Anterix Inc (ATEX) Q1 2026 Earnings Call Highlights: Strong Financial Position and Strategic ...
Contracted Proceeds: Approximately $140 million outstanding, with $70 million expected in fiscal 2026, mostly in Q4.
Total Gain: $35 million, including $34 million from exchanging narrow bands for broadband licenses and $1 million from the sale of broadband licenses.
Operating Expense Reduction: 20% reduction in operating expenses over the last year.
Spectrum Clearing: Over 80% of incumbents cleared within the spectrum band, with licenses delivered or applicable in approximately 90% of U.S. counties.
Warning! GuruFocus has detected 3 Warning Sign with ATEX.
Release Date: August 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Anterix Inc (NASDAQ:ATEX) has launched an oversubscribed accelerator program with engagements exceeding $500 million in potential contract value, surpassing the initial $250 million of matching funds.
The company is operating from a position of strong financial strength, ending Q1 debt-free with a healthy cash position of approximately $41 million.
Anterix Inc (NASDAQ:ATEX) has achieved a 20% reduction in operating expenses, enhancing efficiency and capital flexibility.
The company has cleared over 80% of incumbents within its spectrum band, allowing for broadband licenses in approximately 90% of all U.S. counties.
Seven utilities are deploying 900 megahertz private LTE at scale, representing the fifth largest wireless network footprint in the U.S., validating the technology's effectiveness.
Negative Points
The stock price does not reflect the company's progress and market enthusiasm, indicating a disconnect between perceived and actual value.
There is uncertainty regarding the timing of gains from narrowband to broadband license exchanges due to dependency on FCC approvals.
The strategic alternatives process is active but passive, suggesting limited immediate opportunities for significant strategic partnerships or acquisitions.
One utility dropped out of the demonstrated intent scorecard, although the company maintains it hasn't lost any opportunities.
The company faces challenges in aligning the timing of spectrum clearing and license applications with utility customer requests, impacting revenue recognition.
Q & A Highlights
Q: With roughly 10% of narrowband broadband license exchanges remaining, what's the potential gain when that happens, and does it change if you get a five-by-five report in order? A: (Timothy Gray, CFO) We have the ability to apply for broadband licenses in 90% of U.S. counties. Gains from these licenses should represent over $1 billion over time, appearing in the income statement as we obtain them. The timeline for these gains depends on the FCC's approval process and utility customer requests.
Q: What happens to the spectrum when utilities drop out of the pipeline in a region? A: (Ryan Gerbrandt, COO) We haven't lost anything. The change in the demonstrated intent scorecard reflects personnel changes at utilities, not a loss of opportunity. We continue to build relationships with new utility executives to maintain momentum.
Q: How do you address the dichotomy between an oversubscribed accelerator program and a stock price that doesn't reflect that? A: (Scott Lang, CEO) The lack of announcements doesn't mean a lack of progress. Utilities are methodical, and these contracts, which are substantial, take time. The value of our assets and the uniqueness of our offering are significant, and the first seven customers have de-risked the process for future customers.
Q: Are utilities in the accelerator program viewing this as a scarce resource? A: (Scott Lang, CEO) Yes, utilities see it as a scarce resource and are eager to engage. The alternatives are costly, and our proven value proposition is compelling. We have allocated appropriate funds to support these engagements.
Q: Is the strategic alternatives process active or on the back burner? A: (Scott Lang, CEO) It's active but passive in terms of serious negotiations due to our current valuation. The strategic value of our solution is recognized, and discussions are ongoing with parties interested in participating in our journey.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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