AST SpaceMobile Reports 44% Revenue Growth to $718,000 in Q1 2025

AST SpaceMobile, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase to $718,000, up 44% from $500,000 in the same period last year. The company attributed this growth primarily to a rise in revenue from the resale of gateway equipment to a mobile network operator, although this was partially offset by a decrease in revenue from U.S. government contracts. Despite the revenue increase, AST SpaceMobile recorded a net loss of $45.7 million, compared to a loss of $19.7 million in the first quarter of 2024, reflecting a significant rise in operating expenses.

Total operating expenses for the quarter reached $63.7 million, a 14% increase from $56 million in the prior year. The increase was driven by higher engineering services costs, which rose by 39% to $27.2 million, and general and administrative costs, which increased by 50% to $18.4 million. Research and development expenses also saw a notable rise of 68%, totaling $7.1 million, as the company continued to invest in the development of its Block 2 BB satellites. In contrast, depreciation and amortization expenses decreased by 45% to $11 million, reflecting the completion of depreciation for the Blue Walker 3 test satellite.

In terms of strategic developments, AST SpaceMobile launched five first-generation commercial BB satellites in September 2024 and successfully conducted various tests, including video calls from space with major telecommunications companies. The company is also preparing for the launch of its next-generation Block 2 BB satellites, which are expected to significantly enhance its service capabilities. As of March 31, 2025, the company had $874.5 million in cash and cash equivalents, a substantial increase from $212.4 million a year earlier, providing a strong liquidity position to support ongoing operations and future satellite launches.

Operationally, AST SpaceMobile has made significant strides in its satellite technology, with a patent portfolio that includes over 3,650 claims worldwide. The company is also expanding its geographic reach, having secured agreements with major mobile network operators like AT&T and Vodafone to provide its SpaceMobile service. The company plans to initiate a limited, noncontinuous SpaceMobile service in targeted markets, including the U.S., in 2025, pending regulatory approvals.

Looking ahead, AST SpaceMobile remains focused on executing its business strategy, which includes launching additional satellites and expanding its service offerings. The company anticipates that the successful deployment of its satellite constellation will enable it to generate cash flows from operations, which will be critical for funding its growth initiatives. However, the company acknowledges the risks associated with capital requirements and market conditions, which could impact its ability to achieve its operational goals.