[Report Overview and Highlights](index=1&type=section&id=Report%20Overview%20and%20Highlights) NextNav reported its Q1 2025 results, highlighting significant progress with the FCC, which issued a Notice of Inquiry (NOI) to explore GPS alternatives, alongside increased revenue and a widened net loss due to non-cash charges [Operational Highlights](index=1&type=section&id=Recent%20Operational%20Highlights) The company strengthened its board by appointing two retired Rear Admirals, while the FCC's unanimous approval of a Notice of Inquiry (NOI) to explore GPS backups directly supports NextNav's terrestrial PNT solution - Appointed Retired Rear Admirals H. Wyman Howard and Lorin Selby to its Board of Directors, effective May 1, 2025[4](index=4&type=chunk) - The FCC unanimously approved a Notice of Inquiry (NOI) to explore fostering GPS backups and alternatives, underscoring regulatory focus on PNT solutions[2](index=2&type=chunk)[4](index=4&type=chunk) - NextNav filed comments with the FCC advocating for a market-based, terrestrial, wide-scale PNT solution for critical infrastructure, public safety, and consumers[4](index=4&type=chunk) [Financial Highlights](index=1&type=section&id=Three%20Months%20Ended%20March%2031%2C%202025%20Financial%20Highlights) For the first quarter of 2025, revenue grew to **$1.5 million** from **$1.0 million** year-over-year, while the net loss expanded substantially to **$58.6 million**, heavily impacted by non-cash charges Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $1.5 million | $1.0 million | | Operating Loss | $17.0 million | $16.2 million | | Net Loss | $58.6 million | $31.6 million | - The increase in net loss was primarily driven by a **$24.5 million** loss on the change in fair value of derivative liability and a **$14.4 million** debt extinguishment loss[4](index=4&type=chunk) Balance Sheet Summary (as of March 31, 2025) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $150.4 million | | Short-term investments | $38.0 million | | Net long term debt (face value) | $190.0 million | [Detailed Financial Statements](index=3&type=section&id=Detailed%20Financial%20Statements) The detailed financial statements provide a comprehensive view of NextNav's financial position, including a significant increase in cash and long-term debt due to recent financing activities, and an expanded net loss primarily from non-cash charges [Condensed Consolidated Balance Sheets](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, NextNav's total assets significantly increased to **$268.6 million** from **$161.7 million** at year-end 2024, driven by a rise in cash and cash equivalents, while total liabilities also grew substantially to **$262.0 million** Balance Sheet Comparison (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$268,606** | **$161,740** | | Cash and cash equivalents | $150,422 | $39,330 | | **Total Liabilities** | **$262,033** | **$111,619** | | Long term debt, net | $213,101 | $54,621 | | **Total stockholders' equity** | **$6,573** | **$50,121** | [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20LOSS) For the three months ended March 31, 2025, NextNav reported a net loss of **$58.6 million**, or **($0.45)** per share, primarily due to a **$14.4 million** debt extinguishment loss and a **$24.5 million** change in fair value of derivative liability Income Statement Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $1,539 | $1,046 | | Operating Loss | $(17,004) | $(16,150) | | Net Loss | $(58,579) | $(31,610) | | Net Loss Per Share | $(0.45) | $(0.28) | - Significant expenses contributing to the net loss in Q1 2025 include a **$14,434 thousand** debt extinguishment loss and a **$24,523 thousand** loss on the change in fair value of derivative liability[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, net cash used in operating activities was **$12.2 million**, while financing activities provided a significant inflow of **$120.2 million**, mainly from the issuance of **$190.0 million** in senior convertible notes, resulting in a net increase in cash of **$111.1 million** Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(12,179) | $(6,985) | | Net cash provided by (used in) investing activities | $3,006 | $(2,113) | | Net cash provided by financing activities | $120,172 | $516 | | **Net increase (decrease) in cash** | **$111,092** | **$(8,561)** | - Financing activities were driven by **$190.0 million** in proceeds from new 2028 senior convertible notes, partially offset by a **$70.0 million** repayment of 2026 senior secured notes[17](index=17&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides details for investors regarding the upcoming conference call to discuss quarterly results and includes the standard 'Forward-Looking Statements' safe harbor provision outlining potential risks and uncertainties [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) NextNav will host a conference call for analysts and investors on May 9, 2025, at 9:00 am ET, with a live webcast and replay accessible through the company's investor relations website - A conference call is scheduled for **9:00 am ET** on Friday, May 9, 2025[5](index=5&type=chunk) - A live webcast and replay will be available on the company's investor relations website[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding the company's future prospects, including FCC-related milestones and PNT service advancements, which are subject to significant risks and uncertainties detailed in SEC filings - Forward-looking statements include expectations about achieving FCC milestones, advancing terrestrial 3D PNT services, and future growth opportunities[10](index=10&type=chunk) - These statements are subject to known and unknown risks, and the company refers readers to its Form 10-Q and 10-K filings for a detailed description of risk factors[11](index=11&type=chunk)

