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NextNav (NN)
NASDAQ:NN
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NextNav
(NASDAQ:NN)
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Rating:47Neutral
Price Target:
$15.50
▼(-8.50% Downside)
NextNav's overall stock score is primarily impacted by its weak financial performance, characterized by negative margins and high leverage. While technical analysis and valuation provide some neutral signals, the company's financial instability remains a significant concern. Positive developments from the earnings call and corporate events offer some optimism but are overshadowed by financial challenges.
NextNav (NN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.29B
Dividend YieldN/A
Average Volume (3M)1.43M
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth42.80%
EPS Growth-48.48%
CountryUS
Employees96
SectorTechnology
Sector Strength88
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.48
Shares Outstanding133,130,570
10 Day Avg. Volume1,575,596
30 Day Avg. Volume1,429,554
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue335.16
Enterprise Value/Gross Profit-616.81
Enterprise Value/Ebitda-16.83
Forecast
1Y Price Target
$15.50Price Target Upside-8.50% Downside
Rating ConsensusHold
Number of Analyst Covering1
NextNav Business Overview & Revenue Model
Company DescriptionNextNav (NN) is a technology company specializing in providing advanced location services. The company operates primarily within the geolocation and navigation sectors, offering precise vertical positioning solutions and 3D geolocation services. Its core products include Pinnacle, a vertical positioning service, and TerraPoiNT, a terrestrial-based alternative to GPS systems. NextNav's technologies enable applications across public safety, location-based services, and the automotive industry, among others.
How the Company Makes MoneyNextNav generates revenue through the licensing and sale of its advanced geolocation technology solutions. Its key revenue streams include service fees from telecommunication companies, application developers, and public safety agencies that utilize its Pinnacle and TerraPoiNT services. The company also earns money through strategic partnerships and collaborations with major industry players that integrate NextNav's location services into their own offerings. Additionally, NextNav benefits from government contracts and agreements, particularly in areas requiring precise location data for safety and regulatory purposes.
NextNav Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements including FCC license acquisition and strategic partnerships, alongside increased revenue. However, the company's financial challenges, with rising expenses and significant net losses, present a substantial concern. The sentiment is balanced, with positive developments in regulatory and strategic initiatives offset by financial hurdles.Q2-2025 Updates
Positive Updates
FCC License Acquisition
NextNav was granted consent by the FCC for licenses in the lower 900 MHz A Block, which includes a waiver allowing them to hold licenses across A, B, and C blocks in the same area. This is seen as a significant step for public interest benefits and development of the M-LMS band.
Increased Revenue
NextNav's revenue for the second quarter of 2025 increased to $1.2 million from $1.1 million in the prior year, driven by growth in service revenue from technology and services contracts.
Cash Position
NextNav ended the second quarter with $176.1 million in cash, cash equivalents, and short-term investments, indicating strong liquidity.
Advocacy for GPS Backup Solutions
NextNav is actively advocating for a terrestrial complement and backup to GPS, which is presented as a national security priority, with multiple technical and economic studies filed to support FCC rulemaking.
Strategic Partnerships
The company announced partnerships with Adtran and Oscilloquartz to integrate their technology into a multisource timing receiver, showcasing progress towards resilient PNT solutions.
Negative Updates
Increased Operating Expenses
Operating expenses for the second quarter were $18.4 million, up approximately $2 million from the same period last year, contributing to overall financial losses.
Significant Net Loss
NextNav reported a net loss of $63.2 million for the second quarter, which included significant losses associated with changes in the fair value of derivative liabilities and warrants.
Criticism of FCC Proposals
Despite strong advocacy efforts, NextNav's proposals have faced criticism and unfounded claims, requiring ongoing efforts to address objections in the record.
