NextNav(NN) - 2025 Q1 - Quarterly Results

Report Overview and Highlights 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 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] - The FCC unanimously approved a Notice of Inquiry (NOI) to explore fostering GPS backups and alternatives, underscoring regulatory focus on PNT solutions[2][4] - NextNav filed comments with the FCC advocating for a market-based, terrestrial, wide-scale PNT solution for critical infrastructure, public safety, and consumers[4] Financial Highlights 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] 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 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 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 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] Condensed Consolidated Statements of Cash Flows 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] Other Information 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 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] - A live webcast and replay will be available on the company's investor relations website[7] Forward-Looking Statements 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] - 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]