AST SpaceMobile (NASDAQ: ASTS) closed Monday’s session at $36.89, up 14.1%, after the firm announced a new joint venture with Japan’s Rakuten to deliver satellite‑based cellular service across the country. The rally came despite the company’s third‑quarter earnings report showing revenue of $42.3 million, which fell short of Wall Street’s $45.7 million consensus.

Rakuten AST joint venture details

According to the company’s Form 10‑Q filed with the SEC, AST and Rakuten will create a 51/49‑voting‑share partnership called Rakuten AST. The venture will use AST’s BlueBird satellite constellation to provide coverage in areas of weak terrestrial signal and to maintain connectivity during disasters. Rakuten will control the venture and is expected to receive up to 148 billion yen (about $938 million) in funding from Japan’s Ministry of Internal Affairs and Communications over roughly three years.

Funding commitment and commercial terms

AST SpaceMobile estimates a $1.4 billion investment over three years to cover the portion of the satellite deployment not funded by the government grant. The company plans to raise this amount through preferred‑share subscriptions in Rakuten AST, which would rank ahead of common shares in a liquidation scenario. The filing also notes a one‑time $75 million licensing fee for AST’s mission‑control software and a low single‑digit revenue‑share payable to Rakuten AST from qualifying sales.

Financial results and market reaction

The Q3 report showed a net loss of $132 million, or $0.44 per share, better than the $143 million loss analysts had forecast. Cash and liquidity stood at roughly $3.2 billion, including $434.6 million in restricted cash. While the revenue miss dampened the earnings narrative, the partnership announcement and the prospect of a sizable government‑backed grant drove the stock’s 14% gain. After hours, the share price slipped 1.3% to $36.43. Short‑interest remains high, with about 35% of the float sold short, according to FactSet.

What to watch next

Investors will monitor the timing of the first satellite launches for Rakuten AST, the final size of the preferred‑share subscription, and any regulatory approvals required for the service rollout in Japan. Additionally, AST’s progress on its in‑house reusable rocket, Backlift, slated for late‑2028, could influence future capital allocation and market sentiment.