Anterix (ATEX) Q4 2026 Earnings Transcript

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Date

Thursday, June 11, 2026 at 9 a.m. ET

Call participants

• Chief Executive Officer — Scott A. Lang
• President and Chief Operating Officer — Christopher Guttman-McCabe
• Chief Financial Officer — Elena Marquez

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Takeaways

• Cash collections -- $127 million collected during the fiscal year, up from the originally anticipated $80 million, driven by accelerated customer deliveries and execution by the Spectrum teams.
• Cash and debt position -- Year-end cash was $98 million with no debt, not including escrow deposits, and $50 million remaining to collect from already signed contracts.
• GAAP revenue -- Quarterly GAAP revenue increased to approximately $2 million from $1.6 million in prior quarters, attributable to license deliveries to customers in the second half of the fiscal year.
• License conversions and sale -- Converted narrowband to broadband licenses covering 219 counties, resulting in $105 million in noncash exchange gains.
• Gains on spectrum sale -- Sold broadband licenses covering 155 counties and recorded $34.8 million in gains on sale.
• Revenue recognition policy change -- Future revenue and cost of sales from spectrum sale agreements will be recognized on a gross basis in accordance with ASC 606, reflecting a shift from leases to sale-based structures. No restatement of prior periods will occur.
• CPS Energy contract revenue -- $13 million in revenue from the CPS Energy contract will be recognized in the fourth quarter of fiscal year 2027, tied to the delivery date of licenses.
• Spectrum commercialization progress -- Only 15% of nationwide spectrum has been contracted (via long-term leases and sales), with the majority of remaining assets concentrated in the top 20 metropolitan areas.
• Customer momentum -- Four new utility contracts signed in the recent three-month period, including CPS Energy, Texas New Mexico Power, Benton PUD, and Northwestern Energy; two moved directly to 10 MHz agreements following the FCC ruling.
• CatalyX product traction -- Interest in the CatalyX offering has more than doubled since the February earnings call, moving from evaluation to pricing discussions and signed master service agreements.
• Operating expenses -- Yearly operating expenses were stated as "We have lowered our expenses significantly, of course, from about $45 million run rate, back in the first half of fiscal 2025 (period ended March 31, 2025), to, you know, well below 40, I wanna say, you know, $37 million to $38 million," targeting up to $40 million for the coming year, including one-time items; clearing costs were $27 million last year and expected to be somewhat higher in the current year.
• Accelerator program status -- The 'accelerator pricing' program is closed, with all new pricing now customized per utility and market, reflecting what was referred to as "very strong pricing."
• Direct-to-device (D2D) testing -- Initial tests for integration of enterprise-grade satellite networks via Link Global have moved from concept to early technical validation, with additional devices and test phases underway.
• Market dynamics -- Management cited recent industry transactions (Amazon/Globalstar, AT&T/EchoStar, SpaceX acquisitions) as evidence that "Spectrum is a scarce, and strategic asset," with market-based valuations "climbing."
• Recurring revenue opportunity -- Management emphasized that relationships now extend beyond initial spectrum sales into recurring revenue opportunities as customers deploy and operate networks.

Summary

Anterix (NASDAQ:ATEX) reported a significant increase in annual cash collections and a transition to a more flexible commercial model, now recognizing spectrum sale revenue on a gross basis under ASC 606. Signed contracts with major utilities demonstrated accelerating market activity and adoption of 10 MHz configurations post-FCC developments. Early technical validation of direct-to-device satellite integration, in partnership with Link Global, created new adjacent market opportunities. Management confirmed that only a small fraction of spectrum inventory is contracted, with the remainder centered in premium metropolitan markets, implying continued scarcity-driven demand dynamics. No restatement of prior financial periods is expected from the revenue policy change.

• Management stated, "The value of Spectrum is strong, Demand is greater than supply, and that thesis is now coming to shape," explicitly framing the supply-demand imbalance as a persistent market driver.
• Recent commercial transactions highlighted by management provide reference points for spectrum market value, with specific mention of Amazon's Globalstar acquisition, AT&T's $23 billion EchoStar spectrum purchase, and SpaceX spectrum expansion.
• OpEx guidance for the coming year sets a maximum of approximately $40 million all-in, with clearing cost variability depending on customer deliveries and market opportunities.
• Customer transition from evaluation to deployment phases is accelerating, with a notable increase in direct pricing requests and breadth of active utility engagement.
• Management specified that future revenue from large sale agreements, including $13 million from the CPS Energy deal, will be recognized only upon spectrum delivery, increasing quarterly revenue variability.
• A product-driven strategy is being executed, with CatalyX and a nationwide tower access agreement already supporting utility adoption, while management evaluates additional adjacent product opportunities.

