Q2 2026 AST SpaceMobile Inc Earnings Call

August 10, 2026

Operator: Good day, and thank you for standing by. Welcome to AST SpaceMobile second quarter 2026 business update. Please be advised that today's call is being recorded. I will now turn the conference over to Max Colbert, Investor Relations Manager of AST SpaceMobile. Thank you. You may begin.

Speaker #1: Good day, and thank you for standing by. Welcome to AST SpaceMobile's Q2 2026 business update. Please be advised that today's call is being recorded.

Speaker #1: I will now turn the conference over to Max Colbert, Investor Relations Manager of AST SpaceMobile. Thank you. You may begin.

Speaker #2: Thank you, and good afternoon, everyone. Today, I'm also joined by Chairman and CEO Abel Avellan, President Scott Wisniewski, and CFO and Chief Legal Officer Andrew Johnson.

Max Colbert: Thank you, and good afternoon, everyone. Today, I am also joined by Chairman and CEO, Abel Avellan, President Scott Wisniewski, and CFO and Chief Legal Officer, Andy Johnson. Let me refer you to slide 2 of the presentation, which contains our safe harbor disclaimer. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements on this call. For more information about these risks and uncertainties, please refer to the Risk Factors section of AST SpaceMobile's annual report on Form 10-K for the year ending 31 December 2025, with the Securities and Exchange Commission, and other documents filed by AST SpaceMobile with the SEC from time to time.

Speaker #2: Let me refer you to slide 2 of the presentation, which contains our Safe Harbor disclaimer. During today's call, we may make certain forward-looking statements.

Speaker #2: These statements are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements on this call.

Speaker #2: For more information about these risks and uncertainties, please refer to the Risk Factors section of AST SpaceMobile's annual report on Form 10-K for the year ending December 31, 2025, with the Securities and Exchange Commission, and other documents filed by AST SpaceMobile with the SEC from time to time.

Speaker #2: Also, after our initial remarks, we'll be starting our Q&A section with questions submitted in advance by our shareholders. For those of you who may be new to our company and mission, there are nearly 6 billion mobile phones today around the world, but many of us still experience gaps in coverage as we live work and travel.

Max Colbert: Also, after our initial remarks, we will be starting our Q&A section with questions submitted in advance by our shareholders. For those of you who may be new to our company and mission, there are nearly 6 billion mobile phones today around the world, but many of us still experience gaps in coverage as we live, work, and travel. Additionally, there are billions of people without cellular broadband and who remain unconnected to the global economy. The markets we are pursuing at AST SpaceMobile are massive, and the problem we are solving is important and touches nearly all of us. In this backdrop, AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with everyday unmodified mobile phones, supported by our extensive IP and patent portfolio.

Speaker #2: Additionally, there are billions of people without cellular broadband who remain unconnected to the global economy. The markets we are pursuing at AST SpaceMobile are massive, and the problem we are solving is important and touches nearly all of us.

Speaker #2: In this backdrop, AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with everyday, unmodified mobile phones, supported by our extensive IP and patent portfolio.

Speaker #2: It is now my pleasure to pass this over to Chairman and CEO Abel Avellan, who will go through our activities since our last public update.

Max Colbert: It is now my pleasure to pass this over to Chairman and CEO, Abel Avellan, who will go through our activities since our last public update.

Speaker #3: Thank you, Max. Our execution in 2026 continues to reinforce what we have believed since we created AST SpaceMobile and invented the space-based cellular broadband market.

Abel Avellan: Thank you, Max. Our execution in 2026 continued to reinforce what we have believed since we created AST SpaceMobile and invented the space-based cellular broadband market. That combining differentiated technology, deep partnerships with leading mobile network operators, and a scale vertical integration position us to define the future of direct-to-device cellular broadband. Our space-based direct-to-device network will be the first of its kind to leverage low-band and mid-band spectrum with broadband speeds and a native cellular application combining a feature set and technology stack that put us in a category of one. From the beginning, we designed our network architecture alongside existing mobile network operators, not as a replacement of them. Rather than requiring operators to rebuild their infrastructure, our architecture and technology extends and complement their existing terrestrial network into space, allowing us to integrate efficiently while evolving alongside future 3GPP standards.

Speaker #3: That combining differentiated technology did partnership with leading mobile network operators and scale vertically integration positioned us to define the future of direct-to-device cellular broadband.

Speaker #3: Our space-based direct-to-device network will be the first of its kind to leverage low-band and mid-band spectrum with broadband speeds. And native cellular application, combining a feature set and technology stack that put us in a category of one.

Speaker #3: From the beginning, we designed our network architecture alongside existing mobile network operators—not as a replacement for them. Rather than requiring operators to rebuild their infrastructure, our architecture and technology stand to complement their existing terrestrial network into space.

Speaker #3: Allowing us to integrate efficiently while evolving alongside future 3GPP standards. To put this concept simply, we're building the direct-to-device network of the future today.

Abel Avellan: To put this concept simply, we're building the direct-to-device network of the future today, in partnership with, not in competition with mobile network operators. This new layer of connectivity that we are creating is not just for addressing gaps in terrestrial network, but is to create a seamless connectivity experience wherever you live, work, and travel anywhere on the planet. The spectrum is another area where we believe we have significant competitive advantage. Through a combination of low-band spectrum contributed by our MNO partners and the spectrum we directly control, we are building access to the broadest spectrum portfolio in the industry. With satellite technology capable of tuning approximately 1,150 MHz for low-band and mid-band, and in the future, C-band tunable spectrum globally.

Speaker #3: In partnership with not in competition with mobile network operators. This new ledger connectivity that we are creating is not just for addressing gaps in terrestrial network, but is to create a seamless connectivity experience wherever you live, work, and travel, anywhere on the is another area where we believe we have significant competitive advantage.

Speaker #3: Through a combination of low-band spectrum contributed by our MNO partners and the spectrum we directly control, we're building access to the broadest spectrum portfolio in the industry, with satellite technology capable of tuning approximately 1,150 megahertz for low-band and mid-band, and in the future C-band tunable spectrum globally.

Speaker #3: In the United States alone, we are on the path to approximately 100 megahertz of spectrum from a combination of MNO partner-provided spectrum and our own accessed spectrum.

Abel Avellan: In the United States alone, we are on the path to approximately 100 MHz of spectrum from a combination of MNO partner-provided spectrum and our own access to the spectrum, which will be a lead that is difficult for others to match. In particular, we're combining our over 3,900 patents and patent pending claims intellectual property, and a very large phased arrays with our spectrum access. These provide greater network capacity, better coverage, and significant flexibility as demands grow. We are confident that our comprehensive spectrum strategy is the winning one, giving us the tech needed to increase subscriber capacity and bring services to target markets with our partner MNOs. Direct-to-device cellular broadband is establishing itself as a new additional connectivity layer.

Speaker #3: Which will be a lead that is difficult for others to match. In particular, combining our over 3,900 patents and patent-pending claims of intellectual property and our very large phased arrays with our spectrum access.

Speaker #3: This provides greater network capacity, better coverage, and significant flexibility as demands grow. We are confident that our comprehensive spectrum strategy is the winning one, giving us the tech needed to increase subscriber capacity and bring services to target markets with our partner MNOs.

Speaker #3: Direct-to-device cellular broadband is establishing itself as a new additional connectivity ledger. Our differentiated in-orbit technology and scaling direct-to-device cellular broadband network serves as a resilient and reliable source of an additional and new connectivity ledger, serving commercial MNO partners and government agencies alike.

