Q3 2025 Nextnav Inc Earnings Call

November 6, 2025

After the Speakers' remarks, there will be a question and answer session. If you'd like to ask a question during that time press star followed by one on your telephone keypad.

As a reminder, today's call is being recorded.

On today's call over to never Riley never Riley. Please go ahead.

Good morning, everyone and welcome to <unk> third quarter 2025 earnings conference call participating on today's call are Mary I'm surround <unk>, Chief Executive Officer, and Tim Greg <unk>, Chief Financial Officer before we begin let me remind everyone that this call will include certain statements.

Institute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Forward looking statements maybe identified by use of the words may anticipate believe expect intend should could and similar expressions such forward looking statements, which may relate to next asked forecasts of future results and future prospects developments and business strategies are subject to known and unknown risks uncertainties and assumptions.

As many of which are outside <unk> control that could cause actual results to differ.

Particular, such forward looking statements include the achievement of certain FTC related milestones and FCC approvals.

<unk> projections plans objectives and expectations and next now its 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.

And not to place undue reliance upon forward looking statements, which speak only as of the date made and Nextera have undertakes no commitment to update or revise our 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 would now like to turn the call over to Mr. <unk>. Please go ahead Marion.

Thank you Kevin Good morning, and thank you all for joining us today.

Before I begin I want to take a moment to welcome Tim Gray as <unk>, Chief Financial Officer, Tim is an industry veteran bringing a rare combination of deep spectrum knowledge and experience, leading the finance function as growth oriented companies that have technology in the marketplace. We're excited to have him.

<unk> onboard for our next chapter of growth as we prepare for commercialization of our technology welcome to the team Tim.

Also want to recognize Chris case for all of us meaningful contributions, particularly in ensuring next novel leads with a healthy balance sheet and liquidity position.

Chris will maximize his expertise in corporate development and increasingly important responsibility as we prepare for the commercialization of our technology and will work closely with him on strategic positioning and our next chapter of growth.

I'll begin with an update on our FCC process.

Since the FCC is March 2025 notice of inquiry or NOI on P&C technologies next not have followed a robust set of technical and economic studies that demonstrate the feasibility and public interest benefits of our proposal to enable <unk> based <unk> and the lower 900.

It's not going to expand.

We continue to proactively contribute to the FCC process and believes the FCC has sufficient data to issue a notice of proposed rulemaking or N. P. R. M.

In early September we met with senior stuff from the FCC Wireless Bureau, and office of engineering and technology as well as Arpin SURA Senior counsel and Chief AI Officer to Chairman Brendan Kerr proactively summarizing the record and urging the FCC to promptly issue in EM.

P R.

We were also pleased to see chairman car continue to reiterate the importance of P&C and public remarks over the past few months.

We think German car and FCC staff for their continued diligence and consideration of the need for PMT resiliency, given the numerous competing priorities and demands on the FCC's resources.

While we cannot speculate on N P. R. M timing, we note that the FCC's C band NOI preceded the P&C NOI Chairman car has talked about the FCC summer 2027 deadline to completing auction of the C band, referring to that as a very compressed timeline given the work that needs to be done.

And just last week chairman car announce that the FCC will vote on a C band N P. O M. At its November 20th open meeting.

Given the congressional mandate for auction, we were not surprised that the FCC continued its work on this issue.

What we can say on timing is it the ongoing government shutdown has halted most of the work at the FCC.

But we continue to actively engaged with administration and congressional officials were not furloughed to advocate for our proposal.

In addition to our work with the FCC, we continue to advance our technology and make progress on commercialization independent of the FCC process.

First we are aggressively advancing the technical work needed to deliver a <unk> based <unk> solution.

As a complement to GPS addressing urgent national security needs.

Last month, we reached a major milestone towards enabling a wide scale.

Virtual five G based three D P&C solution deriving accurate timing and positioning information, while simultaneously delivering both downlink and uplink data transmissions utilizing standard <unk> network equipment. This achievement highlights the seamless integration of <unk> technology.

And five G.

Next in partnership with a full of course, we were pleased to achieve the successful integration of our <unk> technology.

And in a civil courts Genesis enabled grandmaster clock.

This achievement marks another significant step towards the commercialization of the GPS complement and backup serving the needs of National security public safety and mission critical enterprise timing applications.

Yeah.

These achievements reinforce the scalability and practicality of a resilient terrestrial complement to GPS and we are focused on continuing our forward progress towards commercialization.

Last month, we also extended our agreement with AT&T.

Lending to a pinnacle network operations by two years to October 2028.

Network, which operates primarily in partnership with AT&T is providing public safety applications like enhanced 911 across all major cellular networks and two first not.

This recognition of our continuing technology leadership and Z axis is an important component of our commercialization for five G. Based three D. P N T capability.

Finally in October we showcased our leadership in location technologies at mobile World Congress 2025, Las Vegas, our Booth received a lot of traffic from attendees and we highlighted both our current vertical location capabilities as well as our progress towards commercialization of five G based three D. P.

I N T.

Looking ahead to the remainder of 2025 and beyond next NAV remains deeply committed to advancing P&C resiliency and support of National security public safety and economic stability.