Industry glossary

• CatalyX: Anterix's SIM management and service platform designed to simplify device network activation and reduce friction for utility broadband deployments, enabling recurring revenue streams.
• Clearing costs: Expenses associated with transitioning incumbent users or systems off legacy spectrum assignments in preparation for new license deployments or upgrades.
• 5x5 configuration: Wireless spectrum allocation format providing 5 MHz for uplink and 5 MHz for downlink, supporting higher throughput and broader utility use cases compared to narrower allocations (e.g., 3x3 MHz).
• Direct-to-device (D2D): Technology enabling satellite connectivity directly to user equipment (e.g., smartphones, industrial devices) without intermediary terrestrial infrastructure.
• Megahertz-POP: Industry metric combining frequency bandwidth (MHz) and covered population (POP) to value or price spectrum assets.

Full Conference Call Transcript

Scott A. Lang: Thank you, Natasha, and good morning, everyone. As we close my first full fiscal year as CEO, I can tell you that Anterix has never been in a better place. Every aspect of this company is stronger, and every aspect is performing. We focused this past year on setting a foundation and that foundation has us ready for the tailwinds we are now seeing in the market. Let's start with the performance of this last quarter. Activities with utilities has increased significantly just in the last 60 days. Conversations have moved from education and evaluation to now being anchored on deployment pricing, and time to value.

We see it in the number of active engagements, the volume of commercial discussions underway, the quality of opportunities moving through the pipeline, and a notable step up in direct pricing requests from utilities returning to the table with an increased level of intent. And with that, I am pleased to welcome Kim Kerr as our new chief revenue officer. Kim brings deep experience across telecom, infrastructure, and enterprise markets. Her mandate is clear. Scale our commercial execution, for the next phase of growth. But what is just as important is the broader market dynamic. And you are seeing it play out in real transactions right in front of us.

Amazon's planned acquisition of Globalstar to support direct to device capabilities, AT and T's $23 billion purchase of EchoStar Spectrum and SpaceX's acquisition of additional spectrum resources all point to the same conclusion. Scarce, license spectrum is becoming more valuable not less. These are deals where the market is putting a real price on spectrum and that price is climbing. These valuations are not speculation. It is recognizing in hard dollars that Spectrum is a scarce, and strategic asset which is what we have been saying for a long time. The value of Spectrum is strong, Demand is greater than supply, and that thesis is now coming to shape. This puts us in a position of strength.

And we are ready for this moment. You might ask why. The answer is simple. We have done the work to derisk any licensed 900 megahertz investment from our first 11 customers and our robust ecosystem of solution developers to our strong financial position. the needs of our customers. We also have a unique ability to match while ensuring that we will monetize the full value of our spectrum. From allowing a utility to start with 10 MHz or start with 6 MHz and move to 10 MHz. Schedule payment terms to match capital availability.

Deploy a single use case or deploy a wide range of solutions our flexibility to meet every utility where they are is what makes us a compelling partner. We recognize the many utilities are under intense pressure to address affordability. Yet need and want the benefits that come with private broadband connectivity. Our flexibility is our strength. Let me go a little deeper on some recent accomplishments. Within a 3-month period, we signed 4 new utilities. 2 that reinforce our strength in the great state of Texas, CPS Energy, and Texas New Mexico Power and also 2 in the Northwest region Benton PUD, and Northwestern Energy.

Notably, 2 of these customers moved directly to 10 MHz agreements shortly after the FCC ruling. Beyond our spectrum monetization, interest in our Catalyst offering has more than doubled since our February earnings call. Evidence that customers are not only evaluating Spectrum, they are committing to action. And as they do, each relationship we have grows well beyond the initial spectrum sale into the recurring revenue opportunities that run these networks. We are no longer simply participating in a spectrum market We are positioned to monetize the much larger market being built on its foundation. But that expansion is not limited to utilities. Licensed low band spectrum is no longer simply a communications input.

