What Anterix (ATEX) Said on Its Q2 Earnings Call

Key Points

• Anterix’s spectrum pipeline grew to 16 opportunities, including potential deals ranging from seven to nine figures; management said about half are advanced or moving quickly while it revisits pricing with some utilities.
• The company is also evaluating interest from strategic buyers in satellite connectivity, critical infrastructure and enterprise markets, and is weighing nationwide transactions against regional deals.
• Anterix ended the quarter with about $107.5 million in cash and no debt, but made no share repurchases as it prioritizes liquidity for spectrum clearing and other potential investments. It reported roughly $2 million in quarterly GAAP revenue.

Anterix NASDAQ: ATEX said its pipeline of spectrum opportunities grew to 16 in its fiscal second quarter, as management weighed potential utility deals against interest from other strategic buyers and prioritized preserving cash.

President and CEO Scott Lang said the pipeline had expanded from nearly a dozen opportunities in August and includes potential deals valued in the seven, eight and nine figures. At least half of the opportunities are advanced or very active, he said, although discussions with some utilities have taken time as the company revisits pricing.

The company reported approximately $2 million in quarterly GAAP revenue and $9.4 million in operating expenses. It also recorded a $6.1 million gain on license exchanges in six counties, CFO Elena Marquez said.

Utility negotiations and strategic interest

Lang said Anterix has returned to some utilities with which it has been negotiating to address a gap between earlier pricing discussions and increased spectrum values. The utilities remain engaged, he said, and roughly half of the 16 pipeline opportunities are moving quickly and are very advanced.

Management also said it is considering interest beyond utilities, including potential uses in satellite connectivity, other critical infrastructure and enterprise markets. Chief Regulatory and Communications Officer Chris Guttman-McCabe said the company has held conversations with multiple strategic parties but did not disclose how many.

Guttman-McCabe said Anterix regularly evaluates the economics of a nationwide transaction against regional deals. If it pursues utility transactions, the goal would be to work with multiple utilities at once rather than complete widely spaced individual agreements, he said.

Lang pointed to the reported $8 billion SpaceX agreement to acquire an 800 MHz portfolio from Grain as evidence of spectrum scarcity. Grain had acquired the portfolio for a reported $3.6 billion two months earlier, he said. Marquez estimated the reported SpaceX price at roughly $1.70 per MHz-POP, a measure combining spectrum capacity and population coverage, and described it as a new price comparable.

Cash preservation takes priority

Anterix ended the quarter with approximately $107.5 million in cash and no debt, Marquez said. It had about $33.1 million in contracted proceeds outstanding, including approximately $9.6 million expected over the remainder of fiscal 2027. The company invested $5.4 million in spectrum clearing during the quarter.

Anterix did not repurchase shares during the quarter. Its full $250 million board authorization remains available through September 2029, according to Marquez, who said the company is currently focused on preserving liquidity while considering monetization options.

Asked whether a blackout period was preventing buybacks, Lang said that was not driving the decision. He said maintaining cash gives the company flexibility for potential repurchases, clearing or other investments as the market moves.

Clearing and regulatory developments

Guttman-McCabe said approximately 85% of Anterix’s nationwide spectrum remains available, including significant coverage across most of the largest metropolitan markets. He said the company believes it can clear the full 10 MHz nationwide and has about 3 billion MHz-POPs still available to monetize.

Management did not provide a detailed estimate of future clearing costs. Guttman-McCabe said acquiring channels from incumbents during the clearing process can offset some costs and potential regulatory payments. Clearing the country will take money and time with certain incumbents, he said.

The Federal Communications Commission on October 29 advanced a proposal to modify its Supplemental Coverage from Space rules, including consideration of adding the 900 MHz band, Guttman-McCabe said. The proposal has not been finalized. He said Anterix plans to comment and expects the proceeding to move relatively quickly.

The company has also worked with 3GPP to standardize its 10 MHz for 5G and completed a satellite connectivity investigation with Lynk, Guttman-McCabe said. Several existing customers are internally trialing iPhones that support Band 106, he said, though he does not expect press releases about their use.

About Anterix (NASDAQ:ATEX)

Anterix Inc. provides licensed wireless spectrum for private broadband networks, primarily serving electric, gas and water utilities and other critical-infrastructure organizations. Its business focuses on making 900 MHz spectrum available to customers that want dedicated communications networks for operational needs such as grid monitoring, automation and resilience. The company's spectrum holdings cover areas across the United States. Anterix works with utilities and technology partners to support the development of private LTE networks, offering spectrum access and related planning and ecosystem support rather than operating a public mobile network.

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