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].

Core Viewpoint - Anterix announced its fiscal 2025 fourth quarter and full year financial results, highlighting significant operational developments and financial metrics [1]. Full Year FY2025 Financial and Operational Highlights - Spectrum revenue for the year ended March 31, 2025, was $6.031 million, an increase from $4.191 million in the previous year, representing a growth of 43.9% [14]. - The company reported a net loss of $11.372 million for the fiscal year, compared to a loss of $9.128 million in the prior year [14]. - Total assets as of March 31, 2025, were $333.104 million, up from $324.894 million a year earlier [12]. Fourth Quarter FY2025 Financial Highlights - In the fourth quarter, spectrum revenue was $1.389 million, compared to $1.260 million in the same quarter of the previous year, marking a 10.2% increase [14]. - The net income for the fourth quarter was $9.208 million, a significant recovery from a net loss of $9.411 million in the same quarter of the previous year [14]. - Operating expenses for the fourth quarter were $12.237 million, down from $13.755 million year-over-year [15]. Liquidity and Balance Sheet - As of March 31, 2025, Anterix had no debt and cash and cash equivalents of $47.4 million, down from $60.578 million a year earlier [4][11]. - The company had a restricted cash balance of $7.7 million in escrow deposits [4]. - The total stockholders' equity was $156.601 million, a decrease from $161.032 million in the previous year [12]. Share Repurchase Program - Anterix has an authorized share repurchase program for up to $250 million, with $227.7 million remaining as of March 31, 2025 [5][21]. - In the fourth quarter, the company repurchased shares totaling $1.955 million, and for the full fiscal year, the total was $8.398 million [5][21]. Strategic Developments - The company executed new spectrum sale agreements totaling $116 million with Oncor Electric Delivery Company and Lower Colorado River Authority [7]. - Anterix launched the AnterixAccelerator™ initiative to promote utility adoption of private broadband networks, which is currently oversubscribed [7]. - The company has a pipeline of approximately $3 billion in prospective contract opportunities across over 60 potential customers [7].

Industry Overview - The Zacks Communication - Infrastructure industry is facing challenges due to high capital expenditures for infrastructure upgrades, unpredictable raw material prices, supply-chain disruptions, and high customer inventory levels [1][4][6] - Despite these challenges, the increasing demand for digital innovations is expected to benefit the industry in the long run [1] Key Trends - High raw material prices and extended lead times for components are negatively impacting operations and profitability [4][6] - The industry is moving towards network convergence, combining voice, video, and data communications into a single network, which is expected to reduce service delivery costs and expand coverage [5] - Short-term profitability is at risk due to the need for significant infrastructure investments to meet the growing demand for mobile broadband and home Internet solutions [6] Market Performance - The Zacks Communication - Infrastructure industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year, with a growth of 67% compared to 9.1% for the S&P 500 and 6.2% for the sector [9] Valuation Metrics - The industry is currently trading at a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio of 3.45X, significantly lower than the S&P 500's 16.87X and the sector's 16.83X [12] Notable Companies - Anterix Inc. (ATEX) is positioned to benefit from solid demand for scalable infrastructure and holds the largest licensed spectrum in the 900 MHz band [2][15] - Bandwidth Inc. (BAND) operates as a Communications Platform-as-a-Service (CPaaS) provider and is focused on continuous innovation to support high user volumes [2][18]

Company Announcement - Anterix will hold a conference call on June 25, 2025, at 9:00 a.m. ET to discuss its fourth quarter fiscal 2025 results [1] - A press release regarding the results will be issued after the market closes on June 24, 2025 [1] Participation Details - Participants interested in the live Q&A session must pre-register to obtain a dial-in number and unique PIN [2] - It is recommended to join the call at least 10 minutes early, and the call will also be webcast live on Anterix's Investor Relations website [2] Company Overview - Anterix collaborates with leading utilities and technology companies to utilize 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, Hawaii, Alaska, and Puerto Rico [3] - Anterix aims to enable private LTE solutions that support advanced communications for a cleaner and more secure energy future [3]

Core Insights - The communication services sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Fubotv Inc (FUBO)**: Reported a revenue of $405.96 million for the quarter, an 8.1% year-over-year increase, but missed the analyst consensus estimate of $415.45 million. The stock fell approximately 20% in the past five days, with a 52-week low of $1.10. The RSI value is 26.9, and shares closed at $2.42, down 17.4% [7] - **Cable One Inc (CABO)**: Announced disappointing first-quarter results, with a significant drop in residential data subscribers. The stock decreased around 43% over the past five days, reaching a 52-week low of $150.00. The RSI value is 12.2, and shares closed at $152.51, down 42.4% [7] - **Anterix Inc (ATEX)**: Launched the AnterixAccelerator initiative with an investment of up to $250 million. The stock fell about 9% over the past month, with a 52-week low of $27.37. The RSI value is 28.6, and shares closed at $29.84, down 0.4% [7]

Core Insights - Palo Alto Networks introduced Prisma SASE 5G to enhance security for enterprise 5G deployments, collaborating with seven industry leaders to provide comprehensive security solutions [1][4][6] - The rise of 5G connectivity necessitates robust security measures due to increased cyber threats, particularly those leveraging AI for sophisticated attacks [2][3] - The company emphasizes the importance of Zero Trust security and AI-powered solutions to protect against evolving threats in the 5G landscape [6][12] Group 1: Product and Service Offerings - Prisma SASE 5G enables service providers to deliver seamless security for enterprise customers, integrating with existing 5G networks to enhance security and reliability [4][6] - The solution offers SIM-based authentication for secure connectivity across all 5G devices, maintaining granular policies and visibility [6][11] - Palo Alto Networks' partnerships with companies like Singtel and NTT DATA aim to enhance enterprise security and performance through integrated solutions [5][11] Group 2: Industry Trends and Challenges - The demand for 5G connectivity is growing rapidly, driven by the hybrid workforce and the need for secure connections in various sectors, including autonomous AI applications and manufacturing [2][8] - Cybersecurity teams prefer to apply familiar technologies to 5G networks, indicating a need for service providers to bridge traditional security practices with new 5G demands [8] - The evolving threat landscape, characterized by AI-driven attacks, requires continuous innovation in security solutions to protect critical infrastructure [3][7]