It is strategic infrastructure and the reign of industries competing for that scarce resource continues to expand. Demand is growing, Supply is fixed. Utilities recognize it. The broader market recognizes it. As Chris will discuss in a moment, the same dynamics are also creating new opportunities to extend the value of our spectrum position. Our work with Link Global is 1 example. Exploring additional layers of resilience and coverage including direct to device satellite connectivity, within this broader architecture. So when I step back and look at the year, I see a market that has crossed an important threshold. Utilities have validated the model, Private wireless broadband has moved from evaluation to deployment Demand is accelerating.

The opportunity is expanding beyond utilities. And licensed low band spectrum is increasingly being recognized for what it is. Strategic infrastructure. As we look to the next year, the table is set. And we are in a strong position to execute. With that, I will turn the call over to Christopher.

Christopher Guttman-McCabe: Thank you, Scott, and good morning, everyone. As Scott discussed, throughout the company, our focus is on enhancing and unlocking absolute shareholder value for our spectrum asset. That is why we are investigating extending the utilization and monetization of our spectrum across a broader set of use cases, including evaluating how 900 can be applied to direct to device satellite capabilities. With Link Global, we are testing how enterprise grade satellite networks can integrate into enterprise grade terrestrial networks. While much of the direct to device discussion today is consumer focused, we believe a larger long term opportunity may be in the enterprise and critical infrastructure space where continuous connectivity is paramount.

In this context, satellite can extend coverage terrestrial infrastructure is not yet deployed and provide a resilient overlay where networks already exist. Our testing with Link will span a range of devices including land mobile radios, smartphones, ruggedized computers, routers, and edge devices that will underpin the integration of AI, and we will complete this testing across multiple Initial testing has been successful, moving this from a concept to early technical validation. We are assessing how this capability could be productized through integrated solutions, standalone capabilities, or broader ecosystem participation. The point is simple. We are in a great position to investigate every opportunity that captures value for our spectrum. With that, I will turn the call over to Elena.

Elena Marquez: Thanks, Christopher and good morning, everyone. I will start by reviewing our fiscal 26 financial results. Our balance sheet is stronger than ever and I am pleased to share that we generated positive cash flows in fiscal 26. We initially anticipated $80 million in cash receipts. But due to accelerated customer deliveries, and strong execution from our Spectrum teams, we collected $127 million. We ended the fiscal year with no debt and $98 million in cash. Not including escrow deposits. With approximately $50 million remaining to be collected from contracts already signed. Turning to the income statement. Currently, our GAAP revenue represents the amortization of our long term spectrum leases to customers.

Our quarterly GAAP revenue increased to approximately $2 million from $1.6 million in prior quarters. Driven by license deliveries to customers during the second half of our fiscal year. Importantly, our fiscal 26 results are largely driven by the gains on sale of Spectrum. Along with noncash exchange gains associated with Spectrum conversions from narrowband to broadband licenses. Through fiscal year end, we converted narrowband to broadband licenses across 219 counties, resulting in a $105 million in noncash exchange gains. We also sold broadband licenses to customers covering 155 counties and recorded $34.8 million in gains on sale. Coupled with lower operating expenses, this resulted in a net income and EPS positive year.

In our forthcoming Form 10-K, you will also see an update to our revenue recognition policy that reflects our evolving commercial approach to best meet our customer needs. Historically, our go to market strategy was centered on a long term spectrum leases with sales generally limited to certain complex system designated areas. As the market has matured, utilities have become increasingly focused on selecting the ownership structure, that best aligns with their operational regulatory, and financial objectives. In response, we have evolved our commercial approach to provide greater flexibility meeting customers where they are and supporting deployment through either lease or sales structures.

As a result, beginning with these transactions, and going forward, revenue and cost of sales associated with Spectrum sale agreements will be recognized on a gross basis in accordance with ASC 606. Looking more strategically at our monetization opportunity to date, we have contracted only 15% of our nationwide spectrum on a megahertz-POP spaces through long term leases, and sales. Importantly, the majority of our remaining spectrum assets concentrate in some of the most valuable markets in the country, sitting within the top 20 metropolitan areas. Where scarcity dynamics are most acute. It is increasingly clear that both our historical average contract pricing and broader market comparables on a per megahertz-pop basis.

