NN earnings call transcript, November 10, 2026

Thank you for joining us and welcome to the. Next next second quarter of 2026 earnings call after today's.

Prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. And to withdraw your question, press star one again. I'll now hand the conference over to Jared Pollack. Jared, please go ahead.

Good afternoon, everyone, and welcome to NexNav's third quarter 2026 earnings conference call. Participant in the conference. Participating on today's call are Mariam Saran, NexNav's chief executive officer, and Tim Gray, 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 meeting of the private securities litigation reform act of 1995. Forward-looking statements may be identified by the 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, 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 positions. These statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events. You are cautions not to place undue reliance upon the forward-looking statements, which speak only as of the date made, and NextNav under-

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. Brown. Please go ahead, Miriam.

Thank you, Jared.

Good afternoon.

And thank you all for joining us today. The third quarter was productive on all fronts marked by continued regulatory progress. Important technical milestones, new partnerships, and perhaps most notably, highly visible market validation of the increasing value and strategic importance of low-band spectrum. The proposed acquisition of Gray's low-band spectrum assets by SpaceX defines an important market precedent, which highlights the finite nature and scarcity value of low-band spectrum. We believe this creates an increasingly constructive backdrop for our long-term opportunity and further validates a trend we have discussed for some time as demand for low-band spectrum continues to grow. We believe there is an urgency to ensure these finite resources are maximized in support of the public interest. Beyond the transaction, we were particularly pleased to see SpaceX file two. Ex parte letters referencing our lower 900 megahertz proposal. We believe these filings reflect growing industry recognition that additional low band spectrum will be needed to support next generation connectivity services. Furthermore, we believe the filings underscore the significant value that can be unlocked by putting these scarce spectrum resources to productive use in the near future. Among other things, SpaceX urged the FCC to encourage vast investments to put scarce, low, and mid-band spectrum to use, including for innovative services like terrestrial, direct-to-device, and IoT services.

Further, on the regulatory front, as we have discussed previously, the FCC has formally submitted a Draft Notice of Proposed Rulemaking, or NPRM, focused on promoting the development of PNT technologies and solutions for an interagent. And now, with the midterm election behind us, it is important to reiterate that the core issues underpinning this proceeding, including PNT resiliency, national security, critical infrastructure. Protection, economic security, and public safety have consistently received bipartisan support. We continue to work with the administration and the FCC and are well positioned to engage constructively with the new Congress. To advance a ground-based complement and backup to GPS as the process advances, while differing viewpoints are a standard feature of major spectrum proceedings, our team continues. To engage extensively across the federal government and with key stakeholders, leveraging every appropriate avenue to equip decision-makers with engineering and data-driven analysis to advance the process. We believe the results... ...resulted in meaningful progress within the administration and various federal agencies. We also continue to engage constructively and have conversations with users in the band, including key industries such as railroad... ...operators, tolling, and other industry stakeholders. We seek to resolve coexistent matters through a facts-based approach that relies on testing and demonstrations. Notably, we concluded testing with the freight rail industry where we have been...

conducting real-world collaborative testing and detailed discussions on coexistence. Further, we have been holding early conversations with additional stakeholders in the band to develop appropriate test plans that will... satisfy their systems and operational needs. NEXAP continues to collaborate on coexistence testing and we have illustrated how our 5G PNT and sensing solutions can benefit their operation. Our team continues to engage with the public safety community as we advance our 5G powered 3D location technology to meet their needs. To date, we have engaged with fire, police, and night. 1-1-1 officials across the country to advance indoor positioning capabilities that will enhance emergency response and first responder safety. These efforts have included discussions with Fairfax County, Arlington County, Phoenix, Philadelphia. and Plano Fire Departments, North Central Texas 9-1-1, and the International Association of Firefighters. Commercially, we have been strategic in assembling the building blocks needed to enable new applications on our spectrum. Including 5G-capable PNT and sensing technologies designed to operate on standardized 5G networks. On positioning, we have partnered with Saffron on timing. And through our partnership with Tiami and Ariane Aquas, we are extending our capabilities into long-range sensing. Together, these partnerships demonstrate the growing range of applications that can be done.

