RESTON, Va.--(BUSINESS WIRE)---- $nn #NextNav--NextNav Inc. (Nasdaq: NN), a leader in next-generation terrestrial positioning, navigation, and timing (PNT) and 3D geolocation solutions, today announced an expanded strategic and technology partnership with Tokyo-based MetCom, Inc. The collaboration marks the first international partnership built on NextNav's 5G-based 3D PNT solution, underscoring growing global demand for terrestrial complements to Global Navigation Satellite Systems (GNSS) like GPS. As part ...

Core Insights - NextNav Inc. is set to launch a 5G PNT Network in Santa Clara County, California, starting December 11, marking a significant step towards commercial readiness in positioning, navigation, and timing applications [1] Company Developments - The 5G PNT Network aims to provide a resilient alternative to GPS, enhancing the capabilities of terrestrial positioning and navigation solutions [1]

Core Insights - The United States is experiencing a nuclear industry renaissance, with Nano Nuclear Energy (NNE) gaining investor interest as an advanced nuclear reactor developer [1][2] - The Kronos microreactor, developed by Nano Nuclear Energy, has a power generation capacity of up to 15 megawatts electric (MWe) and can operate independently from the electric grid [3][4] - The Nuclear Regulatory Commission has not yet approved the Kronos design as a prototype, placing Nano Nuclear Energy behind its peer NuScale Power, which has two approved designs [4] Company Overview - Nano Nuclear Energy has a market capitalization of $2 billion, with a current stock price of $30.85 and a day's change of 1.95% [5][6] - The company aims to be vertically integrated, developing its own nuclear fuel supply chain and marketing low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU) to other small modular reactor companies [6][7] - The company’s goal is to become the only vertically integrated microreactor business in the U.S., which would provide a competitive advantage and multiple revenue sources [7] Industry Context - The increasing demand for advanced nuclear power reactors is driven by the strains placed on the electric grid by artificial intelligence (AI) computing [2] - The interest in developing a fuel processing business by Nano Nuclear Energy could provide a significant competitive edge in the market [7][8]

Core Insights - NextNav Inc. is making strides towards commercialization, focusing on spectrum acquisition and technological validation rather than immediate revenue generation [2][4]. Financial Performance - The company reported revenue of $0.887 million for Q3, with an operating loss that widened; however, net income was slightly positive due to non-operating items and fair-value swings [3]. - NextNav holds cash and investments totaling $167.6 million, providing a financial runway while long-term debt is utilized for growth [3]. Operational Developments - Key operational milestones include the acquisition of Lower-900 MHz licenses, a two-year extension of AT&T network operations support, and achieving a 5G positioning and timing milestone [4]. - The company showcased its technology at MWC Las Vegas and integrated Oscilloquartz for critical infrastructure timing [4]. Strategic Positioning - NextNav holds the largest license portfolio in the U.S. for spectrum dedicated to terrestrial positioning services, aiming to provide 3D Positioning, Navigation, and Timing (PNT) solutions that complement GPS [5].

Core Viewpoint - NextNav Inc. (NN) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook for investors due to an upward trend in earnings estimates, which significantly influences stock prices [1][10]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the changing earnings picture that is crucial for stock price movements [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, with institutional investors using these estimates to determine fair value [4][6]. Company-Specific Insights - Spartacus Acquisition has seen a 29.7% increase in its Zacks Consensus Estimate over the past three months, indicating a positive trend in earnings expectations [8]. - The company is projected to earn -$1.00 per share for the fiscal year ending December 2025, with no year-over-year change [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Financial Data and Key Metrics Changes - NextNav reported a net income of nearly $500,000 for Q3 2025, attributed to non-cash gains of approximately $23.6 million from changes in the fair value of derivative and warrants liability [12] - The company ended the third quarter with $167.6 million in cash, cash equivalents, and short-term investments, indicating strong liquidity [13] - The repayment of $70 million in senior secured debt in March 2025 demonstrates consistent financial health [11] Business Line Data and Key Metrics Changes - NextNav achieved a significant milestone in developing a 5G-based 3D PNT solution, integrating accurate timing and positioning information while delivering both downlink and uplink data transmissions [8] - The partnership with Asila Quartz for integrating 5G-based PNT technology with a GNSS-enabled Grandmaster Clock marks progress towards commercialization [9] - The extension of the agreement with AT&T for Pinnacle Network operations until October 2028 supports public safety applications like Enhanced 911 [9] Market Data and Key Metrics Changes - The acquisition of 128 active lower 900 MHz band spectrum licenses through the Telesaurus transaction positions NextNav favorably in the market [12] - The demand for low-band spectrum is highlighted by recent transactions, indicating a positive outlook for spectrum as a strategic asset [22][23] Company Strategy and Development Direction - NextNav is focused on advancing PNT resiliency to support national security, public safety, and economic stability, with a commitment to executing its strategic roadmap [10] - The company is actively engaging with the FCC to advocate for the timely issuance of a Notice of Proposed Rulemaking (NPRM) related to PNT technologies [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing government shutdown affecting FCC operations but remains optimistic about the engagement with congressional officials [8] - The company emphasizes the importance of a terrestrial complement to GPS, positioning itself uniquely to capitalize on the growing awareness of this need [10] Other Important Information - The company is preparing for commercialization of its technology while continuing to advance its technical work independently of the FCC process [8] - NextNav's leadership in location technologies was showcased at Mobile World Congress 2025, indicating strong market interest [10] Q&A Session Summary Question: Will PNT be prioritized after the C-Band auction? - Management believes that the completion of the C-Band NOI will allow the FCC to focus on other priorities, including PNT [15] Question: Any updates on international strategy and partnerships? - NextNav continues to work with Medcom in Japan, achieving significant milestones and utilizing their Pinnacle Altitude solution commercially [16] Question: Can you elaborate on the relationship with AT&T and potential carrier partnerships? - The extension of the AT&T agreement is significant, and NextNav is already operating a positioning system for public safety applications with major carriers [20] Question: How does the recent EchoStar transaction affect spectrum dynamics? - The demand for low-band spectrum is significant, and NextNav sees positive developments in the market for spectrum transactions [22][23] Question: Updates on commercialization and partner strategy? - NextNav is operationalizing key technologies and integrating timing solutions to prepare for a commercialized network as a GPS backup [27]

