NextNav Inc. Reports First Quarter 2025 Results and Operational Highlights
FCC releases Notice of Inquiry (NOI) with bipartisan 4-0 vote
NextNav Announces Appointment of Rear Admirals H. Wyman Howard and Lorin Selby to its Board of Directors
RESTON, Va., May 09, 2025 (GLOBE NEWSWIRE) -- NextNav Inc. (NASDAQ: NN) a leader in next generation positioning, navigation, and timing $(PNT)$ and 3D geolocation, today reported its financial results and operational updates for the quarter ended March 31, 2025.
"During the quarter we saw continued FCC momentum with a unanimous vote in March to further explore PNT solutions, specifically including NextNav's," said NextNav's CEO, Mariam Sorond. "We remain focused on executing against our goals and addressing an urgent national security need for a terrestrial complement and backup to GPS. We look forward to working with the FCC and the rest of the industry to enable PNT resiliency."
Recent Operational Highlights
-- Announced Appointment of Two New Members to Board of Directors: On April
16, 2025, NextNav announced the appointment of Retired Rear Admirals H.
Wyman Howard and Lorin Selby to its Board of Directors, effective May 1,
2025.
-- FCC Releases Notice of Inquiry (NOI): On March 27, 2025, the FCC
unanimously voted to approve the NOI titled Promoting the Development of
PNT Technologies and Solutions to explore how the Commission may foster
GPS backups and alternatives, underscoring the FCC's focus on this issue.
On April 28, 2025, NextNav filed comments with the FCC emphasizing the
importance of at least one future-proof solution that relies on market
forces to deliver a terrestrial, widescale PNT solution that is broadly
available to critical infrastructure, public safety, and consumers, and
has a clear path to incorporation in end-user devices.
Three Months Ended March 31, 2025 Financial Highlights
-- Revenue: was $1.5 million in the three months ended March 31, 2025, as
compared to $1.0 million in the prior year period. The increase was
driven by an increase in service revenue from technology and services
contracts with government and commercial customers.
-- Operating Loss: was $17.0 million in the three months ended March 31,
2025, as compared to an operating loss of $16.2 million in the prior year
period, primarily driven by higher professional fees and outside
consulting expenses, partially offset by reductions in software license
costs and payroll-related expenses.
-- Net Loss: was $58.6 million in the three months ended March 31, 2025,
including a loss on change in the fair value of derivative liability of
$24.5 million and debt extinguishment loss of $14.4 million, as compared
to a net loss of $31.6 million in the prior year period, including a loss
on the fair value of the warrants of $13.2 million.
-- Balance Sheet: as of March 31, 2025, the Company had $150.4 million in
cash and cash equivalents and $38.0 million in short term investments.
Net long term debt of $213.1 million includes derivative liability of
$56.5 million, and is net of unamortized discount of $33.4 million, with
a face value of $190.0 million.
Conference Call Information
NextNav will host a conference call for analysts and investors at 9:00 am ET on Friday, May 9, 2025.
Registration for the conference call can be completed by visiting the following website prior to, or on the day of, the conference call: https://registrations.events/direct/Q4I6293672417. After registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast.
To access the live webcast or a replay, visit the Company's investor relations website at https://ir.nextnav.com/.
A replay will be available through March 16, 2025. To receive replay details, please register through the link above. After registering for replay details, each participant will be provided with call details and access codes to listen to the call playback.
About NextNav Inc.
NextNav Inc. (Nasdaq: NN) is a leader in next generation positioning, navigation and timing $(PNT.AU)$, enabling a whole new ecosystem of applications and services that rely upon 3D geolocation and PNT technology. Powered by low-band licensed spectrum, NextNav's positioning and timing technologies deliver accurate, reliable, and resilient 3D PNT solutions for critical infrastructure, GPS resiliency and commercial use cases.
For more information, please visit https://nextnav.com/ or follow NextNav on Twitter or LinkedIn.