As there is already broad awareness of the need for a terrestrial complement and backup to GPS we are uniquely positioned to build on our momentum we remain focused on executing our strategic roadmap and driving innovation and geolocation technology.

With that I will turn things over to Tim for a review of our financials Tim.

Thank you Mary and good morning, everyone.

I am thrilled to join next Nab embodiment of experience for its next chapter of growth as it prepares to optimize the lower 900 megahertz band.

Delivering a win for National security public safety in the American economy.

<unk> has a strong financial foundation and a compelling growth story.

I look forward to helping next name navigate its exciting future and to engaging with shareholders on our journey forward together.

In the third quarter and have continued to hold a position of financial strength and strategic advantage with strong liquidity valuable spectrum assets and the development and testing of our resilient proven technology.

Operator: Have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, press star followed by the number one on your telephone keypad. As a reminder, today's call is being recorded. I will now turn today's call over to Nevin Reilly. Nevin Reilly, please go ahead.

Our leadership in location technologies at mobile World Congress 2025, Las Vegas, our Booth received a lot of traffic from attendees and we highlighted both our current vertical location capabilities as well as our progress towards commercialization of five G. Based three D. P N T.

Having repaid $70 million senior secured debt in March 2025, we have demonstrated consistent robust financial health.

Next <unk> remaining convertible notes do not mature until June 2028, and additional capital.

So be realized through warrant conversions over the coming years.

Looking ahead to the remainder of 2025 and beyond next Nab remains deeply committed to advancing P&C resiliency and support of National security public safety and economic stability.

Nevin Reilly: Good morning, everyone, and welcome to NextNav's third-quarter 2025 earnings conference call. Participating on today's call are Mariam Sorond, NextNav's Chief Executive Officer, and Tim Gray, NextNav'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 NextNav'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 NextNav's control and could cause actual results to differ. In particular.

The closing of the <unk> transaction and subsequent securing of additional spectrum and the lower 900 megahertz band is positioned next step to continue to create value for our shareholders.

As there is already broad awareness of the need for a terrestrial complement and backup to G. P. S. We are uniquely positioned to build on our momentum we remain focused on executing our strategic roadmap and driving innovation and geolocation technology.

Recent low band spectrum transactions present, a positive development for investors validating spectrum is a highly strategic asset.

Next steps lower 900 megahertz spectrum represents a scarce and valuable asset to enable its five G based complement and backup to GPS and to deliver broadband.

With that I will turn things over to Tim for a review of our financials Tim.

This transaction added 128 active lower 900 megahertz band spectrum licenses and resulted in the issuance of roughly one 2 million shares at closing.

Thank you Mary and good morning, everyone.

I'm thrilled to join next Nab and bring my experience for its next chapter of growth as it prepares to optimize the lower 900 megahertz band.

With that I'd like to address a few additional financial highlights.

Delivering a win for National security public safety in the American economy.

In the third quarter, we recognized gains of approximately $23 $6 million associated with the change in the fair value of the derivative warrants liability.

Nevin Reilly: Such forward-looking statements include the achievement of certain FCC-related milestones and FCC approvals, NextNav'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 FCC. 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. Sorond. Please go ahead, Mariam.

<unk> has a strong financial foundation and a compelling growth story.

I look forward to helping next them navigate its exciting future and to engaging with shareholders on our journey forward together.

The impacts of these noncash gains resulted in net income for the quarter of nearly half a million dollars.

In the third quarter next and have continued to hold a position of financial strength and strategic advantage with strong liquidity valuable spectrum assets and the development and testing of our resilient proven technology.

In addition, we finished the third quarter with $167 $6 million in cash cash equivalents and short term investments.

We are continuing to conservatively manage our use of capital as we work to advance our business and develop our assets, taking a deliberate approach to liquidity and commercialization.

Having repaid our $70 million senior secured debt in March 2025, we have demonstrated consistent robust financial health.

There is significant runway and funding for next NAV to continue its work on achieving its ambitious goals.

<unk> remaining convertible notes do not mature until June 2028, and additional capital May also be realized through warrant conversions over the coming years.

With that I'll turn the call back over to the operator for questions.

Later.

The closing of the <unk> transaction and subsequent securing of additional spectrum and the lower 900 megahertz band is positioned next step to continue to create value for our shareholders.

At this time, if you'd like to ask a question press star followed by the number one on your telephone keypad.

If the question has been answered and you would like to remove yourself from the queue Press star followed by the number one.

Mariam Sorond: Thank you, Nevin. Good morning, and thank you all for joining us today. Before I begin, I want to take a moment to welcome Tim Gray as NextNav's Chief Financial Officer. Tim is an industry veteran, bringing a rare combination of deep spectrum knowledge and experience leading the finance function at growth-oriented companies that have technology in the marketplace. We are excited to have him on board for our next chapter of growth as we prepare for commercialization of our technology. Welcome to the team, Tim. I also want to recognize Chris Gates for all his meaningful contributions, particularly in ensuring NextNav leads with a healthy balance sheet and liquidity position. Chris will maximize his expertise in corporate development and increasingly important responsibility as we prepare for the commercialization of our technology, and will work closely with Tim on strategic positioning in our next chapter of growth.