Abel Avellan: Our differentiated in-orbit technology and scaling direct-to-device cellular broadband network serves as a resilient and reliable source of an additional and new connectivity layer, serving commercial MNO partners and government agencies alike. Incremental to delivering direct-to-device cellular broadband connectivity, our total addressable market is rapidly expanding. We see several growth opportunity across government communications and non-communications opportunities, including radar, emergency response, Internet of Things, AI edge compute, and other advanced connectivity solutions. We see these markets as beneficiaries of our space-based direct-to-device network. We recently received an award pending government approvals and final agreements with longtime partner Rakuten regarding the selection for participation in the Low Earth Orbit Satellite Infrastructure Development project, or LEOSat, in Japan, designing to address the Japanese and Asian markets with a total expected value of up to approximately $1 billion in non-dilutive, non-debt government capital.

Speaker #3: Incremental to delivering direct-to-device cellular broadband connectivity, our total addressable market is rapidly expanding. We see several growth opportunities across government communications and non-communications opportunities.

Speaker #3: Including radar, emergency response, Internet of Things, AI-edge compute, and other advanced connectivity solutions. We see these markets as beneficiaries of our space-based direct-to-device network.

Speaker #3: We recently received an award, pending government approvals and final agreements, with our long-time partner Rakuten regarding the selection for participation in the low Earth orbit satellite infrastructure development project, or GLEO, in Japan.

Speaker #3: Designing to address the Japanese and Asian markets. With a total expected value of up to approximately 1 billion US dollars in non-dilutive, non-debt government capital.

Speaker #3: This follow continue work with First Net Emergency, and first responder networks in the United States, with partner AT&T, and recent announcement with multiple government through partners like Vodafone and Rakuten.

Abel Avellan: This followed continued work with FirstNet Emergency and First Responder networks in the United States with partner AT&T and recent announcement with multiple government through partners like Vodafone and Rakuten. Our partner-first strategy positions us as the partner of choice for direct-to-device cellular broadband among mobile network operators. Our commercial ecosystem is growing with over 60 MNO partners who cover over 3 billion subscribers globally, including key partners like AT&T, Verizon, Vodafone, Rakuten, stc Group, Bell Canada, and Telus. We are on the cusp of commercial deployment, and we prepare to scale our SpaceMobile service to everyday unmodified smartphones. With 7 spacecraft in orbit and approximately 20,000 square feet of combined aperture hardware and approximately 50 gateways globally that are in various stages of completion, installation, and planning, and we prepare for beta service with key MNO partners in selected markets globally.

Speaker #3: Our partner-first strategy positioned us as the partner of choice for direct-to-device cellular broadband among mobile network operators. Our commercial ecosystem is growing, with over 60 MNO partners who cover more than 3 billion subscribers globally.

Speaker #3: Including key partners like AT&T, Verizon, Vodafone, Rakuten, STC Group, Bel Canada, and Telus. We are on the cusp of commercial deployment as we prepare to scale our space mobile service to everyday unmodified smartphones.

Speaker #3: With certain spacecraft in orbit and approximately 20,000 square feet of combined aperture hardware, and approximately 50 gateways globally that are in various stages of completion, installation, and planning, and we prepare for better service with key MNO partners in selected markets globally.

Speaker #3: In the United States, we have deployed over 3,000 low-band cellular cells with spec to deploy the remaining cells this year to light up the roughly 5,600 cellular cells that cover the United States.

Abel Avellan: In the United States, we have deployed over 3,000 low-band cellular cells. We expect to deploy the remaining cells this year to light up the roughly 5,600 cellular cells that cover the United States. On network deployment, BlueBird 14 to 16 are undergoing final testing as their manufacturing assembly is nearly completed. The recent launch of BlueBird 11 to 13 demonstrate our ability to rapidly and repeatedly build, launch, and deploy the largest phased array in low Earth orbit using advanced composite material for lighter and even bigger satellites. Our largest, newest, fully composite BlueBird satellites are operating as expected, and we prepare them for their communication and non-communication missions for government and MNO applications. Our ASIC chip is now in full production, and we are expecting to nearly double the peak data speed of 98.9 megabits per second achieved using our on-orbit Block 1 BlueBird satellites.

Speaker #3: On network deployment, Bluebird 14 to 16 are undergoing final testing as their manufacturing and assembly is nearly completed. The recent launch of Bluebird 11 to 13 demonstrates our ability to rapidly and repeatedly build, launch, and deploy the largest phase array in low Earth orbits, using advanced composite material for lighter and even bigger satellites.

Speaker #3: Our largest, newest, fully composite BlueBird satellites are operating as expected, and we are preparing them for their communication and non-communication missions for government and MNO applications.

Speaker #3: Our ASIC chip is now in full production, and we are expecting to nearly double the peak data speed of 98.9 megabits per second achieved using our on-orbit Block One BlueBird satellites.

Speaker #3: As a reminder, our ASIC is designed to support up to 10 gigahertz of processing bandwidth per satellite, which is nearly a 10 times improvement from our in-orbit Block One BlueBird satellites.

Abel Avellan: As a reminder, our ASIC is designed to support up to 10 GHz of processing bandwidth per satellite, which is nearly 10 times improvement from our in-orbit Block 1 BlueBird satellites. Over time, we expect further gain of up to additional 10 times improvement in user experience through AI-enabled spectrum management. Turning to manufacturing. We are in various stages of production and assembly through BlueBird 46, which is in line with the number of spacecraft required for continuous coverage in key markets. A detailed cadence of our deployment plan is shown in the accompanying quarterly presentation found on our IR website. We continue to leverage our 95% vertically integrated manufacturing strategy to move at the pace and precision needed to scale a constellation of the largest satellites in LEO at a scale unprecedented in low Earth orbits.

Speaker #3: Over time, with spec further gained of up to an additional 10 times, improvement in user experience through AI-enabled spectrum management. Turning to manufacturing, one in various stages of production and assembly through Bluebird 46.

Speaker #3: Which is in line with the number of spacecraft required for continuous coverage in key markets. As the tail cadence of our deployment plan is shown in the accompanying quarterly presentation found on our IR website.

Speaker #3: We continue to leverage our 95% vertically integrated manufacturing strategy to move at the pace and precision needed to scale a constellation of the largest satellites in LEO.

Speaker #3: At a scale unprecedented in low Earth orbits. We currently have over 500,000 square feet of manufacturing and operations space globally, including our dedicated macro production facility to help accelerate satellite production as we ramp up into our target cadence of six fully assembled satellites per month.

Abel Avellan: We currently have over 500,000 square feet of manufacturing and operations space globally, including our dedicated macro production facility to help accelerate satellite production as we ramp up into our target cadence of 6 fully assembled satellites per month. We recently unveiled plan for additional 400,000 square feet of manufacturing and production space in Midland, Texas, as we prepare to further scale production for United States government and our extended TAM of commercial applications. We expect our global manufacturing and operations footprint will exceed 1 million square feet of manufacturing capability, with over 900,000 square feet residing in the United States once completed. We are proud to be manufacturing the largest satellites in LEO here in the United States and in Texas, where bigger is better. In summary, AST SpaceMobile is executing across every critical dimension of our business.

Speaker #3: With our recently unveiled plan for an additional 400,000 square feet of manufacturing and production space in Midland, Texas, we are preparing to further scale production for the United States government and our extended TAM of commercial applications.

