AST SpaceMobile (NASDAQ: ASTS) shares fell more than 3% to $35.60 in Tuesday’s premarket trading.
After Monday’s close, the company released third-quarter earnings and filed a Form 10-Q detailing an estimated $1.4 billion investment over three years in its Japanese satellite joint venture with Rakuten.
AST SpaceMobile Details Japan Venture Funding
AST SpaceMobile expects to fund the portion of the Japanese satellite constellation’s deployment costs not covered by government support through subscriptions for preferred shares in Rakuten AST.
The $1.4 billion figure is a preliminary estimate. According to the SEC filing, the final subscription amount will depend on several factors, including satellite materials and launch costs. The preferred shares would not carry fixed, periodic payouts to holders and would rank ahead of common shares if the joint venture is dissolved or terminated.
Rakuten AST expects to receive up to 148 billion yen (approximately $938 million at the filing’s exchange rate) from Japan’s Ministry of Internal Affairs and Communications. The grant is expected to be distributed over roughly three years to help finance the constellation.
The filing states that funding from the government grant and AST SpaceMobile’s preferred-share subscriptions will be used to purchase satellites, launch support services, and software licenses from AST SpaceMobile, as well as build infrastructure for the Japanese network.
During the earnings call, management characterized approximately $1 billion as the net subsidy to AST SpaceMobile for satellite materials and launches, while noting that the arrangement involves cash and noncash flows in both directions.
AST SpaceMobile reported approximately $3.2 billion in cash, cash equivalents, and restricted cash as of September 30, including $434.6 million in restricted cash.
AST SpaceMobile Outlines Commercial Terms for Japan Satellite Venture
Rakuten holds 51% of the venture’s voting common shares, while AST SpaceMobile holds 49%.
The commercial agreements include a satellite supply contract and a one-time $75 million fee for licensing AST SpaceMobile’s mission-control and monitoring software.
Under the agreement, Rakuten AST and Rakuten will use the constellation to provide services in Japan and three other exclusive markets. Rakuten AST will receive 100% of revenue generated in those three exclusive markets.
AST SpaceMobile will have sole use of the remaining constellation capacity to serve customers worldwide, subject to regulatory approvals. In return, the company will share a predetermined low single-digit percentage of qualifying revenue with Rakuten AST.
The venture aims to establish a satellite network that connects directly to ordinary smartphones, including during disasters and emergencies. Domestic operations are targeted to begin by the end of March 2029.
AST SpaceMobile Shares Fall Following Monday’s Rally
AST SpaceMobile closed Monday at $36.89, gaining 14.10% during the regular session following the Rakuten partnership announcement.
After Monday’s market close, AST SpaceMobile reported third-quarter revenue of $42.3 million, below the $45.73 million analyst consensus estimate. The company also posted a $0.44 loss per common share.
AST SpaceMobile maintained its full-year 2026 revenue guidance of $150 million to $200 million.
Separately, AST SpaceMobile Tokenized bStocks (ASTSB) traded at $35.56, up 6% over the past 24 hours, according to CoinMarketCap. The tokenized instrument‘s 24-hour performance is distinct from the Nasdaq-listed stock’s regular-session movement.