"What concerned me more was the loss depth. Net losses reached $122.9 million, compared to an expected loss of $94.9 million (implied from the EPS miss). That's a $27 million gap, and it signals operating expenses are accelerating faster than the company guided. Operating expenses hit $94.4 million, driven by higher engineering services and gateway delivery costs. Management flagged these as temporary deployment-phase expenses, but the magnitude warrants close monitoring."
"Operating cash flow deteriorated to negative $363.4 million for the quarter. That annualized burn rate of roughly $1.45 billion is substantial, even for a pre-revenue infrastructure company. The company maintains $1.2 billion in cash as of September 30, which provides roughly 10 months of runway at current burn rates. ASTS secured $1 billion in contracted revenue commitments, a meaningful milestone that validates demand for its space-based cellular broadband network."
AST SpaceMobile reported $14.74 million in quarterly revenue, missing consensus estimates of $20.33 million by 27.5% due to delays in U.S. government contract milestones and gateway deliveries. Net losses reached $122.9 million, about $27 million worse than expected, reflecting accelerating operating expenses. Operating cash flow was negative $363.4 million for the quarter, annualizing to roughly $1.45 billion, while cash balances of $1.2 billion provide about ten months of runway. Operating expenses totaled $94.4 million, driven by engineering services and gateway delivery costs. ASTS secured $1 billion in contracted revenue and partnered with Vodafone to develop an EU constellation, targeting 45–60 satellites by end of 2026.
Read at 24/7 Wall St.
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