Speaker #3: With Better, our global manufacturing and operations footprint will exceed 1 million square feet of manufacturing capability, with over 900,000 square feet residing in the United States once completed.

Speaker #3: We are proud to be manufacturing the largest satellites in LEO here in the United States, and in Texas, where bigger is better. In summary, AST SpaceMobile is executing across every critical dimension of our business.

Speaker #3: We had expanded our commercial partner ecosystem now with over 60 MNOs partners globally who collectively cover over 3 billion subscribers. Our comprehensive spectrum studies continue to strengthen across our satellite technology capable of tuning to approximately 1,150 megahertz of tunable spectrum, with chair MNO spectrum and control MNO spectrum totally, totally in approximately 100 megahertz axis in the US and over 60 megahertz axis globally.

Abel Avellan: We have expanded our commercial partner ecosystem now with over 60 MNO partners globally who collectively cover over 3 billion subscribers. Our comprehensive spectrum status continue to strengthen across our satellite technology, capable of tuning to approximately 1,150 MHz of tunable spectrum. We share MNO spectrum and control MNO spectrum totaling approximately 100 MHz of access in the US and over 60 MHz access globally. As an early indicator of success from our expanding total addressable market of opportunities, we increased our revenue backlog to approximately $1.3 billion in aggregated contracted revenue. Agreement with partners and contracts award with the US government. These opportunities are supported by our robust balance sheet of more than $3.7 billion, making us well-positioned to lead the commercialization of the space-based cellular broadband and create a significant long-term value for our shareholders. I will hand it over to Scott.

Speaker #3: As an early indicator of success from our standing total address from market of opportunities, we increase our revenue backlog to approximately 1.3 billion in aggregated contracted revenue.

Speaker #3: Agreement with partners and contracts award with the US government. These opportunities are supported by our robust balance sheet of more than 3.7 billion, making us well positioned to lead the commercialization of the space-based cellular broadband and create a significant long-term value for our shareholders.

Speaker #3: And with that, I will hand it over to Scott.

Speaker #2: Thank you, Abel. Since our last investor update call, AST SpaceMobile has continued to make great progress in our commercialization efforts. I would like to take you through some of that progress across our MNO and government customers and put in context the business opportunity ahead of us, which only continues to increase at breathtaking speed.

Scott Wisniewski: Thank you, Abel. Since our last investor update call, AST SpaceMobile has continued to make great progress in our commercialization efforts. I would like to take you through some of that progress across our MNO and government customers and put in context the business opportunity ahead of us, which only continues to increase at breathtaking speed. In the commercial ecosystem, we are viewed as the partner of choice for direct-to-device with mobile network operators, as evidenced by the ecosystem we have built with now over 60 MNO partners globally who collectively cover over 3 billion subscribers. Network deployment in key markets with strategic partners is well underway, and our challenge is how to balance deployment of our cellular broadband service into the next set of markets beyond the US, Canada, Europe, Japan, Saudi Arabia, and the US government.

Speaker #2: In the commercial ecosystem, we are viewed as the partner of choice for directed device with mobile network operators, as evidenced by the ecosystem we have built, with now over 60 MNO partners globally who collectively cover over 3 billion subscribers.

Speaker #2: Network deployment in key markets with strategic partners is well underway, and our challenge is how to balance deployment of our cellular broadband service into the next set of markets, beyond the US, Canada, Europe, Japan, Saudi Arabia, and the US government.

Speaker #2: We are balancing this today—20 mobile network operators across over 50 country markets. We are developing these markets together with our partners with an increasingly scaled and programmatic effort, with services that are designed to be turned on as Bluebirds come online.

Scott Wisniewski: We are balancing this today with active engagement with more than 20 mobile network operators across over 50 country markets. We are developing these markets together with our partners with an increasingly scaled and programmatic effort with services that are designed to be turned on as BlueBirds come online. These efforts are going to manifest themselves not only in more market announcements with our partners, but also importantly, progress in the delivery and setup of about 50 gateways across 20 markets. In fact, in Europe, you are already starting to see this infrastructure in action, as we recently announced network integration and testing activities across several European countries with Vodafone, Orange, Telefónica, Vodafone Ukraine, and Deutsche Telekom. Meanwhile, the regulatory backdrop also continues to support our commercialization efforts and provide a window into how we expect the business to develop.

Speaker #2: These efforts are going to manifest themselves not only in more market announcements with our partners but also, importantly, in progress in the delivery and setup of about 50 gateways across 20 markets.

Speaker #2: In fact, in Europe, you're already starting to see this infrastructure in action, as we recently announced network integration and testing activities across several European countries with Vodafone, Orange, Telefónica, Vodafone Ukraine, and Deutsche Telekom.

Speaker #2: Meanwhile, the regulatory backdrop also continues to support our commercialization efforts and provide a window into how we expect the business to develop. While the US was an early leader on the regulatory front, with full commercial service approvals delivered earlier this year, we are seeing good progress internationally in the UK, Japan, Brazil, and other countries.

Scott Wisniewski: While the US was an early leader on the regulatory front with full commercial service approvals delivered earlier this year, we are seeing good progress internationally in the UK, Japan, Brazil, and other countries. Meanwhile, we have seen multiple countries provide commercial authorization to use our MSS spectrum assets, specifically in the S-band outside the United States. Altogether, these are strong signs of scaling our global cellular broadband network. More spectrum lanes of traffic for our network means more subscribers and better services when paired with our unique technology. Meanwhile, the US government customer has been a major focus for us, and we see great progress this quarter, both in terms of revenue capture and building the backlog. We drove revenue against several existing contracts and received three new contract awards. Our US government partners view our in-orbit technology as unique, strategic, innovative, and flexible with communications and non-communications capabilities.

Speaker #2: Meanwhile, we have seen multiple countries provide commercial authorization to use our MSS spectrum assets, specifically in the S-band outside the United States. Altogether, these are strong signs of scaling our global cellular broadband network.

Speaker #2: More spectrum lanes of traffic for our network means more subscribers and better services when paired with our unique technology. Meanwhile, the U.S. government customer has been a major focus for us, and we see great progress this quarter, both in terms of revenue capture and building the backlog.

Speaker #2: We drove revenue against several existing contracts and received three new contract awards. Our U.S. government partners view our in-orbit technology as unique, strategic, innovative, and flexible, with both communications and non-communications capabilities.

Speaker #2: We have foreshadowed the trend of small development contracts becoming larger contracts ahead of still larger operationalization of the capabilities through programs of record. Today, you can see that trend as we are announcing three new contract awards with funded near-term value of over 100 million dollars in total, expected during 2026 and 2027.

Scott Wisniewski: We have foreshadowed the trend of small development contracts becoming larger contracts ahead of still larger operationalization of the capabilities through programs of record. Today, you can see that trend as we are announcing three new contract awards with funded near-term value of over $100 million in total, expected during 2026 and 2027. We plan to talk more about these awards publicly soon, but they represent near-term capabilities that have been in development with the US Department of Defense for years and leverage our unique in-orbit technology to solve large strategic needs. In general, the backdrop and size of the Golden Dome opportunity, coupled with the Arsenal of Democracy Initiative, remains very strong for companies that have unique capabilities that can be deployed in the near term and can move fast.

Speaker #2: We plan to talk more about these awards publicly soon, but they represent near-term capabilities that have been in development with the U.S. Department of War for years, and leverage our unique in-orbit technology to solve large strategic needs.

