Highlights

  • Comms Group reported total Revenue growth of 39.2% to $37.6 million in H1 FY26.
  • Underlying EBITDA increased 87.3% to $4.5 million
  • Company’s Gross Profit rose 36.6% to $17.8 million
  • Underlying NPATA doubled to $1.8 million.
  • New ARR sales reached $5.4 million during H1 FY26 and $7.7 million year-to-date.
  • TasmaNet integration and synergy programme remain on track for completion by June/July 2026.
  • Interim fully Franked Dividend of 0.125 cents per share declared

Comms Group Limited (ASX:CCG) has reported higher revenue, EBITDA and Earnings for the first half of FY26, with the telecommunications and managed IT provider pointing to continued organic growth momentum, improved margins and ongoing integration progress following the TasmaNet Acquisition.

The company said growth during the period was supported by favourable performance across its Global and Wholesale division, increased Recurring Revenue contribution and continued customer contract wins across corporate and government sectors.

Comms Group shares traded at AUD 0.069 during the afternoon session on 11 May 2026, down 5.48% for the day. Despite the decline, the stock remains approximately 15% higher over the past year as investors continue monitoring the company’s revenue expansion strategy and integration progress.

For the six months ended H1 FY26, Comms Group reported total revenue of $37.6 million, representing an increase of 39.2% compared to the prior corresponding period.

Gross profit also increased 36.6% to $17.8 million, while group gross Margin remained steady at approximately 48%, reflecting continued recurring revenue stability across the Business.

The company noted that services and recurring revenue continued to account for more than 90% of total revenue during the period, broadly consistent with the prior corresponding period.

Company Overview

Comms Group Limited is an Australian-based provider of cloud communications, collaboration and secure managed IT solutions.

The company operates across multiple telecommunications and technology segments, providing voice, data, cloud and managed IT services to business, enterprise and government customers.

Comms Group has been focused on expanding recurring revenue streams, improving Operating Leverage and increasing scale through both organic growth and acquisitions.

The acquisition of TasmaNet represented a significant strategic step for the business as it seeks to strengthen its network infrastructure, customer base and managed services capability.

EBITDA Growth Reaches Highest Half-Year Result Since Listing

Underlying EBITDA rose 87.3% year-on-year to $4.5 million, representing the company’s highest half-year EBITDA performance since listing.

Underlying EBITDA margin improved by 310 basis points to 12%, compared with 8.9% recorded in H1 FY25.

Comms Group attributed the improvement primarily to stronger earnings contributions from its Global business alongside operating leverage benefits as revenue expanded across multiple divisions.

The company also reported underlying Operating Cash Flow of $2.4 million, up 4% on the prior corresponding period and representing the highest half-year operating cash result achieved since listing.

Importantly, Comms Group recorded a positive net profit before tax (NPBT) of $0.8 million during H1 FY26, compared with a net loss before tax of $0.3 million in the prior period.

Underlying NPATA increased to $1.8 million from $0.9 million in H1 FY25, reflecting an increase of approximately 100%.

NPATA margin also improved from 3.3% to 4.9% during the half.

Organic Growth Continues Across Business Divisions

Comms Group said new contract activity remained favourable throughout the year-to-date period, with continued growth across all business units.

The company generated $5.4 million in new annual recurring revenue (ARR) during H1 FY26, following total new ARR of $10.4 million recorded across the whole of FY25.

On a year-to-date basis, Comms Group said it had signed $7.7 million in new ARR over the first nine months of FY26.

Management highlighted continued contract wins across corporate and government customers, while also noting a favourable pipeline across its operating divisions.

According to the company, all business units delivered organic revenue growth during the period.

Comms Group’s strategy remains focused on expanding its presence across cloud communications, collaboration and secure managed IT solutions throughout the Asia-Pacific region.

TasmaNet Integration Nears Final Stages

The company also provided an operational update on the integration of TasmaNet, which continues progressing toward completion.

Comms Group said the TasmaNet integration into its Communications and Collaboration business remains on track, with the broader synergy programme expected to be completed by June or July 2026.

Network and other operational synergies are currently estimated to be between 50% and 60% complete.

The company said it continues consolidating and upgrading network and cloud infrastructure Assets across its Australian mainland operations as part of the integration process.

According to management, the network component of the integration programme is now close to completion.

The TasmaNet acquisition forms part of Comms Group’s broader growth strategy aimed at increasing scale, improving operating efficiency and strengthening recurring earnings capability.

Margin Expansion Remains Key Strategic Focus

Comms Group reiterated its focus on longer-term EBITDA margin expansion as the business continues scaling.

The company said it is targeting EBITDA margins above 15% over time through operating leverage and corporate overhead efficiencies.

Management also maintained its annualised revenue expectation of more than $75 million for FY26.

In addition, Comms Group expects annualised EBITDA to reach between $9 million and $10 million once the TasmaNet transition and synergy programme are fully completed.

The company noted that its relatively capex-light operating model continues supporting increasing operating and free cash flow generation.

Management also indicated that full FY26 guidance is expected to be provided during the fourth quarter.

Acquisition Pipeline and Expansion Opportunities Remain Active

Beyond organic growth, Comms Group confirmed that it continues evaluating acquisition opportunities as part of its longer-term expansion strategy.

The company said it is pursuing both organic and inorganic growth opportunities aimed at increasing scale and broadening operational capabilities.

Management stated that active Merger and acquisition discussions are ongoing.

Comms Group said its acquisition framework remains disciplined, targeting businesses typically valued between three to six times EV/EBITDA, with a focus on generating favourable returns on invested Capital.

The company also continues progressing digital transformation initiatives aimed at consolidating group-wide systems, reducing duplicated infrastructure and transitioning toward a more integrated “One business” operating model.

Focus Remains on Corporate and Government Markets

Strategically, Comms Group continues prioritising the corporate mid-market and government sectors across Australia.

The company also plans to expand cross-selling opportunities across its existing customer base of more than 5,000 customers by offering additional secure managed IT solutions and communications services.

Management said the group’s Asia-Pacific footprint also provides opportunities to deliver broader services to multinational corporations operating throughout the region.

The company believes this geographic reach may support future customer growth and additional service expansion opportunities over time.

Investor Takeaway

Comms Group’s H1 FY26 update highlighted continued revenue expansion, improving profitability and steady progress on integration initiatives following the TasmaNet acquisition.

While the stock traded lower on 11 May 2026, the company’s underlying operational performance reflected continued growth across recurring revenue, EBITDA and customer contract activity.

Investors are likely to remain focused on execution of the remaining TasmaNet integration programme, delivery of targeted synergies and the company’s ability to continue expanding margins as revenue scales further through FY26.

The combination of recurring revenue visibility, improving earnings metrics and ongoing acquisition opportunities may also keep market attention on Comms Group’s broader growth strategy across the telecommunications and managed IT sectors.