Anterix swings to $5 million loss as FCC weighs 900 MHz expansion

By Rebecca Stone

Anterix reported a $5.0 million net loss, or 25 cents per share, for the fiscal second quarter ended Sept. 30, after license-exchange gains shrank to $6.1 million from $59.6 million a year earlier.

What drove the $5 million reversal?

A year earlier, Anterix recorded $53.5 million of net income, or $2.86 per share. Those profits included $59.6 million from exchanging narrowband licenses for broadband licenses and an $11.5 million gain on a spectrum sale. This quarter, the company exchanged narrowband for broadband licenses in six counties and booked a $6.1 million gain. The smaller gain package drove the year-over-year reversal.

Anterix leases 900 MHz spectrum to electric utilities for private LTE networks. That recurring business produced only $1.96 million of recognized revenue during the quarter, despite rising 26% from a year earlier. Utilities typically prepay for long-term leases, which Anterix recognizes over time rather than immediately.

Is the underlying lease business growing?

Deferred revenue reached $173.3 million, far exceeding the quarter's recognized spectrum revenue. Operating expenses rose 15% to $13.8 million. Anterix also spent $5.4 million clearing incumbent license holders from the 900 MHz band, an outlay larger than the $1.96 million generated from spectrum revenue during the period.

That spending matters because clearing the band is a prerequisite for utility deployments. The company can lease the cleared spectrum to critical infrastructure operators, but it must absorb the cost before collecting the long-term lease payments.

How much liquidity is behind the wait?

Anterix ended the quarter with $107.5 million of cash and cash equivalents, no debt and $3.2 million in escrow. About $33.1 million of contracted proceeds remained to be collected. The company expects roughly $9.6 million during the remainder of fiscal 2027, which ends in March.

It bought back no stock during the quarter and retained the full $250 million repurchase authorization through Sept. 2029. The cash balance and contracted collections provide funding while recognized lease revenue remains small.

What does iPhone support change?

Anterix reiterated a September announcement that Apple's iPhone 18 Pro and iPhone Duo are the first iPhone models able to run on dedicated private LTE networks using Anterix's 900 MHz spectrum, identified as 3GPP Band 106. The announcement supplied no shipment, pricing or revenue forecast.

Anterix pitched the phones to critical infrastructure operators as another device for field communications and operational applications on their own licensed networks. The hardware gives utilities running Anterix spectrum a more familiar endpoint for private-network operations.

What could the FCC's 900 MHz proposal do?

After the quarter closed, the Federal Communications Commission voted on Oct. 29 to propose changes to its Supplemental Coverage from Space rules. Those rules govern satellite service delivered directly to ordinary phones over terrestrial spectrum. The proposal would add about 482 MHz of eligible spectrum, and Anterix said it includes consideration of the 900 MHz band.

If adopted, the change would let satellites fill coverage holes in rural utility territories using the same band utilities already employ for private LTE. That could extend service beyond terrestrial network footprints without requiring utilities to lease different spectrum for satellite coverage.

The proceeding remains at the proposal stage. The FCC has set no final rule, and Anterix's interpretation that 900 MHz is under consideration does not guarantee approval.

What will the next disclosures show?

For Anterix, the next test is whether its $173.3 million deferred-revenue balance converts into recognized revenue despite the $5.4 million band-clearing costs already incurred. Meanwhile, iPhone compatibility and any final FCC action could determine whether 900 MHz gains broader utility demand or new satellite competition in rural areas.