Speaker #2: In general, the backdrop and size of the Golden Dome opportunity, coupled with the Arsenal of Freedom initiative, remains very strong for companies that have unique capabilities which can be deployed in the near term and can move fast.

Speaker #2: Now, taking a step back, I want to take a moment to discuss the large addressable markets for the company beyond direct advice. We see the opportunity to leverage our unique platform that we have created to dramatically expand the company's total addressable market, leveraging our differentiated technology, deep intellectual property portfolio, vertically integrated manufacturing, and, of course, the comprehensive spectrum strategy.

Scott Wisniewski: Now, taking a step back, I want to take a moment to discuss the large addressable markets for the company beyond direct-to-device. We see the opportunity to leverage our unique platform that we have created to dramatically expand the company's total addressable market, leveraging our differentiated technology, deep intellectual property portfolio, vertically integrated manufacturing, and of course, the comprehensive spectrum strategy. In part, this is now possible because of the maturity of the business and our fortified balance sheet, utilizing the same spacecraft design and ground-based gateways that we are already scaling today. We believe each of these new additional end markets could ultimately become multibillion-dollar annual plus revenue opportunities for AST SpaceMobile. In the government and defense market, firstly, we have seen early traction around non-communications, including radar.

Speaker #2: In part, this is now possible because of maturity of the business and our fortified balance sheet, utilizing the same spacecraft design and ground-based gateways that were already scaling today.

Speaker #2: We believe each of these new, additional end markets could ultimately become multi-billion-dollar annual revenue opportunities for AST SpaceMobile. In the government and defense market, firstly, we've seen early traction around non-communications, including radar.

Speaker #2: Our spacecraft are uniquely positioned to provide some of these services, given the size of the array aperture, the frequencies we serve, and our ability to quickly deploy a global capability at an order of magnitude lower cost than historically possible.

Scott Wisniewski: Our spacecraft are uniquely positioned to provide some of these services, given the size of the array aperture, the frequencies we serve, and our ability to deploy quickly a global capability for an order-of-magnitude lower cost than historically possible. This application is a majority of our US government revenue to date. Secondly, and this will sound familiar, we have the ability to provide secure communications directly to low-profile, low-power devices. This means regular 3GPP devices, but also custom-designed handsets, existing radios, headsets, wearables, and drones. This will be with a technology that is already showing broadband speeds over 100 megabits per second to extremely low profile and sized devices. These applications will be new to the war fighter and greatly simplify and improve communications for them in the years to come.

Speaker #2: This application is a majority of our US government revenue today. Secondly, and this will sound familiar, we have the ability to provide secure communications directly to low-profile, low-power devices.

Speaker #2: This means regular 3GPP devices, but also custom-designed handsets, existing radios, headsets, wearables, and drones. This will be with a technology that is already showing broadband speeds over 100 megabits per second to extremely low-profile and sized devices.

Speaker #2: These applications will be new to the warfire warfighter and greatly simplify and improve communications for them in the years to come. Each of these capabilities can be served with the same in-orbit network of AST SpaceMobile spacecraft, a combined capability that addresses the strategic needs of the US government customer for decades to come.

Scott Wisniewski: Each of these capabilities can be served with the same in-orbit network of AST SpaceMobile spacecraft, a combined capability that addresses the strategic needs of the US government customer for decades to come. Apart from defense, we also see a few more funded comms opportunities. First, we are seeing a trend with large countries or regional bodies looking to replicate owned, in-orbit, resilient communications. This is born from a desire to have increased operational control of communications over their territory. Given the AST SpaceMobile architecture of landing traffic in country, we are uniquely positioned to serve this need and to add additional layers for this demand, with the Japan JLEO preliminary award falling into this category.

Speaker #2: And apart from defense, we also see a few more funded comms opportunities. First, we are seeing a trend with large countries or regional bodies looking to replicate owned in-orbit resilient communications.

Speaker #2: This is born from a desire to have increased operational control of communications over their territory. Given the AST SpaceMobile architecture of landing traffic in-country, we are uniquely positioned to serve this need and to add additional layers for this demand.

Speaker #2: With the Japan JLEO preliminary award falling into this category. Second, federal emergency and backup is another market taking shape, which you can see from our announcement with Vodafone Ireland, but it is been long planned both in the US with FirstNet and in Japan.

Scott Wisniewski: Second, federal emergency and backup is another market taking shape, which you can see from our announcement with Vodafone Ireland, but it has been long planned both in the US with FirstNet and in Japan. The 700 MHz band in particular is viewed as a federal resiliency frequency, and thus is an attractive match for our network. This capability could be used broadly for first responders, and also as a large-scale backup during periods of network outage, with Spain and Australia offering some notable recent outages that are driving political need for action. Thirdly, IoT, or Internet of Things, is an attractive market for cellular and satellite operators, which positions us well to provide a unified service across both broadband and narrowband applications. With our controlled MSS frequencies, combined with extremely low-cost devices, this is another attractive use of our existing in-orbit network.

Speaker #2: The 700 megahertz band in particular is viewed as a federal resiliency frequency and thus as an attractive match for our network. This capability could be used broadly for first responders and also as a large-scale backup during periods of network outage, with Spain and Australia offering some notable recent outages that are driving political need for action.

Speaker #2: Thirdly, IoT, or Internet of Things, is an attractive market for cellular and satellite operators, which positions us well to provide a unified service across both broadband and narrowband applications.

Speaker #2: With our controlled MSS frequencies combined with extremely low-cost devices, this is another attractive use of our existing in-orbit network. One final network I wanted to highlight today is space-based AI edge compute.

Scott Wisniewski: One final network I wanted to highlight today is space-based AI edge compute. As companies are starting to think about how to service this market in a big way, one of the key elements is the ability to deploy and control large structures in space, which is what we do. This is significant power to orbit at meaningful scale and with competitive costs. This provides clear cost and scale advantages for supplying power and compute in space. What you will see from us in the near term is stretching from a bent pipe network and building additional edge computing capabilities valuable to those networks. In total, all of these markets represent an expansion of our incredibly strong core direct-to-device total addressable market into new large markets, primarily on a funded basis, leveraging the incredible platform we have built.

Speaker #2: As companies are starting to think about how to service this market in a big way, one of the key elements is the ability to deploy and control large structures in space, which is what we do.

Speaker #2: This is significant power to orbit at a meaningful scale and with competitive cost. This provides clear cost and scale advantages for supplying power and compute in space.

Speaker #2: What you will see from us in the near term is stretching from a bent pipe network and building additional edge computing capabilities valuable to those networks.

Speaker #2: In total, all of these markets represent an expansion of our incredibly strong core directed device total addressable market into new large markets, primarily on a funded basis, leveraging the incredible platform we have built.

Speaker #2: Closing out with a quick discussion on Q2 revenue, we achieved over $30 million in revenue during the quarter, more than doubling our Q1 revenue.

Scott Wisniewski: Closing out with a quick discussion on Q2 revenue, we achieved over $30 million in revenue during the quarter, more than doubling our Q1 revenue. This was driven by a combination of milestone achievements under our US government contracts and commercial infrastructure for our mobile network operator partners. Our commercial and government efforts to date serve as important milestones in our roadmap to much larger opportunities, each with potentially billions of USD in revenue per year as we scale our business. In Q2 specifically, we delivered against 13 gateways to seven customers across five continents. We remain confident in our ability to achieve our full year 2026 revenue goals and are reiterating our guidance of $150 to $200 million, supported by contracted programs already underway, together with our existing commercial and government pipeline. Altogether, we are very pleased with the progress we have made across the business.