Deployed on our spectrum, including for national security, critical infrastructure, and public safety. Specifically with Tiami, a recognized leader in drone sensing, we are showing how their existing capabilities can be integrated with NextNav signaling and deployed on our low-band spectrum. Importantly, this work highlights how sensing applications can operate on standardized 5G networks using our spectrum, creating a path to support scalable deployment of wide-area sensing capabilities. With Arianaculous, we are combining our technology and spectrum with our advanced signal processing, machine learning, and AI capabilities. to improve detection, identification, and tracking of multiple drones over long distances. What's key is that NexNav uniquely brings together the combination of the spectrum and technology. capabilities needed to enable a wide area, long range sensing solution at scale, including with sensing applications directly relevant to national security. Moreover, as these building blocks come together, we believe they expanded the range of high value applications that can be deployed on our spectrum. Separately, we achieved important technological validation. Milestones through real-world deployment and testing. Since early this year, we've been operating in Santa Clara County, California, under an experimental license utilizing the proposed band configuration. Transmitting on a live 5G network environment.

These activities provide a real-world opportunity to validate our solution and further support the extensive technical analysis already. On the record. Notably, we recently announced field testing results showing single-digit meter positioning performance for both indoor and outdoor. This includes accurate positioning. The constraints. As a backup and also a compliment to GPS in areas where GPS is challenged. Importantly, throughout our testing in Santa Clara, there has not been a single claim of interference. Alongside our regulatory. Processing commercial milestones, we remain an active dialogue with potential strategic partners across telecommunication providers and technology companies. The demand for finite low band spectrum continues to grow. As the range of applications expands across wireless carriers, satellite operators, and D2D providers, as well as critical infrastructure, public safety, and national security use cases. With that, I will turn things over to Tim for a review of our financials. Tim.

Thank you, Miriam, and good afternoon, everyone. On liquidity, we finished the third quarter, 2026, with approximately $290 million in cash. Cash equivalents, short-term, and long-term investments. This strong cash position was bolstered by the capital actions we took last quarter, including going debt-free and eliminating our public SPAC warrants. Also, note that as of last month, all our private SPAC warrants have been exercised using the cashless method, which reduced our potential dilution. Combined, all these actions have strengthened our balance sheet and provide us with the flexibility and resources to execute our strategy from a position of much greater strength. We continue to manage our use of capital and balance our approach to liquidity as we continue to advance on our strategic goals. For the third quarter, a reminder that the gains and losses related to outstanding private warrants fluctuate based on movements in our stock price. During the quarter, we recognized a gain of approximately $13 million associated with the change in fair value of the warrants liability. These non-cash gains partially offset the company's net loss for the quarter, resulting in a net loss of approximately $4.2 million. With that, I'll turn the call back over to the operator for questions. Operator? We will now begin the question and answer.

Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your hand. when asking the question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster.

Your next question comes from Tim Horan with Oppenheimer. Your line is open. Please go.

Your next question comes from Greg Pendy with Clear Street. Your line is open. Please go ahead.

Your next question comes from David Joyce with...

Thank you. With the broader satellite and wireless competitive landscape and flux, attention's obviously been drawn to the potential for direct-to-device. Use cases. You did allude to that earlier, but what testing, if any, have you done on that front? What other elements would need to be in place for you to see if there's any progress that can be made there?

Thank you for the question.

I think our focus has been on PNT and our testing has been on terrestrial PNT. But of course, I think in the D2D space, there is. Existing testing on low band spectrum that has been done. I think that testing is a validation of what D2D can do. I don't think it needs to be reproduced. And I think. Well, the stakeholders who are interested in it have access to their own test data to be able to tell what the performance is on low band. We're focused on PRS and PNT because that is a new capability that has not been demonstrated and tested. I appreciate it. Thank you. Sure.

There are no further questions at this time and that concludes the next NAV third quarter 2026 earnings call.

Thank you for attending.

You may now disconnect.