[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Anterix reported a strong financial position with $41.4 million in cash and no debt, driven by a $33.9 million gain on license exchanges and a $3 billion contract pipeline Liquidity Position as of June 30, 2025 | Metric | Value (in millions) | | :--- | :--- | | Cash and cash equivalents | $41.4 | | Restricted cash | $7.1 | | Debt | $0 | - The company has an authorized share repurchase program of up to **$250.0 million** No shares were repurchased in Q1 FY2026, leaving **$227.7 million** remaining under the program[4](index=4&type=chunk) - Key operational activities for the quarter include receiving over **$10 million** from customers, recording a **$33.9 million** gain on license exchanges, and investing **$4.0 million** in spectrum clearing costs[8](index=8&type=chunk) - The company continues to advance a significant sales pipeline, with approximately **$3 billion** in prospective contract opportunities across more than **60 potential customers**[8](index=8&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The company achieved a net income of **$25.2 million** for Q1 FY2026, a significant improvement from a **$15.5 million** net loss in the prior year, primarily due to a **$33.9 million** gain on intangible asset exchanges [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$359.6 million** as of June 30, 2025, driven by higher intangible assets, while total liabilities slightly decreased Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $41,432 | $47,374 | | Intangible assets | $265,319 | $228,983 | | **Total assets** | **$359,577** | **$333,104** | | Contingent liability (Current & Non-current) | $23,311 | $23,429 | | Deferred revenue (Current & Non-current) | $128,214 | $124,672 | | **Total liabilities** | **$174,806** | **$176,503** | | **Total stockholders' equity** | **$184,771** | **$156,601** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The statement of operations shows a significant shift to a **$25.2 million** net income in Q1 FY2026, primarily driven by a **$33.9 million** gain on intangible asset exchanges Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 FY2026 (ended Jun 30, 2025) | Q1 FY2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Spectrum revenue | $1,418 | $1,525 | | Operating expenses | $13,806 | $16,630 | | Gain on exchange of intangible assets, net | ($33,916) | ($93) | | **Income (loss) from operations** | **$22,481** | **($15,012)** | | **Net income (loss)** | **$25,180** | **($15,524)** | | **Net income (loss) per share diluted** | **$1.35** | **($0.84)** | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$3.1 million** in Q1 FY2026, contributing to a net decrease of **$6.4 million** in cash and restricted cash for the quarter Cash Flow Summary (in thousands) | Cash Flow Category | Q1 FY2026 (ended Jun 30, 2025) | Q1 FY2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Net cash used in operating activities | ($3,140) | ($2,361) | | Net cash used in investing activities | ($2,665) | ($5,400) | | Net cash used in financing activities | ($642) | ($1,071) | | **Net change in cash and cash equivalents and restricted cash** | **($6,447)** | **($8,832)** | Reconciliation of Cash and Restricted Cash (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $41,432 | $47,374 | | Escrow deposits (Restricted Cash) | $7,145 | $7,650 | | **Total** | **$48,577** | **$55,024** | [Other Financial Information](index=8&type=section&id=Other%20Financial%20Information) Anterix reported no share repurchase activity in Q1 FY2026, with **$227.7 million** remaining under the authorized share repurchase program Share Repurchase Activity (in thousands, except per share data) | Metric | Q1 FY2026 (ended Jun 30, 2025) | Q1 FY2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Number of shares repurchased | — | 63 | | Average price paid per share | $— | $32.47 | | Total cost to repurchase | $— | $2,027 | - As of June 30, 2025, **$227.7 million** is remaining under the share repurchase program[20](index=20&type=chunk) [Business Overview and Outlook](index=1&type=section&id=Business%20Overview%20and%20Outlook) Anterix leverages its 900 MHz spectrum to provide private wireless broadband for utilities, leading an ecosystem of over **125 members** to modernize the energy grid - Anterix's core business is centered on leveraging its position as the largest holder of licensed **900 MHz spectrum** to provide private wireless broadband solutions for modernizing utility grids[6](index=6&type=chunk) - The company's forward-looking statements highlight risks and uncertainties, including the timing of customer payments, ability to clear and commercialize spectrum, and competition, which could cause actual results to differ from expectations[7](index=7&type=chunk)[9](index=9&type=chunk)