Recent low band spectrum transactions present, a positive development for investors validating spectrum is a highly strategic asset.

Well pause for just a moment to compile the Q&A roster.

Next <unk> lower 900 megahertz spectrum represents a scarce and valuable asset to enable at five <unk> based complement and backup to GPS and to deliver broadband.

Your first question is from the line of Mike Crawford with B Riley Securities.

Thank you marry them now that the FCC has through its space month and has started that C band auction process do you think peers P&C it could be the next that priority list.

This transaction added 128 active lower 900 megahertz band spectrum licenses and resulted in the issuance of roughly one 2 million shares at closing.

With that I'd like to address a few additional financial highlights.

Thank you Mike. Thanks for the question as you know the FCC doesn't provide guidance on their timing. Neither do we provide guidance, but we continue to believe that this is an important issue and a priority for chairman car and and getting C band NOI done.

In the third quarter, we recognized gains of approximately $23 $6 million associated with the change in the fair value of the derivative warrants liability.

The impacts of these noncash gains resulted in net income for the quarter of nearly half a million dollars.

We'll actually definitely paved the way for him to focus on there's other priorities and for the commission to focus on their other priorities.

In addition, we finished the third quarter with $167 $6 million in cash cash equivalents and short term investments.

Mariam Sorond: I'll begin with an update on our FCC process. Since the FCC's March 2025 Notice of Inquiry, or NOI, on PNT technologies, NextNav has filed a robust set of technical and economic studies that demonstrate the feasibility and public interest benefits of our proposal to enable 5G-based 3D PNT in the lower 900 MHz band. We continue to proactively contribute to the FCC process and believe the FCC has sufficient data to issue a Notice of Proposed Rulemaking, or NPRM. In early September, we met with senior staff from the FCC Wireless Bureau and Office of Engineering and Technology, as well as Arpun Sura, Senior Counsel and Chief AI Officer to Chairman Brendan Carr, proactively summarizing the record and urging the FCC to promptly issue an NPRM. We were also pleased to see Chairman Carr continue to reiterate the importance of PNT in public remarks over the past few months.

Okay. Thank you and then.

We are continuing to conservatively manage our use of capital as we work to advance our business and develop our assets, taking a deliberate approach to liquidity and commercialization.

Just shifting gears.

The company had or has had international strategy and coding some collaboration.

In Japan, maybe using some donated 800 megahertz spectrum to.

There is significant runway and funding for next NAFTA continuous work on achieving its ambitious goals.

Help propagate your solution, but is there anything that's changed so that you can share with what you're doing internationally or how are you at.

With that I'll turn the call back over to the operator for questions.

Operator.

At this time, if you'd like to ask a question press star followed by the number one on your telephone keypad.

Potentially.

Port your IP and get paid outside of the U S where you'd hoped spectrum.

If the question has been answered and you would like to remove yourself from the queue Press star followed by the number one.

Who are we continue to have the partnership with <unk> Com and <unk> Com is actually achieved significant milestones also in their journey I wouldn't call. It donated spectrum, but just and spectrum in Japan is a it is actually licensed differently here than the U S.

Well pause for just a moment to compile the Q&A roster.

Your first question is from the line of Mike Crawford with B Riley Securities.

But it is it is very valuable spectrum that they're also working on and they're working for it with their regulator and just recently have had some good progress with the regulator and we're both working together. They also use our pinnacle altitude solution out in Japan already commercially. So it's not just just also.

Thank you marry them now that the FCC has through its space loves then has started that C band auction process do you think peer PMT could be next that priority list.

Mariam Sorond: We thank Chairman Carr and FCC staff for their continued diligence and consideration of the need for PNT resiliency, given the numerous competing priorities and demands on the FCC's resources. While we cannot speculate on NPRM timing, we note that the FCC C-band NOI preceded the PNT NOI. Chairman Carr has talked about the FCC's summer 2027 deadline to complete an auction of the C-band, referring to that as a very compressed timeline, given the work that needs to be done. Just last week, Chairman Carr announced that the FCC will vote on a C-band NPRM at its 20 November 2027 open meeting. Given the congressional mandate for action, we were not surprised that the FCC continued its work on this issue. What we can say on timing is that the ongoing government shutdown has halted most of the work at the FCC, but we continue to actively engage with.

So waiting for it for that spectrum to go through the regulatory process.

So this is a great partnership for Us where we appreciate it and also I think Japan being one of the U S. I like to work on National Security makes sense.

<unk> actually definitely paved the way for him to focus on there's other priorities for the commission to focus on their other priorities.

It probably would make sense for us also to look at the international market, but right. Now we are very focused on making sure that we prove our solution in the United States.

Okay. Thank you and then.

Just shifting gears in the past the company had or has had international strategy, including some collaboration.

Okay, well, thank you very much.

Your next question is from the line of Brendan Lynch with Barclays.

Penn maybe using some donated 800 megahertz spectrum to.

Great. Thanks for taking my question.

