Fubotv earnings beat by $0.10, revenue topped estimates
NexNAV reported its Q2 2025 earnings on August 6, revealing a significant earnings per share (EPS) miss, with actual EPS at -$0.48 compared to a forecast of -$0.12. This 300% surprise comes amid revenue figures that also fell short of expectations, at $1.2 million versus the anticipated $1.93 million. Despite these setbacks, the stock price showed resilience, with a slight aftermarket increase of 0.77%. According to InvestingPro data, two analysts have recently revised their earnings expectations downward for the upcoming period, while the company’s gross profit margin stands at -71.19%.
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Key Takeaways
- EPS miss of 300% against forecasts, with actual EPS at -$0.48.
- Revenue fell short of expectations by 37.82%, reaching only $1.2 million.
- Stock price increased by 0.77% in aftermarket trading.
- NexNAV continues to focus on developing 5G-based PNT solutions.
- Awaiting FCC Notice of Proposed Rulemaking for future guidance.
Company Performance
NexNAV’s Q2 2025 performance was marked by a notable shortfall in both EPS and revenue compared to forecasts. The company achieved a 9.1% year-over-year increase in revenue, building on its impressive 51.1% revenue growth over the last twelve months. Operating expenses rose to $18.4 million, contributing to a net loss of $63.2 million, which included a significant derivative liability loss. While the company maintains strong liquidity with a current ratio of 16.75, InvestingPro’s analysis indicates the stock is currently trading above its Fair Value. The company remains focused on its strategic initiatives in 5G-based Positioning, Navigation, and Timing (PNT) solutions, which are positioned as critical for national security and infrastructure resilience.
Financial Highlights
- Revenue: $1.2 million, up 9.1% year-over-year
- Earnings per share: -$0.48, missing forecast by 300%
- Operating expenses: $18.4 million, up $2 million year-over-year
- Net loss: $63.2 million, including $39.5 million derivative liability loss
- Cash and equivalents: $176.1 million
Earnings vs. Forecast
NexNAV’s actual EPS of -$0.48 was significantly below the forecast of -$0.12, resulting in a 300% negative surprise. Similarly, revenue was 37.82% lower than expected, at $1.2 million compared to the anticipated $1.93 million. This performance marks a substantial deviation from forecasts and highlights ongoing financial challenges.
Market Reaction
Despite the earnings miss, NexNAV’s stock price increased by 0.77% in aftermarket trading, closing at $15.63. This movement suggests that investors may be focusing on the company’s long-term strategic initiatives and potential market opportunities in the PNT sector. The stock has demonstrated strong momentum, posting a remarkable 113.52% return over the past year and a 29.17% gain in the last six months. The stock remains within its 52-week range, with a high of $18.54 and a low of $6.47.
Executive Commentary
CEO Miriam Sarand emphasized the importance of resilient PNT solutions, stating, "GPS vulnerabilities are not hypothetical. They are real, present threats to national security, public safety, and the economy." She also highlighted the company’s commitment to a "system of systems" approach, underscoring NexNAV’s strategic vision for PNT resilience.
Risks and Challenges
- Ongoing financial losses and derivative liabilities could impact future profitability.
- Increased operating expenses may strain cash reserves.
- Dependence on FCC regulatory decisions poses uncertainty.
- Competitive pressures in the PNT market could affect market positioning.
- Macroeconomic factors and technological advancements may influence demand for PNT solutions.
Q&A
During the earnings call, analysts inquired about the company’s field testing requirements, to which executives confirmed no additional testing was needed. Questions also focused on the cost implications of retuning existing toll operations and the strategic importance of PNT in AI applications. NexNAV’s leadership provided clarity on these issues, reinforcing their commitment to innovation and market expansion.
Full transcript - Nextnav Acquisition Corp (NN) Q2 2025:
Krista, Conference Operator: Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the NexNAV Second Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.
I would now like to turn the conference over to Nevin Riley, Investor Relations at Sloan. Please begin.
Nevin Riley, Investor Relations, Sloan: Good afternoon, everyone, and welcome to NEXNAV’s Second Quarter twenty twenty five Earnings Conference Call. Participating on today’s call are Miriam Sarand, NEXNAV’s Chief Executive Officer and Chris Gates, NEXNAV’s Chief Financial Officer. Before we begin, let me remind everyone that this call will include certain statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements may be identified by use of the words may, anticipate, believe, expect, intend, should, could and similar expressions. Such forward looking statements, which may relate to NexNAV’s forecast of future results, future prospects, developments and business strategies are subject to known and unknown risks, uncertainties and assumptions, many of which are outside NexNAV’s control and could cause actual results to differ.