Far exceed those implied by our current market valuation. With this context, we are pursuing all opportunities to extract maximum value for our shareholders. In closing, we are a company backed by a scarce asset in high demand with fixed supply. We are well positioned with a strong balance sheet and a lean model. Our focus remains on disciplined financial execution, continued spectrum monetization, and capturing spectrum adjacent recurring revenue. All aimed at delivering long term shareholder value. With that, I will turn it back over to Scott.

Scott A. Lang: Thanks, Elena. Let me put all the information we just discussed into a broader context. Any device that consumes monitors, or controls the flow of critical data whether in utilities, industrial operations, logistics networks, satellite, or other mission critical environments need secure deterministic, connectivity and that connectivity is scarce. Demand for it is expanding. The supply of spectrum that can deliver it is fixed. That is the intersection we sit at. And the 1 we have been building toward deliberately from day 1. We do not see this dynamic changing. We believe it is where the most durable value in this market will be created.

And capturing that value for our shareholders is exactly what we intend to continue to do. We love the position we are in, Thank you for your support. Operator, we are ready. for questions.

Operator: Press *11 on your telephone, and wait for your name to be announced. Our first question comes from Sebastiano Petty with JPMorgan.

Sebastiano Petty: Hi, thanks for taking the question. Scott, in your prepared remarks, you touched on the catalytic conversations you are having. Any update on is that with existing partners? Are you having maybe follow on conversations about master services agreement, like what you have announced with Energy. And then I guess-- oh, yes. I am sorry. And then just my second question just on the nonutility use cases. Obviously, it seems like there is opportunity growing there and interest. I mean, is Anterix's appetite for some nonutility use cases growing? And is this, you know, separate or with what may come from the link partnership, or are they are kind of more ingrained there? Thank you.

Scott A. Lang: Okay. Thanks, Sebastian. Appreciate the questions and good morning. On the CatalyX numb-- first CatalyX, I am going to hand it over to Christopher to touch on some of the use cases, but what we are doing with the Spectrum outside of utilities. But on CatalyX, as we have talked about, as we started to shape the product initiatives and our ARR initiatives and the service initiatives We had the luxury of looking at our existing customer base, who were standing up these networks, delivering results, and understanding where some friction points are to help them move faster. There were a couple of that stood out. 1 of those were CatalyX.

And it is basically the entire SIM management giving them a single throat to choke, of our superpower of spectrum licensing bringing devices onto the network that they are deploying. Every device that gets connected to a network needs a SIM card. And we have strong skills within that. We have strong relationships within that. We have relationships within our ecosystem. Where we can move faster, and have a more simple master service agreement that they can sign versus multiple agreements that they sign. So it helps them eliminate some of the friction to move faster to start getting value from the network when they have bought the network and stood up the infrastructure. The CatalyX solution has really helped.

What I refer to is the fact that it has doubled and the speed of this I think we launched this a couple of 1 or 2 quarters ago. Every customer we have talked to has wanted to learn more about it. The new prospects are wanting to learn more about it. And so we have done an enormous amount of education. We are now establishing master service agreements with our contracts and with our deals. And it is moved from understanding it, evaluating it, to priced and paper that is getting in front of our customers.

And so that is what we are excited about of the increase of the interest, the education of it, and the actual traction we are seeing with not only our existing customers, but all the new customers really like to see this as well. We are not a spectrum speculator. We are in this. We are building a real business and help them reach the value desperately wanted by the business executives. So that is a little bit of context there for CatalyX's especially just to address your question. Sebastian, but also for any others that want to, like, learn a little bit more of the history on that. But, Christopher, why do not you touch on the, use case?

Christopher Guttman-McCabe: Yeah. And, Scott, 1 thing to add The beauty of these products is we can enter into a contract with these products even before a spectrum contract. Right? These can help provide, as Scott referenced, a soft landing to a Spectrum product I mean, to a Spectrum contract. And as we look at these opportunities, clearly, they are with existing customers. You know, we have got, you know, Scott hired our new chief product officer there, Ross, Sparrow, and you know, we have got a team in front of existing customers And, clearly, this concept of MSAs and these opportunities are being presented integrated into and as part of our forward looking.

