NextNav Inc. Reports 8.8% Revenue Growth in Q2 2025 Despite Increased Operating Losses

NextNav Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 8.8% to $1.2 million compared to $1.1 million in the same period last year. For the first half of 2025, revenue rose by 27.4% to $2.7 million, up from $2.2 million in the prior year. The growth in revenue was attributed to increased service contracts with government and commercial customers, with one customer accounting for 67% of total revenue in the latest quarter. Despite the revenue growth, the company continues to face significant operating losses, reporting a net loss of $63.2 million for the second quarter, compared to a loss of $24.4 million in the same quarter of 2024.

Operating expenses for the second quarter totaled $18.4 million, an increase from $16.4 million in the prior year, driven primarily by higher selling, general, and administrative costs, which rose by 26.2% to $10.2 million. Research and development expenses also increased by 17.4% to $4.8 million. The company’s cost of goods sold decreased by 30.4% to $2.0 million, reflecting reductions in payroll-related expenses and other operational costs. The overall operating loss for the quarter was $17.2 million, compared to a loss of $15.3 million in the same period last year.

NextNav's balance sheet showed significant changes, with total assets increasing to $256.7 million as of June 30, 2025, up from $161.7 million at the end of 2024. This increase was primarily due to a rise in cash and cash equivalents, which reached $58.9 million, and short-term investments, which rose to $117.2 million. However, the company also reported a substantial increase in long-term debt, which surged to $246.3 million from $54.6 million at the end of 2024, largely due to the issuance of $190 million in senior secured convertible notes in March 2025.

Strategically, NextNav is evolving its positioning, navigation, and timing (PNT) solutions to leverage 5G technology, which it believes will enhance operational efficiency and service delivery. The company is also pursuing regulatory changes to its spectrum licenses, which it expects will facilitate broader deployment of its services. Additionally, NextNav has been awarded contracts to establish performance characteristics for its TerraPoiNT system, which is designed to provide reliable PNT services that can complement GPS.

Looking ahead, NextNav anticipates continued investment in research and development, which may lead to further operating losses in the near term. The company believes its current cash and marketable securities will be sufficient to meet its operational needs for at least the next 12 months. However, it acknowledges that future cash requirements may necessitate additional financing through equity or debt offerings, depending on market conditions and business developments.