Help propagate your solution, but is there anything that's changed there that you can share with what you're doing internationally or how are you.

You mentioned the.

Our relationship with AT&T on first Matt could you expand on what the relationship what other relationships with carriers you could develop.

Potentially.

Port your IP and get paid outside U S, where you'd hoped spectrum.

Mariam Sorond: Administration and congressional officials who are not furloughed to advocate for our proposal. In addition to our work with the FCC, we continue to advance our technology and make progress on commercialization independent of the FCC process. First, we are aggressively advancing the technical work needed to deliver a 5G-based 3D PNT solution as a complement to GPS, addressing urgent national security needs. Last month, we reached a major milestone towards enabling a wide-scale commercial 5G-based 3D PNT solution, deriving accurate timing and positioning information while simultaneously delivering both downlink and uplink data transmissions utilizing standard 5G network equipment. This achievement highlights the seamless integration of NextNav's technology and 5G. Next, in partnership with ASILA Quartz, we were pleased to achieve the successful integration of our 5G-based PNT technology and an ASILA Quartz GNSS-enabled Grandmaster Clock.

That might help you built out the PNT solutions.

And thank you for the question and that's a good question actually as you may have seen we just highlighted a key point regarding the extension of our AT&T agreement, which we're very happy about.

So we're already operating a positioning system and partnership with a major wireless carrier.

But it is it is very valuable spectrum that they're also working on and they're working with the regulator.

For public safety applications.

And and and and and that that we're very excited about the extension of that agreement.

And just recently have had some good progress with the regulator and we're both working together. They also use our pinnacle altitude solution out in Japan already commercially. So it's not just just also waiting for for that spectrum to go through the regulatory process.

And the solution for that agreement, which is the Z axis is already being used in the Verizon network. Besides the public safety applications that it is being used and so Verizon is using that commercial solution. So we have an existing partnership we do need to expand that partnership obviously two to do the X Y and the rest of our solution.

So this is a great partnership for US we appreciate it and also I think Japan being one of the U S allies to work on National Security makes sense.

I believe that the FCC.

Considering this a priority and advancing what we are doing well actually be a great milestone and I'm, taking those partnerships further.

It probably would make sense for us also to look at the international market, but right. Now we are very focused on making sure that we prove our solution in the United States.

Mariam Sorond: This achievement marks another significant step towards the commercialization of a GPS complement and backup, serving the needs of national security, public safety, and mission-critical enterprise timing applications. These achievements reinforce the scalability and practicality of a resilient terrestrial complement to GPS, and we are focused on continuing our forward progress towards commercialization. Last month, we also extended our agreement with AT&T relating to our Pinnacle network operations by two years to October 2028. This network, which operates primarily in partnership with AT&T, is providing public safety applications like Enhanced 911 across all major cellular networks and to FirstNet. This recognition of our continuing technology leadership in Z-axis is an important component of our commercialization for a 5G-based 3D PNT capability. Finally, in October, we showcased our leadership in location technologies at Mobile World Congress 2025, Las Vegas.

Okay very good that's helpful and then on the recent Echostar transaction, there's obviously been some movement in the spectrum.

Okay.

Thank you very much.

Your next question is from the line of Brendan Lynch with Barclays.

That's available how do you see the spectrum supply and demand dynamic going forward, obviously you mentioned.

Great. Thanks for taking my question you.

Some of the considerations around the FCC, but.

You mentioned the.

Maybe it's more focused on our.

Our relationship with AT&T on first Matt could you expand on what the relationship what other relationships with carriers you could develop.

Swaps yourselves between.

Owners of spectrum now.

Yeah, I'm glad you brought up that because this is a great landscape, we're seeing right now and I'll also just by the way just this morning, there was another transaction between Costar and Spacex.

That might help you built out the PNT solutions.

And thank you for the question and that's a good question actually as you may have seen we just highlighted a key point regarding the extension of our AT&T agreement, which we're very happy about.

But just let me say that we are creating a 10 megahertz downlink. This is a very rare and already scarce low band spectrum position.

So we're already operating a positioning system and partnership with a major wireless carrier.

Chairman car continues to mention the importance of freeing up even additional spectrum for broadband.

For public safety applications.

The one big beautiful Bill requires freeing up spectrum.

And and and that that we're very excited about the extension of that agreement.

But none of them are below one gigahertz.

I think I also want to highlight one of the things that At&t's CEO commented posts. The echostar transaction about the 600 megahertz spectrum. So it's kind of a macro spectrum is not in the AT&T network by the way.

Mariam Sorond: Our booth received a lot of traffic from attendees, and we highlighted both our current vertical location capabilities, as well as our progress towards commercialization of 5G-based 3D PNT. Looking ahead to the remainder of 2025 and beyond, NextNav remains deeply committed to advancing PNT resiliency in support of national security, public safety, and economic stability. As there is already broad awareness of the need for a terrestrial complement and backup to GPS, we are uniquely positioned to build on our momentum. We remain focused on executing our strategic roadmap and driving innovation in geolocation technology. With that, I will turn things over to Tim for a review of our financials. Tim?

