Anterix Swings to Operating Loss as Spectrum Revenue Grows 38%
The 900 MHz spectrum specialist posted $0.01 a share in earnings, down from $1.35 a year earlier, as prior-year asset-exchange gains evaporated.
Anterix (ATEX), the 900 MHz broadband spectrum provider, reported a sharp decline in first-quarter profit for fiscal 2027, as gains on the exchange of intangible assets that inflated year-earlier results largely disappeared.
The company posted net income of $240,000, or $0.01 a share, for the quarter ended June 30, 2026, compared with $25.18 million, or $1.35 a share, in the same period a year ago. The swing was driven primarily by a gain on exchange of intangible assets that shrank to $10.65 million from $33.92 million, and the absence of a $961,000 gain on sale of intangible assets recorded in the prior-year quarter. Anterix swung to an operating loss of $246,000, versus operating income of $22.48 million a year earlier.
Revenue from spectrum licensing, the company's core business, rose 38% year over year to $1.958 million. General and administrative expenses fell 8% to $9.624 million, while sales and support costs climbed 28% to $1.911 million. Severance charges of $620,000 that appeared in the year-ago quarter were absent, signaling the completion of a prior restructuring.
The balance sheet showed strengthening cash generation. Cash and equivalents rose 18% sequentially to $116.0 million at June 30 from $98.5 million at the end of March. Deferred revenue grew to $174.9 million from $161.2 million over the same period, reflecting new contracted proceeds. Operating cash flow turned positive at $2.045 million, compared with negative $3.14 million a year ago, aided by $13.7 million in deferred-revenue inflows versus $3.5 million in the prior-year quarter. Interest income nearly doubled to $845,000 on higher cash balances.
Spectrum clearing costs — recorded as purchases of intangible assets — nearly doubled to $6.7 million from $4.0 million, underscoring the company's continued investment in preparing its 900 MHz holdings for commercial broadband use. A new $0.8 million spectrum license sale agreement with Benton PUD was entered in April, and $13.0 million in broadband licenses held for sale appeared on the balance sheet for the first time.
Anterix did not repurchase any shares during the quarter, leaving $226.7 million available under a $250 million authorization that expires September 21, 2026. Weighted-average diluted shares outstanding rose to 19.63 million from 18.70 million a year earlier, reflecting stock-option exercises that generated $20.3 million in proceeds.