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]

Core Insights - NextNav Inc. reported its financial results and operational updates for Q3 2025, highlighting progress in technology and advocacy for FCC actions despite a government shutdown [1][2]. Financial Highlights - As of September 30, 2025, NextNav had $167.6 million in cash and cash equivalents, with a net long-term debt of $230.1 million, which includes a derivative liability of $75.1 million [4]. - Revenue for Q3 2025 was $887 million, a decrease from $1.607 billion in Q3 2024, while total operating expenses increased to $20.752 million from $15.459 million year-over-year [15][16]. - The net loss for Q3 2025 was $483 million, compared to a loss of $13.609 million in Q3 2024 [16]. Operational Highlights - The company is focused on enabling a widescale, future-proof complement and backup to GPS, leveraging its unique position as the largest license holder in a spectrum band designated for terrestrial positioning services [2][8]. - Recent milestones include the successful integration of 5G-based timing for critical infrastructure applications and showcasing vertical location capabilities at Mobile World Congress 2025 [11]. Upcoming Events - NextNav will host a conference call for analysts and investors on November 6, 2025, to discuss its financial results [5][19].

Core Insights - NextNav, Inc. has successfully integrated its 5G-based Positioning, Navigation and Timing (PNT) technology with a GNSS-enabled grandmaster clock from Oscilloquartz, enhancing GPS resilience in challenging environments [1][2] - This integration aims to provide reliable timing solutions for critical infrastructure sectors such as telecom, energy, and defense, serving as a backup to GPS and addressing risks related to GNSS signal loss or spoofing [2][3] Company Overview - NextNav, Inc. specializes in next-generation geolocation solutions through its TerraPoiNT and Pinnacle platforms, focusing on 3D location and resilient timing for applications in public safety, E911, critical infrastructure, and emerging 5G and IoT sectors [3]

Core Insights - Laughing Water Capital reported a decline of approximately -1% in Q3 2025, resulting in year-to-date returns of approximately -2.7%, while the SP500TR and R2000 returned 12.4% and 8.1% respectively for the quarter [1] - The fund's top holdings can be reviewed to identify its best investment picks for 2025 [1] Company Focus: NextNav Inc. (NASDAQ:NN) - NextNav Inc. provides next-generation positioning, navigation, and timing (PNT) solutions, with a one-month return of -6.29% and a 52-week gain of 15.32% [2] - As of October 29, 2025, NextNav Inc. stock closed at $13.40 per share, with a market capitalization of $1.804 billion [2] - The investment thesis for NextNav is based on the need for a terrestrial backup to the GPS system, with expectations that the FCC will allow NextNav to repurpose its spectrum for 5G, significantly increasing the value of its stock [3]

Core Insights - Nextnav Inc (NASDAQ:NN) shares have experienced a decline, currently down 17.8% for 2025, trading at $12.84, significantly lower than this year's peak of $18.25, although support at the $12 level has stabilized the price recently [1] Group 1: Stock Performance - The stock is currently within 0.75 of the 320-day moving average's 20-day average true range (ATR), having spent over 80% of the last 10 days and 42 trading days above this trendline [2] - Historical data indicates that similar conditions have led to an average gain of 36.4% one month later, suggesting potential for the stock to rise above $17 again [2] Group 2: Market Sentiment - There is a potential for the stock to benefit from a reduction in pessimism in the options market, as indicated by the put/call open interest ratio being higher than 87% of readings from the past year [4]

Core Insights - NextNav and Oscilloquartz have successfully integrated 5G-based Positioning, Navigation, and Timing (PNT) technology with a GNSS-enabled grandmaster clock, marking a significant step towards commercializing a GPS backup solution for critical infrastructure applications [1][2][3] Company Overview - NextNav Inc. is a leader in next-generation 3D PNT solutions and holds the largest license for a spectrum band designated for terrestrial positioning services, positioning the company to provide a robust GPS complement [3][10] - Oscilloquartz, a subsidiary of Adtran, specializes in time synchronization solutions and has developed a grandmaster clock that utilizes a Zero Trust Architecture to fuse multiple timing sources, ensuring reliable timing performance even in GPS-denied environments [2][5] Technological Integration - The integration of NextNav's 5G PRS-based timing receiver with Oscilloquartz's grandmaster clock has produced GPS-quality timing outputs in both outdoor and indoor settings, enhancing resilience in critical applications [1][2] - This technology aims to support various sectors, including national security, defense, financial services, and telecommunications, by providing continuity of timing across critical use cases [2][3] Market Implications - The successful integration demonstrates the potential for a more resilient timing solution that can operate effectively in environments where satellite signals are compromised, thus addressing a significant need in critical infrastructure [2][3] - The collaboration between NextNav and Oscilloquartz is expected to enable scalable solutions that can support essential services such as data centers and emergency services [11]

Core Thesis - NextNav Inc. is positioned for growth through its 5G PNT proposal, which aims to coexist with existing federal and Part 15 users while deploying a high-power 5G network [2][5]. 5G PNT Proposal - The proposal involves a coexistence strategy for the 902–928 MHz band, focusing on protecting existing users while enhancing downlink power, creating a significant power gap that may challenge long-term coexistence [2][5]. - NextNav plans to implement mitigation measures such as stricter emission masks and retuning support for existing systems to facilitate this coexistence [2][5]. Federal Coordination - The federal use of the band includes various applications like DoD radar and border security, necessitating close coordination with federal agencies to prevent harmful interference [3]. - NextNav may need to establish geographical carveouts and real-time muting, which could impact the spectrum's value for mobile network operators [3]. Impact on Other Users - Part 18 ISM devices are largely unaffected due to their localized operation, while Part 15 devices may face displacement from the 918–928 MHz downlink due to the proposed power disparity [4][5]. - Independent real-world testing is required to validate the assumptions made regarding coexistence and the impact on unlicensed device operators [4][5]. Growth Opportunities and Challenges - The proposal represents a significant growth opportunity for NextNav, contingent on regulatory approval and successful coordination with existing users [5]. - The success of the 5G positioning network hinges on real-world deployment and verification, highlighting potential challenges for unlicensed device operators [5].