Why Is AST SpaceMobile (ASTS) Down 7.7% Since Last Earnings Report?

A month has gone by since the last earnings report for AST SpaceMobile, Inc. (ASTS). Shares have lost about 7.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AST SpaceMobile due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

ASTS Reports Wider-Than-Expected Q2 Loss Despite Revenue Growth

AST SpaceMobile reported lackluster second-quarter 2026 results, with both top and bottom lines missing the Zacks Consensus Estimate.

The company reported strong year-over-year revenue growth, driven by gateway deliveries and U.S. government contracts. It continued to expand satellite production and partnerships and advance its network deployment. However, higher operating and launch costs continued to weigh on its bottom line. 

Net Income

On a GAAP basis, the company recorded a net loss of $230.9 million or a loss of 77 cents per share compared with a net loss of $99.4 million or a loss of 41 cents per share in the year-ago quarter. Despite healthy top-line growth, higher total operating expenses pressured the bottom line.

Excluding non-recurring items, non-GAAP net loss for the reported quarter was 44 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 28 cents.

Revenues

Quarterly revenues surged to $31.5 million from $1.16 million in the year-ago quarter, driven by solid growth in both Product and Service segments. However, the top line missed the Zacks Consensus Estimate of $34.1 million.

In the second quarter, Product revenues increased to $24.4 million from $0.05 million, primarily driven by the delivery of commercial gateway equipment to Mobile Network Operator partners. Services revenues also increased to $7.09 million from $1.11 million in the prior-year quarter, reflecting increased revenue recognized from U.S. government contracts and the achievement of related contractual milestones.

Other Details

In the June quarter, total operating expenses rose to $329.1 million from $74 million in the year-ago quarter. This was due to increased general and administrative costs and engineering services expenses. Adjusted operating expenses for the second quarter were $119.1 million.

Cash Flow & Liquidity

During the first six months of 2026, the company utilized $145.2 million of cash for operating activities compared with a cash utilization of $72 million in the year-ago period. As of June 30, 2026, it had $2.29 billion in cash and cash equivalents with $2.96 billion in long-term debt.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -54.51% due to these changes.

VGM Scores

At this time, AST SpaceMobile has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, AST SpaceMobile has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

AST SpaceMobile belongs to the Zacks Wireless Equipment industry. Another stock from the same industry, InterDigital (IDCC), has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

InterDigital reported revenues of $260.17 million in the last reported quarter, representing a year-over-year change of -13.4%. EPS of $4.62 for the same period compares with $6.52 a year ago.

For the current quarter, InterDigital is expected to post earnings of $2.04 per share, indicating a change of -20% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

InterDigital has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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

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