NextNav(NN) - 2025 Q2 - Quarterly Results

Operational Highlights NextNav achieved significant FCC regulatory milestones for its 5G-based PNT solution, securing license assignments and submitting studies - The FCC issued an order granting consent to NextNav for the assignment of 128 active M-LMS licenses in the Lower 900MHz band, enhancing the company's spectrum position[2][10] - NextNav filed multiple studies with the FCC to support its proposal, including a technical study validating minimal interference, an economic report from the Brattle Group showing potential national benefits in the tens of billions of dollars, and a study demonstrating coexistence with licensed tolling operations[10] - The company is actively advocating for the FCC to issue a Notice of Proposed Rulemaking (NPRM) to enable a terrestrial complement and backup to GPS without requiring multibillion-dollar taxpayer expenditures[10] Financial Highlights NextNav reported modest revenue growth to $1.2 million in Q2 2025, with net loss widening to $63.2 million due to non-cash derivative losses Q2 & H1 2025 Key Financial Metrics (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1.2 | $1.1 | $2.7 | $2.2 | | Operating Loss | $(17.2) | $(15.3) | $(34.2) | $(31.5) | | Net Loss | $(63.2) | $(24.4) | $(121.8) | $(56.0) | - The increase in operating loss for both the three and six-month periods was primarily driven by higher professional services, payroll-related expenses, and outside consulting costs[10] - The significant increase in net loss for Q2 2025 was largely due to a non-cash loss of $39.5 million on the change in fair value of derivative liability and warrants[10] - As of June 30, 2025, the company had $58.9 million in cash and cash equivalents and $117.2 million in short-term investments[10] Financial Statements NextNav's unaudited condensed consolidated financial statements detail its financial position and performance, showing increased assets and liabilities, and wider net losses Condensed Consolidated Balance Sheets Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $58,866 | $39,330 | | Short term investments | $117,186 | $40,785 | | Total Assets | $256,743 | $161,740 | | Long term debt, net | $246,295 | $54,621 | | Total Liabilities | $303,958 | $111,619 | | Total stockholders' equity (deficit) | $(47,215) | $50,121 | - Total assets increased to $256.7 million, primarily due to a rise in cash and short-term investments[17] - Total liabilities grew substantially to $304.0 million, mainly from an increase in long-term debt to $246.3 million[17] Condensed Consolidated Statements of Comprehensive Loss Q2 2025 Statement of Loss Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $1,202 | $1,105 | | Total operating expenses | $18,442 | $16,437 | | Operating loss | $(17,240) | $(15,332) | | Change in fair value of derivative liability & warrants | $(39,494) | $(8,490) | | Net loss | $(63,195) | $(24,390) | | Net loss per share | $(0.48) | $(0.21) | - The net loss for the six months ended June 30, 2025, was $121.8 million, which included a $58.0 million loss on the fair value of derivative liability and warrants and a $14.4 million debt extinguishment loss[10][18] Condensed Consolidated Statements of Cash Flows Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(25,703) | $(19,279) | | Net cash used in investing activities | $(75,498) | $(22,319) | | Net cash provided by financing activities | $120,431 | $22,671 | | Net increase (decrease) in cash | $19,536 | $(18,905) | - Financing activities in the first six months of 2025 were primarily driven by $190.0 million in proceeds from 2028 senior convertible notes, partially offset by a $70.0 million repayment of 2026 senior secured notes[20] - Cash and cash equivalents increased to $58.9 million at the end of the period, up from $39.3 million at the beginning of the year[20]