Converge Information and Communications Technology Solution (CNVRG) Q1 2026 earnings summary

Executive summary

• Achieved full year 2025 financial targets with consolidated revenue up 10.2% to PHP 44.8 billion, driven by both residential and enterprise segments.

• Residential revenue grew 8.4% to PHP 37.3 billion, with subscriber base surpassing 3 million by 1Q2026 and strong demand across all brands.

• Enterprise revenue surged 20.3% to PHP 7.4 billion in 2025 and grew 16% year-over-year to P2.0Bn in 1Q2026, with notable client wins and robust SME and wholesale growth.

• Maintained industry-leading profitability, with EBITDA up 10% to PHP 27 billion (60.4% margin) in 2025 and 61.8% margin in 1Q2026; net income after tax up 9.6% to PHP 11.9 billion (26.5% margin) in 2025 and P3.0Bn (27.0% margin) in 1Q2026.

• Board approved a regular cash dividend of PHP 0.49 per share, representing 30% of net income, sourced from 2025 retained earnings.

Financial highlights

• Consolidated fiber net adds reached 428,000 in 2025, with 1.23 million gross adds.

• ROIC ended at 17.7% in 2025 and 15.6% for 1Q2026.

• Cash CapEx for 2025 was PHP 17.7 billion, with 1Q2026 CapEx at P2.9Bn; 2026 CapEx guided at PHP 18–23 billion.

• Debt stable at PHP 24 billion in 2025, net debt at P15.8Bn as of March 2026, with low leverage (debt-to-equity at 0.2x–0.3x, gross debt-to-equity at 0.4x–0.5x) and cost of debt at 5.34%.

• DSCR at 3.5x in 2025 and 3.1x in 1Q2026, well above bank covenants.

Outlook and guidance

• 2026 guidance: 8–10% consolidated revenue growth, 58–59% EBITDA margin, and ROIC of 15.5–16.5%.

• CapEx to increase due to aggressive port rollout, targeting nearly 1 million new ports.

• Management focused on expanding network infrastructure, enhancing customer experience, and investing in manpower and digital infrastructure.

• Residential segment expected to grow mid to high single digits; enterprise segment to grow high teens to low 20s percent.