NextNav announced successful demonstrations of its 5G PRS-based PNT solution, highlighting regulatory progress and financial results.
Quiver AI Summary
NextNav Inc. announced the successful completion of lab and field demonstrations validating its 5G PRS-based positioning, navigation, and timing (PNT) solution, aimed at providing a terrestrial backup to GPS. CEO Mariam Sorond highlighted 2024 as a pivotal year for establishing this alternate PNT solution, with notable progress in regulatory efforts and collaboration with key stakeholders. The company also welcomed FCC Chairman Carr's draft Notice of Inquiry, emphasizing the need for GPS backup systems. Financially, NextNav reported an increase in revenue to $5.7 million for 2024, alongside a reduced operating loss compared to the previous year. The firm has maintained a strong cash position and continues to focus on advancing its innovative PNT technology while engaging with regulatory bodies to enhance GPS resiliency.
Potential Positives
- NextNav successfully completed lab and field demonstrations of its 5G PRS-based positioning, navigation, and timing (PNT) solution, validating its effectiveness and establishing a foundation for commercial deployment.
- The issuance of a Notice of Inquiry by FCC Chairman Carr signifies federal recognition of the critical need for a GPS complement and backup, aligning with NextNav's strategic goals for GPS resiliency.
- The company reported a significant year-over-year increase in revenue, with a rise from $3.9 million to $5.7 million for the full year, reflecting growth in technology and services contracts.
- NextNav has engaged in proactive regulatory efforts, including filing a technical analysis with the FCC, showcasing its commitment to compliance and collaboration with government stakeholders.
Potential Negatives
- NextNav reported a significant net loss of $101.9 million for the year ended December 31, 2024, which increased from a net loss of $71.7 million in the prior year, indicating ongoing financial challenges.
- The operating loss for the same period was $60.1 million, which, while an improvement from the previous year, suggests that the company is still struggling to achieve profitability.
- NextNav's accumulated deficit rose to $862.1 million as of December 31, 2024, highlighting a substantial long-term financial burden and raising concerns about the company's financial sustainability.
FAQ
What is NextNav's recent achievement in PNT technology?
NextNav successfully completed lab and field demonstrations validating the effectiveness of its 5G PRS-based PNT solution.
How does NextNav's solution serve as a GPS backup?
NextNav's technology provides a terrestrial complement to GPS, enhancing positioning, navigation, and timing capabilities for national security and public safety.
What poll results did NextNav release regarding GPS backup support?
A bipartisan poll showed overwhelming support for a GPS backup, highlighting its importance for public safety and national security.
Who has joined NextNav's executive team recently?
Renee Gregory joined NextNav as VP of Regulatory Affairs, bringing over 20 years of experience in government and regulatory sectors.
When will NextNav host a conference call for analysts and investors?
NextNav will host a conference call on March 12, 2025, at 5:00 pm ET for analysts and investors.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NN Insider Trading Activity
$NN insiders have traded $NN stock on the open market 9 times in the past 6 months. Of those trades, 0 have been purchases and 9 have been sales.
Here’s a breakdown of recent trading of $NN stock by insiders over the last 6 months:
- MARIAM SOROND (CEO, President and Director) has made 0 purchases and 2 sales selling 251,470 shares for an estimated $4,147,311.
- ARUN RAGHUPATHY (Senior Vice President) has made 0 purchases and 2 sales selling 4,455 shares for an estimated $77,067.
- CHRISTIAN D. GATES (Chief Financial Officer) sold 3,918 shares for an estimated $69,135
- SAMMAAD SHAMS (Chief Accounting Officer) has made 0 purchases and 3 sales selling 1,393 shares for an estimated $17,455.
