ASTS Reports Wider-Than-Expected Q4 Loss Despite Top-Line Expansion

AST SpaceMobile, Inc. ASTS reported mixed fourth-quarter 2025 results, with the top line beating the Zacks Consensus Estimate and the bottom line missing the same. The company reported revenue growth year over year, backed by gateway hardware sales and U.S Government contract. The launch of BlueBird 6, the largest commercial communications array ever deployed in low Earth orbit, is a positive factor.

However, unfavorable macroeconomic conditions, such as rising inflation, higher interest rates, volatility in the capital markets, imposition of tariffs and geopolitical conflicts, are hurting 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 $73.9 million or a loss of 26 cents per share compared with a loss of $35.9 million or a loss of 18 cents per share in the year-ago quarter. The reported loss was wider than the Zacks Consensus Estimate of a loss of 18 cents.

For 2025, ASTS reported a net loss of $341.9 million or a loss of $1.34 per share compared to a loss of $300.1 million or $1.94 per share in 2024.

AST SpaceMobile, Inc. Price, Consensus and EPS Surprise

AST SpaceMobile, Inc. price-consensus-eps-surprise-chart | AST SpaceMobile, Inc. Quote

Quarterly revenues surged to $54.3 million from $1.9 million in the year-ago quarter, primarily driven by gateway hardware sales and various commercial and U.S. government service milestone achievements. The top line beat the Zacks Consensus Estimate of $41 million.

For 2025, the company reported revenues of $70.9 million, increasing $4.4 million from 2024.

Other Details

In the December quarter, total operating expenses rose to $126.6 million from $60.6 million in the year-ago quarter. This was due to increased general and administrative costs and engineering services expenses. Adjusted operating expenses for the fourth quarter were $95.7 million.

Cash Flow & Liquidity

For 2025, the company utilized $71.5 million of cash for operating activities compared with $126.1 million in the year-ago period. As of Dec. 31, 2025, it had $2.33 billion in cash and cash equivalents with $2.2 billion in long-term debt compared to respective figures of $564.9 million and $155.6 million a year ago.

Zacks Rank & Stocks to Consider

ASTS currently has a Zacks Rank #5 (Strong Sell). 

Celestica Inc. CLS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 8.62%. With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Its strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.

Analog Devices, Inc. ADI carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 6.96%.

With rising AI and industrial demand, Analog Devices is strongly positioned to drive future growth from the semiconductor upcycle. Its expanding data-center power portfolio, resilient industrial exposure and strong analog expertise help maintain solid margins and deliver scalable, high-performance solutions across key end markets.

Ubiquiti Inc. UI currently sports a Zacks Rank #1. It delivered an earnings surprise of 38.08% in the last reported quarter.

The company offers a broad portfolio of networking solutions for enterprises and service providers. Its efficient and flexible business model supports healthy margins and scalable expansion. UI continues to invest in research and development to launch innovative networking products and advanced technologies. Strong channel management and a wide global distributor network improve demand visibility and inventory control.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research