Core Insights - NextNav Inc. reported financial results for the quarter ended March 31, 2025, highlighting a focus on positioning, navigation, and timing (PNT) solutions, particularly in relation to national security needs for GPS backups [2][7]. Financial Highlights - Revenue for the quarter was $1.5 million, an increase from $1.0 million in the prior year, driven by service revenue from technology and services contracts with government and commercial customers [7]. - Operating loss was $17.0 million, compared to a loss of $16.2 million in the prior year, primarily due to higher professional fees and consulting expenses [7]. - Net loss was $58.6 million, which included a $24.5 million loss on the change in the fair value of derivative liability and a $14.4 million debt extinguishment loss, compared to a net loss of $31.6 million in the prior year [7][14]. - As of March 31, 2025, the company had $150.4 million in cash and cash equivalents and $38.0 million in short-term investments, with net long-term debt of $213.1 million [7][12]. Operational Updates - The FCC unanimously voted to approve a Notice of Inquiry (NOI) to explore PNT solutions, emphasizing the importance of developing terrestrial alternatives to GPS [7]. - NextNav appointed Retired Rear Admirals H. Wyman Howard and Lorin Selby to its Board of Directors, effective May 1, 2025, to strengthen its leadership [7]. Cash Flow and Investments - The company reported a net cash used in operating activities of $12.2 million for the quarter, compared to $7.0 million in the prior year [16]. - Net cash provided by financing activities was $120.2 million, primarily from proceeds of senior convertible notes [17]. Market Position - NextNav is positioned as a leader in next-generation PNT technologies, aiming to provide accurate and resilient 3D PNT solutions for critical infrastructure and commercial applications [8].

Company Overview - NextNav Inc. (NASDAQ:NN) is a leader in next-generation positioning, navigation, and timing (PNT), focusing on 3D geolocation and PNT technology [4] Financial Results Announcement - NextNav will release its financial results for the first quarter ended March 31, 2025, before market open on May 9, 2025 [1] - A conference call to discuss the results will be held on the same day at 9:00 AM ET [1] Conference Call Registration - Registration for the conference call can be completed via a designated website [2] - Participants will receive call details and a registrant ID after registering [2] Webcast Access - The conference call will be available via a live webcast, and a replay will be accessible until May 16, 2025 [3] - Participants can register for replay details to receive access codes [3]

Company Overview - NextNav Inc. is a leader in next-generation positioning, navigation, and timing (PNT) technology, focusing on 3D geolocation solutions [4] Financial Results Announcement - NextNav will release its financial results for the first quarter ended March 31, 2025, after the market closes on May 7, 2025 [1] - A conference call to discuss the results will be held on the same day at 5:00 PM ET [1] Conference Call Registration - Registration for the conference call can be completed via a provided website link [2] - Participants will receive call details and a registrant ID after registration [2] Webcast Access - The live webcast and replay of the conference call will be available on the company's investor relations website [3] - A replay will be accessible until May 14, 2025, with registration required for replay details [3]

Core Viewpoint - NextNav Inc. successfully closed a private placement of $190 million in senior secured convertible notes, with net proceeds of approximately $188.6 million after fees and expenses [1][2]. Group 1: Financial Details - The private placement consists of 5% redeemable senior secured convertible notes due in 2028 [1]. - A portion of the net proceeds will be used to redeem $70 million of existing 10% senior secured notes due in 2026 at 101% of the principal amount plus accrued interest [2]. Group 2: Company Overview - NextNav Inc. is a leader in next-generation positioning, navigation, and timing (PNT) technology, focusing on 3D geolocation solutions [3]. - The company's technology is powered by low-band licensed spectrum, providing accurate and resilient PNT solutions for critical infrastructure and commercial applications [3].

NextNav (NN) Q4 2024 Earnings Call March 13, 2025 03:50 AM ET Company Participants None - ExecutiveMariam Sorond - Chairman & CEOChristian Gates - Chief Financial OfficerMike Crawford - SMD & Head of Discovery Group Operator Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the NextNav Fourth Quarter twenty twenty four Earnings Conference Call. All lines have been placed on mute to prevent any backg ...