We do need to expand that partnership obviously two to do the XY and the rest of our solution I believe that the FCC.

But he did say that I have never regretted owning low band spectrum over the course of my career. So I agree with him and this highlights really the demand for low spectrum.

Considering this a priority and advancing what we are doing well actually be a great milestone and I'm, taking those partnerships further.

So in addition to that AT&T a transaction, we obviously saw their transactions with Echostar and continue to see the transactions we believe that.

Okay very good that's helpful and then on the recent Echostar transaction, there's obviously been some movement in the <unk>.

That low band spectrum, when it's available.

Spectrum.

The demand is significant.

That's available how do you see the spectrum supply and demand dynamic going forward, obviously you mentioned.

And the fact that were seeing an expanding universe of participants in the market for spectrum.

Some of the considerations around the FCC, but.

Besides the major carriers.

Maybe it's more focused on our.

Swaps or sales between.

And which includes a solid operators. This demand is going to expand and collectively we see all of this as positive for our business.

Owners of spectrum now.

Nevin Reilly: Thank you, Mariam, and good morning, everyone. I'm thrilled to join NextNav and bring my experience for its next chapter of growth as it prepares to optimize the lower 900 MHz band, delivering a win for national security, public safety, and the American economy. NextNav has a strong financial foundation, and a compelling growth story. I look forward to helping NextNav navigate its exciting future, and to engaging with shareholders on our journey forward together. In the third quarter, NextNav continued to hold a position of financial strength and strategic advantage with strong liquidity, valuable spectrum assets, and the development and testing of our resilient, proven technology. Having repaid our $70 million senior secured debt in March 2025, we have demonstrated consistent, robust financial health. NextNav's remaining convertible notes do not mature until June 2028, and additional capital may also be realized through warrant conversions over the coming years.

Yes, I'm glad you brought up that because this is a great landscape, we're seeing right now and I'll also just by the way just this morning, there was another transaction between Costar and Spacex.

Great. Thank you.

Your next question is from the line of Ryan Koontz with Needham.

But just let me let me say that we are creating a 10 megahertz downlink. This is a very rare and already scarce low band spectrum position.

Great. Thanks for the question.

When asked about any update you have on your commercialization and partner strategy model for the U S relative to to mass rollout and then specifically how does this silver courts integration play.

Chairman car continues to mention the importance of freeing up even additional spectrum for broadband.

The one big beautiful Bill requires freeing up spectrum.

Play into that at all I mean, obviously timing is it.

It's everywhere in the U S wireless network today, but probably not.

But none of them are below one gigahertz.

I think I also want to highlight one of the things that At&t's CEO commented posts the echostar transaction.

You know proliferate enough to handle.

I would guess.

Your needs for the number of instances around the around the country.

About the 600 megahertz spectrum 600 megahertz spectrum is not in the AT&T network by the way.

Thank you Arun for the question.

Thank you know there is definitely a high degree of attention to our spectrum and regulatory process, but as a company, where we're very focused and really excited about just not only just enabling what we're doing with the spectrum and capacity, but our solution to provide this complementary parity. So so obviously, we've been operate operationalize into Q2.

But he did say that I have never regretted owning low band spectrum over the course of my career, so I agree with them and this highlights really the demand for low spectrum.

Nevin Reilly: The closing of the Telesaurus transaction and subsequent securing of additional spectrum in the lower 900 MHz band has positioned NextNav to continue to create value for our shareholders. Recent low-band spectrum transactions present a positive development for investors, validating spectrum as a highly strategic asset. NextNav's lower 900 MHz spectrum represents a scarce, yet valuable, asset to enable a 5G-based complement and backup to GPS, and to deliver broadband. This transaction added 128 active lower 900 MHz band spectrum licenses and resulted in the issuance of roughly 1.2 million shares at closing. With that, I'd like to address a few additional financial highlights. In the third quarter, we recognized gains of approximately $23.6 million associated with the change in the fair value of the derivative and warrants liability. The impacts of these non-cash gains resulted in net income for the quarter of nearly half a million dollars.

So in addition to that AT&T a transaction, we obviously saw their transactions with Echostar contingency the transactions, we believe that that low band spectrum when it's available.

Technology is not only on advancing what we're doing with the network side. That's shows PMT broadband on five G standard equipment.

The demand is significant.

But also as you mentioned you know the use of the signal that it provides recently highlighted with a single course is so let me just remind everyone. There, they're a leading provider of timing solutions. So we're super excited about integrating.

And the fact that were seeing an expanding universe of participants in the market for spectrum.

Besides the major carriers.

And which includes a solid operators. This demand is going to expand and collectively we see all of this as positive for our business.

Are there timing solution into the network, which is significant and you're right. There's been there is a lot of focus on timing. In addition to positioning because it remains in the critical infrastructure and a significant point. So we're super excited about moving to that partnership.

Great. Thank you.

Your next question is from the line of Ryan coats with Needham.

Great. Thanks for the question.

Ask about any update you have on your commercialization and partner strategy model for the U S relative to to mass rollout and then specifically how does this silver courts integration.

Forward.

And and I think that's that's going to definitely.

