Anterix's Q2 2026 Earnings Call: Contradictions Emerge on Broadband License Agreements, Utility Engagement, 5x5 Plan, and Ecosystem Growth

Guidance:

• Approximately $114M in contracted proceeds to be received, with over $60M expected primarily in Q4 FY2026.
• Projected cash proceeds for the current fiscal year raised to $100M from $80M after receiving $29M in milestone payments and $19M in accelerated payments year-to-date.
• Continue engagement with the FCC on expanding to 10 MHz; company is confident in a favorable outcome and views 6 MHz as competitive today.
• Pursuing TowerX and Catalyx initiatives and ongoing spectrum monetization (recorded $71M one-time gains this quarter).

Business Commentary:

* Spectrum Asset and Monetization Potential: - Anterix's spectrum assets are carried on the balance sheet at $325 million, with 85% of the spectrum yet to be monetized and valued in a range of roughly $1.5 billion to well over $4 billion based on 600 MHz and AWS3 auction prices. - The immense headroom in spectrum monetization potential provides pricing power and the ability to unlock billions in additional value.

• Debt-Free Financial Position:
• Anterix closed the second quarter of fiscal 2026 with approximately $39 million in cash and no debt.

• This strong financial position allows for strategic investments and expansion while maintaining financial discipline.

• Increase in Contracted Proceeds:

• Anterix's contracted proceeds for the current fiscal year were raised to $100 million from the previously guided $80 million.

• This increase is due to successful delivery of spectrum to customers ahead of schedule and receipt of $19 million in accelerated payments.

• Record One-Time Gains from Spectrum Sales:

• The company recorded a total gain of $71 million in the quarter, consisting of $60 million from the exchange of narrowband to broadband licenses and $11 million from the sale of broadband licenses.
• These record high one-time gains demonstrate Anterix's continued ability to monetize its spectrum assets and deliver on customer commitments.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management emphasized momentum and conviction: “momentum toward 10 MHz continues to accelerate,” CEO: “I am betting on us,” CFO: spectrum assets carried at $325M with 85% unmonetized valued ~$1.5B–$4B, and the company recorded a total $71M gain this quarter while raising projected cash proceeds to $100M.

Q&A:

• Question from Mike Crawford (B. Riley Securities): What are the wireless licenses tied to the $28M commitment you entered into in June, how much has been funded/expended, are you ~80% through clearing, can you quantify the non-cash license exchanges/gains, and is there a timeframe from contract negotiation to transaction for complex systems?
  Response: Clearing commitment totals ~$28M with $14M funded to escrow ($5.5M spent, ~$8.5M remaining); clearing is on budget and ahead of plan (~85% incumbents cleared, licensing possible in ~90% of counties); company recorded one-time $71M gains this quarter but will not provide guidance on timing or quantify future license-exchange gains; clearing does not always lead immediately to a contract.

• Question from George Sutton (Craig-Hallum Capital Group): Can you update on the two-operator deal (size/population) and clarify your comment that asset value is 10x your cost basis—what basis are you using?
  Response: The deal is with a sizable IOU (details withheld under NDA) where one operating company will pilot and scale across both groups; the '10x' references market value versus the balance-sheet carrying value (~$325M), noting 85% of spectrum unmonetized and estimated market valuation roughly $1.5B–$4B.

Contradiction Point 1

Broadband License Agreement and Financial Commitment

It involves the financial details and purpose of a $28 million commitment related to a broadband license agreement, which directly impacts Anterix's financial health and strategic positioning.

Can you clarify the wireless licenses agreements with the incumbent? What is the purpose of the $28 million payment and which licenses does it cover? - Mike Crawford(B. Riley Securities)

2026Q2: The $28 million commitment is for a clearing arrangement, which involves $14 million in escrow. About $5.5 million has already been expended, with $8.5 million left. The agreement funds this clearing, which allows for existing customer delivery and other broadband opportunities. - Elena Marquez(CFO)

What is the potential gain upon completion of the remaining 10% narrowband broadband license exchanges? And does that gain change if a 5x5 report is received? - Michael Roy Crawford(B. Riley Securities)

2026Q1: We have the ability to apply for broadband licenses in 90% of counties. As we receive these licenses, we will see gains represent north of $1 billion over time. The 5x5 report will not impact this, as it only affects the order in which we can clear narrowband and get broadband licenses. - Timothy A. Gray(CFO)

Contradiction Point 2

Utility Engagement and Accelerator Program Success

It reflects differing perspectives on the success and progress of Anterix's engagement with utilities in its accelerator program, which is crucial for the company's growth strategy.

Why is there a disconnect between the accelerator program's success and the stock price? - George Frederick Sutton(Craig-Hallum)

2026Q2: Engagement is ongoing and progressing well, with utilities being methodical in their decision-making. The striking difference between current market value and intrinsic value creates an opportunity for investors. - Scott A. Lang(CEO)

How should utilities in the accelerator program assess its scarcity compared to other alternatives? - George Frederick Sutton(Craig-Hallum)

2026Q1: Utilities see the program as a scarce resource due to the value and proven nature of what Anterix offers. The alternatives are more expensive and less proven, making Anterix's offering appealing. - Scott A. Lang(CEO)

Contradiction Point 3

Utility Customers and 5 x 5 Plan

It involves differing statements regarding the excitement and expectations of utility customers related to the 5 x 5 plan, which is crucial for understanding market demand and company strategy.

What details can you share about the wireless licenses agreements with existing operators? What is the $28 million payment for, and which licenses does it cover? - Mike Crawford (B. Riley Securities)

2026Q2: Utility customers remain excited about our 5 x 5 plan. - Scott A. Lang(CEO)

Can customers requiring the 5x5 program still participate in this initiative? - George Frederick Sutton (Craig-Hallum Capital Group LLC, Research Division)

2025Q4: We haven't seen any hesitation from utilities regarding the 3 x 3 deployment. - Scott A. Lang(CEO)

Contradiction Point 4

Anterix Active Ecosystem Growth

It highlights differing statements about the growth and composition of the Anterix Active ecosystem, which is essential for understanding the company's strategic partnerships and market positioning.

What is the expected trajectory for Blackwell's ramp this year and its impact on gross margins? - Timothy Arcuri (UBS)

2026Q2: We expect more companies to join, aligning with our focus on utility partnerships. - Ryan Gerbrandt(COO)

Who else has recently joined your Anterix Active ecosystem besides Digi International? - Michael Roy Crawford (B. Riley Securities, Inc., Research Division)

2025Q4: We have exceeded 140 participants in the ecosystem. - Ryan Gerbrandt(COO)