AST SpaceMobile, Inc. (NASDAQ:ASTS) Is Expected To Breakeven In The Near Future

AST SpaceMobile, Inc. (NASDAQ:ASTS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AST SpaceMobile, Inc., together with its subsidiaries, designs and develops the constellation of BlueBird satellites in the United States. With the latest financial year loss of US$300m and a trailing-twelve-month loss of US$326m, the US$5.5b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is AST SpaceMobile's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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AST SpaceMobile is bordering on breakeven, according to the 6 American Telecom analysts. They expect the company to post a final loss in 2026, before turning a profit of US$562m in 2027. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 67% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving AST SpaceMobile's growth isn’t the focus of this broad overview, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for AST SpaceMobile

Before we wrap up, there’s one issue worth mentioning. AST SpaceMobile currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in AST SpaceMobile's case is 61%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of AST SpaceMobile which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at AST SpaceMobile, take a look at AST SpaceMobile's company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is AST SpaceMobile worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether AST SpaceMobile is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on AST SpaceMobile’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.