Core Insights - Anterix reported its first quarter fiscal 2026 results, highlighting financial performance and operational updates [1][2] Financial and Operational Highlights - Spectrum revenue for the three months ended June 30, 2025, was $1.418 million, a decrease from $1.525 million in the same period of 2024 [13] - Operating expenses totaled $13.806 million, down from $16.630 million year-over-year [13] - The company recorded a net income of $25.180 million, compared to a net loss of $15.524 million in the prior year [13] - The gain on exchange of intangible assets was $33.916 million, while the gain on sale of intangible assets was $961,000 [13] Liquidity and Balance Sheet - As of June 30, 2025, Anterix had no debt and cash and cash equivalents of $41.432 million, with an additional restricted cash balance of $7.145 million [3][10] - The company has a share repurchase program authorized for up to $250 million, with $227.7 million remaining as of June 30, 2025 [3][20] Contractual and Pipeline Updates - Anterix has approximately $137 million of contracted proceeds outstanding, with over $10 million received during the first fiscal quarter [7] - The company expects to receive approximately $70 million during the remainder of fiscal 2026 [7] - Anterix is advancing a pipeline of approximately $3 billion in prospective contract opportunities across more than 60 potential customers [7] Conference Call Information - Anterix's senior management will hold a conference call on August 13, 2025, to provide a business update [4]

Company Overview - Anterix collaborates with leading utilities and technology companies to leverage 900 MHz broadband for modernized grid solutions [3] - The company is the largest holder of licensed spectrum in the 900 MHz band across the contiguous United States, Alaska, Hawaii, and Puerto Rico, positioning it uniquely for private wireless broadband solutions [3] - Anterix leads an ecosystem of over 125 members, focusing on utility-first solutions to address current challenges faced by utilities [3] Upcoming Events - Anterix will hold a conference call on August 13, 2025, at 9:00 a.m. ET to discuss its first quarter fiscal 2026 results [1] - A press release regarding the results will be issued after the market closes on August 12, 2025 [1] - Participants must pre-register to join the live Q&A session and are encouraged to join the call at least 10 minutes early [2]

Group 1 - Anterix, Inc. is one of the largest specialized spectrum holders of private LTE networks in the US, indicating a strong market presence and popularity domestically [1] - The company has demonstrated strong performance in recent quarters, showcasing its operational capabilities and market resilience [1] Group 2 - The analyst has experience in the logistics sector for nearly two decades and has been involved in stock investing and macroeconomic analysis for almost ten years, focusing on various sectors including banks, telecommunications, logistics, and hotels [1] - The analyst's investment strategy includes diversification across different industries and market capitalizations, with a mix of long-term holdings for retirement and short-term trading profits [1] - The analyst entered the US market in 2020 and has been utilizing analyses from Seeking Alpha to enhance knowledge and compare with the ASEAN market [1]

Company Overview - Anterix (NASDAQ: ATEX) has a market capitalization of nearly half a billion dollars and is relatively unknown among investors, with low analyst coverage [1] - The company possesses a unique license asset in the 900 MHz spectrum, targeting specific customer segments [1] Investment Focus - The company is positioned within a niche market, appealing to investors interested in undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The analysis emphasizes the potential for asymmetric investment opportunities that could yield market-beating returns [1]

Financial Data and Key Metrics Changes - The company closed the fourth quarter of fiscal year 2025 with over $47 million in cash and no debt, which is viewed as a strategic advantage [12] - The company achieved a reduction of approximately $4 million in operating expense run rate from the first half of fiscal 2025, enhancing efficiency and cash flow [13] - The company expects $80 million in contracted payments during fiscal 2026, providing clear visibility and confidence in future cash flow [12][13] Business Line Data and Key Metrics Changes - The company executed key spectrum sales agreements with Encore and LCRA, resulting in a combined $116 million in contracted proceeds, marking the best year for contracted proceeds [11] - The company has contracted spectrum that covers 93% of Texas counties, creating a replicable regional deployment model [11] Market Data and Key Metrics Changes - The demand for 900 megahertz LTE remains strong, with the company being oversubscribed for the $250 million Anterix Accelerator program [5][16] - The FCC has received strong support from multiple utilities and technology companies for the evolution of the 900 megahertz band to support private, secure wireless networks [9][10] Company Strategy and Development Direction - The company is focused on optimizing its cost structure and streamlining operations to drive growth and return value to shareholders [4] - The strategic review process led by Morgan Stanley is ongoing, with no predetermined outcome [6] - The company is committed to advancing towards a five by five future, unlocking greater potential for the digital grid [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current status of FCC proceedings and the potential for the U.S. to lead in smart grid communications [10] - The company is confident in its market leadership and the robust demand for its offerings, with no hesitation observed from utilities regarding the current three by three deployments [23][34] Other Important Information - The company has a disciplined cost structure and a capital-light model, allowing for scaling without significant capital expenditures [13] - The company is actively engaging with stakeholders in the FCC proceeding to urge a timely and favorable outcome [10] Q&A Session Summary Question: Update on the $250 million accelerator program - The company is pleased with the oversubscription and active negotiations with over a dozen utilities, indicating strong demand for private LTE 900 megahertz [16][17] Question: Engagement with partners in the accelerator program - The company confirmed that utilities are engaging with partners like Ericsson, Nokia, and GE as part of the accelerator program [20][21] Question: Impact of five by five requirements on customer participation - The company has not seen hesitation from utilities regarding the three by three offering, as they are excited about the five by five plan [22][23] Question: Recent additions to the active ecosystem - The company noted that there are over 140 participants in the program, with ongoing focus on strategic growth [29][30] Question: Strategy if competitors acquire 800 megahertz spectrum - The company remains confident in its position with 900 megahertz and believes it will continue to be the preferred choice for utilities [32][34] Question: Goals for contracted proceeds in the next 12-18 months - The company aims to grow from the $116 million contracted proceeds achieved last year, leveraging the accelerator program [36]

