Signed partnerships with over 60 MNO partners globally who collectively cover over 3 billion subscribers
Comprehensive spectrum strategy with shared MNO spectrum and controlled MSS spectrum targeting 100 MHz access in the U.S. and 60+ MHz access globally on a market-by-market basis
Revenue backlog increased to approximately $1.30 billion in aggregate contracted revenue with commercial partners and contract awards with the United States Government
BlueBird 17 through BlueBird 46 in various stages of production and assembly
MIDLAND, Texas--(BUSINESS WIRE)--August 10, 2026--
AST SpaceMobile, Inc. ("AST SpaceMobile") (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, and designed for both commercial and government applications, is providing its business update and results for the second quarter ended June 30, 2026.
"AST SpaceMobile's differentiated technology platform and deep intellectual property portfolio, partner-first mobile network operator strategy, vertically integrated manufacturing capabilities, and comprehensive spectrum strategy are foundational to the space-based cellular broadband market we invented," commented Abel Avellan, AST SpaceMobile's Chairman and Chief Executive Officer. "With the largest phased arrays ever deployed in low Earth orbit and a native cellular architecture designed to work directly with standard, unmodified smartphones, we believe we are uniquely positioned to deliver scalable direct-to-device connectivity for both commercial and government customers around the world."
"Following the recent orbital launch of BlueBirds 11, 12, and 13, our space-based cellular broadband network has now grown to 13 spacecraft in orbit, each the largest ever in low Earth orbit, with approximately 20,000 square feet of combined aperture hardware deployed," continued Avellan. "As we get ready to ship BlueBirds 14, 15, and 16 and continue expanding our constellation with production ongoing through BlueBird 46, we are preparing to initiate beta services with select strategic partners."
"AST SpaceMobile is positioned at the forefront of large, diverse, and rapidly expanding market opportunity as the direct-to-device cellular broadband pioneer," added Avellan. "Beyond addressing the connectivity needs of billions of mobile subscribers, we are pursuing a broad range of mission-critical applications, including government communications and non-communications, radar, emergency response, Internet of Things, AI edge compute and other advanced connectivity solutions. Our growing commercial and government programs, expansive spectrum portfolio, and fortified balance sheet provide us with the flexibility to capture opportunities across an expanding total addressable market. We are continuing to scale our network, advance vertical integration, and secure additional access to orbit to take advantage of the growing number of opportunities in front of us."
Business Update
-- Differentiated technology platform and comprehensive spectrum strategy
enables space-based cellular broadband connectivity as well as many other
mission-critical applications
-- Largest phased arrays ever placed into low Earth orbit means
more power and bandwidth, with more precise beams for
communications with small, unmodified smartphones, in addition to
facilitating additional use cases beyond consumer communications
-- Block 2 satellites expected to deliver peak data rates
approaching 200 Mbps with space-based cellular broadband recently
demonstrated at nearly 100 Mbps on the Block 1 BlueBird
-- Comprehensive spectrum strategy with shared MNO spectrum and
controlled MSS spectrum targeting 100 MHz access in the U.S. and
60+ MHz access globally on a market-by-market basis
-- Proprietary ASIC with up to 10 GHz of processing bandwidth per
satellite enables 10x throughput improvement relative to Block 1
satellites and up to 10x improvement in user experience unlocked
through AI-enabled spectrum management
-- Native cellular architecture favors MNOs and regulators using
existing commercially trusted baseband ground-based hardware, with
traffic remaining in-country
-- Partner-first strategy positions AST SpaceMobile as the
direct-to-device partner of choice for mobile network operators globally
-- Signed partnerships with over 60 MNO partners globally who
collectively cover over 3 billion subscribers
-- New joint-venture planned by top three U.S. MNOs expected to
enable space-based cellular broadband connectivity to every
American
-- Network integration and testing activities now underway across
European countries with Vodafone, Orange, Telefónica,
Vodafone Ukraine, and Deutsche Telekom as well as in other key
markets including Canada, Japan, and Saudi Arabia, subject to
final regulatory approvals
-- Total Addressable Market (TAM) continues to grow with direct-to-device
market maturity and additional applications
-- Additional applications include non-communications, USG secure
communications, additional funded networks, Internet of Things
(IoT), federal emergency, and AI edge compute
-- Preliminary selection of Rakuten and AST SpaceMobile
joint-venture by Japan MIC for J-LEO initiative with total
expected value up to approximately $1 billion in non-dilutive,
non-debt government capital
-- Mission-critical federal communications attractive for
direct-to-device applications with FirstNet United States, Japan
and most recently in Europe with Vodafone Ireland using dedicated
emergency spectrum bands
-- Preparation for space-based cellular broadband beta service in 2026 as
AST SpaceMobile network infrastructure continues to scale
-- Beta service initiative to offer scaled non-commercial usage
with strategic MNO partners in select markets globally
-- Continued progress towards beta service in 2026 with initial
3,000 digital cells activated across the Continental United
States
-- Orbital launch of BlueBird 8-13 marks six spacecraft launched
within 50 days, increasing network to 13 in-orbit spacecraft, with
combined aperture hardware of approximately 20,000 sq ft
-- BlueBirds 14, 15, and 16 will be ready to ship shortly, with
BlueBird 17 through BlueBird 46 in various stages of production
and assembly
-- On track to achieve full year 2026 revenue guidance of $150.0 million
to $200.0 million, supported by additional contract awards from the U.S.