So, Sebastiano, as you asked about the other verticals in the other sectors, you know, I want to go back to what Scott said because I do think everyone in the Spectrum world is beginning to realize this. And the quote was any device that consumes monitors, or controls the flow of critical data needs private connectivity. And you could apply that to any sector in any of the 17 critical infrastructure sectors. So as we look at it, yes, there are inbounds from other sectors coming to us. And, yes, we do and can do an analysis of whether that makes sense. But you did. You zeroed in on that key 1, which is satellite. And direct to device.

And so we have kicked off an investigation Actual testing happened the end of last week and into this week. And it all looks great. And so as we say, looking at I think Elena said it. I think Scott said it. I know I said it in our prepared remarks. We are looking at every opportunity to monetize our spectrum to the benefit and to the value of our shareholders. And, clearly, that includes, you know, looking at these other verticals.

Operator: Our next question comes from Mike Crawford with B. Riley Securities.

Mike Crawford: Good morning, Mike. Hi. Good morning. Sorry. First, can just to circle back to the direct to device opportunity, how would a Link work as its satellites, if ever launched at any scale, would traverse in and out of market where you have licensed your spectrum to others like utilities? Yeah.

Christopher Guttman-McCabe: Hey, Mike. So the you know, the reality is that the use of this capability is evolving but we are comfortable that, from market to market, we can have folks that are utilizing this product, and in the next market, they may or may not be. And so whether or not we have licensed a portion 15 ish percent from a pops perspective of the country, that is totally fine. there is no issue with that from a technical perspective. And you know, this is the reality with anyone who is gonna utilize direct to device.

Right? there is I think AT and T and Verizon have a petition in front of the commission right now to use a portion of low band spectrum where they do not have nationwide licensing of that spectrum. So we are we are comfortable that this can be a product if that is the path we go down. And, you know, we are excited. Link has our bands in their spectrum. We think they are a very viable entity. We are excited to work with them. And we will see how this all plays out.

Scott A. Lang: Yeah. The first round of testing has gone extremely well on it as well, Mike. We have got some of the initial results already. They are terrific. And continuing to expand the number of devices and the number of tests. Is only gonna increase now.

Mike Crawford: Okay. Thank you for that. And then just to switch to a few quick modeling questions. What are you planning for Cash and total expenses including stock comp for the current fiscal 2027?

Elena Marquez: Yeah. Thanks, Mike. We are obviously very fortunate to be in a very strong financial position with all of the cash that we were able to collect this year with accelerating deliveries. We have 50 million to collect still from the current customers. With about 25 million coming in this current fiscal year. We have lowered our expenses significantly, of course, from about $45 million run rate, back in the first half of FY 25. to, you know, well below 40, I wanna say, you know, $37 million to $38 million. I would expect to be at approximately $40 million OpEx at the most all in with onetime expenses in the current fiscal year.

You know, and of course, we are currently not exactly guiding on, the clearing costs as we are it is the lever that we have always pulled up and down. And now we will be, of course, focusing on not only delivering to the current customers, but only also unlocking the value of the expanded band tied to near term opportunities. So, of course, as our pipeline continues to move, we will continue, you know, moving that up and down. But, you know, we did spend about 27 million in clearing last year. You know, I certainly expect it to be a bit more this year, but I think it may be a placeholder for now that you could use.

Okay.

Mike Crawford: Thank you. Does that answer your question? Well, yes. And then on given that now you are going to recognize, Spectrum sale revenue on a gross basis. Is that when contracts are signed or when Spectrum is delivered? Or a combo of both? And should we expect you to restate prior financials or not?

Elena Marquez: Yeah. Thank you so much, Mike. Great questions, which, allows me to clarify some of the points you just raised. So, no, absolutely, no restatement of prior periods. This is a prospective change really driven by, you know, our go-to-market approach as it evolves. Right? We are being very flexible with our customers and meeting them where they are. And, you know, our approach used to be primarily long term leases, and now, of course, as evidenced by the last 4 contracts, we are very much open to sales of Spectrum. And with that, we you know, again, had to reevaluate our GAAP accounting and this was long in the making.

We are now able to recognize revenue on the gross basis from our sales. So what you will see, again, I am happy to provide you some guidance on this again, guided by the current contracts. As you have seen, there is an uptick in our GAAP revenue in the fourth quarter. So now we are at about $2 million So certainly expect that running through from our long term leases for the 4 quarters in this current year. However, there will be $13 million revenue recognition related to CPS Energy contract. In the fourth quarter.