Financial Data and Key Metrics Changes - Anterix reported an incremental cash increase of $34 million due to strategic initiatives with select customers, received at the end of January [32] - The company has approximately $29 million in cash on its balance sheet as of December 31, 2024, and is scheduled to receive roughly $80 million during the fiscal year ending March 31, 2026 [33] - A 20% reduction in operational expenses has been identified, enhancing efficiency and increasing cash flows [34] Business Line Data and Key Metrics Changes - The company announced a $13.5 million expansion agreement with the Lower Colorado River Authority, extending broadband coverage to 102 counties in Texas [7] - The total coverage across 15 states where Anterix has contracted with utilities now exceeds that of US Cellular [8] Market Data and Key Metrics Changes - Anterix has signed contracts to deploy 900 megahertz private wireless broadband networks valued at nearly $400 million, with a strong pipeline of opportunities [24][106] - The company is positioned to serve a significant portion of the U.S. population, with previous deals covering approximately 43 million people [61] Company Strategy and Development Direction - Anterix aims to lead the private wireless broadband market for utilities, focusing on expanding its ecosystem and partnerships [17][19] - The company has launched a strategic review process with Morgan Stanley to explore opportunities that will accelerate growth [23] - Anterix is committed to delivering value to shareholders and customers while improving operational efficiency [10][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's business strategy and the potential for aggressive pricing and new contracts [11] - The leadership emphasized the urgency and interest from utilities to adopt private broadband solutions, driven by successful use cases [50][114] - The company is optimistic about the future, citing a strong financial position and a robust pipeline of contracts [24][106] Other Important Information - Anterix has returned approximately $4 million to shareholders through its share repurchase program in the third quarter [11] - The FCC has proposed a rulemaking to expand the 900 megahertz broadband segment from a three by three configuration to a five by five configuration, which is seen as a significant milestone [27][28] Q&A Session Summary Question: What is the genesis of external interest in Anterix? - Management believes the interest stems from the company's large ecosystem, successful customer deployments, and the pathway to five by five spectrum [41] Question: What motivates utilities to move quicker in adopting private broadband? - Management noted that successful use cases and performance from existing customers are driving urgency among utilities to adopt these solutions [50] Question: How should investors think about CapEx and the value of the deal pipeline? - Management indicated that the current contracts represent a small fraction of the total potential value, with significant room for growth as more utilities adopt the technology [106][107]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q ______________________ (Mark one) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 For the transition period from __________ to __________ Commission File Number: 001-36827 ______________________ Anterix Inc. OR (Exact name of registrant as specified in its charter) ______________________ o TRANSIT ...

Financial Performance - Anterix reported spectrum revenue of $1.566 million for the three months ended December 31, 2024, a 23.2% increase from $1.271 million in the same period of 2023[15] - The net income for the three months ended December 31, 2024, was $7.710 million, compared to a net income of $328,000 in the same period of 2023[15] - For the three months ended December 31, 2024, the net income was $7.71 million, a significant increase from a net income of $0.33 million in the same period of 2023[17] - The company reported a loss from operations of $21.110 million for the nine months ended December 31, 2024[15] - Anterix's accumulated deficit increased to $399.196 million as of December 31, 2024, from $372.173 million as of March 31, 2024[13] Cash and Assets - The company had cash and cash equivalents of $28.8 million and no debt as of December 31, 2024[4] - The total cash and cash equivalents and restricted cash at the end of the period was $36.43 million, down from $69.55 million at the end of December 2023[18] - Anterix's total assets increased to $326.679 million as of December 31, 2024, compared to $324.894 million as of March 31, 2024[13] Share Repurchase and Expenses - The company executed share repurchase activity of $4.4 million in the fiscal third quarter of 2025, with approximately $229.6 million remaining under the current share repurchase program[5] - The total cost to repurchase shares in the three months ended December 31, 2024, was $4.42 million, with an average price paid per share of $33.59[20] - As of December 31, 2024, there is $229.6 million remaining under the share repurchase program[21] - The company incurred stock compensation expenses of $2.87 million for the three months ended December 31, 2024, compared to $3.92 million in the same period of 2023[17] Cash Flow Activities - The company reported a net cash used in operating activities of $7.70 million for the three months ended December 31, 2024, compared to a net cash provided of $33.64 million in the same period of 2023[17] - The net cash used in investing activities for the three months ended December 31, 2024, was $1.72 million, compared to $4.54 million in the same period of 2023[17] - The cash paid for taxes during the three months ended December 31, 2024, was $0.17 million, compared to no taxes paid in the same period of 2023[18] - The cash paid for operating leases during the three months ended December 31, 2024, was $0.53 million, slightly down from $0.58 million in the same period of 2023[18] Strategic Initiatives - Anterix initiated a strategic review process in February 2025 after receiving inbound interest in the company[9] - The company has a projected operating expenses run rate reduction of approximately 20% planned for fiscal 2026[9] - Anterix has approximately $3 billion in a pipeline of prospective contract opportunities across over 60 potential customers[9] Gains and Losses - The company reported a gain on disposal of intangible assets of $20.75 million for the three months ended December 31, 2024[17]