Source: NN-FIN
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to NextNav's future prospects, developments and business strategies. In particular, such forward-looking statements include the achievement of certain FCC-related milestones and FCC approvals, the ability to realize the broader spectrum capacity and the advancement of NextNav's terrestrial 3D PNT services, NextNav's position to drive growth in its 3D geolocation business and expansion of its next generation terrestrial 3D PNT technologies, the business plans, objectives, expectations and intentions of NextNav, and NextNav's estimated and future business strategies, competitive position, industry environment, potential growth opportunities, revenue, expenses, and profitability. These statements are based on NextNav's management's current expectations and beliefs, as well as a number of assumptions concerning future events.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside NextNav's control that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to, those included in Part II, Item 1A, "Risk Factors" of the Company's quarterly reports on Form 10-Q, and Part I, Item 1A, "Risk Factors" of the NextNav's Annual Report on Form 10-K for the year ended December 31, 2024, as well as those otherwise described or updated from time to time in our other filings with the Securities and Exchange Commission (the "SEC"). You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and NextNav undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Sloane & Company
nextnav@sloanepr.com
NEXTNAV INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, 2025
(unaudited) December 31, 2024
------------------------ -------------------
Assets
Current assets:
Cash and cash
equivalents $ 150,422 $ 39,330
Short term
investments 37,986 40,785
Accounts
receivable 1,645 3,301
Other current
assets 3,413 2,629
--- ------------------- ---------------
Total current
assets $ 193,466 $ 86,045
Property and
equipment, net
of accumulated
depreciation
of $14,725 and
$13,716 at
March 31, 2025
and December
31, 2024,
respectively 16,972 17,974
Operating lease
right-of-use
assets 17,329 17,368
Goodwill 17,641 16,966
Intangible
assets 9,454 9,589
Other assets 13,744 13,798
--- ------------------- ---------------
Total assets $ 268,606 $ 161,740
=== =================== ===============
Liabilities and
stockholders'
equity
Current
liabilities:
Accounts
payable $ 1,131 $ 858
Accrued
expenses and
other current
liabilities 7,312 8,536
Operating lease
current
liabilities 2,795 2,462
Deferred
revenue 310 288
Total current
liabilities $ 11,548 $ 12,144
Warrants 21,425 28,707
Operating lease
noncurrent
liabilities 14,198 14,352
Other long-term
liabilities 1,761 1,795
Long term debt,
net 213,101 54,621
--- ------------------- ---------------
Total
liabilities $ 262,033 $ 111,619
Stockholders'
equity:
Common stock,
authorized
500,000,000
shares;
132,413,938
and
131,268,940
shares issued
and
132,281,710
and
131,136,712
shares
outstanding at
March 31, 2025
and December
31, 2024,
respectively 14 14
Additional
paid-in
capital 926,280 912,241
Accumulated
other
comprehensive
income 1,657 665
Accumulated
deficit (920,685) (862,106)
Common stock in
treasury, at
cost; 132,228
shares at both
March 31, 2025
and December
31, 2024 (693) (693)
--- ------------------- ---------------
Total
stockholders'
equity $ 6,573 $ 50,121
Total
liabilities and
stockholders'
equity $ 268,606 $ 161,740
=== =================== ===============
NEXTNAV INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended March 31,
----------------------------------
2025 2024
---------------- ------------
Revenue $ 1,539 $ 1,046
Operating expenses:
Cost of goods sold (exclusive
of depreciation and
amortization) 2,533 2,761
Research and development 4,038 4,670
Selling, general and
administrative 10,520 8,446
Depreciation and amortization 1,452 1,319
------------ -----------
Total operating expenses $ 18,543 $ 17,196
------------ -----------
Operating loss $ (17,004) $ (16,150)
Other income (expense):
Interest expense, net (2,738) (2,168)
Debt extinguishment loss (14,434) --
Change in fair value of
warrants 6,041 (13,176)
Change in fair value of
derivative liability (24,523) --
Other loss, net (5,863) (72)
------------ -----------
Loss before income taxes $ (58,521) $ (31,566)
Provision for income taxes 58 44
------------ -----------
Net loss $ (58,579) $ (31,610)
Foreign currency translation
adjustment 993 (522)
------------ -----------
Comprehensive loss $ (57,586) $ (32,132)
------------ -----------
Net loss (58,579) (31,610)
------------ -----------
Net loss attributable to common
stockholders $ (58,579) $ (31,610)
============ ===========
Weighted average of shares
outstanding -- basic and
diluted 131,104 111,061
============ ===========
Net loss attributable to common
stockholders per share - basic
and diluted $ (0.45) $ (0.28)
============ ===========
NEXTNAV INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
Three Months Ended March 31,
----------------------------------
2025 2024
---------------- ------------
Operating activities
Net loss $ (58,579) $ (31,610)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and amortization 1,452 1,319
Equity-based compensation 4,324 4,244
Change in fair value of
warrants (6,041) 13,176
Debt extinguishment loss 13,734 --
Issuance of common warrants 5,766 --
Change in fair value of
derivative liability 24,523 --
Realized and unrealized gain
on short term investments (338) (50)
Equity method investment loss 39 40
Asset retirement obligation
accretion 26 16
Amortization of debt discount 1,739 1,442
Changes in operating assets
and liabilities:
Accounts receivable 1,656 836
Other current assets (749) (434)
Other assets 16 (107)
Accounts payable 273 878
Deferred revenue 22 (10)
Accrued expenses and other
liabilities (254) 3,022
Operating lease right-of-use
assets and liabilities 212 253
------------ -----------
Net cash used in operating
activities $ (12,179) $ (6,985)
Investing activities
Purchases of network assets,
property, and equipment (30) (32)
Purchase of internal use
software (101) (163)
Purchase of marketable
securities (31,463) (5,918)
Sale and maturity of
marketable securities 34,600 4,000
Net cash provided by (used in)
investing activities $ 3,006 $ (2,113)
Financing activities
Proceeds from 2028 senior
convertible notes 190,000 --
Repayment of 2026 senior
secured notes (70,000) --
Payments towards debt issuance
cost (550) --
Payments towards debt (27) (28)
Proceeds from exercise of
common warrants 517 --
Proceeds from exercise of
common stock options 232 544
Net cash provided by financing
activities $ 120,172 $ 516
------------ -----------
Effect of exchange rates on cash
and cash equivalents 93 21
Net increase (decrease) in cash
and cash equivalents 111,092 (8,561)
Cash and cash equivalents at
beginning of period 39,330 81,878
------------ -----------
Cash and cash equivalents at end
of period $ 150,422 $ 73,317
============ ===========
Non-cash investing and financing
information
Capital expenditure included in
Accrued expenses and other
current liabilities $ 22 $ 278
(END) Dow Jones Newswires
May 09, 2025 08:00 ET (12:00 GMT)
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