Company Guidance
During the earnings call for the second quarter of 2025, NextNav provided extensive updates on its progress, particularly regarding its advocacy with the FCC. The company highlighted the FCC's consent for the assignment of 128 active M-LMS licenses in the lower 900 megahertz A Block, marking a significant step forward. Financially, NextNav reported a revenue of $1.2 million for the quarter, a slight increase from the previous year's $1.1 million, with operating expenses reaching $18.4 million, up by $2 million from the prior year. The net loss for the quarter was $63.2 million, primarily impacted by a $39.5 million loss related to derivative liabilities and warrants. On a positive note, the company maintained a robust cash position with $176.1 million in cash, cash equivalents, and short-term investments. Looking ahead, NextNav emphasized its commitment to enhancing PNT resiliency and expects substantial national benefits from its proposed optimization of the lower 900 megahertz band, potentially generating tens of billions of dollars in benefits.NextNav Financial Statement Overview
Summary
NextNav faces significant financial challenges, with negative margins and high leverage. The balance sheet shows financial instability with negative equity, and cash flow issues persist despite minor improvements. Overall, the financial health is weak, with substantial risks.Income Statement
NextNav's income statement reveals significant challenges. The company has consistently negative gross and net profit margins, indicating ongoing losses. Although there is a slight revenue growth in the TTM period, the margins remain deeply negative, reflecting operational inefficiencies and high costs relative to revenue. The EBIT and EBITDA margins are also negative, further highlighting profitability issues.20
Very Negative
Balance Sheet
The balance sheet shows a concerning financial structure with negative stockholders' equity in the TTM period, indicating liabilities exceed assets. The debt-to-equity ratio is negative, reflecting high leverage and financial risk. Return on equity is also negative, suggesting the company is not generating returns for shareholders. The equity ratio is unfavorable, pointing to potential solvency issues.15
Very Negative
Cash Flow
Cash flow analysis indicates persistent negative operating and free cash flows, although there is slight growth in free cash flow. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to reported losses. The free cash flow to net income ratio is slightly positive, indicating some alignment between cash flow and net income, but overall cash flow remains a concern.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.26M | 5.67M | 3.86M | 3.93M | 763.00K | 569.00K |
| Gross Profit | -3.40M | -5.11M | -8.88M | -7.88M | -17.63M | -7.20M |
| EBITDA | -124.66M | -54.86M | -58.71M | -61.31M | -40.71M | -127.03M |
| Net Income | -167.65M | -101.88M | -71.73M | -40.12M | -144.67M | -137.34M |
Balance Sheet | ||||||
| Total Assets | 256.74M | 161.74M | 162.16M | 123.79M | 136.82M | 44.90M |
| Cash, Cash Equivalents and Short-Term Investments | 176.05M | 80.11M | 85.83M | 55.45M | 100.08M | 8.67M |
| Total Debt | 262.60M | 71.44M | 66.11M | 7.82M | 0.00 | 58.87M |
| Total Liabilities | 303.96M | 111.62M | 82.06M | 19.92M | 36.87M | 535.28M |
| Stockholders Equity | -47.22M | 50.12M | 78.73M | 100.02M | 99.96M | -490.38M |
Cash Flow | ||||||
| Free Cash Flow | -44.84M | -38.36M | -39.17M | -40.67M | -49.21M | -35.58M |
| Operating Cash Flow | -44.43M | -38.01M | -35.44M | -37.09M | -47.93M | -28.41M |
| Investing Cash Flow | -92.65M | -39.47M | 1.07M | -15.74M | -1.28M | -7.18M |
| Financing Cash Flow | 132.86M | 35.10M | 68.98M | 43.00K | 135.64M | 34.77M |
NextNav Technical Analysis
Positive
16.94
Price Trends
15.78
Positive
14.77
Positive
13.84
Positive
Market Momentum
0.42
Positive
54.50
Neutral
53.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NN, the sentiment is Positive. The current price of 16.94 is below the 20-day moving average (MA) of 17.00, above the 50-day MA of 15.78, and above the 200-day MA of 13.84, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 53.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
NextNav Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | 119.55M | -13.18 | -17.21% | ― | 105.31% | 95.66% | |
55 Neutral | 251.00M | -9.09 | -13.30% | ― | 8.29% | 87.33% | |
54 Neutral | 164.10M | -0.72 | 3.61% | ― | -10.52% | -420.74% | |
52 Neutral | 47.54M | -7.44 | 0.00% | ― | 17.74% | 65.18% | |
52 Neutral | 49.68M | -0.78 | -288.76% | ― | -31.96% | 56.06% | |
47 Neutral | $2.29B | ― | -2015.79% | ― | 42.80% | -48.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
NN
NextNav
16.94
9.79
136.92%
TRVG
trivago
3.52
1.77
101.14%
SEAT
Vivid Seats
15.66
-57.54
-78.61%
CCG
Cheche Group
1.47
0.74
101.37%
BODI
Beachbody Company
6.63
0.78
13.33%
PODC
Courtside Group Inc
1.78
0.21
13.38%
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.