Financial Data and Key Metrics Changes - The company closed the fourth quarter of fiscal year 2025 with over $47 million in cash and no debt, which is viewed as a strategic advantage [13] - The company achieved a reduction of approximately $4 million in operating expenses from the first half of fiscal 2025, enhancing efficiency and cash flow [14] - The company expects $80 million in contracted payments during fiscal 2026, providing clear visibility and confidence in future cash flow [14] Business Line Data and Key Metrics Changes - The company executed key spectrum sales agreements with Encore and LCRA, covering 93% of Texas counties, representing the best year of contracted proceeds at a combined $116 million [12] - Milestone payments received included $44 million from Encore and $8.5 million from Ameren, along with an additional $34 million in cash received ahead of schedule [12] Market Data and Key Metrics Changes - The demand for 900 megahertz LTE continues to be strong, with the company being oversubscribed on the $250 million Anterix Accelerator program [5][17] - The FCC has received strong support from multiple utilities and technology companies for the evolution of the 900 megahertz band to support private, secure wireless networks [10][11] Company Strategy and Development Direction - The company is focused on optimizing its cost structure and streamlining operations, which has already shown benefits [4] - The strategic review process led by Morgan Stanley is ongoing, with no predetermined outcome, but the company is entering from a position of strength [5][6] - The company aims to continue being the preferred choice for utilities by leveraging its market leadership and proven deployment models [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current status of the FCC proceedings and the potential for the U.S. to lead in smart grid communications [11] - The company is excited about the momentum seen since the last investor call and believes it is well-positioned to execute its strategies [9][14] Other Important Information - The company is committed to a capital-light model, where customer-funded deployments allow scaling without significant capital expenditures [14] - The company is actively engaging with stakeholders in the FCC process to urge a timely and favorable outcome [11] Q&A Session Summary Question: Can you provide insights on the incentives for the oversubscribed $250 million accelerator program? - Management noted strong demand from over a dozen utilities, with active negotiations ongoing, which is unprecedented in the utility industry [17][19] Question: Have utilities begun to engage with partners as part of the accelerator program? - Management confirmed that utilities are engaging with technology partners like Ericsson, Nokia, and GE to facilitate holistic solutions [21][22] Question: How does the five by five megahertz requirement affect potential customers? - Management indicated that utilities have not hesitated to engage with the current three by three offering, as it meets their needs while they are excited about the five by five future [23][24] Question: What is the strategy if a competitor acquires the 800 megahertz spectrum? - Management expressed confidence in their position with 900 megahertz and the proven deployments, believing they will remain the preferred choice for utilities [32][34] Question: What are the goals for contracted proceeds in the next 12 to 18 months? - Management aims to grow from the previous year's $116 million in contracted proceeds, projecting significant percentage growth due to the accelerator program [36][37]

Core Viewpoint - Anterix reported a quarterly loss of $0.36 per share, which was better than the Zacks Consensus Estimate of a loss of $0.43, indicating an earnings surprise of +16.28% [1] - The company has struggled with revenue performance, posting revenues of $1.39 million for the quarter, missing the consensus estimate by 11.81% [2] Financial Performance - The loss per share improved from $0.51 a year ago to $0.36 this quarter, showing a positive trend in earnings despite still being in the negative [1] - Anterix's revenues increased from $1.26 million year-over-year to $1.39 million, but the company has not met revenue estimates in the last four quarters [2] Market Performance - Anterix shares have declined approximately 7.6% since the beginning of the year, contrasting with the S&P 500's gain of 2.4% [3] - The company's current Zacks Rank is 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.48 on revenues of $1.57 million, and for the current fiscal year, it is -$0.16 on revenues of $6.6 million [7] - The outlook for the Communication - Infrastructure industry, where Anterix operates, is currently in the bottom 25% of Zacks industries, which may impact stock performance [8]