Government
-- Revenue backlog increased to approximately $1.30 billion in
aggregate contracted revenue with commercial partners and contract
awards with the United States Government
-- Received multiple awards from the U.S. Government with an
aggregate value of over $125 million supporting multiple
national-security applications
-- Continued to build out global gateway footprint with nearly 50
gateways in various stages of completion, installation, and
planning ahead of service
-- Second quarter revenue was $31.5 million from commercial and
government customers, consistent with plans for quarterly revenue
ramp during 2026
-- Fortified balance sheet to pursue an expanding universe of growth
opportunities, continue vertical integration, and secure additional
access to orbit
-- Over $3.7 billion in pro forma cash, cash equivalents,
restricted cash as of June 30, 2026
-- In July 2026, raised $1.150 billion of gross proceeds from a new
1.625% convertible senior notes offering, with an effective
conversion price of $149.20 per share and effective dilution of
less than 2%
Second Quarter 2026 Financial Highlights
-- Second quarter revenue of $31.5 million driven by gateway deliveries
and U.S. Government milestones met
-- Total operating expenses for the second quarter of 2026 were $329.1
million, including $84.1 million of depreciation and amortization and
stock-based compensation expense. This represents an increase of $165.0
million as compared to $164.1 million in the first quarter of 2026 due to
a $125.9 million loss on involuntary conversion, a $20.3 million increase
in general and administrative costs, a $11.9 million increase in cost of
revenues, a $3.2 million increase in engineering services costs, a $3.1
million increase in depreciation and amortization expense, and a $0.6
million increase in research and development costs
-- Adjusted operating expenses(1) for the second quarter of 2026 were
$119.1 million, an increase of $27.9 million as compared to $91.2 million
in the first quarter of 2026 due to a $12.3 million increase in Adjusted
engineering services costs(1), a $11.9 million increase in Adjusted cost
of revenues(1), a $3.1 million increase in Adjusted general and
administrative costs(1), and a $0.6 million increase in research and
development costs. Our Adjusted operating expenses, excluding Adjusted
cost of revenues(1) for the second quarter of 2026 was $95.9 million,
compared to $79.8 million in the first quarter of 2026
-- As of June 30, 2026, we had cash, cash equivalents, and restricted cash
of approximately $2.7 billion
-- As of June 30, 2026, we had incurred approximately $2.3 billion of
gross capitalized property and equipment costs and accumulated
depreciation and amortization of $211.9 million. The capitalized costs
include costs of satellite materials for BlueBird satellites, advance
launch payments, capital advances, Block 1 and BlueWalker 3 satellites,
assembly and integration facilities including assembly and test equipment,
and ground antennas
(1) See "Non-GAAP Financial Measures" below for additional information. See
reconciliation of Adjusted operating expenses to Total operating expenses;
Adjusted cost of revenues to Cost of revenues; Adjusted engineering services
costs to Engineering services costs; Adjusted general and administrative costs
to General and administrative costs; and Adjusted operating expenses,
excluding Adjusted cost of revenues to Total operating expenses in the tables
accompanying this press release.
Non-GAAP Financial Measures
We refer to certain non-GAAP financial measures in this press release, including Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues. We believe these non-GAAP financial measures are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measures. Reconciliation of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release.
Conference Call Information
AST SpaceMobile will hold a quarterly business update conference call at 5:00 p.m. (Eastern Time) on Monday, August 10, 2026. The call will be accessible via a live webcast on the Events page of AST SpaceMobile's Investor Relations website at https://ast-science.com/investors/. An archive of the webcast will be available shortly after the call.
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 March 2, 2026, its Form 10-Q for the fiscal quarter ended March 31, 2026 filed with the SEC on May 11, 2026 and the future reports that it may file from time to time with the SEC.