In particular, such forward looking statements include the achievement of certain SEC related milestones and SEC approvals NexNAV’s projections, plans, objectives and expectations and NextNav’s future business strategies and competitive position. These statements are based on management’s current expectations and beliefs as well as a number of assumptions concerning future events. You are cautioned not to place undue reliance upon the forward looking statements, which speak only as of the date made, and NextNav undertakes no commitment to update or revise the forward looking statements except as required by law. For additional information regarding risks and uncertainties, please refer to the risk factors and other disclosures contained in the company’s filings with the SEC. Following prepared remarks, the company will host an operator led question and answer session.
In addition, a replay of our discussion will be posted to the company’s Investor Relations website. I’d now like to turn the call over to Ms. Sarand. Please go ahead, Mariam.
Miriam Sarand, Chief Executive Officer, NexNAV: Thank you, Nevan. Good afternoon, and thank you all for joining us today. We led an eventful and impactful second quarter marked by the May 13 conclusion of the comment period in response to the FCC’s Notice of Inquiry or NOI titled Promoting the Development of Positioning, Navigation and Timing Technologies and Solutions. NextNav continues to advance our FCC advocacy with a sense of urgency. Since we filed our NOI comments and reply comments, we have filed additional technical, economic and operational data and analysis, laying a strong foundation for the FCC to act on our proposal.
We are encouraged by the FCC’s actions to date and believe that this effort is a sustained priority for the FCC Chairman as suggested by the issuance of the NOI. A terrestrial complement and backup to GPS is an urgent national security priority, and we will continue to advocate for the FCC to properly issue a notice of proposed rulemaking or NPRM that would enable a terrestrial complement and backup to GPS without the need for multibillion dollar taxpayer expenditures. We were also excited to see that the FCC granted its consent for licenses to be assigned to NextNav. As we announced in March 2024, NextNav entered into an asset purchase agreement to acquire the remaining 128 active MLMS licenses in the lower 900 megahertz a block. And we filed an assignment application with the FCC in April 2024 concurrent with our petition for rulemaking.
On 06/20/2025, the FCC issued an order granting its consent to the assignment of these licenses to NexNAV. The licenses already held by NexNAV in the lower 900 megahertz band are in the b and c blocks. Significantly, in addition to a grant, the order included a waiver of an FCC rule that forbids one licensee from holding both an a block license and a b or c block license in the same license area. The order also noted that the grant was likely to result in certain public interest benefits, including the potential for further development of the MLMS band. The order permits us to complete the license assignment, and we are working towards that goal.
We thank FCC chairman, Brendan Carr, and the FCC staff for the meaningful effort and time they are devoting to these issues given the numerous demands on the FCC’s resources. GPS remains a vulnerable single point of failure for The US economy and national security. The FCC is uniquely positioned to swiftly enable a five g based terrestrial solution like NEXNAV that seamlessly enables a complement and backup to GPS in addition to making available new broadband capacity. NextSnap’s petition to the FCC seeks to modernize rules and optimize the lower 900 megahertz band to enable terrestrial PNT and five g broadband, a market based approach to address an urgent national security priority. This is critical infrastructure for the future, delivered in a way that is consistent with FCC Chairman Karr’s Build America agenda.
Our proposal advances America’s leadership in wireless by making additional spectrum available for broadband, modernizing outdated regulations, and advancing US national security and resilience by enabling a wide scale terrestrial PNT solution all without any taxpayer funding. While critics have made unfounded claims about our proposal, they have not filed any valid technical analysis with the FCC. In contrast, NexNAV has invested time and resources in technical and economic studies that demonstrate the feasibility and public interest benefits of our proposal. Through these filings, we have been disproving other parties’ objections in the record with robust analysis. We believe the technical record provides a strong basis for the FCC to issue an NPRM bolstered by continued support from public safety.
We were also pleased to see commenters note that a market based approach can best deliver future proof solutions. In June, we presented implementation and deployment details of our five g based PNT solutions to both the FCC’s Wireless Polycommunications Bureau and its Office of Engineering and Technology. Importantly, we presented a path by which with swift FCC action, our solution could be available during this administration. Due to the use of standards based five g technology, we believe multiple network partnership options are possible. In July, we filed a supplemental technical study further validating the assumptions and conclusions in our February technical study demonstrating that introducing five gs operations will not cause unacceptable interference to unlicensed part 15 devices in the lower 900 megahertz band.
