New York, Feb 23, 2026, 17:45 EST — After-hours
- AST SpaceMobile jumped roughly 4.6% in after-hours trading after news broke of a government contract.
- The U.S. Space Development Agency has handed out a $30 million prototype contract for HALO Europa.
- AST’s filing revealed it used proceeds from stock sales to fund cash buybacks of its 2032 convertible notes.
Shares of AST SpaceMobile climbed 4.6% in after-hours action on Monday, hitting $83.90, following word of a new $30 million deal with the U.S. Space Development Agency. During the session, the stock saw a range from $77.93 up to $87.30.
The award comes as AST pushes to make its “direct-to-device” satellite idea a viable business, eyeing U.S. defense clients, and ramps up spending to expand its constellation. Cash burn and funding hang over the story, so even a modest contract is enough to nudge the tape.
Monday’s bounce tees up another challenge for buyers when Nasdaq opens again Tuesday. The stock’s turbulent streak has turned it into a magnet for momentum traders.
The Space Development Agency has handed out a $30 million firm-fixed-price prototype deal through its HALO Europa Track 2 solicitation, targeting a tactical satellite communications demo that relies on commercial platforms. Demonstrations are scheduled to wrap by December 2027. “The acquisition flexibility afforded by the HALO Europa program leverages commercial investments and enables learning at speed,” said GP Sandhoo, acting director of the agency. SDA
AST plans to leverage its BlueBird low-Earth-orbit satellites for a Pentagon-backed demo, aiming to show direct, secure, low-latency tactical links between government devices. The work comes under an Other Transaction agreement, a go-to flexible contract option for the Pentagon’s prototype pushes. “Selection for SDA’s Europa Track 2 program validates AST SpaceMobile’s ability to rapidly operationalize commercial space capabilities for national security,” said Chris Ivory, CEO of AST SpaceMobile USA. Business Wire
The Pentagon already holds satellite contracts with SpaceX’s Starlink, according to Investors.com. For investors, the question has become how fast up-and-coming rivals can carve out deals in that space.
AST disclosed in a separate filing that it bought back roughly $46.5 million principal of its 4.25% convertible notes due 2032 on Feb. 20, then another $250 million principal of 2.375% notes due 2032 on Feb. 23. The company paid $180.5 million and $433.7 million in cash for those transactions. According to the filing, funding came from cash on hand plus proceeds from a pair of registered direct stock offerings—6.34 million shares at $96.92 apiece.
Convertible notes function as debt that might turn into stock down the line. Companies repurchasing these notes may limit future dilution, though this approach eats up cash—and here, it meant issuing fresh shares right back to those same noteholders.
AST’s move into defense adds a new dimension to its business, supplementing its existing focus on satellites designed to link directly to regular phones—no extra gear needed. Investors will be watching to see if early-stage contracts like this one lead to more substantial follow-up deals.
This is just a prototype agreement, not a full production contract that spans multiple years, and the timeline stretches through 2027. Real execution risks remain. Any hiccup in testing or a new call for funding could easily bring dilution worries right back into focus.
AST’s quarterly business update lands March 2, 5 p.m. ET. Investors are set to tune in for concrete details—deployment schedules, cash burn, and progress on government contracts are all on the list.