Speaker #2: This was driven by a combination of milestone achievements under our U.S. government contracts, and commercial infrastructure for our mobile network operator partners. Our commercial and government efforts to date serve as important milestones in our roadmap to much larger opportunities.

Speaker #2: Each with potentially billions of dollars in revenue per year, as we scale our business. In Q2 specifically, we delivered against 13 gateways to 7 customers across 5 continents.

Speaker #2: And we remain confident in our ability to achieve our full year 2026 revenue goals, reiterating our guidance of $150 to $200 million.

Speaker #2: Supported by contracted programs already underway, together with our existing commercial and government pipeline. Altogether, we're very pleased with the progress we've made across the business.

Speaker #2: Commercial readiness continues to advance, government demand continues to expand, our deployment roadmap remains on track, and our operational capabilities continue to scale. These milestones reinforce our confidence as we prepare for commercial service and position AST SpaceMobile for meaningful long-term growth.

Scott Wisniewski: Commercial readiness continues to advance, government demand continues to expand, our deployment roadmap remains on track, and our operational capabilities continue to scale. These milestones reinforce our confidence as we prepare for commercial service and position AST SpaceMobile for meaningful long-term growth. I am now happy to pass the call over to Andy to walk through our financial update.

Speaker #2: I am now happy to pass the call over to Andy to walk through our financial update.

Speaker #1: Thanks, Scott, and good afternoon, everyone. During the second quarter of 2026, we maintained focus by further fortifying our capital position, executing on our commercial objectives, accelerating our manufacturing cadence, leveraging our growing footprint in Texas and beyond, and expanding our total addressable market, or TAM, for additional applications, including US government secure communications and non-communications, radar, emergency response, Internet of Things, AI edge compute, and other advanced connectivity applications.

Andrew Johnson: Thanks, Scott, and good afternoon, everyone. During Q2 2026, we maintained focus by further fortifying our capital position, executing on our commercial objectives, accelerating our manufacturing cadence, leveraging our growing footprint in Texas and beyond, and expanding our total addressable market, or TAM, for additional applications, including US government secure communications and non-communications, radar, emergency response, Internet of Things, AI edge compute, and other advanced connectivity applications. Revenue in Q2 came in consistent with our internal plans. As I've previously noted, we expect revenue to build sequentially each quarter during 2026, with contributions from both commercial revenue, primarily gateway sales revenue, and US government contracts. I am pleased to confirm that we remain on track to meet our full year 2026 revenue guidance of $150 million to $200 million.

Speaker #1: Revenue in Q2 came in consistent with our internal plans. As I've previously noted, we expect revenue to build sequentially each quarter during 2026, with contributions from both commercial revenue—primarily gateway sales revenue—and U.S. government contracts.

Speaker #1: I am pleased to confirm that we remain on track to meet our full-year 2026 revenue guidance of $150 to $200 million. With respect to manufacturing, BlueBirds 14 to 16 are ready to ship shortly, while BlueBirds 17 through 46 are in various stages of production and assembly as we continue scaling our production capabilities, building the largest phased arrays in low Earth orbit.

Andrew Johnson: With respect to manufacturing, BlueBird 14 to 16 are ready to ship shortly, while BlueBird 17 through BlueBird 46 are in various stages of production and assembly as we continue scaling our production capabilities, building the largest phased arrays in low Earth orbit. Our manufacturing progress positions us well to support our current network deployment plan, targeting approximately 45 BlueBird satellites in orbit by early 2027.

Speaker #1: Our manufacturing progress positions us well to support our current network deployment plan, targeting approximately 45 Bluebird satellites in orbit by early 2027. The strength of our balance sheet further bolstered with last month's convertible debt offering, positions us not only to complete the full build-out and launch of a constellation of over 100 Bluebird satellites to provide worldwide space mobile service, and deploy our controlled spectrum bands on a global basis, but also to pursue an expanding universe of growth initiatives in secure additional access to orbit for our space-based cellular broadband network, including partnerships and/or acquisitions to further vertically integrate our business and mitigate risks associated with third-party launch providers.

Andrew Johnson: The strength of our balance sheet, further bolstered with last month's convertible debt offering, positions us not only to complete the full build-out and launch of a constellation of over 100 BlueBird satellites to provide worldwide SpaceMobile service and deploy our controlled spectrum bands on a global basis, but also to pursue an expanding universe of growth initiatives and secure additional access to orbit for our space-based cellular broadband network, including partnerships and/or acquisitions to further vertically integrate our business and mitigate risks associated with third-party launch providers. Our intentional focus on investing in the growth of our operations led to higher adjusted operating expenses in Q2 2026 as compared to Q1, consistent with our expectations as previously communicated during our Q1 2026 earnings call in May.

Speaker #1: Our intentional focus on investing in the growth of our operations led to higher adjusted operating expenses in Q2 2026 as compared to Q1, consistent with our expectations as previously communicated during our first quarter 2026 earnings call in May.

Speaker #1: Now, moving to the operating and capital metrics slide, let's review the key metrics for the second quarter in a bit more detail. On the first chart, for the second quarter of 2026, we incurred non-GAAP adjusted operating expenses of $119.1 million versus $91.2 million in the first quarter.

Andrew Johnson: Now moving to the operating and capital metrics slide, let's review the key metrics for Q2 in a bit more detail. On the first chart, for Q2 2026, we incurred non-GAAP adjusted operating expenses of $119.1 million versus $91.2 million in Q1. Non-GAAP adjusted operating expenses exclude non-cash operating costs and insurance proceeds in connection with our BlueBird 7 loss. The quarter-over-quarter increase of $27.9 million resulted primarily from an $11.9 million increase in adjusted cost of revenues due to higher revenue in the quarter, together with a $12.3 million increase in adjusted engineering service costs, a $3.1 million increase in adjusted general and administrative costs, and a $600,000 increase in R&D costs. Our Q2 2026 adjusted operating expenses, excluding adjusted cost of revenues, were $95.9 million, compared to $79.8 million in Q1 2026.

Speaker #1: Non-GAAP adjusted operating expenses exclude non-cash operating costs and insurance proceeds in connection with our Bluebird 7 loss. The quarter-over-quarter increase of $27.9 million resulted primarily from an $11.9 million increase in adjusted cost of revenues due to higher revenue in the quarter.

Speaker #1: Together, with a $12.3 million increase in adjusted engineering service costs, a $3.1 million increase in adjusted general and administrative costs, and a $600,000 increase in R&D costs.

Speaker #1: Our Q2 2026 adjusted operating expenses excluding adjusted cost of revenues were 95.9 million dollars compared to 79.8 million dollars in Q1 of 2026. This amount was near the high end of the 85 to 95 million dollar guidance for Q2 adjusted operating expenses that I previously provided.

Andrew Johnson: This amount was near the high end of the $85 to $95 million guidance for Q2 adjusted operating expenses that I previously provided. The primary drivers of the increase versus the prior quarter were growth in our workforce, including contractors and consultants, our expanded production facilities, other professional fees, and critical investments relating to artificial intelligence. Turning towards the second chart on this slide, our CapEx for Q2 2026 were approximately $610 million versus approximately $257 million for Q1. This figure was made up primarily of payments made in connection with multiple launch contracts, capitalized direct materials and labor for our BlueBird satellites, with the balance relating to facility and production equipment expenditures.

Speaker #1: The primary drivers of the increase versus the prior quarter were growth in our workforce, including contractors and consultants, our expanded production facilities, other professional fees, and critical investments relating to artificial intelligence.