Spectrum Sales and Agreements - The company executed a spectrum sale agreement with Oncor Electric Delivery Company LLC for a total of $102.5 million in June 2024[41]. - An additional spectrum sale agreement with Lower Colorado River Authority was executed for a total of $13.5 million in January 2025[41]. - The company received milestone payments of $8.5 million from Ameren Corporation and $44.0 million from Oncor[41]. - The company entered into an agreement with LCRA to sell 900 MHz Broadband Spectrum for total payments of $30.0 million, with an initial payment of $15.0 million received during the year ended March 31, 2024[67]. - The LCRA Expansion Agreement, effective January 9, 2025, involves selling 900 MHz Broadband Spectrum covering 34 additional counties for total estimated consideration of $13.5 million[68]. - The Oncor Agreement, signed in June 2024, includes selling 900 MHz Broadband Spectrum covering 95 counties for total estimated consideration of $102.5 million, with an initial payment of $10.0 million received[70]. - During the year ended March 31, 2025, the company transferred the 900 MHz Broadband Spectrum and associated licenses for four counties to Oncor, resulting in a milestone payment of $34.0 million[71]. Financial Performance and Capital Management - The company repurchased 245,292 shares of its stock for a total of $8.4 million to return capital to stockholders[41]. - The company has had net losses each year since its inception and may not achieve or maintain profitability in the future[35]. - The company has entered into long-term lease agreements for 900 MHz Broadband Spectrum with Ameren, covering approximately 7.5 million people, with scheduled prepayments totaling $47.7 million over 30 years[60]. - The Evergy Agreement allows for a 20-year lease of 900 MHz Broadband Spectrum, covering a population of approximately 3.9 million, with a total prepayment of $30.2 million received in October 2021[61]. - The Xcel Energy Agreement provides a 20-year lease for 900 MHz Broadband Spectrum across eight states, with scheduled prepayments totaling $80.0 million, including milestone payments of $21.2 million received in July and November 2023[62]. - The TECO Agreement, signed in November 2023, covers a 20-year lease of 900 MHz Broadband Spectrum in West Central Florida, with scheduled prepayments totaling $34.5 million, of which $6.9 million was received in December 2023[63]. - The SDG&E Agreement involves a total payment of $50.0 million for 900 MHz Broadband Spectrum, supporting a PLTE network for approximately 3.6 million people in California[65]. Regulatory and Market Environment - Recent FCC broadband spectrum auctions have exceeded valuation estimates, generating the first and third highest auction proceeds ever for the U.S. Treasury, indicating strong demand for licensed broadband spectrum[54]. - The company is actively working with federal and state agencies to promote the benefits of private broadband wireless networks for utilities, aiming to secure regulatory approvals for investments[52]. - The electric utility industry is undergoing transformation, necessitating new communication systems to support grid modernization and the integration of distributed energy resources[57]. - The FCC adopted a Notice of Proposed Rulemaking (NPRM) on January 15, 2025, to expand the 900 MHz Broadband Segment to a paired 5 x 5 MHz broadband segment, supporting demand for private wireless broadband networks[79]. - The FCC's Report and Order established a 6 MHz broadband segment and two narrowband segments, enhancing the usability and capacity of the 900 MHz band for broadband networks[80]. - The company is subject to competition from major wireless network providers and potential new entrants, which could impact its ability to secure agreements for leasing or selling spectrum[75]. Strategic Initiatives and Customer Base Expansion - The company aims to convert its nationwide narrowband 900 MHz spectrum position into valuable broadband spectrum as part of its two-pronged strategy[38]. - The company has negotiated and contracted approximately three quarters of the transactions required to clear the licensed 900 MHz Broadband Segment channels[45]. - The company launched the AnterixAccelerator initiative to expedite the deployment of 900 MHz private wireless broadband networks[50]. - The company is focused on expanding its customer base beyond electric utilities to include ports, railroads, and other critical infrastructure sectors, recognizing the demand for private wireless broadband networks[54]. - The company has developed a roadmap for expanded services to meet customer needs in implementing PLTE networks, leveraging internal expertise and industry partnerships[53]. Operational and Market Risks - Recent increases in inflation have led to a rise in operating expenses for the company[250]. - The current macroeconomic environment, including inflation, may adversely affect target customers' businesses, impacting commercialization efforts and revenues[250]. - Continued high inflation could materially affect the company's business, operating results, and financial condition if operating costs are not controlled[250]. - The company is actively monitoring market risk exposure, including impacts from health pandemics and significant market volatility[251]. Employee and Corporate Structure - The company employs a hybrid working model, with employees required to be onsite nine days a month[124]. - As of March 31, 2025, the company had 84 total employees, with 83 being full-time[124]. - The company does not currently face market risk from foreign currency fluctuations as all transactions are in U.S. dollars[249]. Licensing and Compliance - The company is pursuing broadband licenses based on customer opportunities and strategic initiatives, with a focus on satisfying eligibility requirements set by the FCC[87]. - The broadband applicant must surrender 240 channels to the FCC to obtain a broadband license, with the option to make an Anti-Windfall Payment if insufficient channels are available[3]. - The average cost for channels in smaller markets requiring Anti-Windfall Payments is expected to be lower than the nationwide average of $0.93 per MHz of population covered from the FCC's 600 MHz auction[98]. - To satisfy the 240 Channel Requirement, the broadband applicant can utilize existing licensed channels, acquire additional channels, or make Anti-Windfall Payments[101]. - Spectrum purchases began in 2015, targeting additional channels in the 900 MHz band in anticipation of regulatory changes[103]. - Retuning of channels with incumbents started in 2015 to facilitate compliance with the 90% Broadband Segment Test[105]. - The FCC regulates the issuance of broadband licenses in the 900 MHz band, with licenses typically issued for a fixed period of 10 to 15 years[109]. - The company has no current claims or litigation regarding its intellectual property, which is protected through various legal means[107].