Financial Performance - Revenue increased by $1.8 million, or 46.8%, to $5.7 million for the year ended December 31, 2024, compared to $3.9 million for the year ended December 31, 2023[223]. - The net loss for the year ended December 31, 2024, was $101.9 million, compared to a net loss of $71.7 million for the year ended December 31, 2023[221]. - Net losses for 2024 were $101.9 million, compared to $71.7 million in 2023, reflecting ongoing financial challenges[231]. - Cash and cash equivalents and marketable securities totaled $80.1 million as of December 31, 2024, with an accumulated deficit of $862.1 million[231]. - Net cash used in operating activities was $38.0 million in 2024, up from $35.4 million in 2023, driven by increased net losses and non-cash charges[236][237]. - Net cash provided by financing activities was $35.1 million in 2024, down from $69.0 million in 2023, reflecting changes in capital raising activities[240]. Expenses - Cost of Goods Sold (COGS) decreased by $2.0 million, or 15.4%, to $10.8 million for the year ended December 31, 2024, from $12.7 million for the year ended December 31, 2023[224]. - Research and development expenses decreased by $3.3 million, or 16.7%, to $16.2 million for the year ended December 31, 2024, from $19.5 million for the year ended December 31, 2023[226]. - Selling, general and administrative expenses increased to $33.5 million for the year ended December 31, 2024, compared to $30.3 million for the year ended December 31, 2023[221]. - Selling, general and administrative expenses increased by $3.2 million, or 10.5%, to $33.5 million in 2024 from $30.3 million in 2023[227]. - Depreciation and amortization expenses rose by $0.4 million, or 8.6%, to $5.2 million in 2024 from $4.8 million in 2023, primarily due to new network assets placed in service[228]. - Interest expense, net of interest income, increased by $5.7 million, or 156.6%, to $9.4 million in 2024 from $3.7 million in 2023, attributed to senior secured notes issued in 2023[229]. - Other expenses surged by $27.9 million, or 645.4%, to $32.2 million in 2024 compared to $4.3 million in 2023, mainly due to changes in the fair value of warrants[230]. Assets and Liabilities - Accounts receivable as of December 31, 2024, was $3.3 million, up from $2.3 million as of December 31, 2023[223]. - The company reported long-term debt of $54.6 million with a fixed interest rate of 10% per annum[258]. - As of December 31, 2024, the company had cash and cash equivalents and short-term marketable securities totaling $80.1 million[257]. Market Position and Strategy - The company has been granted more than 145 patents related to its systems and services, enhancing its competitive position in the market[208]. - The company signed an agreement to acquire an additional 4 MHz of M-LMS licenses, subject to regulatory approvals, to expand its spectrum assets[208]. - The Pinnacle solution covers over 90% of commercial structures over three stories in the U.S., primarily used for public safety applications[211]. - TerraPoiNT received the highest scores in testing by the Department of Transportation regarding potential PNT backup solutions[212]. Future Outlook - The company expects to incur additional losses and higher operating expenses in the foreseeable future as it invests in research and development and expands its PNT networks[231]. - The company will maintain its status as an emerging growth company until at least December 31, 2025, unless certain revenue or debt thresholds are met[256]. Risk Management - The company believes that inflation and supply chain challenges have not significantly impacted its revenue and cost of services to date[260]. - The company has minimal credit risk associated with cash and cash equivalents, as it deposits funds with financially sound institutions[259]. - A hypothetical 10% change in interest rates would not materially impact the company's consolidated financial statements[257]. - The company invests excess cash in U.S. government and agency bonds, and money market funds to minimize banking risk[259]. - The company’s exposure to market risk primarily relates to cash and investments in marketable securities[257]. - The company has not experienced significant fluctuations in the fair value of its investments due to the short-term nature of these instruments[257].

Core Viewpoint - NextNav Inc. has announced a new investment of $190 million through the issuance of 5% redeemable senior secured convertible notes, aimed at strengthening its financial position and supporting growth objectives in the positioning, navigation, and timing (PNT) sector [2][3]. Company Overview - NextNav Inc. is a leader in next-generation PNT and 3D geolocation, providing solutions that rely on accurate and resilient positioning technologies [11]. - The company aims to enable a widescale terrestrial PNT solution, working with 5G infrastructure and device providers [3]. Investment Details - The new notes will mature on June 30, 2028, with approximately $70 million of the proceeds allocated to redeem existing 10% Senior Secured Notes due December 1, 2026 [2][6]. - The new notes have a conversion price of $12.56 per share, representing a 20% premium to the trailing 10-day closing price average prior to March 11, 2025 [5]. - The transaction is expected to close on or about March 31, 2025 [6]. Investor Participation - The investment is led by M-Cor Capital, LLC and Fortress Investment Group, with participation from other new and existing investors [2][3]. - M-Cor Capital and Fortress will receive warrants to purchase shares of NextNav common stock at various exercise prices [7]. Strategic Importance - The investment is positioned as a critical step in addressing the need for a backup system to the US GPS, enhancing the resilience of PNT solutions while supporting the US 5G ecosystem [3][4].