- ROBERT LANTZ (General Counsel) sold 336 shares for an estimated $4,828
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$NN Hedge Fund Activity
We have seen 99 institutional investors add shares of $NN stock to their portfolio, and 55 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FLEMING JAMES B JR removed 4,533,290 shares (-46.7%) from their portfolio in Q4 2024, for an estimated $70,537,992
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 3,493,016 shares (-71.3%) from their portfolio in Q4 2024, for an estimated $54,351,328
- BLACKROCK, INC. added 966,717 shares (+18.8%) to their portfolio in Q4 2024, for an estimated $15,042,116
- GENERAL AMERICAN INVESTORS CO INC removed 811,948 shares (-48.7%) from their portfolio in Q4 2024, for an estimated $12,633,910
- GROUP ONE TRADING LLC added 787,412 shares (+82.8%) to their portfolio in Q4 2024, for an estimated $12,252,130
- VANGUARD GROUP INC added 759,775 shares (+23.3%) to their portfolio in Q4 2024, for an estimated $11,822,099
- INVESCO LTD. added 684,571 shares (+2461.2%) to their portfolio in Q4 2024, for an estimated $10,651,924
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Successfully Completed Lab and Field Demonstrations Validating Effectiveness of NextNav's 5G PRS-based PNT solution
NOI Issued by FCC Chairman Carr Demonstrates Commitment to GPS Complement and Backup
RESTON, Va., March 12, 2025 (GLOBE NEWSWIRE) -- NextNav Inc. (NASDAQ: NN) a leader in next generation positioning, navigation, and timing (PNT) and 3D geolocation, today reported financial results for NextNav’s fourth quarter and full year ended December 31, 2024.
Mariam Sorond, NextNav CEO said, “2024 was a pivotal year for NextNav as we established a strong foundation to advance our vision for a terrestrial complement and backup to GPS. We made significant progress through our regulatory efforts and our engagement in engineer-to-engineer dialogue with key stakeholders.
As we enter 2025, we are eager to continue working with the Federal Communications Commission (“FCC”), now led by Chairman Carr. The recently released draft Notice of Inquiry highlights the critical need for a complement and backup to GPS. Chairman Carr’s prompt action is a foundational step in advancing a critical national security need and we are ready to work alongside the Chairman and Commissioners and FCC staff to move towards GPS resiliency.
Beyond regulatory initiatives, we are actively advancing our NextGen solution. We recently completed lab and field demonstrations of our innovative PNT solution and entered into agreements to build an over-the-air demonstration network featuring 5G-based terrestrial 3D PNT with standards-compliant equipment. We are excited about the progress to date and remain focused on executing our strategic roadmap and driving innovation in geolocation technology.”
Recent Operational Highlights
NextNav Published Poll of Bipartisan Support for GPS Backup and Complement:
On March 10, 2025, NextNav released the results of a poll by Public Policy Polling which showed overwhelming bipartisan support for a complement and backup to GPS fueled by implications for public safety, national security, global competition, and economic stability.
NextNav Submits Filing with FCC Detailing Technical Analysis of Coexistence with Unlicensed:
On February 27, 2025, NextNav filed a detailed technical analysis of co-existence with the FCC, showing that unlicensed operations can continue in the band in the presence of 5G.
NextNav Successfully Demonstrates Positioning Reference Signal-Based PNT Technology
: NextNav successfully completed lab and field demonstrations of its innovative PNT solution based on Positioning Reference Signal (PRS) standards in 5G waveforms. The tests validated the effectiveness of NextNav's 5G PRS-based PNT solution, demonstrating precise timing synchronization and robust positioning capabilities, establishing a foundation for widespread commercial deployment.
Peake Advisors (Diane Rinaldo) Files Literature Review with FCC:
A leading expert in 5G and telecommunications security, Diane Rinaldo, filed a literature review with the FCC on February 21, 2025. The review emphasizes the severe risks of prolonged GPS disruptions to national security and infrastructure and the benefits of a system-of-systems approach to PNT modernization -- fortifying GPS while diversifying backup solutions across space- and terrestrial-based systems.
Renee Gregory Joins NextNav as VP of Regulatory Affairs
: Joining NextNav in February, 2025, Renee will lead NextNav’s FCC approval and compliance efforts. Renee brings 20 plus years of experience across government and the private sector, having held senior advisory roles at the White House, NTIA, and FCC.
Three and Twelve Months Ended December 31, 2024 Financial Highlights
Revenue
: was $1.9 million in the three months ended December 31, 2024, as compared to $1.2 million in the prior year period. In the twelve months ended December 31, 2024, revenue was $5.7 million, as compared to $3.9 million in the prior year period. The increase in both the three and twelve months ended December 31, 2024, was primarily driven by an increase in service revenue from technology and services contracts with government and commercial customers.
Operating Loss:
was $14.8 million in the three months ended December 31, 2024, as compared to an operating loss of $19.9 million in the prior year period. In the twelve months ended December 31, 2024, operating loss was $60.1 million, as compared to $63.5 million in the prior year period. The decrease in both the three and twelve months ended December 31, 2024, was primarily driven by lower stock-based compensation expense, partially offset by higher payroll-related expenses and professional services.