We also filed in July a second supplemental economic report prepared by the Brattle Group establishing that NexSnap’s proposed optimization of the lower 900 megahertz band would impose minimal cost while generating substantial national benefits potentially amounting to tens of billions of dollars. And finally, on August 1, we filed a technical study demonstrating that license tolling operations can coexist with five g operations in the lower 900 megahertz band. In addition to our progress with the FCC, I participated in a June 24 event at The US capital focused on the urgent need for GPS resiliency. The event featured a conversation between Chairman Richard Hudson, chair of the Communications and Technology Subcommittee of the House Energy and Commerce Committee, and the honorable Greg Walden, former chairman of the House Energy and Commerce Committee. The event also featured Arpin Sura, senior counsel and chief AI officer to chairman Carr, doctor Thomas Rondeau, principal director for future g at the Department of Defense, and Adam Elder, director of public safety for Fairfax County, Virginia.
The participants reinforced a critical message. GPS vulnerabilities are not hypothetical. They are real, present threats to national security, public safety, and the economy, and America must address this issue now. I’m confident that our solution will play a key role in the system of systems necessary for P and T resiliency. It is future proof and can scale rapidly, leveraging existing network infrastructure and the vibrant global five g ecosystem without requiring taxpayer funding.
Looking ahead, NextNav is committed to strengthening P and T resiliency in support of national security, public safety, and the economy. With the increasing recognition of the need for a terrestrial complement and backup to GPS, we are well positioned for continued momentum. We remain focused on executing our strategic roadmap and driving innovation in geolocation technology. With that, let me turn things over to Chris for a review of our financials. Chris?
Chris Gates, Chief Financial Officer, NexNAV: Thanks, Miriam, and good afternoon, everyone. I’ll address our financial performance for the 2025 in addition to our balance sheet and liquidity. Beginning with the top line, NexNav’s revenue for the second quarter was $1,200,000 compared to $1,100,000 in the prior year period. For the six months ended 06/30/2025, revenue was $2,700,000 as compared to $2,200,000 for the prior year period. The increase in both three and six months ended 06/30/2025 was primarily driven by an increase in service revenue from technology and services contracts with government and commercial customers.
Operating expenses for the second quarter were $18,400,000 up approximately $2,000,000 versus the same period last year. Operating expenses included $1,400,000 in depreciation and amortization and $3,700,000 in equity compensation compared to $1,300,000 in depreciation and amortization and $3,700,000 in equity compensation in the prior year period. For the 2025, operating expenses were $37,000,000 as compared to $33,600,000 in 2024. Operating expenses included $2,800,000 in depreciation and amortization and $8,000,000 in equity compensation compared to $2,600,000 in depreciation and amortization and $7,900,000 in equity compensation in the prior year period. Net loss for the second quarter was $63,200,000 which included a $39,500,000 loss associated with the change in the fair value of derivative liability and warrants.
This is compared to a net loss of $24,400,000 in the prior year period, which included a loss in the change of the fair value liability of $8,500,000 For the six month period, net loss was $121,800,000 which included a $58,000,000 loss associated with the change in the fair value of derivative and warrant liability and $14,400,000 loss associated with debt extinguishment. This is compared to a net loss of $56,000,000 in the prior year period, which included a loss in the change in the fair value of our warrant liability of 21,700,000.0 Turning now to our balance sheet and liquidity. We finished the second quarter with $176,100,000 in cash, cash equivalents and short term investments. As we have mentioned in the past, we take a prudent long term approach to liquidity and continue to carefully manage our use of capital as we work to advance our business. With that, I’ll turn the call back over to the operator for questions.
Operator?
Krista, Conference Operator: Thank you. We will now begin the question and answer session. Session. Your first question comes from Mike Crawford with B. Riley Securities.
Please go ahead.
Mike Crawford, Analyst, B. Riley Securities: Thank you. What are your next steps in the FCC process on the progression towards a hope for NPRM? Is it more technical studies that you you might introduce to the record to help achieve more consensus building, or or is it just a wait and see at this point?
Miriam Sarand, Chief Executive Officer, NexNAV: Hi, Mike, and thanks for the question. We have completed a rigorous robust analysis. Right? We did the August 1 filing that addressed the tolls and coexistence with the tolls. And in July and and prior months, we in February, we filed two unlicensed studies that basically showed that we can coexist with unlicensed.
