AST SpaceMobile Secures $43 Million Contract in Support of U.S. Space Development Agency Through Prime Contractor

Rhea-AI Summary

AST SpaceMobile (NASDAQ: ASTS) has secured a $43 million contract to support the U.S. Space Development Agency (SDA) through a prime contractor. This follows successful testing of their BlueWalker-3 satellite under a previous contract from February 2024.

The company will utilize its next-generation Block 2 BlueBird satellites, featuring the largest commercial phased array antennas ever deployed in low Earth orbit, spanning 2,400 square feet. AST SpaceMobile's technology, supported by 3,500 patent and patent-pending claims, is designed to create the first space-based cellular broadband network accessible directly by everyday smartphones.

Positive

• Secured new $43M government contract with Space Development Agency
• Successful completion of previous contract testing phase
• Technology portfolio protected by 3,500 patent and patent-pending claims
• Dual-use technology advantages for both government and commercial applications

Negative

• None.

Insights

Financial Analyst

AST SpaceMobile's new $43 million government contract represents an important strategic development for the company's dual-market approach. This second SDA contract, following successful orbital testing from their February agreement, provides important validation of their technology's capabilities for specialized government applications.

The contract value, while representing less than 1% of AST's $5.7 billion market cap, likely constitutes a meaningful revenue contribution for a pre-commercial company still working toward full deployment of its space-based cellular network. For context, AST reported just $2.8 million in revenue for Q4 2023 while burning approximately $35-40 million per quarter in operations.

Strategically, this demonstrates three key advantages:

• Diversified revenue streams - Government contracts provide stable funding alongside the company's commercial ambitions
• Technology validation - The Space Force's selection after testing signals confidence in AST's unique capabilities
• Expanded market opportunity - Defense applications broaden AST's total addressable market beyond commercial cellular

The contract specifically leverages AST's next-generation Block 2 BlueBird satellites with their massive 2,400 square foot phased arrays. These satellites serve both markets - providing direct-to-smartphone connectivity commercially while offering specialized capabilities valued by defense customers.

For investors, this development reduces execution risk by diversifying revenue sources while the company progresses toward commercial service launch. Government contracts typically offer predictable payment schedules and potentially favorable margins, helping extend AST's cash runway during this capital-intensive deployment phase.

Technology Expert

AST SpaceMobile's $43 million SDA contract represents significant validation of their groundbreaking satellite architecture. The technical achievement of their 2,400 square foot phased arrays cannot be overstated - they've essentially solved a fundamental physics problem that has challenged the industry for decades.

Traditional satellite communications face an inherent power/aperture challenge when connecting to small devices: the smaller the receiving antenna (like those in smartphones), the more powerful the satellite transmission must be. Previous solutions required either specialized ground equipment or impractically large space hardware.

AST's approach is revolutionary because:

• Their massive phased arrays provide sufficient gain to establish two-way links with unmodified smartphones using standard cellular protocols
• The large aperture enables precise beamforming to create thousands of focused cells from a single satellite
• Their architecture achieves this while managing the extreme mechanical challenges of deploying and maintaining such large structures in orbit

The military applications extend beyond commercial capabilities. Defense users likely value AST's technology for its:

• Resilience against jamming through advanced spatial filtering
• Ability to provide connectivity in denied environments without ground infrastructure
• Capacity to serve standard equipment already in warfighters' hands
• Potential for rapid global deployment of communication services

The successful testing on BlueWalker-3 likely demonstrated specific performance metrics around link budgets, throughput, and reliability that meet stringent military requirements. This second contract indicates those tests exceeded expectations.

While competitors like Lynk Global and Globalstar (via Apple) are pursuing direct-to-device connectivity, none have deployed phased arrays of comparable scale or capability. This technical differentiation, protected by their extensive patent portfolio, creates significant barriers to competition in both commercial and government markets.

New contract follows successful testing under the previously announced February 2024 contract award and highlights the capability of AST SpaceMobile's technology for specialized government applications

MIDLAND, Texas--(BUSINESS WIRE)-- AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced a new contract award in support of the United States Space Development Agency (SDA) through a prime contractor, with total expected revenue of $43 million.

As part of the U.S. Space Force, SDA will accelerate delivery of needed space-based capabilities to the joint warfighter to support terrestrial missions through development, fielding, and operation of the Proliferated Warfighter Space Architecture.

This contract follows successful testing on BlueWalker-3 in orbit under the previous contract announced in February 2024 and further demonstrates the unique capabilities of AST SpaceMobile's technology for specialized government applications. The company will utilize its next generation Block 2 BlueBird satellites, featuring the largest commercial phased array antennas ever deployed in low Earth orbit – spanning an unprecedented 2,400 square feet – setting a new standard for advanced connectivity and performance.

“This second contract supporting the SDA underscores the confidence in AST SpaceMobile’s innovative technology and its potential to support critical government missions,” said Chris Ivory, Chief Commercial Officer and Head of Government Business of AST SpaceMobile. “We are deploying groundbreaking technology to create robust and resilient communications solutions and to enable new use cases for the U.S. government."

AST SpaceMobile's technology, backed by 3,500 patent and patent-pending claims, offers unique dual-use advantages for both government and commercial customers. Its large, phased-array antennas and innovative architecture provides robust, resilient, and scalable solutions to address evolving mission needs.

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

Forward-Looking Statements

This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.

Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 Bluebird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024.

AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226892736/en/

Investor Contact:

Scott Wisniewski

investors@ast-science.com

Media Contact:

Allison

Eva Murphy Ryan

917-547-7289

AstSpaceMobile@allisonpr.com

Source: AST SpaceMobile, Inc.

FAQ

What is the value of AST SpaceMobile's new Space Development Agency contract?

AST SpaceMobile secured a $43 million contract to support the U.S. Space Development Agency through a prime contractor.

How large are AST SpaceMobile's Block 2 BlueBird satellite antennas?

The Block 2 BlueBird satellites feature phased array antennas spanning 2,400 square feet, the largest commercial arrays ever deployed in low Earth orbit.

How many patents does AST SpaceMobile (ASTS) have in its portfolio?

AST SpaceMobile's technology is backed by 3,500 patent and patent-pending claims.

What successful testing did ASTS complete before this new contract?

ASTS completed successful testing on their BlueWalker-3 satellite in orbit under a previous contract announced in February 2024.

What is unique about AST SpaceMobile's satellite network technology?

It's the first and only space-based cellular broadband network that can be accessed directly by standard smartphones, with both commercial and government applications.