The satellite broadband company confirmed plans to deploy 45 to 60 satellites into orbit by next year.
AST SpaceMobile (ASTS) stock surged 11.7% in extended trading despite the company logging a bigger quarterly loss in the second quarter.
The satellite broadband company reported a net loss of $99.39 million for the three months ended June 30, widening from a net loss of $72.55 million a year earlier. Its operating expenses for the second quarter rose to $73.95 million compared with $63.68 million in the previous quarter.
However, the company provided several updates about its future during the post-earnings conference call, which investors were eager to hear. AST said it was preparing to deploy nationwide intermittent service in the United States by the end of 2025, followed by the United Kingdom, Japan, and Canada in the first three months of 2026.
AST SpaceMobile, along with its global partners, is building a space-based cellular broadband network that smartphones can access directly. The company believes it only needs about 90 satellites for continuous global coverage, compared to the thousands deployed by companies like SpaceX’s Starlink.
It also confirmed plans to deploy 45 to 60 satellites into orbit by next year and stated that it has planned orbital launches every one to two months on average for 2025 and 2026.
“We expect revenue from our U.S. government business to ramp significantly in the coming quarters as we continue to achieve milestones tied to our current contract awards in addition to winning net new contract awards,” CEO Abel Avellan said, after informing analysts that the company has already signed eight contracts to date with the U.S. Government as an end customer.
Retail sentiment on Stocktwits about AST SpaceMobile was in the ‘bullish’ territory at the time of writing, while retail chatter was ‘high.’
The company is competing with Elon Musk’s SpaceX unit, Starlink, which has a partnership with T-Mobile US, Inc. (TMUS) to provide cellular services in areas without ground-based coverage. However, it currently offers text message services with plans to deliver broadband services later.
AST also expects to reach the manufacturing capability to build six satellites per month in 2025.
“This was always a national security play,” one user wrote on Stocktwits.
“This was literally one of the best calls I’ve ever been on. The enthusiasm from all sides was palpable. Tomorrow morning we’ll have multiple bullish analyst notes,” another trader said.
AST stock has more than doubled this year.
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