What this story covers

AST SpaceMobile’s 2025 filing reveals a pivot to commercialization with $70.9 million in revenue and $2.78 billion in liquidity. Despite heavy operating losses, the company is fully funded to deploy its 90-satellite direct-to-smartphone broadband constellation through 2026.**Formatting Complete I have applied the specified TTS formatting rules to the dialogue sections ([S1] and [S2]). All chapter markers, citation markers, and the story title section remain unchanged. The podcast summary has been checked for word count. [S1] Welcome to the Stoky Podcast. Today, we are diving deep into the 2025 10-K filing for AST SpaceMobile, a company that is trying to do something that sounds like science fiction: connecting your everyday smartphone directly to satellites in space. [S2] It sounds like a massive undertaking, Noah. I mean, we’ve all seen satellite phones with those giant antennas, but they are claiming you won't need any of that? Just the phone in your pocket? [S1] Exactly, Ash. The goal is to eliminate dead zones globally by using a constellation of satellites in Low Earth Orbit, or LEO, that act like cell towers in the sky. They are calling it the SpaceMobile Service [Item 1 - Business, ¶2]. [S2] Before we get into the technical weeds, what’s the big takeaway from this latest filing? Are they actually making money yet, or is this still all just a promise? [S1] They are definitely moving into a new phase. For the fiscal year ended December 31, 2025, they reported a massive jump in revenue, specifically from gateway equipment and government services [Item 7 - MD&A, ¶28]. But as you’d expect with space tech, the costs are also astronomical. [CHAPTER] I. Business Overview and Strategic Initiatives [S1] To understand the business, you have to look at their hardware. They started with test satellites like BlueWalker 3, which actually proved you could get 21 Mbps download speeds on a standard phone [Item 1 - Business, ¶16]. [S1] Now, they are moving to the "BlueBird" satellites. The Block 2 version is a beast—it has a 2,400 square foot phased array, which the filing says is the largest commercial LEO array ever [Item 1 - Business, ¶16]. [S2] Wait, 2,400 square feet? That’s like the size of a large suburban house floating in orbit. Why does it need to be that big? [S1] It’s all about the physics of the signal. To talk to a tiny smartphone antenna from hundreds of miles up, you need a massive "ear" in space to catch those signals and a powerful "voice" to send them back. [S1] These Block 2 satellites are designed to handle ten times the bandwidth of their predecessors [Item 7 - MD&A, ¶13]. They are also vertically integrated, meaning AST builds about 95 percent of the subsystems themselves, including a custom ASIC chip [Item 1 - Business, ¶37]. [S2] So they aren't just buying parts off the shelf. They are building the brain of the satellite too. But who is actually going to use this? Is AST selling directly to us, the consumers? [S1] No, and that’s a key part of their strategy. They aren't trying to compete with your cell provider; they are partnering with them. They have deals with giants like AT&T, Verizon, Vodafone, and Rakuten [Item 1 - Business, ¶24]. [S1] The idea is a revenue-sharing model. Your carrier adds "SpaceMobile" as a feature, and you get bars in the middle of the ocean or a national park. They already have partnerships with over 50 operators who represent nearly 3 billion subscribers [Item 1 - Business, ¶10]. [S2] That’s a huge built-in audience. But space is crowded. We hear about Starlink all the time. How does AST stay relevant when Elon Musk is launching satellites every week? [S1] It’s a different niche. Most competitors like Starlink or Globalstar traditionally required specialized terminals or were limited to low-data messaging for emergency SOS features [Item 1 - Business, ¶37]. [S1] AST is aiming for full broadband—video calls, streaming, the works—on the 5.8 billion standard smartphones already out there. They are sitting on over 3 thousand 8 hundred 50 patent claims to protect that specific "direct-to-device" edge [Item 1 - Business, ¶37]. [CHAPTER] II. Financial