Anterix Inc. (ATEX) Earnings

Management highlights

### Market Position & Spectrum Valuation - Large recent industry transactions (Amazon's acquisition of Global Star, AT&T's $23 billion purchase of EcoStar Spectrum, SpaceX's additional spectrum purchases) confirm the company's long-held thesis that scarce licensed low-band spectrum is increasingly valuable, with demand outstripping fixed supply. - The 900 MHz spectrum position is now recognized as strategic infrastructure, with demand expanding beyond utilities to other critical infrastructure sectors. ### Commercial Progress & New Hires - In Q4 FY26, the company signed four new utility customers: CPS Energy, Texas New Mexico Power, Benton PUD, and Northwestern Energy, two of which signed 10 megahertz agreements immediately after the FCC ruling. - Kim Kerr joined as new Chief Revenue Officer, tasked with scaling commercial execution for the next phase of growth; Ross Sparrow joined as Chief Product Officer to lead adjacent product development. - Interest in the Catalix adjacent service offering has more than doubled since the February 2026 earnings call, with traction growing among both existing and new utility customers as the offering moves from evaluation to contracted master service agreements. ### Product & Ecosystem Strategy - The company offers flexible commercial structures (phased spectrum access from 6 to 10 megahertz, customizable payment terms, choice of lease or ownership) to match customer capital availability and affordability constraints, a key competitive advantage. - Adjacent product development is focused exclusively on reducing friction for spectrum sales and accelerating customer value realization; launched offerings to date include Catalix SIM management and nationwide tower access via a Crown Castle agreement. - The company is conducting technical testing with Link Global to explore integration of terrestrial 900 MHz spectrum with satellite networks for direct-to-device (D2D) connectivity, focused initially on enterprise and critical infrastructure use cases that require continuous, resilient coverage. Initial testing completed in early Q1 FY27 has been successful, moving the concept to early technical validation.

Guidance

- Total all-in operating expenses (including stock-based compensation and one-time expenses) for fiscal 2027 are expected to be at most $40 million, down from a ~$45 million run rate in H1 FY25. Clearing costs are expected to be slightly higher than the ~$27 million spent in FY26, with no fixed guidance as the company adjusts clearing activity based on pipeline progress. - $50 million remains to be collected from already signed contracts, with approximately $25 million of that amount expected to be collected in FY27. - The change to gross revenue recognition for spectrum sales is prospective; no prior period financials will be restated. The base run-rate GAAP revenue from existing long-term leases is expected to hold at ~$2 million per quarter in FY27, with an additional $13 million in revenue from the CPS Energy contract expected to be recognized in Q4 FY27 upon license delivery, excluding any potential revenue from new contracts signed in FY27. - The company's closed the original discounted accelerator pricing program, with no new broad accelerator agreements active going forward; all new pricing is customized to each customer and market based on spectrum scarcity and value. - First quarter FY27 clearing costs are expected to remain consistent with average quarterly levels from FY26; the company declined to guide on Q1 gains on sale or license exchange gains due to variability in FCC licensing timelines.

Segment performance

Currently, the company's only reported segments are core spectrum monetization (long-term leases and sales) and adjacent recurring revenue offerings. For full fiscal 2026: The company collected $127 million in cash receipts, exceeding the initial expectation of $80 million. Quarterly GAAP revenue from spectrum amortization reached $2 million in Q4 FY26, up from $1.6 million in prior quarters. Non-cash exchange gains from narrowband-to-broadband license conversions across 219 counties totaled $105 million, and gains on sale of broadband licenses covering 155 counties were $34.8 million. To date, only 15% of the company's nationwide spectrum (on a megahertz POPs basis) has been contracted via long-term leases and sales, with the majority of remaining spectrum concentrated in the top 20 most valuable U.S. metropolitan areas.

Risks & headwinds

No explicit new material risks or operational failures were discussed on the call. Management noted that all forward-looking statements are based on current assumptions and are subject to general market and regulatory risks, which are detailed in the company's SEC filings (10-K and 10-Q).

Analyst Q&A

• Q: Has Catalix interest grown with existing customers, is the company's appetite for non-utility spectrum use cases growing, and how does the Link partnership tie into this? /

  A: Catalix, which offers integrated SIM management to reduce deployment friction, has seen interest double since launch. It is now moving from evaluation to contracted master service agreements with both existing and new customers, and can be offered even before a core spectrum contract to lower friction for future deals. Non-utility inbounds are growing across all 17 U.S. critical infrastructure sectors, and the company is evaluating all opportunities to maximize spectrum value for shareholders, including the D2D satellite testing with Link that is already complete initial successful testing. (518 chars)

• Q: How would Link's D2D satellite service coexist with existing licensed spectrum already sold to utilities, and what are FY27 expense and revenue recognition details? /

  A: The company confirms there are no technical conflicts between D2D use and existing utility licenses, as only 15% of the company's nationwide spectrum is currently contracted, and regulatory precedents from major carriers support partial spectrum use models. Total FY27 OPEX is capped at ~$40 million, with clearing costs expected to be slightly higher than FY26's $27 million. The revenue recognition change for spectrum sales is prospective (no prior period restatements), with $13 million from the CPS Energy contract set to be recognized in Q4 FY27 upon delivery. (523 chars)

• Q: How broad is the recent step-up in pricing discussions, what is the status of the old accelerator pricing program, and what is the outlook for the 8:1 adjacent revenue to spectrum value multiple? /

  A: The increased pricing activity is broad across small to large utilities, spanning single-digit million to nine-digit deal opportunities, with all customers aligned on long-term full 5x5 spectrum access. The accelerator discount program is permanently closed, with no new discounted deals, and all new pricing is customized to market and customer value. The company is focused on delivering on launched adjacent products first, so it is too early to update the 8:1 multiple, but management expects the number to hold or rise with the addition of D2D and new use cases. (542 chars)

• Q: Could the 8:1 adjacent revenue multiple increase with the addition of 5x5 spectrum and D2D opportunities, and are new non-utility conversations a continuation of early interest or new? /

  A: The original 8:1 multiple was based on detailed analysis of total infrastructure investment around the company's spectrum, and management does not expect it to decrease, only potentially increase as new use cases like D2D emerge. Non-utility interest is a mix of both: some comes from parties that supported the company's early regulatory efforts, and many new inquiries have emerged after the FCC's 5x5 ruling, with organic growth driven by existing utility customers opening up opportunities for third-party connectivity in their footprints. (437 chars)