ASTS Reports Wider-Than-Expected Q2 Loss Despite Revenue Growth

Net Income

On a GAAP basis, the company recorded a net loss of $230.9 million or a loss of 77 cents per share compared with a net loss of $99.4 million or a loss of 41 cents per share in the year-ago quarter. Despite healthy top-line growth, higher total operating expenses pressured the bottom line.

Excluding non-recurring items, non-GAAP net loss for the reported quarter was 44 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 28 cents.

Revenues

Quarterly revenues surged to $31.5 million from $1.16 million in the year-ago quarter, driven by solid growth in both Product and Service segments. However, the top line missed the Zacks Consensus Estimate of $34.1 million.

In the second quarter, Product revenues increased to $24.4 million from $0.05 million, primarily driven by the delivery of commercial gateway equipment to Mobile Network Operator partners. Services revenues also increased to $7.09 million from $1.11 million in the prior-year quarter, reflecting increased revenue recognized from U.S. government contracts and the achievement of related contractual milestones.

Other Details

In the June quarter, total operating expenses rose to $329.1 million from $74 million in the year-ago quarter. This was due to increased general and administrative costs and engineering services expenses. Adjusted operating expenses for the second quarter were $119.1 million.

Cash Flow & Liquidity

During the first six months of 2026, the company utilized $145.2 million of cash for operating activities compared with a cash utilization of $72 million in the year-ago period. As of June 30, 2026, it had $2.29 billion in cash and cash equivalents with $2.96 billion in long-term debt.

Zacks Rank

AST SpaceMobile currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Keysight Technologies, Inc. KEYS is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.

Analog Devices, Inc. ADI is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.

Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.

Workday, Inc. WDAY is set to release second-quarter fiscal 2027 earnings on Aug. 27. The Zacks Consensus Estimate for earnings is pegged at $2.63 per share, implying growth of 16% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 17.48%. The company delivered an average earnings surprise of 7.22% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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