Performance and Results of Operations [S2] Okay, so the tech is impressive and the partners are lined up. Let’s talk numbers. You mentioned a jump in revenue. How big are we talking? [S1] It’s a significant pivot. Their "Products" revenue, which is mostly selling gateway equipment and software to those mobile operators, hit $44.4 million in 2025. Compare that to just half a million dollars the year before [Item 7 - MD&A, ¶28]. [S1] Then you have "Services" revenue, which comes from U.S. government contracts. That grew to $26.5 million from about $3.9 million [Item 7 - MD&A, ¶28]. So, the business is finally starting to generate real cash from its operations. [S2] But I'm guessing the "Net Loss" line is still pretty eye-watering? Building houses in space can't be cheap. [S1] You’re right, Ash. The operating losses are still heavy because they are in a massive "build-out" phase. Engineering services costs jumped 52 percent to over $142 million [Item 7 - MD&A, ¶29]. [S1] They are hiring more people and spending more on third-party facilities to get these satellites ready. General and administrative expenses also climbed to over $101 million, partly due to legal fees for all those spectrum deals and acquisitions [Item 7 - MD&A, ¶30]. [S2] It sounds like they are spending money as fast as they can raise it. Was there anything weird in the financial statement? Any one-time hits? [S1] There was a 100 million dollars expense related to repurchasing some convertible notes, which definitely skewed the numbers [Item 7 - MD&A, ¶34]. [S1] Also, their warrant liability—which is basically a reflection of their stock price volatility—caused a $68.2 million non-cash loss [Item 7 - MD&A, ¶33]. When you strip that away, you see a company that is laser-focused on scaling up production. [CHAPTER] III. Liquidity, Capital Resources, and Funding [S2] This brings us to the "war chest." If they are losing hundreds of millions a year, how much runway do they actually have left? [S1] As of the end of 2025, they were sitting on a very comfortable $2.78 billion in cash and equivalents [Item 7 - MD&A, ¶35]. They also raised another 1 billion dollars in early 2026 through convertible notes [Item 7 - MD&A, ¶18]. [S2] Billion with a "B"? That’s a lot of breathing room. Where did all that money come from? [S1] It’s a mix. They’ve been very active with "At-The-Market" equity offerings, selling shares to raise over $1.2 billion since 2024 [Item 7 - MD&A, ¶73]. [S1] They also got a $175 million prepayment from a partner, STC, which helped lower their operating cash burn [Item 7 - MD&A, ¶71]. Management actually states they believe they are now fully funded to reach a 90-satellite constellation [Item 7 - MD&A, ¶36]. [S2] Ninety satellites. And what does each one of those cost to build and launch? [S1] The filing estimates the average cost for a Block 2 BlueBird is between $21 million and $23 million [Item 7 - MD&A, ¶36]. When you add in launch costs, you can see why they needed that multi-billion dollar cushion. [S2] So they have the cash, but what about the debt? You mentioned convertible notes earlier. Does that mean they owe a lot of money back eventually? [S1] They have about $2.3 billion in debt outstanding [Item 1A - Risk Factors, ¶50]. The trick with "convertible" notes is that the lenders can eventually turn that debt into stock. [S1] For the company, it’s great because the interest rates are low—around 2 percent to 4 percent—but for current shareholders, it means their ownership could get diluted in the future [Item 7 - MD&A, ¶62-69]. [CHAPTER] IV. Forward-Looking Guidance and Outlook [S2] So, what is the timeline here? When does a regular person actually get to see "SpaceMobile" show up on their phone screen? [S1] The roadmap is pretty aggressive. They are targeting "non-continuous" service—meaning the signal might come and go—once they have 25 satellites in orbit. They expect to hit that milestone with the five they already have plus 20 more Block 2s [Item 7 - MD&A, ¶13]. [S1] To get "continuous" coverage in key markets like the U.S., Europe, and Japan, they need about 45 to 60 satellites. They are aiming to have that many launched by the