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 March 2, 2026, its Form 10-Q for the fiscal quarter ended March 31, 2026 filed with the SEC on May 11, 2026 and the future reports that it may file from time to time with the SEC. 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.
Second Quarter 2026 Financial Results
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands, except share data)
As of
-------------------------------------
June 30, 2026 December 31, 2025
--------------- -------------------
ASSETS
-----------------------------
Current assets:
-----------------------------
Cash and cash equivalents $ 2,288,253 $ 2,335,683
Restricted cash 6,181 877
Accounts receivable, net
(includes related party
accounts receivable of
$4,370 and $2,091 at June
30, 2026 and December 31,
2025, respectively) 79,297 37,726
Inventory 28,417 12,007
Prepaid expenses 16,729 11,955
Other current assets 74,743 60,264
----------- ---------------
Total current assets 2,493,620 2,458,512
Non-current assets:
-----------------------------
Restricted cash 428,400 443,400
Property and equipment, net 2,069,336 1,398,761
Intangible assets, net 298,724 245,093
Operating lease
right-of-use assets, net 21,224 19,420
Other non-current assets
(includes related party
loan receivable of $18,785
and $18,187 at June 30,
2026 and December 31,
2025, respectively) 543,581 449,201
----------- ---------------
TOTAL ASSETS $ 5,854,885 $ 5,014,387
=========== ===============
LIABILITIES AND STOCKHOLDERS'
EQUITY
-----------------------------
Current liabilities:
-----------------------------
Accounts payable $ 60,615 $ 46,763
Accrued expenses and other
current liabilities 103,340 69,246
Current contract
liabilities 14,840 19,887
Current operating lease
liabilities 3,749 2,449
Current portion of
long-term debt 8,494 11,999
----------- ---------------
Total current
liabilities 191,038 150,344
Non-current liabilities:
-----------------------------
Warrant liabilities - 7,471
Non-current operating lease
liabilities 18,066 17,479
Non-current contract
liabilities 252,093 207,093
Long-term debt, net 2,963,422 2,207,583
Other non-current
liabilities 32,688 32,092
----------- ---------------
Total liabilities 3,457,307 2,622,062
Commitments and contingencies
Stockholders' Equity:
-----------------------------
Class A Common Stock,
$0.0001 par value;
800,000,000 shares
authorized; 299,731,073
and 285,449,911 shares
issued and outstanding as
of June 30, 2026 and
December 31, 2025,
respectively. 27 27
Class B Common Stock,
$0.0001 par value;
200,000,000 shares
authorized; 11,215,111 and
11,227,292 shares issued
and outstanding as of June
30, 2026 and December 31,
2025, respectively. 3 4
Class C Common Stock,
$0.0001 par value;
125,000,000 shares
authorized; 78,163,078
shares issued and
outstanding as of June 30,
2026 and December 31,
2025, respectively. 8 8
Additional paid-in capital 3,146,053 2,671,770
Accumulated other
comprehensive income 1,532 1,351
Accumulated deficit (1,253,606) (831,685)
Noncontrolling interest 503,561 550,850
----------- ---------------
Total stockholders' equity 2,397,578 2,392,325
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,854,885 $ 5,014,387
=========== ===============
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except share and per share data)
For the Three Months ended For the Six Months ended
June 30, June 30,
--------------------------- ---------------------------
2026 2025 2026 2025
------------ ------------ ------------ ------------
Revenues:
------------------------
Products revenues
(includes related party
revenues of $1,918 and
$0 for the three months
ended June 30, 2026 and
June 30, 2025,
respectively, and $9,770
and $0 for the six
months ended June 30,
2026 and June 30, 2025,
respectively) $ 24,428 $ 50 $ 37,834 $ 425
Services revenues 7,092 1,106 8,421 1,449
----------- ----------- ----------- -----------
Total revenues 31,520 1,156 46,255 1,874
Operating expenses:
------------------------
Cost of revenues
(exclusive of items
shown separately
below)
Cost of revenues -
products (includes
related party cost
of revenues of
$1,741 and $0 for
the three months
ended June 30,
2026 and 2025,
respectively, and
$6,611 and $0 for
the six months
ended June 30,
2026 and June 30,
2025,
respectively) 22,402 - 33,465 -
Cost of revenues -
services 1,165 - 1,751 -
Engineering services
costs 87,286 28,598 171,384 55,802
General and
administrative costs 63,901 27,242 107,558 45,626
Research and
development costs 7,768 6,393 14,896 13,528
Depreciation and
amortization 20,664 11,720 38,279 22,678
