which has deployed five Block 1 BlueBird satellites, expects $50 million to $75 million in second-half 2025 revenue from government contracts, gateway installations for telco partners and early service sales — pending regulatory approvals.
Each Block 1 spans 64 square meters, carrying the largest commercial antenna ever deployed in low Earth orbit to connect directly with unmodified smartphones.
In August, AST SpaceMobile plans to ship its delayed Block 2 BlueBird for launch from India. More than three-times larger than Block 1, the upgraded satellite is designed to deliver 10 times the capacity to support peak data rates of up to 120 megabits per second.
Discussions are ongoing with India’s space agency about when the debut Block 2 could launch on a GSLV rocket, AST SpaceMobile CEO Abel Avellan said during the earnings call.
Launch ramp-up
AST SpaceMobile anticipates at least four additional orbital launches by March 31, as part of plans to deploy spacecraft every 45–60 days on average to reach up to 60 satellites by the end of 2026.
The company has multi-launch agreements that include SpaceX’s Falcon 9 workhorse and the New Glenn vehicle Blue Origin is developing, but did not provide specific rocket assignments.
According to Avellan, phased arrays have been completed for eight Block 2 BlueBirds as production scales toward six satellites per month to support the planned cadence.
Capital expenditures jumped to $323 million in the second quarter, compared with $124 million the previous quarter, after AST SpaceMobile bought satellite materials to head off potential tariff changes and paid $25 million for a launch earlier than planned.
Initial services are intended to fill coverage gaps in strategic markets such as the United States, Europe and Japan. Ultimately, the venture aims to operate 90 satellites for continuous global coverage.
Spectrum boost
AST SpaceMobile satellites would primarily use cellular frequencies from telco partners such as AT&T and Verizon to connect smartphones beyond the reach of terrestrial towers.
However, the company is also amassing its own satellite spectrum to improve capacity, which Avellan said creates “a durable competitive advantage around our business” as SpaceX and other direct-to-smartphone rivals expand their constellations.
Last week, AST SpaceMobile announced a $64.5 million deal for up to 60 megahertz of global S-band rights, subject to country-by-country approvals.
It has also recently agreed to provide about $550 million to bankrupt satellite operator Ligado Networks for access to L-band frequencies over North America, a transaction slated to complete next year.
“Together with our network operator partners, we are in a position to expand subscriber capacity by offering the vast majority of countries around the world the full AST SpaceMobile network capabilities,” Avellan said during the call, “enabling a true broadband experience directly from space to everyday smartphones.”
AST SpaceMobile shares are up nearly 130% year to date, bucking the trend among early-stage space firms that went public in recent years via special purpose acquisition company (SPAC) mergers.