Highlights

  • FY26 NPATA reached AUD 37.9 million, up 34%.
  • Group Gross Profit increased to AUD 234.8 million, with a 35.3% margin.
  • Free Cash Flow increased 50% to AUD 84.4 million.
  • The group ended FY26 with 935,000 customers across its operations.

Superloop (ASX:SLC) provides internet connectivity through consumer, Business and wholesale services, alongside connectivity for residential developments. Its FY26 results showed growth in customer numbers, gross profit and free cash flow. Net profit after tax and Amortisation (NPATA) rose 34% to AUD 37.9 million, while group gross profit increased by AUD 45.1 million to AUD 234.8 million. The gross Margin was 35.3%. Free cash flow increased 50% to AUD 84.4 million, providing a separate measure of cash generated after the expenditure captured by the company's definition.

Customers and segment economics

Superloop (ASX:SLC) ended FY26 with 935,000 customers and reported an increase in group nbn Market Share of 1.9 percentage points to 8.5%. The Consumer business served 501,000 customers at year-end. Wholesale customers increased by 79,000, or 33%, to 317,000, supported by Demand through provider partners. The Wholesale gross margin rose from 62.9% to 69.2%, an important distinction because customer growth alone does not show the profitability of each connection.

Business segment Revenue increased 8% to AUD 113.4 million, with customers up 9% to 117,000. These three operating channels have different economics. Retail broadband is sensitive to consumer pricing and Acquisition costs; wholesale growth depends on partner relationships and network utilisation; business services can be influenced by contract wins and customer implementation timing. Superloop (ASX:SLC) therefore needs to balance Volume growth with margins across its customer mix.

Smart Communities and acquired networks

Smart Communities provides connectivity in residential developments, where contracted lots are a potential pipeline rather than immediate active services. Contracted lots rose by approximately 93,000 to 190,000, while active lots increased by about 21,000 to roughly 65,000. The gap between the two measures reflects the time required for developments to be built, occupied and connected. It is not appropriate to count all contracted lots as current paying customers.

Acquired networks contributed to the expansion of this platform. One acquired business brought approximately 17,000 active services, 30,000 connected lots and 56,000 contracted lots. Integration can expand network coverage, but it also introduces systems, service and financing requirements. For Superloop (ASX:SLC), conversion of contracted lots into active services is a more direct operating milestone than contracted pipeline growth in isolation.

Costs, cash flow and longer-term targets

Operating expenses increased to AUD 121.6 million but declined as a proportion of revenue from 14.4% to 13.5%. Management linked some efficiency improvements to Investment in digital systems and AI tools. Cost ratios may improve with scale, although customer support, network maintenance and service quality still require spending. The reported increase in free cash flow to AUD 84.4 million is relevant, but a single year cannot establish a permanent cash conversion rate.

Superloop (ASX:SLC) set FY29 objectives under its SuperCharge29 plan, including revenue above AUD 1 billion and underlying EBITDA of AUD 200 million. These are longer-term targets, not FY26 achievements or guaranteed FY29 outcomes. Delivery depends on customer additions, wholesale partner volumes, active Smart Communities services and operating costs. Competitive broadband pricing, changes to wholesale network charges and integration expenses may affect progress. FY27 guidance was expected in November 2026 in the supplied material, but no confirmed figures are used here.

Key Insights

Superloop (ASX:SLC) combined higher FY26 customer numbers with growth in adjusted profit and free cash flow. Wholesale margins and Smart Communities connections provide more detail than the total customer count alone. Its FY29 targets require continued operational execution, while network investment, pricing pressure and the conversion of contracted developments remain important uncertainties.