Exchange: NASDAQ | Sector: Communication Services | Industry: Telecommunications Services
Q2 2025
Published: Nov 13, 2024
Earnings Highlights
Revenue of $1.55M up 47.4% year-over-year
EPS of $-0.69 decreased by 727.3% from previous year
Gross margin of 100.0%
Net income of -12.77M
""It has zero debt, a great balance sheet, an expansive $3 billion pipeline of customer opportunities, a seasoned thought leadership position, an exceptionally talented and committed team, and we're just getting started."" - Scott Lang
Anterix delivered a Q2 FY25 result that underscores the company’s transition from a spectrum-asset developer to a revenue-generating private wireless solutions provider for utilities. Revenue for QQ2 2025 was USD 1.551 million, up on a year-over-year basis but accompanied by a substantial operating loss driven by elevated SG&A and R&D expenses. The company remains debt-free with a solid liquidity position and a sizable contracted proceeds backlog (~USD 168 million through 2026), which provides visibility and optionality for shareholder value creation via buybacks and strategic investments. Management guidance remains qualitative, emphasizing spectrum monetization, cost efficiencies, and accelerated customer deployments, including potential early delivery of spectrum that could improve near-term cash flow. Management commentary around a multi-year private-network opportunity, a 5G-capable spectrum asset, and regulatory advances paints a constructive long-run opportunity, even as near-term profitability remains negative as investments scale.
Key Performance Indicators
Revenue
1.55M
QoQ: 1.70% | YoY:47.43%
Gross Profit
1.55M
1.00% margin
QoQ: 15.23% | YoY:83.99%
Operating Income
-13.13M
QoQ: 12.54% | YoY:-681.23%
Net Income
-12.77M
QoQ: 17.77% | YoY:-715.82%
EPS
-0.69
QoQ: 17.86% | YoY:-727.27%
Revenue Trend
Margin Analysis
Key Insights
Revenue: USD 1.551 million in Q2 FY25, up YoY by ~47.4% and QoQ by ~1.7% (per provided earnings metrics). - Gross profit: USD 1.551 million (gross margin reported as 100.0% in the data, noting possible reporting gaps or missing cost of revenue details). - EBITDA: USD -12.979 million; Operating income: USD -13.13 million; Net income: USD -12.766 million; EPS: -0.69. - Cash and equivalents: USD 43.129 million; No debt on the balance sheet; Net cash position negative to zero debt with USD 43.1 million cash. - Balance sheet: Total assets USD 317.237 million; Total liabilities USD 178.174 million; Total stockholders’ equity USD 139.063 million. - Cash flow: Operating cash flow USD -2.648 million; Free cash flow USD -2.689 million; Net change in cash USD -8.555 million; End cash USD 50.737 million. - Forward liquidity: USD 168 million in contracted proceeds expected over the next several years; ~USD 110 million to be received by end of fiscal 2026. - Valuation/ratios: Current ratio 3.59; Gross margin 1.00x (per dataset); EBITDA margin about -8.37%; Enterprise value multiple negative in some peers; price-to-sales ratios in the peer group are high, reflecting early-stage/private-network capital allocations.
Financial Highlights
- Revenue: USD 1.551 million in Q2 FY25, up YoY by ~47.4% and QoQ by ~1.7% (per provided earnings metrics). - Gross profit: USD 1.551 million (gross margin reported as 100.0% in the data, noting possible reporting gaps or missing cost of revenue details). - EBITDA: USD -12.979 million; Operating income: USD -13.13 million; Net income: USD -12.766 million; EPS: -0.69. - Cash and equivalents: USD 43.129 million; No debt on the balance sheet; Net cash position negative to zero debt with USD 43.1 million cash. - Balance sheet: Total assets USD 317.237 million; Total liabilities USD 178.174 million; Total stockholders’ equity USD 139.063 million. - Cash flow: Operating cash flow USD -2.648 million; Free cash flow USD -2.689 million; Net change in cash USD -8.555 million; End cash USD 50.737 million. - Forward liquidity: USD 168 million in contracted proceeds expected over the next several years; ~USD 110 million to be received by end of fiscal 2026. - Valuation/ratios: Current ratio 3.59; Gross margin 1.00x (per dataset); EBITDA margin about -8.37%; Enterprise value multiple negative in some peers; price-to-sales ratios in the peer group are high, reflecting early-stage/private-network capital allocations.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.55M
47.43%
1.70%
Gross Profit
1.55M
83.99%
15.23%
Operating Income
-13.13M
-681.23%
12.54%
Net Income
-12.77M
-715.82%
17.77%
EPS
-0.69
-727.27%
17.86%
Key Financial Ratios
currentRatio
3.59
grossProfitMargin
100%
operatingProfitMargin
-847%
netProfitMargin
-823%
returnOnAssets
-4.02%
returnOnEquity
-9.18%
debtEquityRatio
0.04
operatingCashFlowPerShare
$-0.14
freeCashFlowPerShare
$-0.44
priceToBookRatio
5.03
priceEarningsRatio
-13.71
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key management and director-level statements from the QQ2 2025 earnings call: - Scott Lang (CEO): Emphasized Anterix as debt-free with a large private-network opportunity and a USD 3 billion pipeline, highlighting 5G capability and ongoing FCC petition to expand from 3/3 to 5/5 MHz, underscoring the strategic shift toward spectrum monetization and broader utility adoption. Quote: "It has zero debt, a great balance sheet, an expansive $3 billion pipeline of customer opportunities... the opportunities that are in front of us to drive growth and enhance shareholder value." - Tim Gray (CFO): Stressed balance sheet strength (cash > USD 43 million, no debt) and the sizable contracted proceeds (~USD 168 million) expected over the coming years, with roughly USD 110 million by end of FY2026. Quote: "We ended our second quarter of fiscal year 2025 with more than $43 million in cash and no debt... more than $168 million in contracted proceeds to be received over the next several years." - Chris Guttman-McCabe (Regulatory/Comms): Highlighted the flexibility of Anterix’s platform to accelerate delivery based on customer needs, a differentiator in private networks versus carrier-led solutions. Quote: "The ability to be flexible... turn on a dime if a customer wants to accelerate or evolve their delivery decisions... is one of the things that makes our offering unique." - Ryan Gerbrandt (COO) and UBBA feedback: UBBA conference underscored real-use deployments (SCADA, FLISR, security, device management) and the transition from technology understanding to actual network deployments, reinforcing the practical value of 900 MHz LT in utility modernization. - Management signaled ongoing focus on spectrum transactions, efficiency, and potential buybacks to enhance shareholder value.