As an addition, and that, of course, does not include any new contract that we may sign this year Did I answer all of your questions, or did I miss something?

Mike Crawford: Well, thank you. I am sorry. That third what can you just clarify again what you said about that $13 million Where when is that gonna be recognized?

Elena Marquez: it is going to be in the fourth-- yes. That be '7? That will be in the fourth quarter of FY 27. That is correct. And that is tied to the revenue recognition will be tied to the actual delivery date of the licenses. Okay. Perfect.

Mike Crawford: Thank you. And then just last 1. For me is given that we are 72 out of 90 days into this quarter, is there any color further you could provide on clearing costs in this 1 quarter as well as potential gain on sale of intangible assets or gain on, exchange of narrowband for broadband licenses. it is just in this 1 quarter that is nearly done.

Elena Marquez: Yeah. Thank you, Mike. I am seeing that our clearing costs are fairly consistent to kind of the average that we have seen in the past year quarterly. So I am not seeing a huge uptick in the first quarter. As far as the gains on sale, I, you know, would rather not guide because with the FCC, you know, we could get a license in on the last day of the quarter that could be extremely material. Right? So if I guide you, unfortunately, I could be very off, up or down. So, I will continue not guiding on that. Alright. Thank you very much. Of course.

Scott A. Lang: Thanks, Mike.

Operator: As a reminder, if you would like to ask a question at this time, please press 11 on your touch tone phone. Our next question comes from George Frederick Sutton with Craig Hallum.

George Sutton: Thank you. Good morning, George. Already mentioned a-- You mentioned a notable step up in pricing discussions. I wondered if you could provide a little sense of how broad are you referring to that comment to be? Are you specifically referring to CatalyX? Or are you referring to the, you know, the broader set of licenses and stuff?

Scott A. Lang: George is probably I would say it is broader. I would say it is CatalyX. But specifically on that point, I was referring to Spectrum. I have now just entered my second well, my, yeah, my second full fiscal year as CEO. So just turning the clock back 4 quarters, I will I will go even 5 quarters ago. Compared to today or any other time that I have understood with some of the history of this company, the number of active large utilities, small utilities, it is really a range. You know, there are some there are some utilities that are smaller utilities that range 6 single-digit millions.

And some utilities at the other end of the range the larger utilities, that are 9-digit numbers. So the range on that is very broad. The diversity is very strong, and it is well represented in each of those categories from strong from smaller to larger. The consistency is give us some indicative pricing. Strong interest of getting to 5x5, strong interest in the methodical approach we can give them, to bite off 3x3 with their path and committed to 5x5. Our commitment is we want to monetize the entire 5x5. That is what we are doing. that is what we have. We are confident in it. The utilities consistently want it.

They see it as a scarce and strategic asset. So everybody we are talking to is really aligned on getting to the 5x5 and they like our affordability and the phased approach that we can get them there without any risk of a stranded asset from where they are today, where they get there with this affordability challenge that is in front of them. And so I would tell you, George, it is there is a lot of excitement within the company and with the team with the activity and the responses and the requests we are getting from utilities.

And then, of course, on the other side of that is the, you know, excitement last week that we just got out of the satellite initial test with Link. And some of the other dynamics we are seeing in the market of the demand for spectrum. And it is only continuing to grow. We continue to see that We will continue to grow. The supply is fixed. So that is maybe a little longer answer than you were looking for, but I would say that we feel like we are in a really good place. And the energy here is very strong.

George Sutton: So last quarter, you made it pretty clear that pricing in effect was going up. You were eliminating new accelerator program deals. Can you just give us an update on what remains in terms of accelerator opportunities? Are you still honoring anyone who started those discussions at that time?

Scott A. Lang: We do not have any broad agreements out there. The accelerator pricing is over. That has not been renewed. We do not intend to renew that. And the pricing that we are doing now is very customized by each utility, each demand, the value of each market, So it is a very customized approach that we are working with every opportunity, whether it is in the alternative industries we are looking at that is reaching out to us or whether it is specifically with utilities, the size of the utility, it is really a customized approach. The more recent deals that we announced were very strong pricing. And they wanted to go to 5x5 ASAP.

