NextNav Inc. Q3 FY2025 earnings call

FCC Process Update

• Since the FCC's March 2025 NOI on PNT technologies, NextNav filed technical and economic studies demonstrating feasibility of 5G-based 3D PNT in lower 900 MHz band. Met with FCC staff in early September to urge NPRM issuance. Ongoing government shutdown halted FCC work, but NextNav continues engaging with officials.

Technology Advancements

• Reached milestone in 5G-based 3D PNT, integrating with Oscilloquartz for GPS complement/backup. Extended AT&T agreement relating to Pinnacle network operations by 2 years. Showcased leadership in location tech at Mobile World Congress 2025 Las Vegas.

Financials

• Repaid $70M senior secured debt in March 2025. Q3 recognized ~$23.6M noncash gains from fair value change of derivative and warrants liability, resulting in net income of nearly $0.5M. Ended Q3 with $167.6M in cash, cash equivalents, and short-term investments.

Future Focus

• NextNav remains committed to advancing PNT resiliency for national security, public safety, and economic stability. Focused on executing strategic roadmap and driving innovation in geolocation technology. Significant runway in funding to continue work towards commercialization.

Risks

• Forward-looking statements subject to known and unknown risks, uncertainties, and assumptions outside NextNav's control, including achievement of FCC-related milestones, SEC approvals, and government shutdown impact on FCC processes.

Q: Mike Crawford asked about FCC timing and international strategy.

A: Mariam Sorond stated FCC doesn't provide timing guidance, but believes PNT is a priority for Chairman Carr. On international, continues partnership with MetCom in Japan, using valuable spectrum there and using Pinnacle altitude solution in Japan commercially.

Q: Brendan Lynch inquired about carrier relationships and spectrum supply/demand.

A: Mariam mentioned extension of AT&T agreement, existing partnership with Verizon for Z-axis solution. Highlighted demand for low-band spectrum, with transactions like EchoStar and SpaceX, seeing expanding market for spectrum.

Q: Ryan Koontz asked about commercialization, Oscilloquartz integration, and network scoping.

A: Mariam discussed operationalizing key technologies, integrating Oscilloquartz timing solution, provided FCC study showing minimal impact and software retuning needed for coexistence with other spectrum users with no significant cost.

Q: Taebin Song (Ron on for Peter) asked about Iridium testing implications.

A: Mariam noted DOT's testing highlights importance of multiple systems for robust GPS backup, mentioned NextNav's high performance in DOT testing in 2021 and 2024, emphasizing system of systems and role of backup solutions for critical infrastructure