Anterix Inc. (ATEX) 2025 10-K Review: Unlocking Private Wireless Broadband for Utilities

Anterix Inc. (Nasdaq: ATEX) sits at the forefront of a critical infrastructure transformation. As the largest holder of licensed 900 MHz spectrum in the contiguous U.S., plus Hawaii, Alaska and Puerto Rico, Anterix’s mission is to empower electric utilities and other essential service providers to modernize their operations with secure, private wireless broadband networks. The 2025 annual report (Form 10-K) highlights Anterix’s business model, key agreements with major utilities, financial performance, and roadmap for continued spectrum monetization.

Warren.AI 💰 5.5 / 10

Business Overview and Strategy

Core asset: 6 MHz of nationwide 900 MHz spectrum, repurposed from narrowband to broadband use under the Federal Communications Commission’s (FCC) May 2020 Report and Order.

Primary customers: Investor-owned electric utilities with regulated service territories. Long-term leases and outright sales of spectrum licenses to:

• Ameren (Missouri & Illinois) – 30 year lease
• Evergy (Kansas & Missouri) – 20 year lease
• Xcel Energy (8 states) – 20 year lease
• TECO (Florida) – 20 year lease
• San Diego Gas & Electric – $50 million sale
• Lower Colorado River Authority (LCRA) – $30 million sale (+ $13.5 million expansion)
• Oncor (Texas) – $102.5 million sale

Go-to-market: 20- to 30-year spectrum leases at fair market value, paid largely upfront or via milestone prepayments tied to license delivery per county. Utilities recover these costs through rate base approval by state utility commissions, thereby earning a standard regulatory return.

Dual-track strategy:

1) Continue converting narrowband spectrum to broadband licenses county by county (must satisfy 50% Licensed Spectrum Test, 90% Broadband Segment Test, and return/surrender 240 channels per county via licenses or Anti-Windfall Payments).
2) Lease or sell spectrum to utilities for long-term use, enabling private LTE/5G networks customized for mission-critical service, cybersecurity, grid modernization and distributed energy resource integration.

Key 2025 Developments

• Leadership changes: Scott Lang named CEO; Thomas Kuhn assumes Executive Chairman role, guiding utility engagement.
• New deals: Expanded LCRA sale (+34 counties, $13.5 M) and Oncor sale (95 counties, $102.5 M).
• FCC progress: 194 counties licensed to date; filed NPRM to expand 3×3 MHz broadband to 5×5 MHz (paired 10 MHz).
• Clearing & exchanges: 67 counties exchanged narrowband for broadband licenses, yielding a $22.8 M non-cash gain; 4 counties sold to Oncor, $18.3 M gain.
• Share repurchase: $8.4 M repurchased in FY25 under $250 M authorization.

Financial Highlights (FY 2025 vs. FY 2024)

(in $ millions)
Revenue $ 6.0 (+ 44% vs. $4.2)
Operating expenses – 58.8 (+ 4% vs. 56.7)
Gains on license exchanges & sales + 41.1 (+ $ 12.8 vs. + 35.0)
Net loss (- 11.4 vs. – 9.1)
Cash & equivalents $ 47.4 ($ 60.6 at 3/31/24)
Contract liabilities $ 124.7 ($ 122.2 at 3/31/24)

Revenue drivers: Upfront and milestone payments from Ameren, Evergy, Xcel Energy, TECO.
Non-cash gains: Reflect accounting for broadband license exchanges and sales of four counties to Oncor.

Balance sheet strength: $47.4 M cash, minimal debt; deferred revenue of $124.7 M covering long-term spectrum leases.
Net operating losses: $11.4 M loss in FY 2025 reflects investment phase of spectrum commercialization; NOLs available to offset future taxable income.

License Conversion & FCC Process

The FCC’s 2020 Realignment created a 6 MHz broadband segment and two narrowband segments in the 900 MHz band. To secure a broadband license in each county, Anterix must:

1) 50% Licensed Spectrum Test: Hold > 50% of licensed narrowband channels. 2) 90% Broadband Segment Test: Hold or clear 90% of licensed channels in 6 MHz broadband segment within the county (or within 70 miles). 3) Return or pay for 240 channels: Surrender narrowband licenses or pay Anti-Windfall Payments for missing channels (based on 600 MHz auction pricing).

Clearing incumbents: Negotiated 75%+ of required deals internally; Complex Systems (45 sites+) may require bespoke solutions or voluntary agreements.

Progress: 194 counties licensed; 67 counties certificate exchanges completed; 28 counties exchanged in FY 2024; 4 counties sold to Oncor in FY 2025; remaining target territories include LCRA (+ expansion), TECO, SDG&E option county.

Risks & Challenges

• Capital intensity & timing: Retuning incumbents, Anti-Windfall Payments and clearing costs vary by county; milestone pre-payments may lag or require refunds if obligations unmet.
• Execution risk: Need to negotiate with every incumbent (including railroads, telecom) and Complex System operators; holdouts can delay license issuance.
• Competition: T-Mobile 800 MHz spectrum sale buyer, traditional carriers (Verizon, AT&T), FirstNet public safety network.
• Regulatory: Dependence on FCC rulemaking (e.g., expanding from 3×3 MHz to 5×5 MHz) and state utility commission rate base approvals.
• Technology supply: Secure availability of 3GPP LTE Band 8 (n106) devices and infrastructure vendors for U.S. private LTE/5G builds.
• Profitability timeline: Continued net losses as spectrum monetization scales; operating leverage depends on new customer deals offsetting G&A costs.

Outlook & Upside Potential

Anterix has assembled a differentiated spectrum portfolio embedded in every U.S. county. With major utility partners and pending FCC expansion to 10 MHz, the Company is poised to become the platform of choice for private utility broadband networks. Key upside catalysts:

• FCC broadband expansion (5×5 MHz): Could unlock $1 B+ incremental market value if 10 MHz segment authorized.
• Additional utility wins: Potential sales or leases to Dominion Energy, Duke Energy, Consolidated Edison, municipals.
• Geographic expansion: Beyond utilities to railroad corridors, ports, oil & gas, mining.
• Platform services: Beyond spectrum leasing to managed network, security, edge compute services.

Investment Score: 5.5 / 10

Positives:

• Unique, in-demand spectrum resource; essential to national grid modernization.
• Recurring, long-term revenue stream via utilitiesontracts sanctioned in rate base.
• Strong cash position, share repurchase program.
• FCC progress and utility ecosystem traction (UBBA, AAE).

Risks:

• Execution complexity clearing incumbents, Complex Systems.
• Net losses and negative cash flow until scale reached.
• Regulatory / competitive threats (FirstNet, 800 MHz buyer).
• Technology availability and integration risk.

Anterix remains a compelling strategic play on private utility broadband. However, execution milestones and incremental licensing progress will be crucial. Investors with a multi-year horizon to weather near-term losses and regulatory proceedings may find ATEX to be a thoughtfully positioned infrastructure growth story.