Company Performance - NextNav Inc. reported a quarterly loss of $0.12 per share, which was better than the Zacks Consensus Estimate of a loss of $0.14, representing an earnings surprise of +14.29% [1] - Spartacus Acquisition posted revenues of $0.89 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 21.85%, compared to year-ago revenues of $1.61 million [2] - Over the last four quarters, Spartacus Acquisition has surpassed consensus EPS estimates only once [2] Stock Movement and Outlook - Spartacus Acquisition shares have declined approximately 19% since the beginning of the year, while the S&P 500 has gained 15.6% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $1.17 million, and for the current fiscal year, it is -$1.22 on revenues of $5.04 million [7] Industry Context - The Technology Services industry, where Spartacus Acquisition operates, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

NextNav's Solution & Spectrum - NextNav holds terrestrial PNT resilience licenses covering over 96% of U.S POPs, and over 4 billion MHz-POPs[17] - The total value of the GPS complement and backup is $14.6 billion[20, 21] - NextNav proposes an optimized band plan with paired 5+10 MHz blocks suitable for PNT and 5G[26] GPS Vulnerability & Need for Backup - GPS limitations include weak signal strength indoors and in urban canyons[10] - GPS is vulnerable to spoofing, jamming, and natural phenomena[10] - A terrestrial GPS complement and backup is urgently needed[8] Economic Impact of GPS Outage - A 1-day GPS outage could result in $1.6 billion in potential U.S economic loss[37] - A 7-day GPS outage could result in $12.2 billion in potential U.S economic loss[37] - A 30-day GPS outage could result in $58.2 billion in potential U.S economic loss[37] - Adopting NextNav's proposal could prevent an economic loss of $663 million (1-day outage), $6.0 billion (7-day outage), or $31.9 billion (30-day outage)[37] Financial Status - NextNav finished the third quarter with $167.6 million in cash, cash equivalents, and marketable securities[41]