Speaker #1: Turning towards the second chart on this slide, our capital expenditures for the second quarter of 2026 were approximately $610 million, versus approximately $257 million for the first quarter.

Speaker #1: This figure was made up primarily of payments made in connection with multiple launch contracts, capitalized direct materials and labor for our Bluebird satellites, with the balance relating to facility and production equipment expenditures.

Speaker #1: This amount for the quarter was just below the midpoint of the guidance of $575 to $650 million that I provided during our last earnings call, which assumed a significant launch payment in Q2 that was originally scheduled to be paid in the first quarter.

Andrew Johnson: This amount for the quarter was just below the midpoint of the guidance of $575 to $650 million that I provided during our last earnings call, which assumed a significant launch payment in Q2 that was originally scheduled to be paid in Q1. For Q3 2026, we estimate that our adjusted operating expenses, excluding adjusted cost of revenues, will increase to the range of approximately $105 to $115 million as we continue to absorb the full quarter of cost of our expanded workforce and continue growing talent across our organization to scale our efforts to address our expanding TAM, as well as pursue the monetization of our L and S band spectrum usage rights. For the full year of 2026, we expect adjusted OpEx, excluding adjusted cost of revenues, to average approximately $100 million per quarter or $400 million total for the year.

Speaker #1: For the third quarter of 2026, we estimate that our adjusted operating expenses, excluding adjusted cost of revenues, will increase to the range of approximately $105 to $115 million as we continue to absorb the full quarter of cost of our expanded workforce and continue growing talent across our organization to scale our efforts to address our expanding TAM, as well as pursue the monetization of our L&S band spectrum usage rights.

Speaker #1: For the full year of 2026, we expect adjusted opex, excluding adjusted cost of revenues, to average approximately $100 million per quarter, or $400 million total for the year.

Speaker #1: Consistent with average quarterly capex spend during the first half of 2026, we expect our capital expenditures in Q3 2026 to be in the range of approximately $350 million to $425 million, primarily driven by the timing of launch payments which, as I've previously explained and as evidenced by the first half of this year, do vary from quarter to quarter.

Andrew Johnson: Consistent with average quarterly CapEx spend during H1 2026, we expect our CapEx in Q3 2026 to be in the range of approximately $350 to $425 million, primarily driven by the timing of launch payments, which, as I've previously explained and evidenced by H1 of this year, do vary from quarter to quarter. Importantly, our continued spend on growth-related CapEx reflects our increasing satellite production and our active orbital launch plans. We continue to estimate that the average capital costs, including direct materials and launch costs for our constellation of over 90 BlueBird satellites, will fall in the range of approximately $21 to $23 million per satellite, excluding certain initial satellites that are used to validate performance and operations. Our cost per satellite estimates are subject to fluctuations based on dynamic geopolitical factors that could impact our costs.

Speaker #1: Importantly, our continued spend on growth-related capex reflects our increasing satellite production and our active orbital launch plans. We continue to estimate that the average capital costs, including direct materials and launch costs for our constellation of over 90 Bluebird satellites, will fall in the range of approximately 21 to 23 million dollars per satellite, excluding certain initial satellites that are used to validate performance and operations.

Speaker #1: Our cost-per-satellite estimates are subject to fluctuations based on dynamic geopolitical factors that could impact our costs. And as a reminder, changes in our adjusted operating expenses and capital expenditures, as I've just described, could be delayed or may not be realized due to a variety of factors.

Andrew Johnson: As a reminder, changes in our adjusted operating expenses and CapEx, as I've just described, could be delayed or may not be realized due to a variety of factors. Turning to revenue. In Q2, we recognized revenue of $31.5 million, primarily driven by commercial gateway deliveries and various US government service milestone achievements. Our revenue increased sequentially and year-over-year in Q2, as we expected, due to the timing of gateway deployment to our commercial customers and the timing of completion of certain government contract milestones. With respect to commercial revenue generation, we believe we can enable continuous SpaceMobile service across key markets such as the United States, Europe, Japan, and other strategic markets with the launch and operation of approximately 45 to 60 BlueBird satellites and additional strategic worldwide markets with the launch and operation of approximately nine BlueBird satellites.

Speaker #1: Turning to revenue, in the second quarter, we recognized revenue of $31.5 million, primarily driven by commercial gateway deliveries and various U.S. government service milestone achievements.

Speaker #1: Our revenue increased sequentially and year-over-year in the second quarter, as we expected, due to the timing of gateway deployment to our commercial customers and the timing of completion of certain government contract milestones.

Speaker #1: With respect to commercial revenue generation, we believe we can enable continuous space mobile service across key markets such as the United States, Europe, Japan, and other strategic markets with the launch and operation of approximately 45 to 60 Bluebird satellites and additional strategic worldwide markets with the launch and operation of approximately 9 Bluebird satellites.

Speaker #1: Further, as we continue to launch and deploy our constellation, we will continue to support US government applications currently ongoing, and accelerating as our constellation grows.

Andrew Johnson: Further, as we continue to launch and deploy our constellation, we will continue to support US government applications currently ongoing and accelerating as our constellation grows. As we reiterated in our Q1 2026 earnings call, we expect to generate full year 2026 revenue in the range of $150 to $200 million. We manage the top line with a focus on full-year performance, given the quarterly variability inherent to our business, including the timing of contract signings, equipment sales, and milestone achievements. As a way to be helpful, and for the avoidance of doubt, we expect revenue in each quarter to continue to grow sequentially, but will likely be weighted towards the Q4. As a result, we believe our revenue performance is best evaluated on a full year basis.

Speaker #1: As we reiterated in our Q1 2026 earnings call, we expect to generate full-year 2026 revenue in the range of $150 to $200 million.

Speaker #1: We managed the top line with a focus on full-year performance, given the quarterly variability inherent to our business, including the timing of contract signings, equipment sales, and milestone achievements.

Speaker #1: As a way to be helpful, and for the avoidance of doubt, we expect revenue in each quarter to continue to grow sequentially, but it will likely be weighted towards the fourth quarter.

Speaker #1: As a result, we believe our revenue performance is best evaluated on a full-year basis. We expect revenue to continue to be driven by gateway deliveries, achievement of contracted milestones for the U.S. government, M&O consulting services, and with potential upside related to the recognition of initial commercial service revenue.

Andrew Johnson: We expect revenue to continue to be driven by gateway deliveries, achievement of contracted milestones for the US government, MNO consulting services, with potential upside related to the recognition of initial commercial service revenue. The achievement of our revenue plan remains subject to several contingencies, including the successful launch and deployment of our BlueBird satellites related to US government applications and those contractual milestone achievements, critical gateway equipment sales to our MNO partners in support of their anticipated commercialization efforts of SpaceMobile service, and service revenues in connection with the activation of our commercial service provided by our existing and planned deployed and operational satellites. Now turning to the balance sheet. With this backdrop, in July, we executed a convertible debt transaction for $1.15 billion aggregate principal amount of 1.625% convertible senior notes due in 2034.

Speaker #1: The achievement of our revenue plan remains subject to several contingencies, including the successful launch and deployment of our Bluebird satellites related to US government applications and those contractual milestone achievements, critical gateway equipment sales to our M&O partners, and support of their anticipated commercialization efforts of space mobile service, and service revenues in connection with the activation of our commercial service provided by our existing and planned deployed and operational satellites.