So at this point, we have submitted a complete rigorous and complete analysis to the FCC for them to move forward with perspective. Now we continue to advocate for our position. We continue to bring a sense of urgency, but we believe that we have completed the record sufficiently enough for the FCC to move to NPRM.
Mike Crawford, Analyst, B. Riley Securities: Okay. Great. Thank you. And then, my one follow-up question relates to any progress or other developments in conjunction with you cooperating or offering some kind of complimentary service with other, space based alternatives such as zone of space systems, which is trying to build a 258 P and T constellation in LEO. So any any updates on on any of that front?
Miriam Sarand, Chief Executive Officer, NexNAV: I mean, we continue to believe in the system of systems. We just recently announced some partnerships, right, on the system of systems. We continue to talk to the industry beyond just terrestrial and to the satellite players to to actually bring together and and make this system a system of reality. At this point, we don’t have any updates on any satellite related discussions to share with you, but if when those are available, we will share.
Mike Crawford, Analyst, B. Riley Securities: All right. Thank you very much.
Krista, Conference Operator: Your next question comes from Dan McDermott with Oppenheimer. Please go ahead.
Dan McDermott, Analyst, Oppenheimer: Hi, guys. Dan on for Tim Horan. Thanks for taking our question. Just the one, you mentioned in your prepared remarks, you have multiple partnership opportunities, and we saw the ad trend in a silly courts announcement from last week. Can you maybe just discuss how that fits into your plans in a little more detail?
Thanks.
Miriam Sarand, Chief Executive Officer, NexNAV: Yeah. Thank you for the question. Actually, we’re we’re super excited about the Atran and Oslo courts announcement. I mean, you’ve heard me talk about system of systems many times and how this would enable a very cohesive P and T pop up and backup solution that ensures a few things, service continuity, accuracy, and coverage. Right?
I mean, we all need to come together to be able to do this these, goals. Now this is an initial embodiment of that that you’re seeing right now. We’re gonna use our technology, our next gen technology to integrate it into this multi source timing receiver with them, and we’re gonna demonstrate improved resiliency through five g based timing. So these partnerships are gonna provide us with a great and a valuable opportunity to bring together multiple non GPS sources to enable resilient PNT solutions.
Chris Gates, Chief Financial Officer, NexNAV: Great. Thank you.
Mike Crawford, Analyst, B. Riley Securities: Sure.
Krista, Conference Operator: Your next question comes from the line of Peter Sapino with Wolfe Research. Please go ahead.
Peter Sapino, Analyst, Wolfe Research: Hi. This is Ron on for Peter. First, following the technical filings that you recently made, do you anticipate participating in field testing for, either unlicensed operations or the tools?
Miriam Sarand, Chief Executive Officer, NexNAV: Yeah. At this time, we don’t believe that any additional testing, including field testing, joint testing is required for the FCC to move forward with an NPRM.
Peter Sapino, Analyst, Wolfe Research: Got it. And as a follow-up, just considering like retuning, do you anticipate there’s any significant cost associated with retuning tools?
Miriam Sarand, Chief Executive Officer, NexNAV: Yeah. So so if you saw our August 1 study and also the Brattle Group report, in the August 1 study, we showed that five g can coexist, that it would re it yeah. That some subset might require retuning. There is no replacement of toll transponders, any of these things that are needed. And these subset of routines are a minimal cost as it’s highlighted in the Brattle report.
So and and we’ve continuously said we’re committed to reasonable accommodations, including financial that that are reasonable, that have been brought in good faith to ensure that there’s a smooth transition to a very optimized lower 900 megahertz band that enables us to solve this national security problem. It enables the tools to continue their operations. So minimal cost, minimal retuning.
Mike Latimore/Vijay Devar, Analyst, Northland Capital Markets: Thank you.
Miriam Sarand, Chief Executive Officer, NexNAV: Thank you for the question.
Krista, Conference Operator: Your next question comes from the line of Brandon Lynch with Barclays. Please go ahead.
Brandon Lynch, Analyst, Barclays: Great. Thanks for taking my questions. As part of the One Big Beautiful Bill auction authority was returned to the SEC, How do you think that will impact your process with the government going forward?
Miriam Sarand, Chief Executive Officer, NexNAV: Yeah. Thank you, for the question. I I don’t see a significant impact to what we’re trying to achieve, and there’s a few reasons for that. First of all, the most important one is, obviously, not all spectrum is the same. Our spectrum in the low band, that has incredible coverage characteristics that is solving the PNT problem and of making broadband available is below one gigahertz.