Revenue Performance - Revenue for the three months ended September 30, 2025, decreased by $720,000, or 44.8%, to $887,000 from $1.6 million in the same period of 2024, primarily due to a decline in service revenue from technology and services contracts [160]. - One customer accounted for 89% of total revenue for the three months ended September 30, 2025, compared to one customer accounting for 54% and another for 32% in the same period of 2024 [161]. - Revenue decreased by $0.1 million, or 3.5%, to $3.6 million for the nine months ended September 30, 2025, largely due to reduced service revenue from government and commercial contracts [170]. Operating Loss and Expenses - Operating loss for the three months ended September 30, 2025, was $19.9 million, compared to a loss of $13.9 million in the same period of 2024 [158]. - Selling, general and administrative expenses rose to $10 million for the three months ended September 30, 2025, compared to $8 million in the same period of 2024, driven by business growth and public company compliance costs [158]. - Research and development expenses increased to $5.2 million for the three months ended September 30, 2025, from $3.5 million in the same period of 2024, reflecting ongoing investment in PNT technologies [158]. - Selling, general and administrative expenses increased by $6.2 million, or 25.2%, to $30.8 million for the nine months ended September 30, 2025, primarily due to higher payroll-related and stock-based compensation expenses [174]. - Research and development expenses for the nine months ended September 30, 2025, increased by $1.7 million, or 13.7%, to $14.0 million, mainly due to higher non-recurring engineering services [173]. Cash Flow and Financing Activities - Net cash used in operating activities for the nine months ended September 30, 2025 was $34.7 million, compared to $26.1 million for the same period in 2024 [182][184]. - Net cash used in investing activities during the nine months ended September 30, 2025 was $35.0 million, up from $17.7 million in 2024 [185][186]. - Net cash provided by financing activities for the nine months ended September 30, 2025 was $120.1 million, significantly higher than $29.7 million in 2024 [187][188]. - The company entered into a Note Purchase Agreement to sell $190.0 million in 5% Senior Secured Convertible Notes due in 2028 [181]. - Cash proceeds from the issuance of the 2028 Notes were a primary contributor to the financing activities in 2025 [187]. Patents and Regulatory Changes - The company has been granted 165 patents related to its systems and services, enhancing its competitive position in the PNT market [141]. - The company signed an agreement to acquire an additional 4 MHz of M-LMS licenses, expanding its spectrum coverage to over 90% of the U.S. population [142]. - The company is pursuing regulatory changes to the Lower 900 MHz band to enable a 15 MHz nationwide spectrum configuration for both PNT and 5G broadband services [143]. Other Financial Metrics - Other income increased significantly to $23.6 million for the three months ended September 30, 2025, compared to $2.5 million in the prior year, primarily due to gains from changes in fair value of derivative liabilities [169]. - The company incurred net losses of $121.3 million for the nine months ended September 30, 2025, compared to $69.6 million in the prior year, with cash and cash equivalents totaling $167.6 million as of September 30, 2025 [179]. - The company reported a net loss of $121.3 million for the nine months ended September 30, 2025, compared to a net loss of $69.6 million in 2024 [183][184]. - Non-cash charges included $36.4 million for change in the fair value of derivative liability and $12.5 million for stock-based compensation in 2025 [183]. - The company experienced a net increase in operating liabilities of $5.7 million during the nine months ended September 30, 2025 [183]. Depreciation and Cost of Goods Sold - Cost of Goods Sold (COGS) decreased by $0.5 million, or 21.0%, to $2.0 million for the three months ended September 30, 2025, primarily due to reductions in payroll-related expenses and software license costs [162]. - COGS for the nine months ended September 30, 2025, decreased by $1.7 million, or 20.1%, to $6.6 million, driven by lower payroll-related and software license expenses [171]. - Depreciation and amortization expenses surged by $2.2 million, or 170.1%, to $3.5 million for the three months ended September 30, 2025, attributed to accelerated depreciation of retired network assets [166]. Market Risks - There were no material changes in market risks from those disclosed in the 2024 Form 10-K [191].

Financial Performance - For the third quarter of 2025, NextNav's revenue was $0.89 million, a decrease of 44.7% compared to $1.61 million in the same quarter of 2024[17] - The company incurred an operating loss of $19.87 million in Q3 2025, compared to a loss of $13.85 million in Q3 2024, reflecting a 43.5% increase in operating losses year-over-year[17] - The company reported a net loss of $121.29 million for the nine months ended September 30, 2025, compared to a net loss of $69.61 million for the same period in 2024[17] - Net loss for the nine months ended September 2025 was $121.291 million, compared to a net loss of $69.609 million in the same period of 2024, representing an increase of 74.5%[19] Cash and Investments - As of September 30, 2025, NextNav Inc. reported cash and cash equivalents of $89.99 million and short-term investments of $77.58 million, totaling current assets of $172.25 million[5] - Cash and cash equivalents at the end of the period increased to $89.994 million from $67.905 million, reflecting a net increase of $50.664 million[19] - Proceeds from 2028 senior convertible notes amounted to $190 million, contributing significantly to financing activities[19] - The company reported a net cash provided by financing activities of $120.077 million, compared to $29.736 million in the previous year, marking a substantial increase of 303.5%[19] - Purchases of marketable securities totaled $194.494 million, a significant increase from $44.894 million in the prior year[19] Expenses - Research and development expenses increased to $5.15 million in Q3 2025, up 45.5% from $3.55 million in Q3 2024[17] - Net cash used in operating activities was $34.668 million for the nine months ended September 2025, compared to $26.060 million in 2024, indicating a 33.2% increase[19] - The company recorded a depreciation and amortization expense of $6.348 million for the nine months ended September 2025, up from $3.926 million in 2024[19] - Interest paid in cash was $4.244 million, compared to $1.750 million in the same period last year, showing an increase of 142.4%[19] - Capital expenditure included in accrued expenses and other current liabilities was $23, a decrease from $159 in the previous year, indicating a reduction in capital commitments[19] Debt and Liabilities - NextNav's net long-term debt as of September 30, 2025, was $230.12 million, which includes a derivative liability of $75.1 million[5] - The change in fair value of derivative liability resulted in a gain of $36.407 million, indicating positive adjustments in financial instruments[19] Strategic Developments - On October 10, 2025, NextNav achieved a major milestone in enabling a widescale commercial 5G PRS-based 3D PNT solution, enhancing its positioning and timing capabilities[12] - NextNav showcased its vertical location capabilities at Mobile World Congress 2025, indicating progress towards commercialization of its 5G-based 3D PNT technology[12] - The company announced the acquisition of additional lower 900 MHz band licenses on September 25, 2025, to enhance its operational capabilities[12] - NextNav extended its agreement with AT&T for two more years, supporting its Pinnacle network operations[12]