Speaker #1: Now, turning to the balance sheet, with this backdrop, in July, we executed a convertible debt transaction for 1.15 billion dollars aggregate principal amount of 1.625% convertible senior notes due in 2034.

Speaker #1: As part of the transaction, we purchased a capped call hedge to increase the effective conversion price to 149 dollars and 20 cents per share, a price well above our all-time high trading price.

Andrew Johnson: As part of the transaction, we purchased a capped call hedge to increase the effective conversion price to $149.20 per share, a price well above our all-time high trading price. This financing allows us to pursue an expanding universe of growth opportunities, further continue vertical integration efforts, and secure additional access to orbit for our space-based cellular network. The notes have our lowest coupon ever at 1.625%, providing cost-efficient capital with effective dilution of less than 2%. Finally, on the final chart on this slide, on a pro forma basis, inclusive of that $1.15 billion in gross proceeds from the convertible notes offering, our cash equivalents, and restricted cash as of 30 June 2026, was over $3.7 billion. In closing, we are making progress on all fronts in accomplishing our near-term objectives.

Speaker #1: This financing allows us to pursue an expanding universe of growth opportunities, further continue vertical integration efforts, and secure additional access to orbit for our space-based cellular network.

Speaker #1: The notes have our lowest coupon ever at 1.625%, providing cost-efficient capital with effective dilution of less than 2%. Finally, on the final chart on this slide, on a pro forma basis, inclusive of that $1.15 billion in gross proceeds from the convertible notes offering, our cash, cash equivalents, and restricted cash as of June 30, 2026, was over $3.7 billion.

Speaker #1: In closing, we are making progress on all fronts and accomplishing our near-term objectives. The hard work across the organization continues, with revenue building on plan for 2026, satellite manufacturing increasing to support our orbital launch campaign, and increasing applications within our rapidly expanding TAM.

Andrew Johnson: The hard work across the organization continues, with revenue building on plan for 2026, satellite manufacturing increasing to support our orbital launch campaign, and increasing applications within our rapidly expanding TAM. We look forward to sharing additional achievements with you during Q3 and throughout the H2 2026. Thank you for your continued support as we continue the hard work of connecting the unconnected at AST SpaceMobile. With that, this completes the presentation component of our business update call, and I'll pass it back to Scott.

Speaker #1: We look forward to sharing additional achievements with you during Q3 and throughout the second half of 2026. Thank you for your continued support as we continue the hard work of connecting the unconnected at AST SpaceMobile. With that, this completes the presentation component of our business update call, and I'll pass it back to Scott.

Speaker #2: Thank you, Andy. Before we go to the queue of analyst questions, we'd like to address a few of the questions submitted by our investors.

Scott Wisniewski: Thank you, Andy. Before we go to the queue of analyst questions, we would like to address a few of the questions submitted by our investors. Operator, could you please start us off with the first question?

Speaker #2: Operator, could you please start us off with the first question?

Speaker #3: David from New Jersey asks, how should investors think about the expected timing of meaningful government revenue? And could you expand some more on the radar capabilities of the constellation?

Operator: David from New Jersey asks, "How should investors think about the expected timing of meaningful government revenue? Could you expand some more on the radar capabilities of the constellation?

Speaker #2: Thank you, David. You know, as we said in our remarks, we're making good progress on these contracts, including over $100 million of contract awards in the last couple of months.

Scott Wisniewski: Thank you, David. As we said in our remarks, we are making good progress on these contracts, including over $100 million in contract awards in the last couple of months. Consistent with how we have always talked about it, these are kind of initial phases as we scale up the opportunity, and the government wants to see you perform against that. Of course, we are uniquely able to perform given the size of our satellite, our technology, the fact that we are in orbit, the fact that we are vertically integrated. What we are seeing is that this opportunity is going to start scaling up into a recurring multi-billion dollar a year opportunity starting in 2027.

Speaker #2: So, consistent with how we've always talked about it, these are kind of initial phases as we scale up the opportunity, and the government wants to see you perform against that.

Speaker #2: And of course, we're really uniquely able to perform, given the size of our satellite, our technology, the fact that we're in orbit, and the fact that we're vertically integrated.

Speaker #2: And what we're seeing is that this opportunity is going to start scaling up into a recurring multi-billion dollar a year opportunity starting in 2027.

Speaker #3: Leading from New Zealand asks, how does ASTS's ownership of spectrum assets affect the company?

Operator: Lydon from New Zealand asks, "How does ASTS's ownership of spectrum assets affect the company?

Speaker #4: Thank you, Lydon, for the question. Well, Spectrum is like fuel for our business. And but of course, also how efficient is the machine to utilize that fuel is super important.

Abel Avellan: Thank you, Lydon, for the question. Well, spectrum is like fuel for our business. But of course, also how efficient is the machine to utilize that fuel is super important. It is the combination of the very large phased array, supported by over 3,600 patent and patent pending claims. A very large phased array, the power of that phased array, and access to MNO partner spectrum, and our own spectrum is what makes that fuel really be very efficient in terms of creating additional lines of revenue to our government. As Scott presented in our brief today, this is allowing us to actually scale up into a multitude of new applications that create a multiplication of our current TAM from D2D to seven more new applications that really multiply the addressable TAM that we have today. Ownership of spectrum is super strategic for us.

Speaker #4: So if the combination of the very large phase array supported by over 3,000, 600 patent and patent pending claims, a very large phase array the power of that phase array and access to M&O partner Spectrum and our own Spectrum is what make that fuel really be very efficient in terms of creating additional lines of revenue to our government.

Speaker #4: As Scott presented in the in our in our brief today, I mean, this is allowing us to actually scale up into a multitude of new applications that create a multiplication of our TAM, our current TAM, from D to D to seven more new applications that really multiply the addressable TAM that we have today.

Speaker #4: So, ownership of spectrum is super strategic for us. We were the first company in direct-to-device that started this trend of direct-to-device operators owning spectrum.

Abel Avellan: We were the first company in direct-to-device that started this trend of direct-to-device operators to own spectrum, but we have the largest combined spectrum access when you combine our MNO partners' spectrum plus our own spectrum, in addition to a very large phased array with a lot of power. That creates that fuel that creates multiple lines of capabilities for our company.

Speaker #4: But we had the largest combined Spectrum access when you combine our M&O partners Spectrum plus our own Spectrum in addition to a very large phase array with a lot of power that create that that that fuel that create multiple lines for our for lines of of capabilities for for our for our company.

Speaker #3: Kevin from Vancouver asks, what kind of demand drivers are you seeing to trigger the massive 400,000 square feet of manufacturing expansion in Texas? How many BlueBirds per month are you aiming to produce?

Operator: Kevin from Vancouver asks, "What kind of demand drivers are you seeing to trigger the massive 400,000 square feet of manufacturing expansion in Texas? How many BlueBirds per month are you aiming to produce?

Speaker #4: Well, we're currently getting to six per month. We want to spend that in order to be able to supply enough capacity for our government and non-government applications.

Abel Avellan: Well, we are currently getting to six per month. We want to expand that in order to be able to supply enough capacity for our government and non-government applications. With the addition of 400,000 square feet of manufacturing, we would be close to 1 million square feet of manufacturing facility. We want to continue expanding our capability of producing them to even larger satellites that allow us to support communications, radar, GPS, AI, cloud computing, IoT, and other very strategic applications that we have. That is why we are investing very efficiently in extending our capability of manufacturing in Texas to close to 1 million square feet of manufacturing.

