Anterix Inc (ATEX) Q1 2026 Earnings Report

Revenue: $1.418 million in QQ1 2026, down YoY by 7.02% but up QoQ by 2.09%; Gross Profit: $1.294 million with a gross margin of 91.26% (YoY -3.86%, QoQ -6.84%); Operating Income: $22.481 million, up YoY 249.75% and QoQ 139.26%; Net Income: $25.180 million, up YoY 262.20% and QoQ 173.46%; EPS: $1.35 (diluted $1.35), YoY +260.71%, QoQ +170.00%; EBITDA: $23.047 million with an EBITDA margin of 16.25%.

Other notable metrics and observations: (i) Hedge/one-off gains contributed to profitability, including a $34 million gain from exchanging narrowband licenses for broadband licenses in 62 counties and a $1 million gain from the sale of licenses tied to 27 counties; (ii) Operating cash flow was negative at $(3.14) million driven by non-cash adjustments (notably a large negative other non-cash item of $(34.756) million) and working capital movements, (iii) the company reported a debt-free position at quarter-end with approximately $41 million in cash and cash equivalents, and about $70 million of expected contracted proceeds to be received in FY2026, (iv) contracted proceeds totaled approximately $140 million outstanding during the quarter.

Strategy and program momentum: The Accelerator program is core to Anterix's growth thesis, with Scott Lang noting the program offers $250 million in matching spectrum value and is oversubscribed with engagements exceeding $500 million in potential contract value, representing strong market interest and a pipeline that extends beyond the initial funding. 'The response has validated our objective of the program to test demand for LTE technology and action correlated to price' (Scott Lang).

Financial strength and disciplined execution: Tim Gray highlighted a debt-free position at QQ1 2026 end and a cash position of approximately $41 million, plus roughly $140 million in contracted proceeds outstanding and about $70 million to be received in FY2026, underscoring a capital-light model and cash flow visibility. 'We ended Q1 of our current fiscal year debt-free and with a healthy cash position of approximately $41 million' (Tim Gray).

Operational progress and spectrum strategy: Scott Lang emphasized progress toward a 10 MHz offering and ongoing FCC engagement, noting that actual utilization today is a fraction of capacity but simulations show substantial headroom over a decade. 'We’re pushing towards 10 megahertz, continuing to evolve and expand our offering to meet and anticipate utilities needs' and 'Long-term simulations projecting 10 years out confirm significant headroom.'

Execution risk and timing: Ryan Gerbrandt clarified that demonstrated intent scorecard movements reflect ongoing utility engagement rather than a pipeline loss; timing for licenses and contract execution depends on utility prioritization and FCC approvals, not solely on Anterix actions. 'We have not lost anything' and 'we will pursue building relationships with the replacement and continue to push on' regarding a dropped metric.

Medium- to long-term positive due to the unique asset base and the accelerating move of utilities toward 900 MHz private LTE. The combination of an oversubscribed accelerator, a capital-light deployment model, and a expanding ecosystem supports a compelling long-term value proposition. Near-term investors should be mindful of the dependency on FCC licensing timelines and utility procurement cycles. The valuation remains sensitive to the realization of license exchange gains and the transition from licensing milestones to full-scale deployments. Key catalysts include conversion of accelerator engagements into signed contracts, acceleration of broadband license approvals, and expansion of the 10 MHz roadmap into additional counties and use cases.