So it really ranges, but the net of the answer is there are no new accelerator deals that are active right now that program is closed. The other 1, the pricing is very strong. And we have flexibility, but we also have a very scarce asset that we can and we will be paid accordingly for that asset. But I look at our current appreciation of where we are And the Elena touched on this. The price per pop backed into our enterprise value now gives us an enormous amount of headroom before we even begin to touch the value of our spectrum and the pricing we are putting on the table.

As a result of the demand the scarce nature of what we have, and the value of the nature of its strategic value that it brings to the utilities. Got it. Thank you for that.

George Sutton: 1 question on the product side. So I know Ross is in the midst of hopefully finding 10 products in terms of things you can offer into the ecosystem. And we have basically announced 2 and/or 3 if we include satellite. Elena has talked about an 8-to-1 revenue opportunity for relative to your license value that you would. Can you just give us a sense of what is a rational expectation for you to see in a typical market over time? Relative to that 8-to-1 opportunity.

Scott A. Lang: You are referring specifically to the adjacent new Correct. the products? ARR? Okay. You know, Ross and I had and we talked very deeply on this. What we will not do is chase every rabbit. there is a lot of opportunities. There it could be a lot of there could be-- we would chase a lot of rabbits right now. We are not going to do that. We are singularly focused on building products and reducing friction that helps us sell spectrum and helps utilities get the value of spectrum faster. The first 2 we identified were CatalyX, and the tower access and the agreement we established with Crown Castle for a nationwide tower access.

There are a couple of new ones that Ross is doing a terrific job with his team. That we are in early stages of discussing. That existing customers have highlighted that we are starting to hear about and see in the market. it is early for me to indicate what those are today. But there are a couple of early stage things we are looking at. But we also want to deliver on some of the ones we have already launched. And they are doing a really nice job where it is turning into paper, it is turning into real clarity, turning into a real value proposition that utilities can put their teeth into.

So I would love to give you a number of what we expect that to look like this year. it is a little early, I would like to see a couple of these wins turn into a real financial p and l business model and then we will be ready. But it has become part of the metric this team is accountable to deliver to our board and to, therefore, to our investors. So for the first time, this company now has a performance metric that we are being measured by the team that this is an important aspect of our company because it helps us sell spectrum, It helps our customers be successful.

And it also addresses a broader opportunity that Elena and Christopher referred to. But I think we will be in a place where we can start sharing some specifics I do not wanna put a time on it, but that would be our goal.

George Sutton: So finally, just more of a comment. But you mentioned single digit million opportunities and then 9-figure opportunities. If we are taking a toll. I would prefer the 9-figure opportunities. Ask you.

Scott A. Lang: Well, you know that we like all of our children. We love all of our children. Yeah. Yeah. We love it all. So listen. it is all good and we look. We are really in a good place We like where we are at. there is been a lot of work by this team. I just I cannot say enough about how hard this team is working and how thoughtful engaged our board is and our customers at the table and really the teamwork going on, not just within the company, but just all of our ecosystem partners it really has taken a village, and everybody's working nicely together.

And it is nice to see there is good progress and good excitement that is for good reason. And go across the company. Alright. Thanks. Thanks, George.

Christopher Guttman-McCabe: Thanks, George.

Operator: Our next question comes from Adam Kelsey with Titan Partners.

Adam Kelsey: Thank you. Scott, staying on the topic of $8 per dollar multi multiplier that was referenced, As the 5 by 5 configuration involved and the D2D opportunity scales, do you have any comments on how that $8 multiplier may change?

Scott A. Lang: Is this are you referring to the $8 that gets unlocked as a result of every dollar of spectrum that gets purchased. I think so. Yeah. I am curious if that $8, you know, would probably increase now that you are going from 3x3 to 5x5.

Adam Kelsey: and now that we have the D2D opportunity?

Scott A. Lang: I think everybody's going to want to comment on that. We it is pretty exciting as we start to think about it. The notion and the context of the work we did on to put the $8 on the table. Is that the amount of companies and investment necessary whether it is a D2D, or whether it is a satellite company, a that is enabling D2D or I mentioned logistics and mentioned some of the other industries out there and specifically for utilities. That the number of dollars that gets that starts we see flowing around us as a result of standing up these network infrastructures. Is pretty significant.