"It has zero debt, a great balance sheet, an expansive $3 billion pipeline of customer opportunities, a seasoned thought leadership position, an exceptionally talented and committed team, and we're just getting started."
— Scott Lang
"We ended our second quarter of fiscal year 2025 with more than $43 million in cash and no debt on our balance sheet. We still have more than $168 million in contracted proceeds to be received over the next several years related to signed contracts... roughly $110 million to be received by the end of our fiscal 2026."
— Tim Gray
Forward Guidance
- Management provided qualitative guidance rather than a numeric forecast for FY26+. The company intends to accelerate spectrum transactions, optimize operating expenses, and pursue additional buyback opportunities enabled by stronger near-term cash flow from customers willing to deliver spectrum earlier than contractual terms. - Specific near-term cash flow dynamics were disclosed in the Q&A: approximately USD 35 million of cash flow expected in Q4 FY25 from earlier-than-planned receipts, in addition to roughly USD 18 million already received in the year, putting FY25 contracted receipts in the USD 50s million range. This supports a more aggressive buyback posture in the near term. - FCC regulatory progress towards 5/5 MHz (from 3/3 MHz) remains a key optionality that could unlock a larger spectrum opportunity, with management signaling confidence in co-petition support and political process stability. - Key factors for investors to monitor include: (1) progress on the FCC petition for 5/5 spectrum, (2) pace of utility deployments and reference-ability from UBBA and customer testimonials, (3) execution of cost-reduction initiatives and any breakthrough in operating leverage, and (4) the rate of contracted-payment realization and potential acceleration of cash flow timing.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ATEX Focus
1.00%
-8.47%
-9.18%
-13.71%
SHEN
29.90%
-5.31%
-1.38%
-18.00%
LBRDP
53.70%
8.54%
2.04%
4.12%
OOMA
60.30%
-2.49%
-2.61%
-32.31%
IDT
37.00%
9.33%
7.46%
14.64%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Anterix presents a high-uncertainty, high-upside investment proposition. The company operates in a strategic niche: private wireless networks for critical infrastructure utilities, anchored by the 900 MHz spectrum asset and evolving toward 5G-capable capabilities. The QQ2 2025 results show negative profitability as the company scales, but the balance sheet is exceptionally strong (no debt, USD 43.1m cash) with a sizeable contracted revenue backlog (~USD 168m) and visible cash inflows through FY2026. Management’s emphasis on spectrum transactions, cost discipline, and accelerated cash flow timing (through early delivery by customers) supports a constructive near-term equity trajectory via buybacks, while the long-run opportunity hinges on FCC spectrum expansion and the pace of utility adoptions. Key catalysts include: (1) FCC 5/5 MHz approval, (2) UBBA-driven deployments and customer testimonials, (3) AI/edge-enabled use cases at the grid edge, and (4) potential operational leverage as revenue grows. Investors should weigh the near-term cash burn and negative profitability against the platform’s strategic moat, regulatory tailwinds, and liquidity flexibility. If regulatory momentum accelerates and the sales pipeline translates into material revenue, ATEX could transition toward a higher-margin growth profile; otherwise, the stock may remain a speculative, option-like exposure to utility-private network adoption. Price-to-book/value remains historically high in the peer set due to the private-network value, so the risk-reward favors a cautious, phased exposure with attention to quarterly progress on contracted receipts and FCC milestones.
Key Investment Factors
Growth Potential
- Large, multi-year private wireless spectrum opportunity in utilities with a USD 3 billion pipeline; escalating use cases (SCADA, FLISR, security, device management) and AI/edge-computing integration at the grid edge. - FCC movement toward expanding spectrum from 3/3 to 5/5 MHz could materially expand addressable capacity and monetization potential. - Near-term cash flow acceleration from customers willing to take spectrum earlier than contracted supports buyback expansion and capital discipline.
Profitability Risk
- Near-term profitability remains negative as SG&A and R&D investments scale with growth initiatives. - Regulatory risk and dependence on FCC proceedings (5/5 MHz approval) create a potential delay in monetization timing. - Revenue concentration risks given a small revenue base and reliance on a long sales cycle in the utility sector. - Execution risk in converting pipeline into revenue and achieving operating leverage given high fixed-cost structure in early scale.
Financial Position
- No debt and USD 43.1 million in cash; USD 168 million in contracted proceeds to be received over the coming years, with USD 110 million by end-FY2026, providing liquidity optionality for buybacks and strategic investments. - Negative EBITDA and net income in QQ2 2025 reflect ongoing investments to scale the business; however, solid liquidity and a robust contracted-backlog support resilience and optionality for future profitability improvements as revenue grows.
SWOT Analysis
Strengths
Debt-free balance sheet and strong cash position (USD 43.1m cash)