The one big beautiful bill is is really looking at higher frequencies. It’s above 1.3 gigahertz all the way to 10.5 gigahertz. That’s the range that they’re looking at. So we’re following a lower range, and, we obviously are obviously having a PNT element to solve a national security problem. There’s also a second reason.
There’s a timing perspective. So the FCC does have general auction authority, but one key directive in the bill is that then the NTI needs to identify the spectrum first from existing federal users. So this is gonna take some time. And and, of course, there’s a process after the identification of it. Our spectrum is currently licensed and available, and we’re proposing to optimize it through minimal retuning.
Brandon Lynch, Analyst, Barclays: Okay. Thank you. That’s helpful. And then you you touched on this a little bit already, but can can you summarize some of the differences in the economic analysis findings of the Brattle Group versus the report filed by EZ Pass and its partners?
Miriam Sarand, Chief Executive Officer, NexNAV: Sure. I mean, in general, we identified all the all the flaws with the report that was done. There was no value given, to at all what we bring, which is potentially billions of dollars of of GPS resiliency. Zero value given to it. There was an outrageous value given to the retuning and the swap of toll readers of of transponders, which our report just demonstrated that is not necessary.
It’s minimum retuning minimal returning and minimal cost. It also assumed outrageous numbers with respect to unlicensed. We’re not asking the unlicensed operations to, to swap out of the band. They continue to enjoy the benefits that they have under their unlicensed regime to continue operating in this band. We’re not asking them to vacate.
There’s no reason to associate a cost for vacating any of them. And as our technical report, that we filed two of them show that we’re not, putting out any more emissions than the current licenses that we hold. So there should be no change to the environment that they’re operating in, and there is no reason for them to retune. There’s no reason for them. They’re not losing spectrum.
They’re not there’s not a percentage decrease on their spectrum. So we’ve made all of these valid technical assumptions in the reports and and analysis that we have provided to the FCC, And we don’t believe that the economic report took into consideration any of these fact based data and analysis and made incorrect assumptions.
Brandon Lynch, Analyst, Barclays: Okay. Very good. Thank you for the color.
Krista, Conference Operator: Your next question comes from the line of Mike Latimore with Northland Capital Markets. Please go ahead.
Mike Latimore/Vijay Devar, Analyst, Northland Capital Markets: Hi, this is Vijay Devar for Mike Latimore. One quick question, please. Can you address how resilient PNT fits into AI?
Miriam Sarand, Chief Executive Officer, NexNAV: Yes. Of course. And and thank you for the question. I think you need to think of resilient P and T as a backbone to AI. One of the things that a lot of the AI use cases, and I’ll talk about some of them, rely on is actually accurate real time data.
And so, for example, autonomous vehicle, critical infrastructure. And if you don’t have accurate PNT data, a lot of these applications fail. So, basically, you know, for example, if you need, real world precise location and timing to make some of these decisions that AI needs to make and the PNT data is wrong, the outcomes will be extremely misguided, very dangerous, and mission failing. So so that’s, that is it’s really important to have PNT as its backbone and partner with AI. You know, the critical infrastructure, it relies a lot on timing synchronizations.
And so if you get faulty AI predictions, if you get uncoordinated success, sort of systems and security vulnerabilities, I mean, you’re talking about a failure of power grids and financial systems. So so AI really needs real time accurate data. And I also you know, there’s a whole sort of defense and security application that we’re talking about when you’re talking about drone swarms, when you’re talking about targeting systems, guided munitions, all of them rely on positioning data. And so if that positioning data is not accurate, then what’s the use of an AI driven drone, right, or or any of that. So so it’s extremely it’s an extremely important element.
We’ve been looking into it. We’ve been looking at how we can we can create partnerships around this, and we will have more as they become available. Thank you for the question.
Krista, Conference Operator: And that concludes our question and answer session. And I will now turn the conference back over to Miriam Sarand, CEO, for closing comments.
Miriam Sarand, Chief Executive Officer, NexNAV: Thank you. As I mentioned in the beginning of our call, we’re pleased with the progress we made in the second quarter. We are confident in our approach. Though we can’t speculate about when the FCC will issue an NPRM, we will continue to drive the urgency with our proposal and look forward to continuing to support the FCC’s work as we seek to enable a wide scale future proof complement and backup to GPS as quickly as possible. Thank you, everyone.
Krista, Conference Operator: Participation and you may now disconnect.
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