Some of those dollars, we think, should run through us and specifically the CatalyX and the TowerX because it adds a great value to the market to any customer. To have those running through us. There are a couple of others that, as I mentioned, that Ross and his team are looking at. and we will be very, deliberate on understanding what those are. Whether that $8 grows or not, I am not ready to put a number on that. We did quite a bit of work. We did not just grab a number out of the air for the $8.

So we will do the same amount of math as we start to see progress as a result with the successful milestones we hit last year on the Link test. Now as we test more devices, and we study that more as the impact that our spectrum can create on satellite direct to device and others. We will revisit the $8, but I do not see the $8 going down. I would see it as fairly well the foundation under the $8 and potentially going up. But Yeah. Christopher, do you wanna add anything?

Christopher Guttman-McCabe: I Scott, I agree with everything you said. Adam, I do love the way you are looking at it Right? There is an element of if you build it, they will come, in this sense that, you know, we were at Distributech. We had 4 of our customers on a panel. They all talked about crossing over in the next few years a million devices on their network. Right? And so we can all, I think, envision a future where the what these networks are being used for and the products that are being developed will evolve. I think Scott's right. You know, specifically. We are not we are not gonna revisit the $8 yet.

But 6 months ago, we were not talking at all about a product being satellite connectivity directed device. Right? And no 1 was in the private, you know, network utility space. So you know, the reality of connectivity opportunities is changing. And we are excited to be where we are Our teams are sitting with existing and future customers extensively talking about these expenditures coming up. so, you know, we are excited about where we are. But it is all evolving as we are sitting here.

Adam Kelsey: Great. And 1 follow-up for me. Scott, you also mentioned, ongoing conversations or at least initial conversations with nonutility potential customers. I know way back when we were undergoing the first initial NPRM, there were several nonutility customers that were in support of the R&O. Curious if you would characterize some of these conversations as continuance from those initial efforts or are new nonutility customers, coming to the table?

Scott A. Lang: I would say it is both. Yeah. You know, we are Christopher and I are you know, looking and going through our list here of companies, and it is it is a little bit of both. And it is not surprising that the ones that have always been out there had a need for connectivity as part as their really critical aspects of their business and just driving more connectivity. The new ones coming into play, certainly, the f clearance, the 5x5 has hit the radar screen of companies that, really are excited about engaging with us on our journey and seeing our progress. it is a little bit of both, I would say. Yeah.

Christopher Guttman-McCabe: And, Adam, we are we are, leading but also listening and following. Right? So, you know, we have we have customers who are thinking of standing up and well, not thinking, are pursuing and deploying a network and are looking at providing connectivity to, like minded entities within their footprint. Right? So that alone is driving interest. When you look at, you know, LCRA, you know, they are looking at providing service. They have been very public about this. To entities within their service territory and their service footprint.

So I think you are going to see, you are going to begin to get a sense of what those entities are, who they are, what sectors they represent, And some of it is just happening organically with our customer base.

Operator: That concludes today's question-and-answer session. I would like to turn the call back to Scott A. Lang for closing remarks.

Scott A. Lang: Thank you, everyone, for joining. Again, we love where we are at. I have had the opportunity to get in front of a lot of customers over this last quarter. Many times, the customers are bringing many people from different parts of the organization. Our story is resonating. We are available now. We are proven. We give them flexibility. as our strength message. They love the 'flexibility as our strength' message. And a pathway for them to be successful with real customers showing real value from these business cases, a full ecosystem coming to the table, that helps them get past just a spectrum decision, but really delivering those results.

So when we compare that and the ability for us to put a business case on the table, that really addresses the acute affordability challenges for the industry. But also offers us tremendous ability to take care of our shareholders, take care of our customers, and continue to grow is a very powerful message that evolves with their company And the ability for us now with the strength of our ecosystem and the migration happening with devices can give them confidence there is no stranded asset that they are going to leave behind. And to back that up, with their timeline of how they wanna deploy the networks that is right for them is a very powerful message.

And so we love where we are at. there is a lot more demand than there is supply. We have some really good existing customers that are helping us out and really advocating for this. And as the new prospects get around the table. They start to share that excitement, and that gets even more exciting for us. So I wanna thank everybody for support and we look forward to keeping you in touch with our progress. Have a great day.

Operator: This concludes today's conference. Thank you for participating. You may now disconnect. We are done. Good job. Bye. [Inaudible]

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