$ASTS - My favorite part of the earnings calls is always the part where @scottwisniews tells us what's going on, and what to look forward to.
"Since our last business update ten weeks ago, we have continued to execute against the broader commercialization priorities we laid out at the start of the year.
Our key task leading the business is to leverage our revolutionary technology deployment and best in class partnerships to achieve our twenty twenty six and twenty twenty seven revenue objectives.
As we build out the revenue platform for the company to maximize long term shareholder value, the market pull for our network, the one we're deploying today, a global, resilient, space based cellular broadband network with dual use capabilities. It remains extremely strong.
Against this backdrop, we have recently signed additional mobile network operator contracts and received additional U.S. government awards.
First, we announced an agreement with Telus as our second partner in Canada, who also made an equity investment in Telus, and Bell will be our commercial partners in Canada.
In Africa we are pleased to be partnering with Axiom Telecom, a Pan-African operator, in eleven different countries, joining our existing agreements with Vodacom, Orange and MTN.
Our dialogue globally with mobile network operators has increased in both volume and depth, and we've been building out the broad organizational capabilities to support the rollout of commercial services in these markets.
Looking ahead, we expect additional agreements to be signed with increasing velocity throughout twenty twenty six.
On the US government side, we continue to grow the pipeline with three additional awards through Prime Contractors. These awards address three unique use cases across secure communications and non communications capabilities, reflecting strong proof points ahead of larger contracts.
Alongside further developing these important national security capabilities, including those related to Golden Dome, these awards are expected to contribute significantly to twenty twenty six.
Revenue objectives. As a reminder, our goal across all our contracts is to develop capabilities that could grow into programs of record, with billions of annual revenue potential in aggregate over the medium and long term for missions important to US national security.
As a commitment to these Efforts, we've made significant progress expanding our organizational capabilities through AST space mobile wholly owned government and defense subsidiary.
This alignment enables us to better allocate resources and expand our organizational capabilities to best serve the US government customer.
Transitioning to revenue. We achieved nearly fifteen million dollars in reported revenue during Q1, again driven by milestone achievements under our US government contracts and commercial gateway deliveries to minnows.
On the commercial side, we saw execution with four different customers that contributed to revenue in the quarter, with the hardware to deliver initial commercial services now in their respective regions across five continents.
The ground readiness initiatives that a Bell referenced are firmly underway. This is an important step to have started during twenty twenty five, because it gives the teams on the ground time to prepare, deploy real hardware solutions for backhaul, and integrate with customer network cores.
This is a very significant operational effort that is an important leading indicator ahead of Commercial Service Activation twenty twenty six.
Revenue will benefit from this commercial deployment effort as we deliver against existing contractual orders and signed new contract wins, both of which show a deep pipeline.
Turning to revenue from our US government business.
We executed across five existing contracts during the quarter, further demonstrating the in-orbit capabilities of our Bluebird satellites.
To give you some additional color, we advanced milestones under our prime contract with the Space Development Agency as part of the Europa Track two Commercial Solutions program under Halo. This work is focused on delivering operationally relevant tactical communications capabilities directly to government and devices.
We also advanced our communications efforts with milestones against contracts. Where fair wins is the prime contractor, some of which is a follow on related to our previously demonstrated Mntn tactical Satcom capabilities. That field test showcased real time connectivity to a tactical assault kit over a VPN, with multimedia streaming via the Tactical Assault Kit and secure multi-party video calls, all executed on standard, unmodified smartphones with active participation from US Indopacom, including representation from multiple branches of the United States Armed Services.
Lastly, we also continued to execute against our contract with the Space Development Agency through a prime contractor for non communications, on orbit testing and capability development. The progress we are seeing across both commercial and government activities supports our confidence in reiterating our twenty twenty revenue guidance of one hundred and fifty million to two hundred million dollars. This outlook is supported by our existing contracted pipeline with additional upside potential from new government awards.
What we are seeing in the first half of twenty twenty six is continued progress in building out the revenue base ahead of a large jump in twenty twenty seven. As I described on the last call, we see the twenty twenty seven revenue opportunity approaching a billion dollars, comprised of revenue, both long term contracted or highly recurring in nature. We expect this growth to be driven from one our scaled network in orbit for cellular broadband service as it becomes available, and some of the largest markets worldwide, and two providing one or more increasingly scaled use cases for the US government.
Taken together, we are steadily executing across our key priorities, remaining focused on the critical near-term objectives like revenue generation, partner ecosystem and scaled network deployment."