Loss on involuntary
conversion 125,911 - 125,911 -
----------- ----------- ----------- -----------
Total operating
expenses 329,097 73,953 493,244 137,634
Other (expense) income:
------------------------
Loss on remeasurement
of warrant
liabilities - (65,032) (1,174) (68,238)
Interest expense (26,077) (5,657) (50,355) (10,393)
Interest income 27,700 8,017 54,698 16,213
Other (expense)
income, net (2,852) 308 (103,399) (443)
----------- ----------- ----------- -----------
Total other
(expense) income,
net (1,229) (62,364) (100,230) (62,861)
Loss before income tax
expense (298,806) (135,161) (547,219) (198,621)
Income tax expense (1,113) (742) (2,281) (910)
----------- ----------- ----------- -----------
Net loss before
allocation to
noncontrolling interest (299,919) (135,903) (549,500) (199,531)
Net loss attributable
to noncontrolling
interest (69,010) (36,509) (127,579) (54,431)
----------- ----------- ----------- -----------
Net loss attributable to
common stockholders $ (230,909) $ (99,394) $ (421,921) $ (145,100)
=========== =========== =========== ===========
Net loss per share
attributable to holders
of Class A Common Stock
Basic and diluted $ (0.77) $ (0.41) $ (1.43) $ (0.62)
Weighted-average number
of shares
Basic and diluted 299,061,662 241,985,507 294,898,761 233,101,209
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(Dollars in thousands)
For the Three Months For the Six Months
ended June 30, ended June 30,
--------------------- ---------------------
2026 2025 2026 2025
--------- --------- --------- ---------
Net loss before
allocation to
noncontrolling
interest $(299,919) $(135,903) $(549,500) $(199,531)
Other
comprehensive
income
Foreign currency
translation
adjustments 555 1,396 183 1,777
-------- -------- -------- --------
Total other
comprehensive
income 555 1,396 183 1,777
-------- -------- -------- --------
Total comprehensive
loss before
allocation to
noncontrolling
interest (299,364) (134,507) (549,317) (197,754)
Comprehensive
loss
attributable to
noncontrolling
interest (68,882) (36,123) (127,577) (53,938)
-------- -------- -------- --------
Comprehensive loss
attributable to
common
stockholders $(230,482) $ (98,384) $(421,740) $(143,816)
======== ======== ======== ========
AST SPACEMOBILE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
For the Six Months Ended June 30,
---------------------------------------
2026 2025
------------------- --------------
Cash flows from
operating activities:
Net loss before
allocation to
noncontrolling
interest $ (549,500) $ (199,531)
Adjustments to
reconcile net loss
before noncontrolling
interest to cash used
in operating
activities:
Depreciation and
amortization 38,279 22,678
Amortization of debt
issuance costs 4,235 721
Amortization of debt
commitment fee 4,400 -
Loss on disposal of
property and
equipment 2,051 -
Induced conversion
expense on
convertible notes 88,654 -
Loss on
remeasurement of
warrant
liabilities 1,174 68,238
Stock-based
compensation 118,820 18,351
Non-cash interest
expense 1,294 497
Non-cash interest
income (648) -
Loss from equity
method investment 6,862 -
Loss on involuntary
conversion 125,911 -
Changes in operating
assets and
liabilities:
Accounts receivable (41,571) 1,225
Prepaid expenses and
other current
assets (8,598) (2,939)
Inventory (16,410) (268)
Accounts payable and
accrued expenses 45,552 20,675
Contract liabilities 39,952 1,086
Other assets and
liabilities (5,669) (2,757)
--------------- -------------
Net cash used in operating
activities (145,212) (72,024)
Cash flows from
investing activities:
Purchase of property
and equipment (859,215) (430,622)
Capital advances to
Ligado (100,000) -
Purchase of spectrum
intangibles (42,103) -
Insurance proceeds
received from BB7
launch 21,595 -
--------------- -------------
Net cash used in investing
activities (979,723) (430,622)
Cash flows from
financing activities:
Proceeds from debt 1,060,608 473,498
Repayments of debt (20,178) (926)
Payment for debt
issuance costs (3,070) (6,516)
Proceeds from issuance
of common stock 85,723 462,776
Payments for third
party equity issuance
costs (458) (9,843)
Issuance of equity
under employee stock
plan 4,418 7,193
Employee taxes paid for
stock-based
compensation awards (62,025) (6,027)
Purchase of capped call
transactions - (44,528)
Proceeds from share
issuances to
repurchase 2032 4.25%
Convertible Notes 180,537 -
Payments for repurchase
of 2032 4.25%
Convertible Notes (180,537) -
Proceeds from share
issuances to
repurchase 2032 2.375%
Convertible Notes 433,739 -
Payments for repurchase
