10 Best Small-Cap Growth Stocks to Buy Now

6. NextNav Inc. (NASDAQ:NN)

3-Year Sales Growth: 80.14%

Number of Hedge Fund Holders: 22

NextNav Inc. (NASDAQ:NN) specializes in providing advanced positioning, navigation, and timing solutions. These solutions aim to improve the limitations of traditional GPS systems, which rely on satellites. The company offers two main services including Pinnacle, which is a vertical positioning system that helps devices accurately determine their altitude. It works with smartphones, IoT devices, and other equipment that have a barometric pressure sensor. Moreover, it also provides TerraPoiNT, a system that uses a terrestrial network to provide more reliable and secure location services compared to GPS.

NextNav Inc. (NASDAQ:NN) is actively pursuing its proposal to reconfigure the lower 900 MHz band to create a terrestrial backup and complement to GPS. It has submitted formal comments to the FCC, highlighting the lack of a wide-scale terrestrial PNT system and emphasizing the importance of its proposal. Laughing Water Capital in its Q4 2024 investor letter stated the company was the largest contributor in their portfolio in terms of returns. The fund noted that the commentary of FCC Chair Brendan Carr and other Commissioners suggests the chances for approval of the proposal are high as terrestrial GPS is a National Security priority.

During the fiscal third quarter of 2024, NextNav Inc. (NASDAQ:NN) delivered $1.6 million in revenue, up from $1.0 million in Q3 2023. Management attributed the growth to being driven by higher service revenue from contracts with government and commercial customers. It is one of the best small-cap growth stocks to buy now.

Laughing Water Capital stated the following regarding NextNav Inc. (NASDAQ:NN) in its Q4 2024 investor letter:

“NextNav Inc. (NASDAQ:NN) – Nextnav, our next-gen GPS / wireless spectrum investment, was our largest contributor to 2024 returns, and remains our largest position. At this time we are in a holding pattern with Nextnav as we wait for updates from the Federal Communications Commission (FCC) on the Company’s petition to update the rules that govern the 900 MHz spectrum band in a way that will allow for the creation of a terrestrial GPS system in the U.S., as well as ~15 MHz of 5G spectrum.

There is some uncertainty surrounding this process, but commentary from incoming FCC Chair Brendan Carr and other Commissioners suggests the chances for approval are favorable as terrestrial GPS is a National Security priority, and refilling the spectrum pipeline is an FCC priority.

The stock has been under heavy pressure in recent weeks as two different private equity funds – one a 2005 vintage, and the other a 2012 vintage – appear to have reached the end of their fund lives and are thus aggressively selling shares. I suspect this overhang will clear with time…” (Click here to read the full text)