Net Loss
: was $32.3 million in the three months ended December 31, 2024, including a loss on the change in fair value of warrants and liability associated with the Telesaurus asset purchase of $14.9 million, as compared to a net loss of $16.4 million in the prior year period, including a gain on the fair value of the warrants of $5.7 million. In the twelve months ended December 31, 2024, net loss was $101.9 million including a loss on the change in fair value of warrants, net of gain associated with the settlement of liability associated with the Telesaurus asset purchase, of $32.2 million, as compared to a net loss of $71.7 million in the prior year period, including a loss on the fair value of the warrants of $4.1 million.
Balance Sheet
: as of December 31, 2024, the Company had $80.1 million in cash, cash equivalents, and short-term investments and has $54.6 million in debt net of unamortized discount attributed to transaction costs and the issuance of warrants, with a gross value of $70.0 million.
Conference Call Information
NextNav will host a conference call for analysts and investors at 5:00 pm ET on Wednesday, March 12, 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/Q4I629366
. 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 19, 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), 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 I, Item 1A, “Risk Factors” of the NextNav’s most recent Annual Report on Form 10-K, and in Part II, Item 1A, “Risk Factors” of the Company’s subsequent quarterly reports on Form 10-Q, 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:
Katie Eskwitt
Sloane & Company
Keskwitt@sloanepr.com
NEXTNAV INC. CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, | ||||||||
2024 (unaudited) | 2023 | |||||||
(in thousands) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 39,330 | $ | 81,878 | ||||
Short term investments | 40,785 | 3,954 | ||||||
Accounts receivable | 3,301 | 2,332 | ||||||
Other current assets | 2,629 | 3,056 | ||||||
Total current assets | $ | 86,045 | $ | 91,220 | ||||
Property and equipment, net of accumulated depreciation of $13,716 and $9,724 at December 31, 2024 and 2023, respectively | 17,974 | 21,561 | ||||||
Operating lease right-of-use assets | 17,368 | 19,267 | ||||||
Goodwill | 16,966 | 17,977 | ||||||
Intangible assets, net | 9,589 | 10,625 | ||||||
Other assets | 13,798 | 1,508 | ||||||
Total assets | $ | 161,740 | $ | 162,158 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 858 | $ | 391 | ||||
Accrued expenses and other current liabilities | 8,536 | 6,592 | ||||||
Operating lease current liabilities | 2,462 | 2,523 | ||||||
Deferred revenue | 288 | 297 | ||||||
Total current liabilities | $ | 12,144 | $ | 9,803 | ||||
Warrants | 28,707 | 7,053 | ||||||
Operating lease noncurrent liabilities | 14,352 | 15,145 | ||||||
Other long-term liabilities | 1,795 | 1,614 | ||||||
Long-term debt, net of debt issuance cost and discount | 54,621 | 48,447 | ||||||
Total liabilities | $ | 111,619 | $ | 82,062 | ||||
Stockholders’ equity: | ||||||||
Common Stock, authorized 500,000,000 shares; 131,268,940 and 111,261,434 shares issued and 131,136,712 and 111,132,222 shares outstanding at December 31, 2024 and 2023, respectively | $ | 14 | $ | 12 | ||||
Additional paid-in capital | 912,241 | 837,416 | ||||||
Accumulated other comprehensive income | 665 | 2,198 | ||||||
Accumulated deficit | (862,106 | ) | (760,227 | ) | ||||
Common stock in treasury, at cost, 132,228 and 129,212 shares at December 31, 2024 and December 31, 2023, respectively | (693 | ) | (665 | ) | ||||
Total stockholders’ equity | $ | 50,121 | $ | 78,734 | ||||
Non-controlling interests | — | 1,362 | ||||||
Total liabilities and stockholders’ equity | $ | 161,740 | $ | 162,158 | ||||
NEXTNAV INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (IN THOUSANDS, EXCEPT SHARE DATA) | ||||||||
Year Ended December 31, | ||||||||
2024 (unaudited) | 2023 | |||||||
Revenue | $ | 5,669 | $ | 3,862 | ||||
Operating expenses: | ||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 10,777 | 12,743 | ||||||
