Highlights

  • Superloop reported FY2026 Revenue of A$664.3 million, increasing 21.6%, while underlying EBITDA rose 33.1% to A$122.7 million.
  • The customer base expanded 28% to 935,000, supported by 205,000 net additions across Consumer, Business and Wholesale.
  • Free Cash Flow increased 50% to A$84.4 million, while statutory net profit after tax reached A$17.5 million.
  • Under SuperCharge29, management is targeting revenue above A$1 billion and underlying EBITDA of A$200 million by FY2029.

Superloop Limited (ASX:SLC) is an Australian telecommunications company providing broadband connectivity, fibre infrastructure and wholesale network services. Its operations cover residential customers, businesses and telecommunications resellers, alongside fibre connections for residential developments and student accommodation. The company's FY2026 results reflected subscriber growth, higher recurring service revenue and improved operating efficiency, while acquisitions expanded its Smart Communities business.

FY2026 Revenue and Profitability Increase

Superloop reported revenue of A$664.3 million for the financial year ended 30 June 2026, compared with A$546.5 million in FY2025.

Underlying EBITDA increased 33.1% to A$122.7 million from A$92.2 million.

The underlying EBITDA Margin improved to 18.5%, reflecting revenue growth exceeding the increase in operating expenses.

Reported EBITDA increased to A$106.6 million from A$75.2 million.

Statutory net profit after tax reached A$17.5 million, compared with A$1.2 million in FY2025.

Free cash flow increased 50% to A$84.4 million.

The difference between underlying and reported EBITDA reflects adjustments including share-based consideration, restructuring expenses and acquisition-related transaction costs.

Customer Growth Supports Telecommunications Revenue

Superloop increased its customer base to approximately 935,000 at 30 June 2026, compared with 730,000 in FY2025.

The company added 205,000 net customers during the year.

Its share of Australian nbn connections increased from 6.6% to 8.5%.

Consumer revenue increased 27.4% to A$463.2 million, supported by 116,000 additional customers.

The Consumer business ended FY2026 with approximately 501,000 customers.

Business revenue increased 8.2% to A$113.4 million, supported by customer Demand for connectivity and related services.

The Business segment's gross margin improved to 43.1%.

Future growth will depend on customer retention, pricing, network costs and competition across Australian broadband services.

Wholesale Services Deliver Higher Revenue

Superloop's Wholesale segment reported underlying revenue of A$97.3 million, increasing 19.2% compared with FY2025.

Wholesale customers increased to approximately 317,000, supported by additional service activations.

The segment's gross margin improved to 69.2% from 62.9%.

Growth included customer migrations associated with the company's wholesale broadband agreement with Origin Energy.

Superloop continued providing network access and broadband services to telecommunications retailers and other wholesale customers.

These arrangements support recurring revenue, although dependence on significant wholesale relationships introduces customer concentration exposure.

Smart Communities Expands Through Acquisitions

Superloop's Smart Communities business provides fibre-to-the-premises connectivity and managed Wi-Fi services to residential developments and purpose-built student accommodation.

Contracted premises increased by approximately 93,000 to 190,000 during FY2026.

Of these, around 90,000 had been built and approximately 65,000 were active.

The company completed the Acquisition of Lynham on 29 May 2026 for approximately A$165 million, subject to completion adjustments.

Lynham contributed around 56,000 contracted lots to the business.

Management expects the acquisition to contribute approximately A$11 million in EBITDA during FY2027, before synergies.

Additional annualised synergies of approximately A$2 million are targeted by the end of FY2027.

These expectations remain dependent on integration progress and customer activation.

Operating Efficiency and Cash Flow

Superloop reported operating expenses of A$121.6 million during FY2026, increasing 18.1%.

However, operating expenses declined as a proportion of underlying revenue.

The improvement contributed to the faster growth in underlying EBITDA compared with revenue.

The company also reported gross Operating Cash Flow of A$123.5 million, increasing 40%.

Cash and cash equivalents stood at approximately A$101.7 million at 30 June 2026.

Net Debt was approximately A$128 million, with indicative Leverage of 1.3 times underlying EBITDA.

Management maintains a leverage target below 2.5 times, providing a framework for future financing and Capital allocation decisions.

SuperCharge29 Outlines Longer-Term Growth Ambitions

Superloop introduced its SuperCharge29 strategy following completion of its earlier Double Down programme.

The strategy targets group revenue above A$1 billion by FY2029.

Management also aims to achieve underlying EBITDA of A$200 million and an EBITDA margin of approximately 20%.

The company is targeting compound annual growth in reported Earnings Per Share above 30% over three years.

Smart Communities forms part of the strategy, with ambitions to exceed 260,000 contracted lots and achieve an internal rate of return above 25% on invested capital.

These figures are management ambitions rather than formal financial guidance.

Their achievement will depend on customer growth, acquisitions, network Investment and operating conditions.

FY2027 Investment Priorities and Outlook

Superloop expects continued investment in broadband infrastructure, customer growth and Smart Communities development.

Management anticipates Capital Expenditure of approximately A$16 million to A$20 million in Smart Communities during FY2027.

Further investment will support Lynham integration, fibre construction and customer activations.

The company also intends to review Shareholder distributions and potential Buybacks as cash generation develops.

Superloop has not issued quantified FY2027 group earnings guidance.

Management indicated that FY2027 guidance would be provided in November 2026.

The timing and delivery of its longer-term growth ambitions will depend on subsequent operating performance and market conditions.

Key Risks and Operational Challenges

Broadband competition: Pricing pressure and customer switching may affect revenue and margins.

Acquisition integration: Lynham and Frontier integration requires operational execution to achieve expected financial contributions.

Wholesale concentration: Dependence on significant wholesale customers may expose revenue to contract changes.

Capital expenditure: Fibre infrastructure development and customer acquisitions require continued investment.

Financial leverage: Debt-funded expansion may affect financing costs and capital allocation.

Growth targets: SuperCharge29 ambitions depend on operating assumptions that may change over time.

Key Insights

Superloop's FY2026 results reflected increased revenue, customer growth and improved profitability across its telecommunications operations.

The Smart Communities business expanded through acquisitions, while operating efficiency supported higher EBITDA margins and cash flow.

Future performance will depend on customer additions, wholesale contracts, acquisition integration, network investment and progress towards the SuperCharge29 ambitions.