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NextNav (NN)
NASDAQ:NN
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NextNav
(NASDAQ:NN)
Rating:46Neutral
Price Target:
$11.50
▼(-3.04%Downside)
NextNav (NN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend YieldN/A
Average Volume (3M)1.14M
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth51.10%
EPS Growth-27.02%
CountryUS
Employees96
SectorTechnology
Sector Strength83
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.45
Shares Outstanding132,397,170
10 Day Avg. Volume1,188,747
30 Day Avg. Volume1,140,330
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)254.51
Price to Sales (P/S)0.00
P/FCF Ratio-38.54
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue73.47
Enterprise Value/Gross Profit-354.67
Enterprise Value/Ebitda-6.80
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
NextNav Business Overview & Revenue Model
Company DescriptionNextNav Inc. provides next generation global positioning system (GPS) and 3D geolocation services. The company delivers next generation positioning, navigation, and timing solutions through its network-based Pinnacle and TerraPoiNT solutions. Its Pinnacle 3D geolocation service is commercially available in approximately 4,400 cities and towns in the United States; and its TerraPoiNT terrestrial-based encrypted network has deployments in 51 total markets nationally. The company sells its solutions directly to customers or through partners. The company was founded in 2007 and is headquartered in McLean, Virginia.
How the Company Makes MoneyNextNav makes money by offering its advanced location services to businesses and government agencies that require precise geolocation capabilities. The company's revenue model is primarily based on subscription and licensing fees for access to its proprietary platforms, such as TerraPoiNT and Pinnacle. These platforms are leveraged by industries that need reliable indoor and 3D location data, enhancing operational efficiency and safety. Additionally, NextNav partners with technology companies and service providers to integrate its location solutions into third-party applications and networks, further expanding its market reach and revenue opportunities.
NextNav Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: -14.86%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects positive momentum in terms of revenue growth, strategic financing, and regulatory support, which are tempered by increased operating expenses and a significant net loss. The highlights related to revenue increase and strategic positioning are promising, but the financial losses and rising expenses present challenges.Q1-2025 Updates
Positive Updates
Increase in Revenue
NextNav Inc.'s revenue for Q1 2025 was $1.5 million, a $500,000 increase from $1 million in the prior year period, driven primarily by an increase in service revenue from technology and services contracts with government and commercial customers.
Strategic Financing
NextNav Inc. closed $190 million of 5% redeemable senior secured convertible notes due 2028, enhancing liquidity and financial flexibility. This financing involved lead investors such as Core Capital and Fortress.
FCC Inquiry and Support
The FCC unanimously voted to advance a notice of inquiry (NOI) to explore promoting the development of PNT technologies and solutions, indicating governmental recognition and support of the need for resilient PNT solutions like those proposed by NextNav Inc.
Appointment of New Board Members
Two esteemed individuals, Rear Admirals H. Wyman Howard and Lauren Selby, joined the board of directors, bringing extensive military and national security leadership experience.
Negative Updates
Increased Operating Expenses
Operating expenses for Q1 2025 were $18.5 million, up approximately $1.3 million versus the same period last year.
Significant Net Loss
Net loss for Q1 2025 was $58.6 million, including a $24.5 million loss associated with the change in the fair value of derivative liability and $14.4 million of debt extinguishment loss. This is compared to a net loss of $31.6 million in Q1 2024.
Company Guidance
During the NextNav Inc. First Quarter 2025 Earnings Call, guidance was provided on several key metrics and strategic initiatives. The company reported a revenue increase to $1.5 million, up from $1 million in the previous year, driven by service revenue from technology and services contracts with government and commercial customers. Operating expenses rose to $18.5 million, with $1.5 million in depreciation and amortization, and $4.3 million in equity compensation. Net loss amounted to $58.6 million, influenced by a $24.5 million loss from a change in the fair value of derivative liability and a $14.4 million debt extinguishment loss. Additionally, NextNav Inc. closed a strategic financing deal involving $190 million of 5% redeemable senior secured convertible notes. The company emphasized its commitment to advancing its terrestrial Positioning, Navigation, and Timing (PNT) solution, working with the FCC to enhance national security and public safety by providing a GPS backup.NextNav Financial Statement Overview
Summary
NextNav faces significant financial challenges with persistent losses, negative margins, and high debt leverage. Despite some revenue growth, profitability and leverage remain major concerns.Income Statement
NextNav's income statement reveals significant financial challenges with consistent net losses. The gross profit margin is negative at -71.2% for TTM (Trailing-Twelve-Months), indicating that cost of goods sold exceeds revenue. The net profit margin is also deeply negative at -209.0%, and EBIT and EBITDA margins are negative as well at -98.9% and -129.6% respectively. While there is some revenue growth of 8.7% for TTM, the company's profitability remains a concern.20
Very Negative
