AST SpaceMobile, Inc.
AST SpaceMobile, Inc. is building a space-based cellular broadband network that is designed to connect ordinary mobile phones directly to satellites without requiring special handsets or additional user equipment. Its business model is centered on partnerships with mobile network operators (MNOs) such as AT&T, Verizon, Vodafone and STC, which are expected to market the service to their own subscribers on a revenue-share basis. The company is still in the development and commercialization phase, with its satellite constellation, ground infrastructure and regulatory approvals all still being built out. In addition to future consumer and enterprise connectivity, AST has also recognized revenue from U.S. government-related work and from gateway equipment, software and related services sold to MNOs as they prepare for commercial launch.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSatellite-based cellular broadband service that connects standard mobile phones directly to AST's network.
Gateway equipment, software and integration services that help operators prepare for commercial service.
Performance obligations tied to U.S. government-related contracts and related technical deliverables.
Satellite assembly, integration, testing and related engineering work supporting constellation deployment.
Products
Reported · share of revenue- Products62.6 %
- Services37.4 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
AST's core customers are mobile network operators, because the company is structured to sell coverage and capacity through operator partnerships rather than directly to end users. These MNOs buy the service to extend coverage into remote, underserved or hard-to-build areas without investing in additional towers, spectrum or terrestrial infrastructure. End users are the operators' existing subscribers, who would access the service through their current mobile plans and devices. The company also serves U.S. government and prime-contractor customers for technical performance obligations, and it sells gateway-related equipment and software to operators building out ground infrastructure. Over time, the company expects government, enterprise and consumer connectivity use cases to broaden demand once commercial service is launched.
They buy satellite-enabled coverage and integration services to expand service areas and improve ARPU without major terrestrial capex.
Subscribers of partner carriers who ultimately use SpaceMobile coverage on standard handsets when outside terrestrial range.
They purchase performance-based technical work and related satellite capabilities for government applications.
Operators buying gateway equipment, software and related services to prepare for commercial readiness.
Strategy
AST's strategy is to build a satellite constellation that can deliver cellular broadband directly to standard mobile devices, then commercialize it through partnerships with MNOs rather than by selling directly to consumers. The company is prioritizing revenue-share agreements with operators because that reduces customer acquisition costs, avoids competing head-on with carriers and leverages the carriers' existing billing and distribution relationships. It is also deploying satellites in phases, focusing first on targeted geographies where regulatory approval, operator demand and ground infrastructure readiness can support an initial launch. A further strategic priority is to deepen its patent portfolio and technical differentiation, since the company believes its ability to support broadband data rates on unmodified handsets is a key advantage versus lower-data-rate satellite alternatives. In parallel, AST is expanding commercial agreements with major operators and governments to validate the network, demonstrate service quality and create a path to broader rollout.
Carrier partnerships provide distribution, billing and customer access without AST needing a direct consumer sales model.
A staged rollout reduces capital intensity and allows the company to validate service in selected markets first.
The service cannot operate commercially in a jurisdiction until approvals and spectrum rights are in place.
Broadband connectivity on standard handsets is the core value proposition versus lower-data-rate satellite competitors.
Geography
AST is headquartered in Texas and operates satellite assembly, integration and test facilities there, which makes the United States the center of its manufacturing and engineering footprint. The company also has engineering and development centers in India and Scotland, plus engineering, development and production centers in Spain and Israel, reflecting a globally distributed technical organization. Commercially, the company is targeting the United States first, including the continental U.S. and Hawaii for AT&T and Verizon, while also building a European distribution channel through SatCo with Vodafone. It has also signed a long-term commercial agreement with STC to support Saudi Arabia and key regional markets, and it continues to pursue approvals and operator agreements in additional jurisdictions. Because the service is not yet broadly launched, geography is currently more about regulatory readiness, satellite deployment and partner coverage rights than about recurring revenue concentration.
Risks
AST is still in the development stage, so execution risk is unusually high: the constellation may be delayed, cost more than expected or fail to achieve the intended service performance. The business is also capital intensive and depends on continued access to financing, which is critical because the company has not yet launched broad commercial service and has a history of losses. Regulatory approvals and spectrum access are essential to operations, and the company must secure them in each jurisdiction before service can begin, creating country-by-country launch risk. Supply chain, launch provider and satellite deployment risks are material because the company relies on third parties for components, launch capacity and complex systems that can fail or arrive late. Competitive pressure is also significant, with terrestrial networks, other satellite operators and direct-to-device alternatives such as Starlink, Globalstar, Iridium, Thuraya and Skylo all competing for the same connectivity use cases.
- SpaceMobile Service may not be completed on time or at allImpact: CriticalLikelihood: High
The constellation is still under development and depends on complex technical, launch and integration milestones.
Exposure: Constellation deployment and commercialization
- Need for additional capitalImpact: CriticalLikelihood: High
The company must fund satellite development, launches, operations and regulatory work before broad revenue ramps.
Exposure: Liquidity and funding
- Regulatory and spectrum approval delaysImpact: HighLikelihood: High
Commercial service cannot begin in a jurisdiction until approvals and spectrum rights are secured.
Exposure: Country-by-country market entry
- Launch and supply chain disruptionImpact: HighLikelihood: High
The company depends on third-party suppliers, launch providers and complex components for satellites.
Exposure: Satellite manufacturing and deployment
- Competition from terrestrial and satellite networksImpact: HighLikelihood: Medium
Alternative connectivity providers may offer lower-cost or already-deployed solutions.
Exposure: Direct-to-device and mobile satellite services
- Key-person dependenceImpact: HighLikelihood: Medium
The company states it is highly dependent on founder and CEO Abel Avellan and specialized technical staff.
Exposure: Management and engineering execution
Accounting
Judgemental itemsRevenue is tied to completed performance obligations and contract milestones, so timing can shift between periods.
Impact: Affects reported revenue timing and quarterly comparability
Private placement warrants are remeasured each balance sheet date, creating gains or losses unrelated to operations.
Impact: Can materially affect net income and volatility
Interest expense includes amortization of debt costs and any loss on extinguishment when facilities are repaid or refinanced.
Impact: Affects financing costs and earnings
Judgment is required to determine which development and equipment costs are capitalized versus expensed.
Impact: Affects asset base, depreciation and operating loss
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Last updated: 24/09/2026