category: technology

Key Highlights

  • Revenue increased 21.6% to $664.3 million, while underlying EBITDA rose 33.1% to $122.7 million.
  • Free Cash Flow increased 50% to $84.4 million, with gross Operating Cash Flow rising 40% to $123.5 million.
  • Net profit after tax increased to $17.5 million from $1.2 million, while NPATA rose 34.2% to $37.9 million.
  • Customer numbers increased by 205,000 to 935,000, while nbn Market Share rose to 8.5%.

Superloop Limited (ASX:SLC) reported higher revenue, Earnings and cash generation for FY26, with the telecommunications and connectivity provider recording growth across its Consumer, Business and Wholesale segments. Revenue rose 21.6% to $664.3 million from $546.5 million, while underlying EBITDA increased 33.1% to $122.7 million. Free cash flow also increased 50% to $84.4 million.

Revenue Growth Accompanied by Margin Expansion

Superloop's Gross Profit increased by $45.1 million, or 23.8%, to $234.8 million. Gross margin improved to 35.3%, compared with the prior-year level, while underlying EBITDA growth exceeded the rate of revenue expansion.

Underlying EBITDA increased from $92.2 million to $122.7 million, while the underlying EBITDA margin expanded to 18.5%. Reported EBITDA rose 41.7% to $106.6 million from $75.2 million.

Operating expenses increased 18.1% to $121.6 million. Despite the increase in absolute costs, operating expenses as a proportion of revenue declined from 14.4% to 13.5%. Superloop attributed the improvement to greater operating efficiency, including investments in digital and artificial intelligence solutions.

Profitability Improves Materially

Net profit after tax increased to $17.5 million from $1.2 million in FY25. NPATA, meanwhile, rose 34.2% to $37.9 million from $28.3 million.

Reported Earnings Per Share increased to 3.4 cents from 0.24 cents. The improvement in statutory profit was considerably larger in percentage terms because of the relatively low FY25 base.

The company therefore entered FY27 with a higher earnings contribution from its underlying operations, while continuing to invest in network infrastructure and its Smart Communities platform.

Cash Flow Provides Funding Capacity

Cash generation was another major feature of the FY26 results. Gross operating cash flow increased 40% to $123.5 million, compared with $88.0 million in FY25. Gross operating cash flow conversion reached 101%.

Free cash flow increased 50% to $84.4 million from $56.3 million. The increase came despite continued expenditure on network capacity, digital transformation and Smart Communities infrastructure.

Capital expenditure, excluding IRU, was $37.9 million. Of this amount, $7.6 million was invested in Smart Communities fibre-to-the-premises builds to support the expansion of its contracted lot footprint.

Superloop ended FY26 with $101.7 million of cash and approximately $128 million of net debt.

Customer Growth Across All Segments

The company's customer base increased by 205,000 during FY26 to 935,000, representing 28% growth. Group nbn market share increased by 1.9 percentage points to 8.5%.

Consumer remained the largest segment, with revenue increasing 27.4% to $463.2 million and gross profit rising 26.3% to $125.8 million. Consumer customers increased by 116,000, taking the total to 501,000.

Business revenue increased 8.2% to $113.4 million, while gross profit rose 15% to $48.8 million. Business customers increased by 10,000 to 117,000, and the segment's gross margin improved by 2.6 percentage points to 43.1%.

Wholesale revenue increased 19.2% to $97.3 million, while underlying gross profit rose 31.4% to $67.4 million. Wholesale gross margin expanded to 69.2% from 62.9%, while customers increased by 79,000 to 317,000.

Smart Communities Expands Its Contracted Footprint

Smart Communities contracted lots increased by approximately 93,000 during FY26 to around 190,000, nearly doubling the previous year's footprint. The expansion included new developer wins as well as the acquisitions of Frontier Networks and Lynham Networks.

Lynham contributed approximately 17,000 active services, 30,000 connected lots and 56,000 contracted lots. Active lots across Smart Communities increased by approximately 21,000 to around 65,000.

The figures indicate that the company's infrastructure footprint continued to expand during FY26, with contracted lots providing a pipeline for future service activation.

FY27 Outlook and SuperCharge29

Superloop said FY26 marked the completion of its three-year Double Down strategy and is now progressing with its SuperCharge29 strategy.

The company is targeting more than $1 billion in Group revenue by FY29, together with $200 million in Group underlying EBITDA and reported EPS growth at a compound annual growth rate above 30%.

Superloop said it would continue investing in organic growth, Smart Communities expansion and selective acquisitions. Formal FY27 guidance is expected to be provided in November.

Conclusion

Superloop's FY26 results show increases across revenue, underlying EBITDA, statutory profit, customer numbers and free cash flow, with each operating segment contributing to growth. The 21.6% rise in revenue was accompanied by faster underlying EBITDA growth of 33.1%, while free cash flow increased 50%. Customer growth and the expansion of Smart Communities' contracted footprint provide additional operating scale, although the company continues to carry approximately $128 million of net Debt and expects further Investment in its network and infrastructure as it advances its FY29 targets.