Speaker #4: And so, with the addition of 400,000 square feet of manufacturing, we will be close to a million square feet of manufacturing facility. We want to continue expanding our capability, producing even larger satellites that allow us to support communications, radar, GPS, AI, cloud computing, IoT, and other very strategic applications that we have.

Speaker #4: And that's why we are investing very efficiently in extending our capability of manufacturing in Texas to close to 1 million square feet of manufacturing.

Speaker #3: Leading from New Zealand asks: Does ASTS believe other countries will come forward with their own FirstNet or daily programs that ASTS can support?

Operator: Lydon from New Zealand asks, "Does ASTS believe other countries will come forward with their own FirstNet or JLEO programs that ASTS can support?

Operator: Lydon from New Zealand asks, does ASTS believe other countries will come forward with their own FirstNet or JLEO programs that ASTS can support?

Speaker #2: Thank you. JLEO project is a real proof point for how large countries are thinking about their own infrastructure. This is infrastructure they can control and get access to.

Scott Wisniewski: Thank you, Lydon. We see the JLEO project as a real proof point for how large countries are thinking about their own infrastructure. This is infrastructure they can control and get access to. We see others thinking about it. This is a trend that is going to play out, we think, multiple times in the coming years. This is really a new layer of communications that gives governments and nations access to capabilities that they access and can control. In particular, the 700 MHz band is one that we have put on the satellite in order to be able to address opportunities like this, both in the US and Europe and in other places like Latin America as well. With that, I would like to thank our shareholders for submitting those questions. Operator, let us open up the call to analyst questions now.

Speaker #2: And we think that, and we see others thinking about it. So this is a trend that's going to play out, we think, multiple times in the coming years.

Speaker #2: And this is really a new layer of communications that gives governments and nations access to capabilities that they can access and can control.

Speaker #2: And in particular, the 700 megahertz band is one that we've put on the satellite in order to be able to address opportunities like this—both in the US and Europe, and in other places like Latin America as well.

Speaker #2: And with that, I'd like to thank our shareholders for submitting those questions. Operator, let's open up the call to analyst questions now.

Speaker #3: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. We kindly ask those participating in the Q&A session to limit themselves to two questions each. Thank you. One moment please, while we poll for questions. Our first question comes from the line of Greg Pendy with Clear Street. Please proceed with your questioning.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star two (*) to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Speaker #3: We kindly ask those participating in the Q&A session to limit themselves to two questions each. Thank you. One moment, please, while we pull four questions.

Speaker #3: Our first question comes from the line of Greg Pendy with Clear Street. Please proceed with your question.

Speaker #5: Sure. Thanks, sir, for taking my question. Can you kind of share with us, on the record: JV, I know it's an advanced discussion, but what’s stood out to get you guys to this stage, given it was pretty competitive with some other bidders out there?

Greg Pendy: Sure. Thanks for taking my question. Can you share with us on the Red Coat 9 JV? I know it is in advanced discussions. What stood out to get you guys to this stage, given it was pretty competitive with some other bidders out there? What do you think you offer to the table that really kind of moved you guys along in that process?

Speaker #5: What do you think you bring to the table that really kind of moved you guys along in that process?

Speaker #4: Thank you, Greg, for the question. Well, we had the only platform that had demonstrated, and is delivering today, broadband capability. That is one key factor.

Abel Avellan: Thank you, Greg, for the question. Well, we are the only platform that has demonstrated and is delivering today broadband capability. That is one key factor. The other one is the architecture that we offer allows nations and regulatory bodies to basically keep all the data and all the management of the infrastructure on the ground. Third, the partnership with Rakuten over many years that we have with them as a leading Japanese company that have been partnered with us for many years. But fundamentally, we are the only platform that can deliver broadband that is in operations and that have demonstrated the ability to basically deliver seamless connectivity between terrestrial and space on a scalable basis.

Speaker #4: The other one is the architecture that we offer allows nations and regulatory bodies to basically keep all the data and all the management of the infrastructure on the ground.

Speaker #4: And third, the partnership with Rakuten over many years, that we have with them as a leading Japanese company that has been partnered with us for many years.

Speaker #4: But fundamentally, we had the only platform that can deliver broadband that is in operations and that has demonstrated the ability to basically deliver seamless connectivity between terrestrial and space on a scalable basis.

Speaker #5: Great, that's very helpful. And is there any way you can kind of give us an idea—I know you don't break it out, so if you don't want to do that, that's fine—but with the backlog growing nicely to $1.3 billion, how much of that might be government?

Greg Pendy: Great. That is very helpful. Is there any way you can give us an idea, I know you do not break it out, so if you do not want to do that, but the backlog growing nicely to 1.3, how much of that might be government?

Speaker #2: I would say, you know, it's a minority of it is government. The the ads were were were were primarily government, but the overall backlog, a minority of it is government.

Scott Wisniewski: I would say, a minority of it is government. The adds were primarily government, but the overall backlog, a minority of it is government. But I would say that we expect that one to scale in the near term most significantly.

Speaker #2: But I would say that we expect that one to scale in the near term, most significantly.

Speaker #5: Got it. Thanks. Very helpful. Thanks a lot.

Greg Pendy: Got it. Thanks. Very helpful. Thanks a lot.

Speaker #3: Thank you. Our next question comes from the line of Mike Crawford with B. Riley Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Mike Crawford with B. Riley Securities. Please proceed with your question.

Speaker #6: Thank you. Of of these first 46 bluebirds that you have under partial states of construction now, how many of these are already have or are targeted to have L band or S band connectivity installed on the on the microns?

Mike Crawford: Thank you. Of these first 46 BlueBirds that you have under partial states of construction now, how many of these already have or are targeted to have L-band or S-band connectivity installed on the BlueBirds? How should we think of the spectrum mix of a full 90 satellite constellation?

Speaker #6: And then, how should we think of the spectrum mix of a full 90-satellite constellation?

Speaker #4: Hey, Mike. I mean, we are producing roughly at a rate of six per month in terms of microns. We are on Micron 46.

Abel Avellan: Hey, Mike. We are producing roughly at a rate of 6 per month in term of BlueBirds. We are on BlueBird 46. We are starting the production of the mid-band capability later this year for start launching very early in 2027, the broadband capability. The current BlueBirds are low-band systems.

Abel Avellan: Hey, Mike. We are producing roughly at a rate of six per month in term of BlueBirds. We are on BlueBird 46. We are starting the production of the mid-band capability later this year for start launching very early in 2027, the broadband capability. The current BlueBirds are low-band systems.

Speaker #4: We're starting the production of the mid band capability later this year. For start launching very early in 20 in 27, the urban capability. So the current the current micros are low band systems.

Speaker #6: Thanks. Thank you, Abel. And then thirdly, my second question is, how does this potential US M&O joint venture affect your discrete agreements with AT&T and Verizon, and as well as with T-Mobile, that you don't have an agreement with?

Mike Crawford: Great. Thank you, Abel. For my second question is, how does this potential US MNO joint venture affect your discrete agreements with AT&T and Verizon, as well as with T-Mobile that you do not have an agreement with?

Speaker #2: Thanks, Mike. Well, our existing agreements are not affected. You know, and and frankly, as as we said, when this was announced, the the joint venture, frankly, frees up a third and fourth customer for us in the United States.

Scott Wisniewski: Well, our existing agreements are not affected. Frankly, as we said when this was announced, the joint venture frankly frees up a third and fourth customer for us in the United States.

Q2 2026 AST SpaceMobile Inc Earnings Call

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