NextNav Inc. Q2 FY2025 earnings call

· NextNav concluded the comment period on the FCC's Notice of Inquiry (NOI) in May and advanced FCC advocacy with technical, economic, and operational data submissions. · The FCC granted consent for licenses to be assigned to NextNav, including a waiver of a rule forbidding holding both A block and B/C block licenses in the same license area. · Participated in a Capitol event to emphasize the vulnerability of GPS to national security, public safety, and the economy. · Announced partnerships with Adtran and Oscilloquartz to integrate technology for a multisource timing receiver to demonstrate improved resiliency through 5G-based timing. · Filed technical studies in February, July, and August demonstrating coexistence of 5G operations with unlicensed devices and tolling operations in the lower 900 megahertz band.

NextNav's revenue for the second quarter of 2025 was $1.2 million, compared to $1.1 million in the prior year period. For the 6 months ended June 30, 2025, revenue was $2.7 million, as compared to $2.2 million for the prior year period. Operating expenses for the second quarter were $18.4 million, up approximately $2 million versus the same period last year. For the first half of 2025, operating expenses were $37 million, compared to $33.6 million in 2024. Net loss for the second quarter was $63.2 million, including a $39.5 million loss from fair value change of derivative liability and warrants. For the 6-month period, net loss was $121.8 million, including losses from fair value changes of derivatives and warrants and debt extinguishment. The company finished the second quarter with $176.1 million in cash, cash equivalents and short-term investments.

· Continue to advocate for the FCC to issue a notice of proposed rulemaking (NPRM) based on the completed technical and economic analysis. · Remain committed to a system of systems approach, working with industry partners beyond terrestrial to achieve positioning, navigation, and timing (PNT) resiliency.

· Uncertainty regarding the FCC's timeline for issuing an NPRM. · Potential challenges in achieving consensus among stakeholders for the proposed spectrum optimization. · Risks associated with technical and operational challenges in integrating with other space-based or terrestrial PNT solutions.

Q: What are your next steps in the FCC process on the progression towards hope for NPRM?

A: We have completed a rigorous analysis and submitted complete data to the FCC for them to move forward with NPRM, and we continue to advocate for our position.

Q: Any progress or other developments in conjunction with cooperating or offering complementary service with other space-based alternatives like Xona Space Systems?

A: We continue to believe in system of systems but don't have updates on satellite-related discussions at this point.

Q: Can you discuss how the Adtran and Oscilloquartz announcement fits into your plans in more detail?

A: Excited about the partnership, we'll use our technology to integrate into a multisource timing receiver to demonstrate improved resiliency through 5G-based timing, bringing together multiple non-GPS sources for resilient PNT solutions.

Q: Following the technical filings, do you anticipate participating in field testing for unlicensed operations or tolls?

A: At this time, we don't believe additional testing, including field testing, is required for the FCC to move forward with an NPRM.

Q: How do you think the One Big Beautiful Bill will impact your process with the government going forward?

A: No significant impact as our spectrum is in the lower range and not in the focus of the bill's higher frequency focus, and the NTIA needs to identify spectrum from existing federal users first.

Q: Can you summarize the differences in the economic analysis findings of The Brattle Group versus the report filed by E-ZPass and its partners?

A: Our reports showed no value given to GPS resiliency, incorrect assumptions on retuning and unlicensed operations, while their report had flawed assumptions not considering our fact-based data.

Q: Can you address how resilient PNT fits into AI?

A: Resilient PNT is a backbone to AI, as AI use cases like autonomous vehicles and critical infrastructure rely on accurate real-time data, and faulty PNT data would fail these applications.