AST SpaceMobile (ASTS) surged 14.1% on Monday, closing at $36.89, after the company and Rakuten confirmed a joint venture called Rakuten AST to deliver satellite-based mobile coverage across Japan. The partnership, which dates to 2020, will use AST satellites to fill coverage gaps and support disaster-resilient communications, with Rakuten controlling the venture and access to as much as about $1 billion in Japanese government funding.
The rally came despite a mixed third-quarter report. AST posted third-quarter revenue of $42.3 million, nearly triple from a year earlier but below Wall Street estimates of roughly $45.7 million to $46.6 million. The net loss was $132 million, or $0.44 per share, while analysts had expected a larger $143 million loss. AST kept its full-year revenue forecast of $150 million to $200 million and ended the quarter with about $3.2 billion in cash.
AST also reiterated plans for intermittent coverage in the U.S. and other markets by the end of the year, expects 45 BlueBird satellites in orbit by mid-2027, and targets building six satellites per month by December. It announced Backlift, a 20-ton reusable rocket using Firefly engines, expected to be operational by late 2028. After hours, ASTS slipped 1.3% to $36.43.
Firefly Aerospace (FLY) traded up about 1% premarket Wednesday after reporting third-quarter revenue of $110.7 million, up 259% year over year and above the $102.3 million estimate. The adjusted loss per share was $0.45, better than the $0.48 expected, while adjusted EBITDA loss was $69.5 million versus $78 million estimated.
Firefly’s backlog reached a record $1.7 billion, up from $1.5 billion at the end of the second quarter. CEO Jason Kim said the company has 'more customers than we have rockets available in the near-term manifest.' Firefly narrowed its full-year revenue outlook to $440 million to $450 million. The AST SpaceMobile engine agreement is worth more than $1.3 billion and covers 36 rocket engines over three years. FLY stock jumped 37% on Friday and another 17% on Monday on that news, though it remains down roughly 60% from its May high above $60.
Firefly also detailed progress on Alpha Block 2, Eclipse, and lunar programs. Alpha Flight 8 is set for the first quarter of 2027; the Eclipse rocket with Northrop Grumman has completed more than 175 Miranda engine hot-fire tests; and Blue Ghost Mission 2 finished proof testing ahead of a 2027 launch. Total liquidity stood at $839.7 million.