of 2032 2.375%
Convertible Notes (430,424) -
--------------- -------------
Net cash provided by
financing activities 1,068,333 875,627
Effect of exchange rate
changes on cash, cash
equivalents and
restricted cash (524) (1,115)
Net (decrease) increase in
cash, cash equivalents
and restricted cash (57,126) 371,866
Cash, cash equivalents and
restricted cash,
beginning of period 2,779,960 567,534
--------------- -------------
Cash, cash equivalents and
restricted cash, end of
period $ 2,722,834 $ 939,400
=============== =============
Supplemental disclosure
of cash flow
information:
Non-cash activities:
Right-of-use assets
obtained in exchange
for operating lease
liabilities $ 2,786 $ 1,505
Non-cash investing and
financing activities:
Purchases of property
and equipment in
accounts payable and
accrued expenses $ 61,703 $ 22,155
Stock-based
compensation
capitalized in
property and
equipment 4,080 -
PIK interest paid
through issuance of
PIK notes - 497
Deferred asset
acquisition costs paid
by issuance of penny
warrants - 121,156
Convertible notes
settled by issuance of
Class A Common Stock - 139,620
Spectrum intangibles
acquisition costs
accrued or paid by
issuance of shares 11,528 -
Settlement of warrant
liabilities by issuing
shares 8,645 -
Cash paid for:
Interest $ 23,556 $ 813
Income taxes, net 2,109 1,323
AST SPACEMOBILE, INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP
ADJUSTED MEASURES (UNAUDITED) (Dollars in thousands)
For the Three Months Ended June 30, 2026
-------------------------------------------
Stock-Based
Compensation
GAAP Reported Expense Adjusted
------------- ---------------- ---------
Cost of revenues
(exclusive of
items shown
below) $ 23,567 $ (394) $ 23,173
Engineering
services costs 87,286 (30,120) 57,166
General and
administrative
costs 63,901 (32,953) 30,948
Research and
development
costs 7,768 7,768
Depreciation and
amortization 20,664 20,664
Loss on
involuntary
conversion 125,911 125,911
--- -------- ---------------- --------
Total
operating
expenses $ 329,097 $ (63,467) $ 265,630
Less:
Depreciation
and
amortization (20,664)
Less: Loss on
involuntary
conversion (125,911)
--------
Adjusted
operating
expenses 119,055
Less: Adjusted
cost of
revenues (23,173)
--------
Adjusted
operating
expenses,
excluding
Adjusted
cost of
revenues $ 95,882
========
For the Three Months Ended March 31, 2026
-------------------------------------------
Stock-Based
Compensation
GAAP Reported Expense Adjusted
------------- ----------------- --------
Cost of revenues
(exclusive of
items shown
below) $ 11,649 $ (266) $ 11,383
Engineering
services costs 84,097 (39,209) 44,888
General and
administrative
costs 43,657 (15,878) 27,779
Research and
development
costs 7,129 7,129
Depreciation and
amortization 17,615 17,615
--- -------- ----------------- -------
Total
operating
expenses $ 164,147 $ (55,353) $108,794
Less:
Depreciation
and
amortization (17,615)
-------
Adjusted
operating
expenses 91,179
-------
Less: Adjusted
cost of
revenues (11,383)
-------
Adjusted
operating
expenses,
excluding
Adjusted
cost of
revenues $ 79,796
=======
Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues are alternative financial measures used by management to evaluate our operating performance as a supplement to our most directly comparable U.S. GAAP financial measure. We define Adjusted operating expenses as Total operating expenses adjusted to exclude amounts of stock-based compensation expense, loss on involuntary conversion, and depreciation and amortization expense. We define Adjusted cost of revenues, Adjusted engineering services costs, and Adjusted general and administrative costs, as cost of revenues, engineering services costs, and general and administrative costs, respectively, adjusted to exclude stock-based compensation expenses. We define Adjusted operating expenses, excluding Adjusted cost of revenues as Total operating expenses adjusted to exclude amounts of stock-based compensation expense, loss on involuntary conversion, depreciation and amortization expense, and Adjusted cost of revenues.
We believe Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. Adjusted operating expenses; Adjusted cost of revenues; Adjusted engineering services costs; Adjusted general and administrative costs; and Adjusted operating expenses, excluding Adjusted cost of revenues are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measure of Total operating expenses, Cost of revenues, Engineering services costs, and General and administrative costs.
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