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With the business potentially at an important milestone, we thought we'd take a closer look at AST SpaceMobile, Inc.'s (NASDAQ:ASTS) future prospects. AST SpaceMobile, Inc., together with its subsidiaries, designs and develops the constellation of BlueBird satellites in the United States. The US$7.9b market-cap company announced a latest loss of US$300m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on AST SpaceMobile's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 5 industry analysts covering AST SpaceMobile, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$528m in 2027. The company is therefore projected to breakeven around 2 years from now. 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 61% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for AST SpaceMobile given that this is a high-level summary, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
See our latest analysis for AST SpaceMobile
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 24% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on AST SpaceMobile, so if you are interested in understanding the company at a deeper level, take a look at AST SpaceMobile's company page on Simply Wall St. We've also put together a list of key aspects you should further research:
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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.
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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.
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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.