The one of the integrations in addition to the future integrations that we need to do to get the operational ones and commercialize network ready for a backup in complement to GPS.

Nevin Reilly: In addition, we finished the third quarter with $167.6 million in cash, cash equivalents, and short-term investments. We are continuing to conservatively manage our use of capital as we work to advance our business and develop our assets, taking a deliberate approach to liquidity and commercialization. There is significant runway and funding for NextNav to continue its work on achieving its ambitious goals. With that, I'll turn the call back over to the operator for questions. Operator?

Play into that at all I mean, obviously timing.

It's everywhere in the U S wireless network today, but probably not.

Interesting thanks.

Maybe one more if I could with regards to.

Proliferate enough to handle.

I would guess.

Any movement of existing networks that are needed to accommodate your solution have you done any scoping there in terms of those costs and how they'd be funded I think you guys have talked about toll collection on a few things like that that might need to be repacked.

The needs for the number of instances around around the country.

Thank you Ryan for the question I think there is definitely a high degree of attention to our spectrum and regulatory process, but as a company, where we're very focused and really excited about just not only just enabling what we're doing with the spectrum and capacity, but our solution to provide this complementary.

Okay.

Operator: At this time, if you would like to ask a question, press star followed by the number one on your telephone keypad. If the question has been answered and you would like to remove yourself from the queue, press star followed by the number one. We'll pause for just a moment to compile the Q&A roster. Your first question is from the line of Mike Crawford with BMO Capital Markets.

You're talking about the coexistence and the band in the spectrum users. Yes, yeah. So we have we've definitely provided a study to the FCC that thoroughly evaluates the tolls.

Yeah. So so obviously, we've been operate operationalize the key technologies not only on advancing what we're doing with the network side. That's shows PNT broadband on <unk> standard equipment.

And talks about the minimal impact to them and how they would need retuning and that Retuning is not at all going to be a hardware swap.

But also as you mentioned you know the use of the signal that it provides recently highlighted with a single course is let me just remind everyone. There. They are a leading provider of timing solutions. So we're super excited about integrating.

It's sulfur retuning.

We're very confident in our study we've been working on this and we provided that to the FCC that those cost when you are talking about the software and not rip and replace equipment become extremely minimal, especially with the minimal impact to them.

Nevin Reilly: Thank you. Mariam, now that the FCC is through its space month and has started that C-band auction process, do you think PNT could be next on the priority list?

Mariam Sorond: Thank you, Mike. Thanks for the question. As you know, the FCC does not provide guidance on their timing. Neither do we provide guidance, but we continue to believe that this is an important issue and a priority for Chairman Carr, and getting C-band NOI done will actually definitely pave the way for him to focus on his other priorities, and for the commission to focus on their other priorities.

So I would not call it a significant cause of as.

As far as the rest of the we continue to work really well with the railroads and as far as the rest of the unlicensed use of the spectrum.

Forward.

We're not asking anyone to vacate or or go to another spectrum and there is no cost associated with it and as we have shown through our FCC studies. There is also no impact on license community.

And and I think that's that's going to definitely.

B one of the integrations in addition to the future integrations that we need to do to get the operational and commercialize network ready for a backup in complement to GPS.

Nevin Reilly: Okay, thank you. Just shifting gears, in the past, the company had or has had an international strategy, including some collaboration in Japan, maybe using some donated 800 megahertz spectrum to help propagate your solution. Is there anything that's changed or that you can share with what you're doing internationally or how you would potentially port your IP and get paid outside of the US where you hold spectrum?

Your next question is from the line of Peter Zaffino with Wolfe Research.

Interesting thanks.

Maybe one more if I could with regards to.

Hi, This is Ron on for Peter We recently saw the Department of Transportation Awards to Iridium to test the solution with T. Mobile can you provide any comments on the implications or opportunities for next half.

Thank you. Thank you for the question.

I mean, what we just recently saw and this is what.

Okay.

Oh, you're talking about the coexistence and the band in the spectrum resource Yes, yes. So we have we've definitely provided a study to the FCC that thoroughly evaluates the tolls.

What Brian brought up on the importance of timing, but let me just say well we just recently saw it highlights the importance of having multiple systems.

Mariam Sorond: We continue to have the partnership with Medcom, and Medcom has actually achieved significant milestones also in their journey. I wouldn't call it donated spectrum, just. Spectrum in Japan is actually licensed differently here than the US, but it is very valuable spectrum that they're also working on, and they're working with their regulator and just recently have had some good progress with the regulator. We're both working together. They also use our Pinnacle altitude solution out in Japan already commercially, so it's not just also waiting for that spectrum to go through their regulatory process. It's a great partnership for us. We appreciate it. I think Japan being one of the US allies to work on national security makes sense.

To have a very robust complement backup to GPS, but as a reminder, our let me just remind everyone. We had the highest performance and positioning and navigation and timing technologies in the Dot's Department of Transportation's 2021 testing.

And talks about the minimal impact to them and how they wouldn't agree tuning and that retuning is not at all going to be a hardware swap.

It's sulfur retuning.

And you May remember that we also received an award under the same program in 2024.

