NextNav(US:NN)2025-11-06 12:38Revenue 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].