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Anterix Inc. (ATEX)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 delivered GAAP net income of $9.21M and diluted EPS of $0.49, on spectrum revenue of $1.39M; profitability was driven by $18.3M gain on sale of intangible assets and a $2.0M gain from license exchanges, alongside targeted OpEx reductions .
  • Against S&P Global consensus, revenue missed ($1.39M vs $1.71M estimate*) and Primary EPS (normalized) missed (-$0.52 actual vs -$0.50 estimate*), while GAAP EPS was positive due to gains—an important non-operational surprise .*
  • Management reiterated ~$80M of contracted proceeds expected to be received in FY2026 and highlighted a streamlined cost structure (roughly $4M lower run-rate vs 1H FY25) and capital-light deployments .
  • Strategic catalysts: AnterixAccelerator™ oversubscribed ($250M incentive pool), strong FCC momentum toward 5x5 MHz, and an active Morgan Stanley-led strategic review .

Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Oversubscribed Accelerator program catalyzed C‑suite engagement and active negotiations: “As of today, we are oversubscribed with utilities…for the $250 million of spectrum…The demand for 900 MHz LTE continues to be strong” .
  • FCC 5x5 proceeding momentum: “A chorus of support…utilities, 20 technology companies…all calling for an evolution of the band…we're optimistic about a forward-looking outcome” .
  • Cost structure improvements: CFO cited “roughly a $4 million reduction to our operating expense run rate from the first half of Fiscal 2025” without impairing execution .

What Went Wrong

  • Revenue softness and dependence on gains: Q4 spectrum revenue was $1.39M, down vs Q3 ($1.57M) and Q2 ($1.55M), with profits largely from gains on sale/exchange rather than operating scale .
  • Core cash generation challenged: Q4 operating cash flow was -$16.56M despite $35.42M net investing inflow (driven by spectrum sale proceeds), underscoring timing/mix of cash receipts .
  • Consensus misses on normalized metrics: S&P revenue estimate was higher than actual and Primary EPS (normalized) was slightly more negative than consensus; GAAP EPS positivity stemmed from non-GAAP gains rather than recurring operations .*

Values retrieved from S&P Global.*

Financial Results

Quarterly comparison vs prior periods (oldest → newest)

MetricQ2 FY2025 (Sep 30, 2024)Q3 FY2025 (Dec 31, 2024)Q4 FY2025 (Mar 31, 2025)
Spectrum Revenue ($USD Millions)$1.55 $1.57 $1.39
Net Income ($USD Millions)$(12.77) $7.71 $9.21
Diluted EPS ($USD)$(0.69) $0.41 $0.49
Net Income Margin (%)-823.3% (calc from )492.4% (calc from )662.9% (calc from )

Notes: Net income margin calculated as Net Income / Revenue; citations reference underlying values.

Q4 FY2025 vs S&P Global consensus

MetricConsensusActualDelta
Revenue ($USD Millions)$1.71*$1.39 -$0.32 (miss)*
Primary EPS ($USD)-$0.50*-$0.52*-$0.02 (miss)*
GAAP Diluted EPS ($USD)N/A$0.49 Positive vs normalized consensus (non-operational gains)

Values retrieved from S&P Global.*

Segment/KPI highlights

KPIQ4 FY2025Detail/Context
Gains recognized ($USD Millions)$18.3 gain on sale; $2.0 gain on exchange Oncor license transfer; license exchanges in 47 counties
Spectrum Clearing Costs ($USD Millions)$5.5 Q4 activity
Contracted Proceeds Outstanding ($USD Millions)~$147; ~$80 expected in FY2026 Receipt timing guidance reiterated
Cash & Equivalents ($USD Millions)$47.4; Restricted cash $7.7 No debt
DI Scorecard Utilities Above Threshold19 utilities; ~$1.1B potential proceeds Confidence indicator of intent
Pipeline Prospective Contract Opportunities~$3B across 60+ customers Ongoing monetization
Signed Contracts (Contracted Proceeds)~$390M total Cumulative signed deals

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Contracted proceeds expected receiptsFY2026“Roughly $80M during FY26” “Approximately $80M to be received in fiscal 2026” Maintained
Operating expense run-rateFY2026 trajectory“~20% reduction planned for FY2026” “~$4M lower run-rate vs 1H FY25 already executed” Progress update toward plan
Spectrum clearing spendFY2026Commentary only (no explicit numeric guidance)Q4 spend $5.5M; capital-light model reiterated Maintained framework
Share repurchase authorizationThrough 9/21/2026$250M authorized; $229.6M remaining (Q3) $227.7M remaining as of 3/31/2025 Maintained; updated remaining capacity