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 2.59 for TTM, indicating significant leverage. Return on Equity (ROE) is negative at -1961.3%, reflecting high net losses relative to equity. The equity ratio is low at 2.4%, suggesting a heavy reliance on debt financing. These factors highlight financial instability and high risk, though the company does have a substantial amount of cash and short-term investments.30
Negative
Cash Flow
NextNav's cash flow statement shows negative free cash flow, which has declined by 14.2% from the previous year. The operating cash flow to net income ratio is 0.34, indicating that operating cash flows are insufficient to cover net losses. Financing activities have been used to offset cash outflows, but the reliance on external financing is a concern. Overall, cash flow management appears strained.25
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.16M | 5.67M | 3.86M | 3.93M | 763.00K | 569.00K | Gross Profit |
| -4.39M | -5.11M | -8.88M | -7.88M | -17.63M | -7.20M | EBIT |
| -60.95M | -60.10M | -63.53M | -65.54M | -42.43M | -29.47M | EBITDA |
| -79.90M | -54.86M | -58.71M | -61.31M | -40.71M | -127.03M | Net Income Common Stockholders |
| -128.85M | -101.88M | -71.73M | -40.12M | -144.67M | -137.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 79.24M | 80.11M | 85.83M | 55.45M | 100.08M | 8.67M | Total Assets |
| 165.63M | 161.74M | 162.16M | 123.79M | 136.82M | 44.90M | Total Debt |
| 67.29M | 71.44M | 66.11M | 7.82M | 0.00 | 58.87M | Net Debt |
| -6.03M | 32.10M | -15.76M | -39.41M | -100.08M | 50.20M | Total Liabilities |
| 108.36M | 111.62M | 82.06M | 19.92M | 36.87M | 535.28M | Stockholders Equity |
| 55.91M | 50.12M | 78.73M | 100.02M | 99.96M | -490.38M |
| Cash Flow | Free Cash Flow | ||||
| -43.83M | -38.36M | -39.17M | -40.67M | -49.21M | -35.58M | Operating Cash Flow |
| -43.20M | -38.01M | -35.44M | -37.09M | -47.93M | -28.41M | Investing Cash Flow |
| -34.35M | -39.47M | 1.07M | -15.74M | -1.28M | -7.18M | Financing Cash Flow |
| 154.76M | 35.10M | 68.98M | 43.00K | 135.64M | 34.77M |
NextNav Technical Analysis
Negative
11.86
Price Trends
12.46
Negative
12.12
Negative
11.87
Negative
Market Momentum
-0.24
Positive
43.69
Neutral
36.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NN, the sentiment is Negative. The current price of 11.86 is below the 20-day moving average (MA) of 12.69, below the 50-day MA of 12.46, and below the 200-day MA of 11.87, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 36.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NN.
NextNav Risk Analysis
NextNav disclosed 46 risk factors in its most recent earnings report. NextNav reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our ability to sell Pinnacle z-axis service may be limited and depends on third-party adoption and market demand. Q4, 2024
NextNav Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.36B | 17.80 | 19.74% | ― | 5.93% | 29.17% | |
74 Outperform | $1.18B | 95.54 | 1.35% | ― | 16.62% | ― | |
68 Neutral | $2.41B | ― | -7.25% | ― | 22.90% | 49.04% | |
62 Neutral | $11.81B | 10.34 | -7.44% | 2.91% | 7.41% | -7.93% | |
53 Neutral | $282.91M | ― | -11.66% | ― | 0.77% | 87.59% | |
51 Neutral | $619.79M | ― | -18.77% | ― | 12.01% | 35.71% | |
46 Neutral | $1.57B | ― | -412.45% | ― | 51.10% | -27.02% |
* Technology Sector Average
Performance Comparison
NN
NextNav
11.86
4.42
59.41%
YELP
Yelp
37.00
0.60
1.65%
TRVG
trivago
4.02
1.79
80.27%
GENI
Genius Sports Limited
9.48
4.16
78.20%
TBLA
Taboola.com
3.64
0.04
1.11%
KIND
Nextdoor Holdings
1.62
-0.79
-32.78%
NextNav Corporate Events
Executive/Board ChangesShareholder Meetings
NextNav Holds 2025 Annual Stockholders Meeting
Positive
May 23, 2025
On May 22, 2025, NextNav Inc. held its 2025 Annual Meeting of Stockholders where the company’s stockholders elected nine director nominees to the Board of Directors and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. This meeting’s outcomes ensure continuity in leadership and financial oversight, potentially strengthening NextNav’s governance and operational stability, which may positively influence stakeholder confidence.
Executive/Board ChangesShareholder Meetings
NextNav Expands Board with Two New Appointments
Neutral
Apr 16, 2025
On April 11, 2025, NextNav Inc. announced the expansion of its Board of Directors from seven to nine members, appointing Rear Admiral (Ret.) H. Wyman Howard III and Rear Admiral (Ret.) Lorin Selby as new directors, effective May 1, 2025. This strategic move is expected to strengthen the company’s governance structure ahead of its 2025 Annual Meeting of Stockholders, where both appointees will stand for reelection.
Private Placements and Financing
NextNav Secures $190M in Convertible Notes Deal
Positive
Mar 28, 2025
On March 27, 2025, NextNav Inc. announced the closing of a $190 million private placement of 5% redeemable senior secured convertible notes due 2028. The net proceeds of approximately $188.6 million will be used to redeem the company’s existing 10% Senior Secured Notes due 2026, enhancing its financial position and operational flexibility.
Private Placements and FinancingBusiness Operations and Strategy
NextNav Announces $190M Note Purchase Agreement
Positive
Mar 13, 2025
On March 12, 2025, NextNav Inc. announced a Note Purchase Agreement for a private placement of $190 million in 5% senior secured convertible notes due 2028, led by M-Cor Capital and Fortress Investment Group. The proceeds will be used to redeem existing 10% Senior Secured Notes due 2026, enhancing NextNav’s financial position and supporting its growth objectives in the PNT industry. This transaction is expected to close around March 31, 2025, and includes issuing warrants to purchase shares of common stock to the lead investors, reflecting a strategic move to strengthen the company’s market positioning and stakeholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.