AST SpaceMobile Stock Plunges on $1 Billion Convertible Note and Q1 Miss

AST SpaceMobile (ASTS) shares have tumbled 59% from their May 2026 all-time high of $133.86, driven by a $1 billion convertible note offering that raised dilution concerns and a significant Q1 2026 earnings miss. The company reported revenue of $14.7 million, far below the consensus estimate of $38.4 million, and a non-GAAP EPS loss of $0.66 versus an expected loss of $0.23. Net loss ballooned to $191 million from $45.7 million a year earlier, largely due to an $88.65 million induced conversion expense and $55.35 million in stock-based compensation. Despite the miss, revenue grew 1,952% year-over-year. The stock also faced headwinds from the SpaceX IPO redirecting space sector capital. ASTS holds $3.5 billion in cash and reaffirmed full-year 2026 revenue guidance of $150-200 million, with approximately 45 BlueBird satellites expected in orbit during 2026. The company has nearly 60 mobile network operator partners covering over three billion subscribers globally.