Key Highlights

• FY26 net profit after tax reached about AUD 658,000.

• Operating Cash Flow turned positive at approximately AUD 2.7mn.

• Recurring Revenue represented about 56% of FY26 sales.

• FlexiRoam continues expanding partner-led eSIM distribution and its AI-enabled delivery platform.

FlexiRoam (ASX:FRX) closed FY26 with its first full-year profit and positive operating cash flow since listing, marking a financial shift even as revenue declined. The result followed a deliberate move away from higher-cost consumer Acquisition toward partnerships and recurring eSIM revenue, while the company continued building distribution through travel, financial-services and technology channels.

A Penny Stock with a comeback story

Most travellers know the feeling. You land overseas, switch your phone back on, and wonder how big the next bill from your home carrier will be.

It is still a very small company. At two cents a share, even a large percentage jump is a small amount of money per share, and prices of penny stocks can move sharply both ways.

The numbers behind the turnaround

FlexiRoam released its FY26 Annual Report and Appendix 4E on 28 August 2026, covering the year to 30 June.

The main result: a net profit after tax of A$658,206, compared with a loss of almost A$2.0 million in FY25. The company also reported its first full year of positive operating cash flow since listing, bringing in about A$2.7 million after an outflow of about A$3.1 million the year before.

Underlying EBITDA reached a record of roughly A$2.4 million, up from about A$0.6 million. Cash more than doubled to around A$3.5 million at 30 June, and net current Assets moved from a Deficit to a small surplus.

The surprising part is revenue. It fell 25% to about A$10.2 million, down from A$13.6 million.

Why selling less made more money

Management gives two reasons for the drop in revenue.

The first was a choice. FlexiRoam pulled back from consumer Marketing channels where the cost of winning each customer was higher than what that customer brought in. Cutting that spending reduced revenue, but it also stopped the company losing money on those sales.

The second was out of its control. The annual report says conflict in the Middle East hurt airfares, consumer confidence and Demand for international holidays in the second half of the year.

The best-known partner is Mastercard. Its embedded data benefit is offered through 418 banks and 1,270 card programs across 78 countries. Similar "data as a perk" deals have followed. Tune Protect now includes a FlexiRoam data entitlement with eligible travel insurance policies, and Generali Insurance Malaysia signed an initial one-year agreement.

Airlines, hotels and an AI agent

The deals have kept coming since the financial year ended.

On 4 August, Etihad Airways named FlexiRoam as a connectivity partner under a two-year agreement. The deal covers roaming data pools for staff, data transfer for aircraft operations, and connectivity for pilot iPads. FlexiRoam did not say how much revenue it expects. It said Earnings will depend on how quickly the service is rolled out and how much data is used, and the contract has no minimum volumes.

On 4 September, it announced a Partnership with Dragonpass, a travel benefits platform that says it has more than 40 million members. Hotels and loyalty programs will be able to hand out FlexiRoam eSIM data as a reward. The first three-month hotel campaign is expected to bring in about US$100,000. The company said that campaign is not material by itself, but it considers the wider framework important.

Behind these deals is flexiroam.ai, which launched commercially in December 2025. It is an AI agent that delivers eSIMs through WhatsApp in more than 70 languages. FlexiRoam presents it as a "zero-integration" product, meaning a partner can offer connectivity without building its own technology to do so.

Risks to Consider

The profit is small. A net profit of about A$660,000 is a real improvement, but it is a thin margin. A few weak quarters could turn it back into a loss.

Revenue is still falling. Cost cuts can only lift profits for so long. At some point the partner deals need to grow the top line. The company expects soft consumer travel demand to continue in the near term and has given no formal revenue or earnings guidance.

Contracts come without guarantees. The Etihad and Dragonpass deals have no minimum revenue commitments, so their value depends on how widely they are used.

Competition is fierce. European Business Magazine reports that Airalo serves more than 20 million travellers and that Holafly has sold over 10 million eSIMs. Fintechs such as Revolut are moving in as well. Big carriers are fighting back with cheaper roaming packages and their own eSIM brands.