Research and development | 16,242 | 19,503 | ||||||
Selling, general and administrative | 33,510 | 30,324 | ||||||
Depreciation and amortization | 5,238 | 4,821 | ||||||
Total operating expenses | $ | 65,767 | $ | 67,391 | ||||
Operating loss | (60,098 | ) | (63,529 | ) | ||||
Other income (expense): | ||||||||
Interest expense, net | (9,401 | ) | (3,664 | ) | ||||
Change in fair value of warrants | (33,177 | ) | (4,101 | ) | ||||
Other income (loss), net | 970 | (220 | ) | |||||
Loss before income taxes | $ | (101,706 | ) | $ | (71,514 | ) | ||
Provision for income taxes | 173 | 221 | ||||||
Net loss | $ | (101,879 | ) | $ | (71,735 | ) | ||
Foreign currency translation adjustment | (1,533 | ) | 827 | |||||
Comprehensive loss | $ | (103,412 | ) | $ | (70,908 | ) | ||
Net loss | $ | (101,879 | ) | $ | (71,735 | ) | ||
Net loss attributable to common stockholders | $ | (101,879 | ) | $ | (71,735 | ) | ||
Weighted average of shares outstanding – basic and diluted | 121,500 | 107,972 | ||||||
Net loss attributable to common stockholder per share – basic and diluted | $ | (0.84 | ) | $ | (0.66 | ) | ||
NEXTNAV INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Year Ended December 31, | ||||||||
2024 (unaudited) | 2023 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (101,879 | ) | $ | (71,735 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 5,238 | 4,821 | ||||||
Equity-based compensation | 13,856 | 21,838 | ||||||
Change in fair value of warrant liability | 33,177 | 4,101 | ||||||
Change in fair value of Asset Purchase Agreement liability | (966 | ) | — | |||||
Realized and unrealized gain on marketable securities | (888 | ) | (546 | ) | ||||
Equity method investment loss | 175 | 191 | ||||||
Asset retirement obligation accretion | 76 | 66 | ||||||
Amortization of debt discount | 6,174 | 3,151 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivables | (969 | ) | (164 | ) | ||||
Other current assets | 388 | 537 | ||||||
Other assets | 110 | 119 | ||||||
Accounts payable | 467 | (627 | ) | |||||
Deferred revenue | (9 | ) | 202 | |||||
Accrued expenses and other liabilities | 5,990 | 1,884 | ||||||
Operating lease right-of-use assets and liabilities | 1,052 | 722 | ||||||
Net cash used in operating activities | $ | (38,008 | ) | $ | (35,440 | ) | ||
Investing activities | ||||||||
Capitalization of costs and purchases of network assets, property, and equipment | (350 | ) | (2,751 | ) | ||||
Purchase of internal use software | (442 | ) | (983 | ) | ||||
Purchase of marketable securities | (82,443 | ) | (37,441 | ) | ||||
Sale and maturity of marketable securities | 46,500 | 42,249 | ||||||
Payment for Asset Purchase Agreement liability | (2,732 | ) | — | |||||
Net cash provided by (used in) investing activities | $ | (39,467 | ) | $ | 1,074 | |||
Financing activities | ||||||||
Proceeds from senior secured notes | — | 70,000 | ||||||
Payments towards debt issuance cost | — | (1,861 | ) | |||||
Payments towards debt | (111 | ) | (110 | ) | ||||
Proceeds from exercise of common stock options | 3,787 | 73 | ||||||
Proceeds from exercise of common warrants | 31,387 | 882 | ||||||
Redemption of non-controlling interests | 40 | — | ||||||
Net cash provided by financing activities | $ | 35,103 | $ | 68,984 | ||||
Effect of exchange rates on cash and cash equivalents | (176 | ) | 30 | |||||
Net increase (decrease) in cash and cash equivalents | (42,548 | ) | 34,648 | |||||
Cash and cash equivalents at beginning of period | 81,878 | 47,230 | ||||||
Cash and cash equivalents at end of period | $ | 39,330 | $ | 81,878 | ||||
Non-cash investing and financing information and supplemental disclosures | ||||||||
Capital expenditure included in Accrued expenses and other current liabilities | $ | 78 | $ | 285 | ||||
Reclassification of warrant liability to common stock warrants | $ | 11,523 | $ | 1,248 | ||||
Issuance of warrants | $ | — | $ | 22,843 | ||||
Interest paid in shares | $ | 3,842 | $ | 1,888 | ||||
Interest paid in cash | $ | 3,502 | $ | 1,808 | ||||
Income taxes paid, net | $ | 195 | $ | 147 | ||||
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
