AST SpaceMobile Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christopher Schoell - UBS AG - Analyst : Great, thank you. You cited the incremental wins in the government space. I appreciate some of this might be sensitive, but can you just help us better understand the types of use cases you're targeting and the advantages your tech offers maybe versus others servicing the government sector. And given the announcements we've been seeing out of Washington, can you just update us on how you're thinking about the potential US government TAM now relative to several months ago?

Question: Christopher Schoell - UBS AG - Analyst : Great. And if I can just follow up on the spectrum with one more question. Now that you have global coverage, should we view this spectrum as being all that you need, or could we see you purchase other licenses here going forward?

Question: Bryan Kraft - Deutsche Bank AG - Analyst : Hi, good afternoon. I had two, if I could. First, is the timing of the FM1 launch on the critical path for other launches? In other words, period of time you need before you would do the next launch because you want to test FM1 extensively before the next group go up. And if there does need to be some time in between FM1 and the next launch. What could that time frame look like? And how much time would you need. And then I had a question about the service launch plans. What would a nationwide intermittent service look like what type of product would it be? Would you charge for it? Or would you use it maybe as an early promotion vehicle to build interest in the full service when it ultimately launches?

Question: Bryan Kraft - Deutsche Bank AG - Analyst : Could you comment at all on how you plan to use that intermittent service as a segue to the full 24-hour service? Are you thinking about maybe using it as a promotional tool to build that interest? Or is this something that you would charge to and kind of focus on earning revenue for it?

Question: Colin Canfield - Cantor Fitzgerald LP - Analyst : Thank you for taking the question. Maybe focusing back on spectrum, if you can maybe talk about how we should think about tech teaming partnerships essentially kind of affecting both the kind of support of the types of spectrum that you'd be going after as well as the sort of kind of pricing effects like specifically on the latter, like how we should think about kind of AST's ability to get spectrum cheaper because you have the tech partners to use it better. If you can kind of talk to those two dynamics. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 9:00PM, ASTS.OQ - Q2 2025 AST SpaceMobile Inc Earnings Call

Question: Colin Canfield - Cantor Fitzgerald LP - Analyst : Got it. And then if we go back to the government question, it looks like the program books that dropped today suggests something like a $2 billion delta of kind of incremental opportunity just kind of tying that back to the programs of record opportunities that you talked about, Scott. Can you maybe kind of think about what sort of timeline we should consider getting through that comes competitive process? And then maybe kind of -- you discussed agility and price. Are there other kind of variables or factors that are being cited as reasons for AST being able to win?

Question: Colin Canfield - Cantor Fitzgerald LP - Analyst : And then maybe one more on just kind of that go-to-market strategy. But I think as we kind of like shape the court of players in the satellite communication space, AST probably still has opportunities to team with folks that are kind of focused on this. So how do you kind of think about maybe shaping your strategy to kind of the neo prime, folks like Anduril that focus on not just the defense hardware side, but also kind of consumer electronics trends that play into that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 9:00PM, ASTS.OQ - Q2 2025 AST SpaceMobile Inc Earnings Call

Question: Caleb Henry - Quilty Analytics LLC - Analyst : Hi. Thanks, guys. A question about the S-Band. Is that -- you've obtained at the ITU level is that licensed anywhere nationally? Or is that a project that's going to start effectively now going state by state?

Question: Caleb Henry - Quilty Analytics LLC - Analyst : Okay. And then on the launch payment that you mentioned was pulled forward. Can you just provide any more color on why that was done. I'm guessing it was to offset delays with new Glen?

Question: Caleb Henry - Quilty Analytics LLC - Analyst : Okay. And then just last one, I know this may be a bit forward-looking, but satellites are called Block 2 and AST has talked about them up to 45 to 60 satellites, is the plan to continue Block 2 all through the 90-ish satellites? Or is there an idea of transitioning to a Block 3 before you get to that completion of the constellation?

Question: Caleb Henry - Quilty Analytics LLC - Analyst : Okay. So it would be two different types of satellites then?

Question: Caleb Henry - Quilty Analytics LLC - Analyst : So does that mean we're looking at kind of two constellations of similar size, like 72 each or 90 each or somewhere between 144 to 180.

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : On the latest purchase of the S-Band spectrum, can you give a little more color what it's being used for now? And I know you used the term priority rights I guess any more color on your degree of confidence in being able to utilize that spectrum.

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : Sorry. So is it being used right now. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 9:00PM, ASTS.OQ - Q2 2025 AST SpaceMobile Inc Earnings Call

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : Right. But is that spectrum being used now? I guess what's the history of it? How did it come to be in the MSS and being able to use it on a

Question: Timothy Horan - Oppenheimer & Co Inc - Analyst : And I just want clarification on the revenue share. Obviously, T-Mobile is bundling and a bunch of services for free. Verizon has said they're not going to charge for texting. I mean it seems like your revenue share is a little bit complicated. There are other -- what else do you do if it's being bundled in for free?

Question: Scott Searle - Roth Capital Partners LLC - Analyst : Hey, good afternoon. Thanks for taking my questions. Maybe to follow-up on the S-band side of the equation. It's very exciting to see you guys now having a multiband offering to provide the broadband capabilities. But I'm wondering if you could provide a little bit more color in terms of the regulatory approval and timelines. It sounds like you're going to start that on a country-by-country basis now. But just what is the timeline that you would expect to be associated with it? And I guess if there are any geographies in particular that you're focused on, I would assume it's some more of the developed markets. And second, in terms of the support for existing 5 billion-plus devices out there today, what sort of support is there today in the installed base for S-Band? And kind of how do you see the silicon support syncing up with that at the device level over the next couple of years? And then I have a follow-up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 9:00PM, ASTS.OQ - Q2 2025 AST SpaceMobile Inc Earnings Call

Question: Scott Searle - Roth Capital Partners LLC - Analyst : Thanks. Very helpful. And to follow up on the noncontinuous front, a lot of dialogue about that today. When I think of noncontinuous, I think, of applications like IoT, but I haven't heard that coming up in terms of the conversation today. So I'm wondering where IoT fits into the carrier partner, timeline, and landscape, is that part of their near-term deployment plans and focus? Or is that something that you expect to come later post full commercial launches of more traditional broadband services?

Question: Greg Pendy - Clear Street LLC - Analyst : Just one quick one. On the transaction of Ligado, did I hear you guys correctly that when we think about pro forma liquidity right now that, that -- the cost of that transaction will be primarily asset-backed or financing when the outflows? And can you just remind us, is it roughly $500 million?

Question: Chris Quilty - Quilty Analytics LLC - Analyst : Thanks, guys. I got dropped, so forgive me if this was asked. But on the government capability. Are the government requirements for Orbit and inclination complementary to what you're doing commercially? Or is there a need to inject satellites and different orbits specifically for the government?

Question: Chris Quilty - Quilty Analytics LLC - Analyst : Understand. And the current contracts with the US government, is there anything that would preclude you from negotiating with other five eyes countries perhaps for the same capability?

Question: Chris Quilty - Quilty Analytics LLC - Analyst : Okay. And I think you said something earlier that in your statement that led me to believe that perhaps to the degree that government business grows and supports it, there might be a block X that might develop with specific capabilities for government customers. And as part of that question, when the original Block 2 were designed, where some of the government capabilities are to be designed in. Were there things that you were adding after the back and if things you would like to add to the satellite capability.

Question: Chris Quilty - Quilty Analytics LLC - Analyst : But were they major modifications from the original design -- because I think it beat point you were doing the original design, I don't know that maybe the government was a perceived customer at that point in time.