It remains the largest awards so far.

But we're very happy to see other solutions also get an opportunity.

So I would not call it a significant cause of as far as the rest of the we continue to work really well with the railroads and as far as the rest of the unlicensed use of the spectrum, we're not asking anyone to vacate or or go to another spectrum and there is no cost associated with it and as we have shown through our <unk>.

And as we've always said from the beginning this this re it reiterates this concept of the <unk>.

System test systems, and and the importance of backup solutions, especially for critical infrastructure.

Which telco is one.

So we don't want to address this issue we do require this system of systems because GPS is used so broadly now that next time, we believe we offer the best path to a wide scale solution for most of the use cases, but of course satellite and other potential terrestrial systems also has a role too.

Mariam Sorond: It probably would make sense for us also to look at the international market, but right now, we are very focused on making sure that we prove our solution in the United States.

<unk> studies there is also no impact to the unlicensed community.

Yeah.

Your next question is from the line of Peter Zaffino with Wolfe Research.

Nevin Reilly: Okay. Well, thank you very much.

Hi, This is Ron on for Peter.

We recently saw the department of Transportation Awards to Iridium to test the solution with T mobile.

Operator: Your next question is from the line of Brendan Lynch with Barclays.

And they will create opportunities for seamless integrated solutions as well so.

Nevin Reilly: Great. Thanks for taking my question. You mentioned the kind of relationship with AT&T and FirstNet. Can you expand on what the relationship is, what other relationships with carriers you could develop, and how that might help you build out the PNT solution?

Can you provide any comments on the implications or opportunities for next half.

Overall, the positive development with the Iridium testing and the partnership with D. O T for this entire landscape and reinforcing our what we're working to achieve right now which is we're on the right path.

Thank you. Thank you for the question I mean, what we just recently saw and this is what.

What Brian brought up on the importance of timing, but let me just say well we just recently saw it highlights the importance of having multiple systems.

Mariam Sorond: Thank you for the question. That's a good question, actually. As you may have seen, we just highlighted a key point regarding the extension of our AT&T agreement, which we're very happy about. We're already operating a positioning system in partnership with a major wireless carrier for public safety applications. We're very excited about the extension of that agreement, and the solution for that agreement, which is a Z-axis, is already being used in the Verizon network besides the public safety applications that it is being used in. Verizon is using that commercial solution. We have an existing partnership. We do need to expand that partnership, obviously, to do the XY and the rest of our solution. I believe that the FCC considering this a priority and advancing what we're doing will actually be a great milestone in taking those partnerships further.

Thank you.

At this time there are no further questions I will now hand, the call back over to our presenters for closing remarks.

Thank you.

And I as I mentioned at the beginning of the call. We have continued to proactively advocate for the FCC to take the next steps in its process. Despite the government shutdown and are pleased with the technological progress we have made as we prepare for commercialization of our technology.

And you May remember that we also received an award under the same program in 2024.

And it remains the largest awards so far.

But we're very happy to see other solutions also get an opportunity.

Next novel looks forward to enabling a wide scale future proofed complement and backup to GPS.

And as we've always said from the beginning this this week as we iterate this concept of the <unk>.

As quickly as possible. We are proud of the work we are accomplishing to bolster the U S economy and National Security and we are very grateful to our shareholders for their support thank you everyone.

System of the systems and the importance of backup solutions, especially for critical infrastructure.

Which telco is one.

So we didn't want to address this issue we do require the system of systems because GPS is used so broadly now at Max now we believe we offer the best path to a wide scale solution for most of the use cases, but of course satellite and other potential terrestrial systems also have a role too.

This concludes today's call. Thank you for joining you may now disconnect your lines.

Nevin Reilly: Okay. Very good. That's helpful. On the recent EchoStar transaction, there's obviously been some movement in the spectrum that's available. How do you see the spectrum supply and demand dynamic going forward? You mentioned some of the considerations around the FCC. Maybe more focused on swaps or sales between owners of spectrum now?

And they will create opportunities for seamless integrated solutions as well so.

Overall, the positive development with Iridium testing and the partnership with D. O T for this entire landscape and reinforcing our what we're working to achieve right now which is we're on the right path.

Mariam Sorond: Yeah, I'm glad you brought up that because this is a great landscape we're seeing right now. Also, just by the way, just this morning, there was another transaction between EchoStar and SpaceX. Let me say that we are creating a 10MHz downlink. This is a very rare and already scarce low-band spectrum position. Chairman Carr continues to mention the importance of freeing up even additional spectrum for broadband. The one big beautiful bill requires freeing up spectrum. None of them are below 1GHz. I think I also want to highlight one of the things that the AT&T CEO commented post the EchoStar transaction about the 600MHz spectrum. 600MHz spectrum is not in the AT&T network, by the way. He did say that I have never regretted owning low-band spectrum over the course of my career. I agree with him.

Thank you.

At this time there are no further questions I will now hand, the call back over to our presenters for closing remarks.

Yeah.

Thank you.

And as I mentioned at the beginning of the call. We have continued to proactively advocate for the FCC to take the next steps in its process. Despite the government shutdown and are pleased with the technological progress we have made as we prepare for commercialization of our technology.