Financial Performance - Revenue for Q4 2024 was $1.9 million, up 58.3% from $1.2 million in Q4 2023; total revenue for the year was $5.7 million, a 46.2% increase from $3.9 million in 2023[6] - Operating loss for Q4 2024 was $14.8 million, improved from a loss of $19.9 million in Q4 2023; total operating loss for the year was $60.1 million, compared to $63.5 million in 2023[12] - Net loss for Q4 2024 was $32.3 million, including a $14.9 million loss on the change in fair value of warrants; net loss for the year was $101.9 million, up from $71.7 million in 2023[12] - Net loss for the year ended December 31, 2024, was $101,879 thousand, compared to a net loss of $71,735 thousand in 2023, representing an increase of 42%[21] - Net cash used in operating activities was $38,008 thousand in 2024, slightly higher than $35,440 thousand in 2023, indicating a 7% increase in cash outflow[21] Cash and Assets - Cash and cash equivalents as of December 31, 2024, were $39.3 million, down from $81.9 million in 2023; total assets decreased slightly to $161.7 million from $162.2 million[17] - Cash and cash equivalents at the end of the period decreased to $39,330 thousand from $81,878 thousand, reflecting a decline of 52%[21] - Net cash provided by financing activities was $35,103 thousand in 2024, down from $68,984 thousand in 2023, a decrease of 49%[21] - The company had a net cash outflow from investing activities of $39,467 thousand in 2024, contrasting with a net cash inflow of $1,074 thousand in 2023[21] Liabilities and Expenses - NextNav's total liabilities increased to $111.6 million as of December 31, 2024, compared to $82.1 million in 2023[17] - The company recorded a significant change in the fair value of warrant liability, increasing to $33,177 thousand in 2024 from $4,101 thousand in 2023[21] - Capital expenditures included in accrued expenses and other current liabilities were $78 thousand, down from $285 thousand in 2023, a decrease of 73%[21] - The depreciation and amortization expense rose to $5,238 thousand in 2024 from $4,821 thousand in 2023, an increase of 9%[21] Strategic Initiatives - The company completed lab and field demonstrations of its 5G PRS-based PNT solution, validating its effectiveness for commercial deployment[5] - NextNav's strategic roadmap includes advancing its NextGen solution and building an over-the-air demonstration network for 5G-based terrestrial 3D PNT[5] - The company has engaged in regulatory efforts with the FCC to establish a GPS complement and backup, highlighting national security needs[4] - A recent poll indicated overwhelming bipartisan support for a GPS backup, emphasizing its importance for public safety and national security[6] Leadership Changes - The company appointed Renee Gregory as VP of Regulatory Affairs to lead FCC approval and compliance efforts, bringing over 20 years of experience[6] Market Performance - The company reported a realized and unrealized loss on marketable securities of $888 thousand in 2024, compared to a loss of $546 thousand in 2023[21] - Proceeds from the exercise of common stock options increased to $3,787 thousand in 2024 from $73 thousand in 2023, a substantial increase of 5,000%[21]

Core Insights - NextNav Inc. has made significant advancements in establishing a terrestrial complement and backup to GPS, focusing on regulatory efforts and stakeholder engagement [2][3] - The company successfully completed lab and field demonstrations of its 5G PRS-based PNT solution, validating its effectiveness for commercial deployment [4][6] - A recent poll indicated strong bipartisan support for GPS backup solutions, highlighting public safety and national security concerns [6] Financial Highlights - For Q4 2024, NextNav reported revenue of $1.9 million, up from $1.2 million in Q4 2023, driven by increased service revenue from government and commercial contracts [5] - Total revenue for the year ended December 31, 2024, was $5.7 million, compared to $3.9 million in 2023, reflecting a growth in service contracts [5] - The operating loss for Q4 2024 was $14.8 million, an improvement from a loss of $19.9 million in Q4 2023, while the annual operating loss decreased to $60.1 million from $63.5 million [13][18] Balance Sheet Overview - As of December 31, 2024, NextNav had $80.1 million in cash and short-term investments, with total liabilities amounting to $111.6 million [13][16] - The company reported a significant increase in accounts payable and accrued expenses, indicating higher operational costs [16] Operational Developments - NextNav is actively working on its NextGen solution and has entered agreements to build a 5G-based terrestrial 3D PNT demonstration network [4] - The company has appointed Renee Gregory as VP of Regulatory Affairs to lead FCC approval efforts, bringing over 20 years of experience [6]