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Anterix Inc. (ATEX)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 GAAP diluted EPS was $1.35, a significant beat versus S&P Global consensus of -$0.57*, driven primarily by a $33.9M gain on exchange of broadband licenses; spectrum revenue was $1.418M, modestly below consensus $1.508M*, implying a revenue miss of ~6% .
  • Operating discipline and license activity improved profitability: income from operations was $22.481M versus a loss in the prior-year quarter, as management highlighted ~20% OpEx reduction and continued spectrum clearing progress (80%+ incumbents cleared; ~90% of counties eligible to apply/deliver) .
  • Commercial momentum: ~$137M contracted proceeds outstanding with >$10M received in Q1 and ~$70M expected over the remainder of FY2026, plus DI scorecard shows 18 utilities above threshold representing ~$1.1B potential proceeds; pipeline remains ~$3B across 60+ prospects .
  • Potential stock catalysts: outsized EPS beat (mostly non-operational), accelerating FCC engagement toward 5x5 MHz, oversubscribed Accelerator program (> $500M engagements) and ongoing strategic review underpin valuation narrative despite limited quarterly spectrum revenue recognized .

What Went Well and What Went Wrong

What Went Well

  • Material P&L upside from spectrum license actions: $33.9M gain on exchange (62 counties) and $1.0M gain on license sales (27 counties), turning a prior-year loss into strong GAAP profitability .
  • Expense discipline and clearing execution: management reiterated ~20% OpEx reduction and clearing milestone (80%+ incumbents cleared; ~90% counties eligible to apply/deliver), supporting future monetization capacity .
  • Ecosystem and commercial validation: seven utilities deploying private LTE at scale; Accelerator program oversubscribed, with engagements exceeding $500M and robust term sheet/negotiation activity (“not speculative discussions”) .

What Went Wrong

  • Spectrum revenue declined: $1.418M (-6% q/q; -7% y/y), missing consensus ($1.508M*) as recognized recurring revenue remains small relative to gains .
  • Contracted proceeds outlook trimmed: outstanding contracted proceeds approximated $137M with ~$70M to be received in FY2026, down from ~$147M outstanding and ~$80M expected in FY2026 previously .
  • DI scorecard net change: utilities above DI threshold fell to 18 from 19 last quarter due to indicator changes at a smaller utility sponsor; while dollars above threshold were unchanged, this highlights execution dependency on utility organizations .

Financial Results

MetricQ1 FY2025Q4 FY2025Q1 FY2026
Spectrum Revenue ($USD Millions)$1.525 $1.389 $1.418
GAAP Diluted EPS ($USD)-$0.84 $0.49 $1.35
Income from Operations ($USD Millions)-$15.012 $9.396 $22.481
Net Income ($USD Millions)-$15.524 $9.208 $25.180
Primary EPS Consensus Mean ($USD)*-$0.452-$0.500-$0.570
Revenue Consensus Mean ($USD Millions)*$1.857$1.711$1.508
MarginQ1 FY2025Q4 FY2025Q1 FY2026
Net Income Margin %-1018.2% 662.9% 1776.6%
EBIT Margin % (Income from Operations / Revenue)-985.6% 676.3% 1586.3%
Q1 FY2026 vs ConsensusResult
EPS vs Primary EPS Consensus Mean*$1.35 vs -$0.57 → Beat
Revenue vs Consensus ($USD Millions)*$1.418 vs $1.508 → Miss (~6%)

Notes: Asterisk (*) indicates values retrieved from S&P Global.

KPIs

KPIQ3 FY2025Q4 FY2025Q1 FY2026
Utilities above DI threshold (#)18 19 18
Potential contracted proceeds above DI ($USD Billions)~$1.0 ~$1.1 ~$1.1
Signed contracted proceeds ($USD Millions)~$390 ~$390 ~$390
Pipeline prospective proceeds ($USD Billions)~$3.0 ~$3.0 ~$3.0
Contracted proceeds outstanding ($USD Millions)~$147 ~$147 ~ $137
Expected receipts remainder of FY2026 ($USD Millions)~$80 ~$80 ~ $70
Counties exchanged to broadband (cumulative activity cited)n/a67 62 (Q1 activity)
Counties with licenses delivered (Q1 activity)n/an/a27
Cash & cash equivalents ($USD Millions)$28.8 (Dec 31, 2024) $47.4 (Mar 31, 2025) $41.4 (Jun 30, 2025)
Restricted cash (escrow deposits, $USD Millions)$7.6 (Dec 31, 2024) $7.7 (Mar 31, 2025) $7.1 (Jun 30, 2025)
Clearing progressNPRM approved to pursue 5x5 MHz Continued county exchanges/deliveries 80%+ incumbents cleared; ~90% counties eligible to apply/deliver

