ANSS 5G Upgrade Revenue
Ansys Inc - Amendment & equipment upgrade analysis
Current Price
$0.00
Amendment Revenue
$275M
YoY Growth
+15.5%
Sites Upgraded
56%
5G Amendment Revenue Components
One-Time Fees
Initial amendment fees cover structural analysis, engineering studies, zoning applications, and installation support. These one-time payments typically range from $5K-$30K per amendment depending on complexity and equipment scope.
Recurring Rent Increases
5G equipment additions trigger monthly rent increases for additional antennas, radios, fiber connections, and power consumption. These recurring payments compound over lease terms and represent the primary long-term value of amendments.
Power & Services
Additional revenue from power upgrades, fiber backhaul enhancements, ground space rentals, and ongoing maintenance agreements. These ancillary services increase overall amendment value.
5G Deployment Cycle
Multi-Year Opportunity
With 56% of sites upgraded to date, ANSS has substantial runway for continued 5G amendment revenue. Industry forecasts suggest the 5G upgrade cycle will continue for 3-5+ years as carriers deploy mid-band spectrum, densify networks, and add capacity.
Margin Profile
Amendment revenue is exceptionally high-margin because it leverages existing infrastructure. Gross margins on amendments often exceed 90% since incremental costs are minimal - primarily administrative and zoning expenses. This drives significant EBITDA growth and cash flow expansion.
Carrier Investment Trends
Major carriers continue investing heavily in 5G infrastructure, with annual capex budgets exceeding $50B industry-wide. This sustained investment supports strong amendment revenue visibility for ANSS and other tower operators through 2026 and beyond.
Impact on Financials
Revenue Growth
Driving organic revenue acceleration
+15.5%
EBITDA Margin
Exceptionally high margins on incremental revenue
90%+
Cash Flow
High-margin revenue converts directly to FCF
Expanding
Valuation Multiple
Growth story supports higher EV/EBITDA multiples
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Complete Revenue Analysis
View revenue growth, margins, and comprehensive financial metrics for ANSS
View Full AnalysisFrequently Asked Questions
What is ANSS 5G upgrade revenue?
ANSS (Ansys Inc) generates approximately $275M in annual 5G upgrade revenue from equipment amendments. When carriers upgrade equipment for 5G (adding antennas, radios, or power), ANSS charges one-time and recurring amendment fees that boost revenue per tower.
How fast is ANSS 5G revenue growing?
ANSS's 5G amendment revenue is growing 15.5% year-over-year as carriers accelerate 5G deployments. This growth reflects increasing carrier capex on network upgrades and represents high-margin incremental revenue with minimal additional infrastructure investment required.
What percentage of ANSS sites have 5G upgrades?
Approximately 56% of ANSS's tower sites have undergone 5G equipment amendments. This penetration rate indicates substantial runway for continued amendment revenue growth as carriers complete nationwide 5G rollouts over the next several years.
How much does ANSS charge for 5G amendments?
ANSS charges an average of $27K per 5G amendment, combining one-time fees for structural analysis, installation support, and zoning, plus recurring monthly rent increases for additional equipment and power consumption. These amendments provide highly profitable incremental revenue.