That's not looks forward to enabling a wide scale future proof complement and backup to GPS.

Mariam Sorond: This highlights really the demand for low spectrum. In addition to that AT&T transaction, we obviously saw other transactions with EchoStar. We continue to see the transactions. We believe that low-band spectrum, when it's available, the demand is significant. The fact that we're seeing an expanding universe of participants in the market for spectrum besides the major carriers, which includes the satellite operators, this demand is going to expand. Collectively, we see all of this as positive for our business.

This concludes today's call. Thank you for joining you may now disconnect your lines.

Yeah.

Yes.

Nevin Reilly: Great, thank you.

Operator: Your next question is from the line of Ryan Coates with Needham.

[Analyst]: Great, thanks for the question. I want to ask about any updates you have on your commercialization and partner strategy model for the US relative to mass rollout. Specifically, how does this SilicQuartz integration play into that at all? I mean, obviously, timing has a pretty—it's everywhere in the US wireless network today, but probably not proliferated enough to handle, I would guess, your needs for the number of instances around the country.

Mariam Sorond: Thank you, Ryan, for the question. I think there is definitely a high degree of attention to our spectrum and regulatory process, but as a company, we're very focused and really excited about just not only just enabling what we're doing with the spectrum and capacity, but our solution to provide this complementary PNT. Obviously, we've been operationalizing the key technologies, not only on advancing what we're doing with the network side that shows PNT broadband on 5G standard equipment, but also, as you mentioned, the use of the signal. It provides, recently highlighted with the SiTime, let me just remind everyone, they're a leading provider of timing solutions, so we're super excited about integrating their timing solution into the network, which is significant. You're right.

Mariam Sorond: There is a lot of focus on timing in addition to positioning because it remains in the critical infrastructure and is a significant point. We're super excited about moving that partnership forward. I think that's going to definitely be one of the integrations, in addition to the future integrations that we need to do to get the operational and commercialized network ready for a backup and complement to GPS.

[Analyst]: Interesting. Thanks. Maybe one more if I could. With regards to any movement of existing networks that are needed to accommodate your solution, have you done any scoping there in terms of those costs and how they'd be funded? I think you guys have talked about toll collection and a few things like that that might need to be repacked.

Mariam Sorond: Okay. You're talking about the coexistence in the band and the spectrum users? Yes. We've provided a study to the FCC that thoroughly evaluates the tolls and talks about the minimal impact to them and how they would need retuning. That retuning is not at all going to be a hardware swap. It's a software retuning. We're very confident in our study. We've been working on this, and we provided that to the FCC. Those costs, when you are talking about just software and not rip and replace equipment, become extremely minimal, especially with the minimal impact to them. I would not call it a significant cost. As far as the rest of the—we continue to work really well with the railroads.

Mariam Sorond: As far as the rest of the unlicensed use of the spectrum, we're not asking anyone to vacate or go to another spectrum, and there is no cost associated with it. As we have shown through our FCC studies, there's also no impact to the unlicensed community.

Operator: Your next question is from the line of Peter Supino with Wolfe Research.

[Analyst]: Hi, this is Ron Ong for Peter. We recently saw the Department of Transportation awards to Iridium to test this solution with T-Mobile. Can you provide any comments on the implications or opportunities for NextNav? Thanks.

Mariam Sorond: Thank you. Thank you for the question. I mean, what we just recently saw, and this is a little bit of what Ryan brought up on the importance of timing, let me just say what we just recently saw highlights the importance of having multiple systems to have a very robust and complement backup to GPS. As a reminder, let me just remind everyone, we had the highest performance in positioning, navigation, and timing technologies in the Department of Transportation's 2021 testing. You may remember that we also received an award under the same program in 2024, and it remains the largest award so far. We're very happy to see other solutions also get an opportunity. As we've always said from the beginning, this reiterates this concept of the system of systems and the importance of backup solutions, especially for critical infrastructure.

Mariam Sorond: Which telco is one. When we want to address this issue, we do require the system of systems because GPS is used so broadly. Now, at NextNav, we believe we offer the best path to a wide-scale solution for most of the use cases, but of course, satellite and other potential terrestrial systems also have a role to play. They will create opportunities for seamless, integrated solutions as well. Overall, the positive development with the Iridium testing and the partnership with DOT for this entire landscape is reinforcing what we're working to achieve right now, which is we're on the right path.

[Analyst]: Thank you.

Operator: At this time, there are no further questions. I will now hand the call back over to our presenters for closing remarks.

Mariam Sorond: Thank you. As I mentioned at the beginning of the call, we have continued to proactively advocate for the FCC to take the next steps in its process despite the government shutdown, and are pleased with the technological progress we have made as we prepare for commercialization of our technology. NextNav looks forward to enabling a wide-scale, future-proof complement and backup to GPS as quickly as possible. We are proud of the work we are accomplishing to bolster the US economy and national security, and we are very grateful to our shareholders for their support. Thank you, everyone.

Operator: This concludes today's call. Thank you for joining. You may now disconnect your lines.

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