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 FY2025)Current Period (Q4 FY2025)Trend
AI/edge computing enablementAI use cases and edge gateways, ecosystem growth Digi IoT edge gateway; AI at the edge highlighted Strengthening adoption narrative
FCC 5x5 MHz NPRMNPRM adopted; comment periods forthcoming Comment & reply periods closed; strong multi‑stakeholder support; optimistic outcome Advancing toward resolution
Strategic reviewInitiated after inbound interest “Active and continues” led by Morgan Stanley Ongoing; potential corporate actions
Cost discipline~20% OpEx run-rate reduction planned ~$4M run-rate reduction vs 1H FY25 achieved Executing savings
Accelerator programIndustry engagement initiated Oversubscribed $250M incentives; active negotiations Demand-tailwind
Regional deploymentsTexas 93% county coverageReinforced Texas model; scaling template Scaling references

Management Commentary

  • “We are oversubscribed…for the $250 million of spectrum…The demand for 900 megahertz LTE continues to be strong.” — Scott Lang, CEO .
  • “The case has been made, the record is strong, and we're optimistic about a forward-looking outcome [for 5x5].” — Chris Guttman‑McCabe, Chief Regulatory & Communications Officer .
  • “These are not potential deals. They're binding commitments…approximately $150 million of contracted proceeds outstanding, with $80 million expected in Fiscal 2026.” — Tim Gray, CFO .
  • “We will continue to be aggressive…our momentum toward a 5x5 future is accelerating.” — Scott Lang, CEO .

Q&A Highlights

  • Accelerator structure and partners: Bespoke packages from Ericsson, Nokia, GE to speed deployments; broad utility engagement from lab-to-field references .
  • Competitive spectrum (800 MHz): Management confident 900 MHz economics, proven deployments, device ecosystem, and path to 5x5 sustain preference among utilities .
  • Contracting outlook: Not providing targets, but expect growth “a pretty significant percentage” over the $116M FY2025 contracted proceeds base, leveraging Accelerator .
  • Ecosystem scale: ~140+ participants and new edge offerings (Digi gateway) supporting emerging AI/edge use cases .

Estimates Context

MetricQ2 FY2025Q3 FY2025Q4 FY2025
Revenue Consensus Mean ($USD Millions)$1.75$1.81$1.71
Revenue Actual ($USD Millions)$1.55 $1.57 $1.39
Primary EPS Consensus Mean ($USD)-$0.59-$0.57-$0.50
Primary EPS Actual ($USD)N/AN/A-$0.52

Values retrieved from S&P Global.*

Interpretation: Q4 revenue and normalized EPS missed consensus; GAAP diluted EPS was positive due to gains, not directly comparable to “Primary EPS” normalization .

Key Takeaways for Investors

  • Q4 profitability was non-operationally driven (gains on sale/exchange), while core spectrum revenue remained modest; monitor conversion of DI/pipeline into recurring revenue .
  • Cash visibility is solid via contracted proceeds (~$147M outstanding; ~$80M expected FY2026) and no debt, but quarterly cash from operations remains timing-sensitive and negative in Q4 .
  • Regulatory tailwind strengthening: closed FCC comment cycles and multi‑stakeholder support increase probability of 5x5 MHz, expanding capacity and potential deal value .
  • Accelerator oversubscription and partner packages (Ericsson/Nokia/GE) are near-term demand catalysts; watch for signed contracts and receipts over the next 12–18 months .
  • Texas regional template (93% county coverage) provides replicable deployment model and customer references to shorten sales cycles .
  • Cost discipline is translating to measurable OpEx reductions without impairing execution; further savings support buybacks within the $250M authorization ($227.7M remaining) .
  • Strategic review remains an overhang/upside catalyst; outcomes could impact capital allocation and monetization strategy—track disclosures closely .

Sources: Q4 FY2025 8‑K press release and tables ; Q4 FY2025 earnings call transcripts ; Q4 press release ; Q3 FY2025 materials ; Q2 FY2025 materials . Values retrieved from S&P Global where marked.*