Financial Performance - Anterix reported a net income of $9.2 million for Q4 FY2025, compared to a net loss of $9.4 million in Q4 FY2024, marking a significant turnaround [14]. - Total spectrum revenue for FY2025 was $6.0 million, an increase of 43.9% from $4.2 million in FY2024 [14]. - For the three months ended March 31, 2025, the net income was $9.208 million, a significant improvement compared to a net loss of $9.411 million in the same period of 2024 [16]. - The company experienced a gain on the sale of spectrum amounting to $40.935 million during the three months ended March 31, 2025 [16]. - Depreciation and amortization expenses for the year ended March 31, 2025, totaled $548 million, compared to $844 million in the previous year [16]. - The company reported a loss from disposal of long-lived assets of $3 million for the three months ended March 31, 2025 [16]. Cash and Assets - As of March 31, 2025, Anterix had cash and cash equivalents of $47.4 million, down from $60.6 million a year earlier [12]. - The company reported a total cash and cash equivalents and restricted cash of $55.024 million as of March 31, 2025, down from $68.124 million a year earlier [17]. - Anterix's total assets increased to $333.1 million as of March 31, 2025, compared to $324.9 million a year earlier [12]. Share Repurchase and Capital Management - The company has a remaining share repurchase authorization of $227.7 million as of March 31, 2025, after repurchasing $8.4 million worth of shares in FY2025 [5]. - The total cost to repurchase shares in the three months ended March 31, 2025, was $1.955 million, with an average price paid per share of $38.63 [19]. - As of March 31, 2025, there is $227.7 million remaining under the share repurchase program [20]. - The number of shares repurchased and retired in the three months ended March 31, 2025, was 50, compared to 173 shares in the same period of 2024 [19]. Strategic Initiatives and Opportunities - The company executed new spectrum sale agreements totaling $116 million, including $102.5 million with Oncor and $13.5 million with LCRA [7]. - Anterix has approximately $147 million of contracted proceeds outstanding, with about $80 million expected to be received in FY2026 [7]. - The company initiated a strategic review process in February 2025, following inbound interest, which is still ongoing [7]. - Anterix launched the AnterixAccelerator™ initiative in March 2025, which is now oversubscribed with utilities engaged in discussions for $250 million in spectrum incentives [7]. - The company has a pipeline of approximately $3 billion in prospective contract opportunities across over 60 potential customers [7]. Cash Flow - Cash flows from operating activities resulted in a net cash used of $16.555 million for the three months ended March 31, 2025, compared to a net cash provided of $6.140 million in the same period of 2024 [16]. - The net cash provided by investing activities for the three months ended March 31, 2025, was $35.415 million, a significant increase from a net cash used of $2.262 million in the same period of 2024 [16].