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Expected contracted proceeds receiptsFY2026“~$80M to be received in fiscal 2026” “~$70M expected to be received during remainder of fiscal 2026; majority in fiscal Q4” Lowered
Contracted proceeds outstandingCurrent“~$147M outstanding” “~$137M outstanding” Lowered
Operating expense run-rateFY2026“Projected ~20% OpEx run-rate reduction planned” “~20% reduction achieved; continue to refine/lower OpEx” Achieved/maintained
Share repurchase authorization remainingThrough 9/21/2026$227.7M remaining (Mar 31) $227.7M remaining; no Q1 activity (Jun 30) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY2025 & Q4 FY2025)Current Period (Q1 FY2026)Trend
Accelerator program adoptionIndustry engagement initiative launched; strategic review initiated Oversubscribed; >$500M engagements; >15 utilities engaged; “not speculative” Accelerating
Regulatory (FCC 5x5 MHz NPRM)FCC approved NPRM in Jan 2025 Ongoing meaningful engagement; momentum toward 10 MHz future Positive progress
Spectrum clearing & licensingQ4: 47 counties exchanged; 4 licenses transferred; $2.0M gain; clearing costs $5.5M 62 counties exchanged; 27 licenses delivered; 80%+ incumbents cleared; ~90% counties eligible Advancing
DI scorecard/customer intentQ3: 18 utilities above threshold (~$1.0B) Q4: 19 utilities (~$1.1B) Q1: 18 utilities (~$1.1B); one fell below due to sponsor change; added 12 new indicators
Financial discipline/OpExQ4: identified expense reductions; share buybacks 20% OpEx cut achieved; capital-light model reaffirmed Sustained discipline
Strategic alternativesInitiated after inbound interest Active but “fairly passive”; upside seen too great at current levels Monitoring
Shareholder returnsBuyback activity ($2.0M in Q4); $227.7M remaining Options considered include return-of-capital dividends, Dutch auction, buybacks Opportunistic

Management Commentary

  • “The program is oversubscribed… engagements exceeding $500,000,000 in potential contract value… These are not speculative discussions” — Scott Lang on Accelerator program validation .
  • “We’ve driven a 20% reduction in operating expenses… This discipline gives us both capital flexibility” — Scott Lang on operating discipline .
  • “We recorded a $35,000,000 total gain comprised of $34,000,000 from the exchange of narrowband for broadband licenses in 62 counties and ~ $1,000,000 gain on the sale of broadband licenses” — Tim Gray on drivers of P&L .
  • “We’ve now cleared over 80% of incumbents… able to apply for broadband licenses in ~90% of all the counties in the United States” — Tim Gray on clearing/licensing progress .
  • “Given our financial strength and the clear intrinsic value… the gap between the value creation we see compared to our current market value is striking” — Scott Lang on valuation conviction .

Q&A Highlights

  • Gains trajectory: Management expects further gains as additional broadband licenses are approved but did not guide timing due to FCC variability and customer-driven scheduling; total gains potential “north of $1,000,000,000 over time” as licensing progresses .
  • DI scorecard change: The one utility dropping below threshold reflected sponsor changes rather than lost pipeline; dollars above threshold unchanged; team pursuing new relationships with replacements .
  • Valuation vs progress: Utilities are methodical; hundreds of millions in capital decisions take time; seven deployed customers de-risk next adopters; NPRM progress and bandwidth headroom bolster case .
  • Strategic alternatives: Active but “fairly passive” at current valuation; broader ecosystem multiplier effect (for each $1 on Anterix, $4–$5 unlocked across partners) informs strategic interest .

Estimates Context

  • Q1 FY2026: GAAP diluted EPS $1.35 vs Primary EPS consensus -$0.57* → beat driven largely by license exchange/sale gains; spectrum revenue $1.418M vs $1.508M* consensus → modest miss .
  • Prior quarters: Q4 FY2025 GAAP diluted EPS $0.49 vs Primary EPS consensus -$0.50*; spectrum revenue $1.389M vs $1.711M*; Q1 FY2025 GAAP diluted EPS -$0.84 vs Primary EPS consensus -$0.45*; spectrum revenue $1.525M vs $1.857M* .
  • Note: S&P “Primary EPS” may differ from GAAP diluted EPS; the Q1 FY2026 EPS beat is non-operational, reflecting $33.9M exchange gains and $1.0M sale gains, which could trigger upward estimate revisions on reported EPS but have limited read-through to recurring spectrum revenue .

Notes: Asterisk (*) indicates values retrieved from S&P Global.

Key Takeaways for Investors

  • Reported EPS strength is primarily event-driven (license exchange/sale gains), not recurring spectrum monetization; trading should focus on cadence of FCC approvals and customer-driven license deliveries .
  • Sequential and YoY spectrum revenue softness amid strong gains highlights timing variability; monitor FY2026 receipts (~$70M expected, majority in Q4) and contracted proceeds conversion .
  • Clearing/licensing capacity is robust (80%+ incumbents cleared; ~90% counties eligible), positioning Anterix to recognize additional gains as approvals and deliveries occur .
  • Commercial demand is building (Accelerator oversubscribed; seven utilities at scale), supporting medium-term thesis of broader utility adoption and potential move to 5x5 MHz .
  • DI scorecard stability (18 utilities; $1.1B potential proceeds) with minor composition changes suggests durable intent; watch for contract signings and Phase 3 conversions ($500M resides in Phase 3) .
  • Capital allocation optionality (return-of-capital dividends, Dutch auction, buybacks) and $227.7M remaining authorization provide downside support as cash inflows materialize .
  • Strategic review remains open; valuation disconnect versus asset/inflow profile could attract strategic interest as ecosystem multiplier effects become clearer .