NextNav Inc. Q1 FY2025 earnings call

• FCC Progress: The FCC unanimously voted to advance a notice of inquiry (NOI) on PNT, recognizing the urgent need for a GPS backup. NextNav's proposal was referenced in the NOI.
• Financials: Q1 net loss was $58.6 million, including a $24.5 million loss from derivative liability fair value change and $14.4 million debt extinguishment loss. Closed $190 million 5% redeemable senior secured convertible notes, using proceeds to redeem prior notes.
• Board Additions: Welcomed Rear Admirals H. Wyman Howard and Lauren Selby with military and national security expertise.
• Milken Institute: Highlighted importance of PNT resiliency for national security at the Milken Institute Global Conference.

NextNav Inc.'s revenue in the first quarter of 2025 was $1.5 million, a $500,000 increase from $1 million in the prior year period. The increase was driven by higher service revenue from technology and services contracts with government and commercial customers. Operating expenses for the quarter were $18.5 million. Revenue contribution is primarily from the single segment focused on providing terrestrial PNT solutions as a backup to GPS.

• Committed to executing strategic roadmap for PNT resiliency to support national security, public safety, and the economy.
• Capital from financing provides financial flexibility to pursue objectives through 2025 and beyond.

• Forward-looking statements related to FCC milestones and SEC approvals are subject to uncertainties outside NextNav's control.
• Interference claims against NextNav's proposal lack technical support, but FCC staff will assess arguments fairly.

Q: How does the network deployment model involve incumbent mobile operators and their spectrum?

A: NextNav's technology is embedded in 5G, using standards-based PRS. MNOs deploy the spectrum for coverage/capacity, turn on PRS, and NextNav's software derives positioning/timing from the signal.

Q: How expensive is deployment for MNOs, and how does it complement satellite PNT?

A: Deployment CapEx is similar to adding other spectrum; no hardware modification needed. Satellites are complementary as they have vulnerabilities, and NextNav's solution addresses GPS gaps indoors/urban canyons.

Q: FCC process for rule change?

A: Need an NPRM (Notice of Proposed Rulemaking). FCC can proceed via NOI or prior petition, and an NPRM is required to change rules.