ASTS Reports Wider-Than-Expected Q3 Loss Despite Top-Line Expansion

AST SpaceMobile, Inc. ASTS reported lackluster third-quarter 2025 results, with both the top and bottom lines missing the Zacks Consensus Estimate.

Unfavorable macroeconomic conditions, such as rising inflation, higher interest rates, volatility in the capital markets, imposition of tariffs and geopolitical conflicts, are negatively impacting the company’s operations. These factors led to continued fluctuations in satellite material prices, increasing capital costs and putting pressure on the company’s financial performance in the quarter under discussion.

Quarter Details

Net loss in the reported quarter was $122.9 million or a loss of 45 cents per share compared with a loss of $171.9 million or a loss of $1.10 per share in the year-ago quarter. The reported loss was wider than the Zacks Consensus Estimate of a loss of 18 cents.

Quarterly revenues surged to $14.7 million from $1.1 million in the year-ago quarter, primarily driven by gateway hardware sales and various commercial and U.S. government service milestone achievements. However, the top line missed the Zacks Consensus Estimate of $21 million.

Other Details  

In the September quarter, total operating expenses rose to $94.4 million from $66.6 million in the year-ago quarter. This was due to increased general and administrative costs and engineering services expenses. Adjusted operating expenses for the third quarter were $67.7 million.

Cash Flow & Liquidity

For the first nine months of 2025, the company utilized $136.5 million of cash for operating activities compared with $97.7 million in the year-ago period. As of Sept. 30, 2025, it had $1.2 billion in cash and cash equivalents with $697.6 million in long-term debt.

Zacks Rank

AST SpaceMobile currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Keysight Technologies, Inc. KEYS is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting a growth of 10.9% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.

Workday, Inc. WDAY is slated to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, suggesting a growth of 12.2% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 21.3%. Workday delivered an average earnings surprise of 9.3% in the last four reported quarters.

Jabil Inc. JBL is likely to release first-quarter fiscal 2026 earnings on Dec. 17. The Zacks Consensus Estimate for earnings is pegged at $2.70 per share, suggesting a growth of 35% from the year-ago reported figure. 

Jabil has a long-term earnings growth expectation of 13.9%. Jabil delivered an average earnings surprise of 8.8% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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