end of 2026 [Item 7 - MD&A, ¶16]. [S2] One to two satellites a month? That is a serious manufacturing pace. Do they even have the space to build them that fast? [S1] They claim their facilities in Texas can handle a production rate of up to six satellites per month [Item 2 - Properties, ¶1]. They’ve also secured spectrum access, like the deal with Ligado for mid-band frequencies in the U.S. and Canada [Item 7 - MD&A, ¶3]. [S2] It sounds like the pieces are on the board. But as we know with space, things rarely go perfectly according to plan. [CHAPTER] V. Key Risk Factors and Challenges [S1] That’s the understatement of the year, Noah. The "Risk Factors" section of this 10-K is quite extensive. First, there’s the technical risk. If a satellite fails during launch or collides with space debris, that’s $20 million plus gone in an instant [Item 1A - Risk Factors, ¶9-10]. [S1] And insurance doesn't cover everything. The filing notes that insurance typically only covers 3 percent to 20 percent of the value for the launch itself, and it often excludes losses once the satellite is actually in orbit [Item 1A - Risk Factors, ¶54]. [S2] That’s a huge gamble. What about the regulatory side? Can they just beam signals down to any country they want? [S1] Not at all. They need FCC approval for every frequency they use in the U.S., and they have to meet specific milestones to keep those licenses [Item 1A - Risk Factors, ¶70]. [S1] Internationally, it’s even more complex. Each country has its own rules about spectrum and foreign ownership. If a government decides they don't want a U.S. satellite company providing service, AST is locked out of that market [Item 1A - Risk Factors, ¶36]. [S2] And we can't forget the competition. Even if their tech is better, if someone like SpaceX decides to pivot more aggressively into this space, AST is fighting a giant. [S1] True, though AST argues their 3 thousand 8 hundred 50 patent claims and their MNO partnerships give them a moat [Item 1 - Business, ¶37]. But there's also the "key person" risk. The filing explicitly mentions their reliance on CEO Abel Avellan [Item 1A - Risk Factors, ¶59]. If something happens to the visionary at the top, the whole project could lose momentum. [CHAPTER] VI. Legal Proceedings, Governance, and Shareholder Matters [S2] To wrap things up, how is the company being run from a governance perspective? Any red flags in the legal section? [S1] Nothing that seems out of the ordinary for a company this size. They have some routine legal proceedings, but management doesn't believe any of them will have a "material adverse effect" on the business [Item 3 - Legal, ¶1]. [S1] On the cybersecurity front, they seem to be taking it seriously. They use the NIST framework and have a dedicated incident response team. Given that they are building a global communications network, being a target for hackers is a real threat [Item 1C - Cybersecurity, ¶3]. [S2] And what about the stock? I saw they don't pay a dividend. [S1] No dividends, and don't expect any anytime soon. Every spare dollar is being funneled into building those BlueBirds [Item 5 - Market, ¶1]. [S1] They are traded on the Nasdaq under the ticker ASTS. The filing shows that while the stock has been volatile, they have successfully used that market presence to fund their massive capital expenditures [Item 5 - Market, ¶2]. [S2] It’s a classic high-risk, high-reward story. If they pull it off, they change how the world connects. If they don't, it’s a very expensive lesson in orbital mechanics. [S1] Precisely. They have the cash, they have the partners, and they have the tech. Now it’s all down to execution in 2026. Thanks for joining us on the Stoky Podcast. We’ll see you next time. --- STORY TITLE --- AST SpaceMobile Revenue Surges to $70.9 Million as Satellite Giant Secures $2.78 Billion for Global Network Launch --- PODCAST SUMMARY --- AST SpaceMobile’s 2025 filing reveals a pivot to commercialization with $70.9 million in revenue and $2.78 billion in liquidity. Despite heavy operating losses, the company is fully funded to deploy its 90-satellite direct-to-smartphone broadband constellation through 2026.

Story snapshot