NextNav Q1 Earnings Call Highlights

Key Points

• Regulatory progress remains the main catalyst: NextNav said the FCC’s draft NPRM for positioning, navigation and timing technologies is still moving through interagency review, which the company sees as a critical step toward a terrestrial backup and complement to GPS.
• Technical testing and stakeholder outreach are accelerating: The company is running 5G PNT and railroad tests, engaging with tolling and other industry groups, and highlighting coexistence demonstrations to address opposition and build support for its spectrum-based approach.
• Financials show a manageable cash position but continued losses: NextNav ended Q1 with about $143 million in cash and investments, posted a net loss of about $10.6 million, and said expiring warrants could bring in more than $200 million in additional capital if exercised.

NextNav NASDAQ: NN executives said the company continues to advance its regulatory, testing and commercialization efforts tied to a proposed terrestrial complement and backup to GPS, while reporting a first-quarter net loss that was partly offset by non-cash gains tied to warrant and derivative liabilities.

On the company’s first-quarter 2026 earnings call, Chief Executive Officer Mariam Sorond said the Federal Communications Commission’s draft Notice of Proposed Rulemaking, or NPRM, focused on positioning, navigation and timing technologies, continues to move through interagency review, including review by the Office of Information and Regulatory Affairs.

Sorond said NextNav views the NPRM as “a critical step” toward addressing what she described as the national security urgency of identifying resilient backups and complements to GPS. She said the company is continuing to work with the FCC and other government agencies as the review proceeds, while noting that timing remains subject to the ongoing process.

FCC Process and Stakeholder Engagement

Sorond said the FCC’s March 2025 Notice of Inquiry generated a level of public comment typically seen after an NPRM, which she said surfaced technical and policy matters earlier than usual. She said NextNav believes that has made the proceeding “more advanced at this stage than comparable proceedings.”

The company is also conducting technical work in parallel with the regulatory process. Sorond said the FCC has granted experimental authorizations to support NextNav’s 5G PNT network testing in Santa Clara County, California, as well as joint testing with railroads at a facility in Pueblo, Colorado.

She emphasized that the network testing and railroad testing are not prerequisites for the FCC to issue an NPRM, though she said the railroad work is relevant to the broader FCC record.

NextNav is also engaging with the tolling industry. Sorond said company representatives attended the IBTTA Technology Summit in Orlando, Florida, where they spoke with tolling technology vendors, operators and IBTTA executives about a collaborative approach to coexistence considerations and validation efforts.

Opposition Activity Increases

Sorond said the company has recently seen “a significant increase in opposition activity,” including what she described as an attempt to stall the NPRM through the House Appropriations Committee. She said NextNav views such efforts as an attempt to circumvent the FCC process and said the company believes concerns can be addressed during the NPRM process.

She also cited comments from FCC Chairman Brendan Carr, who said in April that supporting alternatives to GPS is one of the FCC’s biggest priorities and that technologies that could complement GPS should receive “a fair shot” at any needed regulatory changes.

NextNav said it is seeking to address stakeholder concerns through engineering analysis and demonstrations. Sorond said the company recently conducted a real-world coexistence demonstration using its 5G PNT network and a standard RFID reader with multiple RFID tags. She said the test was conducted at 20 feet between the 5G transmitter and the RFID reader, which she described as more extreme than real-world circumstances, and showed RFID technologies could continue operating alongside 5G signals in the lower 900 MHz band without operational impact.

Financial Position

Chief Financial Officer Tim Gray said NextNav ended the first quarter of 2026 with approximately $143 million in cash, cash equivalents and short-term investments. He said the company continues to manage its use of capital while pursuing its goals.

Gray also highlighted a series of warrants expiring in October that he said could potentially deliver more than $200 million in additional capital, depending on stock price performance. He said redemption of those warrants would provide NextNav with additional resources and balance sheet strength.

For the quarter, Gray said the company recognized gains of approximately $12.6 million related to changes in the fair value of derivative and warrant liabilities. He said those non-cash gains partially offset the company’s net loss, which was approximately $10.6 million.

Questions Focus on Spectrum, PNT and Drones

During the question-and-answer session, B. Riley Securities analyst Mike Crawford asked about the company’s 900 MHz spectrum position and potential precision gains from a full 10-by-5 5G signal. Sorond said NextNav currently has rights to “up 4 billion MHz POP” across the lower 900 MHz band. She said the company’s PNT simulations, which are being tested through field efforts in Santa Clara, show performance comparable to GPS, including single-digit accuracy and timing synchronization designed to meet critical infrastructure needs.

Crawford also asked how drones or physical AI systems would access the PRS reference signal embedded in 5G. Sorond said the PRS signal in a 5G setting provides positioning and timing capability and can also be used to extract drone detection and sensing without additional changes to the signal.

Oppenheimer analyst Tim Horan asked whether the sensing technology is tied to PNT or unique to NextNav’s approach. Sorond said the same PRS signal used for positioning and timing can also be used to sense drones and objects at certain elevations. She said the technology is connected to Integrated Sensing Technologies, or ISAC, which she described as standards-based and supported by 5G networks that can evolve to 6G and 7G.

Asked how unique the capability is, Sorond said multiple vendors are developing ISAC technology, but added that deployment also requires spectrum. She said NextNav’s position is differentiated because it brings both technology and spectrum to the table.

Sorond also said NextNav has filed comments in the FCC proceeding tied to President Trump’s “Unleashing American Drone Dominance” initiative and has joined the OCUDU Ecosystem Foundation. She said the company is speaking with stakeholders in both the vendor and agency space about drone-related sensing opportunities.

Commercial Outlook

Sorond said NextNav remains in active dialogue with potential partners, including wireless carriers, satellite operators and large technology companies, as it works toward enabling a 5G-based backup and complement to GPS. She said interest in low-band spectrum continues to expand and that the company believes its engineering case is supported by its technical study.

In closing, Sorond said NextNav is continuing to engage constructively with stakeholders while building momentum toward commercialization. She said the company remains focused on delivering what it views as a resilient terrestrial complement and backup to GPS that could support U.S. economic and national security.

About NextNav NASDAQ: NN

NextNav, Inc is a provider of advanced 3D geolocation infrastructure and positioning services in the United States. The company operates a nationwide network designed to deliver real-time horizontal and vertical location data for consumer, enterprise and public safety applications. By leveraging spectrum holdings in the 900 MHz band, NextNav’s network offers precise altitude and position information that complements GPS and other satellite systems, particularly in urban canyons, indoors or underground environments where traditional signals struggle.

At the core of NextNav’s offering is its TerraPoiNT platform, which enables developers, carriers and emergency response centers to integrate high-accuracy vertical location into their applications and workflows.

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