AST SpaceMobile spent $859.2 million on capital expenditures in the six months ended June 30, against $31.5 million of revenue. Revenue has begun to appear, but its infrastructure bill is still running at a different altitude.

Revenue climbed from $1.2 million in the comparable six-month period, a dramatic change for a business that recorded $0 in 2023 and $4.4 million in 2024. Operating cash flow remained negative, widening to $145.2 million from $72.0 million, and net loss increased to $230.9 million from $99.4 million.

That loss also includes a reported induced conversion expense related to debt repurchases, alongside the costs of operating the satellite network. AST said other expense rose by about $103 million, largely because of an $89.8 million induced conversion expense tied to repurchases of portions of its convertible notes.

The company described the charge this way:

"The approximately $103.0 million increase in other expense, net was primarily due to a $89.8 million induced conversion expense related to repurchases of a portion of our 2032 4.25% Convertible Notes and 2032 2.375% Convertible Notes, a $6.5 million increase in loss from our equity method investment, a $5.0 million increase in finance charges and other borrowing related fees, and a $2.0 million increase in loss on disposal of fixed assets, partially offset by a $0.3 million decrease in other charges."

10-Q 2026-08-10; margin, loss quality

In plain English, the headline loss got heavier because AST reported an induced conversion expense tied to debt repurchases, alongside higher financing costs and other losses. That is separate from the operating question: whether the new revenue can eventually catch up with the network being built underneath it.

Cash rose to $2.3 billion from $923.6 million, but the balance-sheet improvement came with a larger financing footprint. AST said borrowings increased after issuing three convertible notes, adding to the Trinity Capital equipment loan, and taking on UBS bridge financing, even after repurchasing $456.5 million of older convertible notes and repaying two Prosperity loans.

"The increase was due to the net increase in borrowings following June 30, 2025 that included the issuance of the 2032 2.375% Convertible Notes, the 2036 2.00% Convertible Notes, the 2036 2.25% Convertible Notes, the UBS Bridge Financing Loan, and an increase in the Trinity Capital Equipment Loan, partially offset by decreases in the 2032 4.25% Convertible Notes, of which $456.5 million was repurchased, and the Prosperity Capital Equipment Loan and Prosperity Term Loan, which were fully repaid on March 11, 2026."

10-Q 2026-08-10; cash liquidity

Ownership metrics also changed. Diluted shares rose 23.6% to 299.1 million, while stock compensation increased to $63.5 million from $10.5 million. Payroll and employee-related costs rose by $47.8 million, which AST attributed to higher headcount and stock-based compensation.

AST also disclosed a definitive agreement with Verizon to provide direct-to-device service when needed for customers in the continental US and Hawaii. The agreement provides additional business context for the revenue line, though the latest six-month numbers still show a service business early in its buildout.

At the latest close, AST shares were $71.91, up 6.7% for the day. The market capitalization was $18.4 billion, alongside 2025 revenue of $70.9 million.

For now, revenue has increased while operating cash flow remains negative. The business is scaling; the spending is already there.