Converge Information and Communications Technology Solution (CNVRG) Q3 2025 earnings summary

Executive summary

• Achieved consolidated revenues of PHP 32,972 million for the nine months ended September 30, 2025, up 10% year-over-year, driven by both residential and enterprise segments.

• Net income rose 8% year-over-year to PHP 8,900 million, reflecting strong operational performance and cost management.

• EBITDA increased by 11% to PHP 20,194 million, with an EBITDA margin of 61.2%.

• Maintained a robust balance sheet, with total assets at PHP 109,341 million and net debt/EBITDA at 0.4x.

Financial highlights

• Residential revenues grew 9% year-over-year to PHP 27,749 million; enterprise revenues surged 16% to PHP 5,223 million.

• Cost of services increased 8% to PHP 11,422 million, mainly due to higher amortization, depreciation, and personnel costs.

• General and administrative expenses rose 22% to PHP 7,833 million, reflecting business expansion and higher professional fees.

• Net cash from operating activities was PHP 14,119 million, while net cash used in investing and financing activities were PHP 456 million and PHP 9,027 million, respectively.

• Earnings per share (basic and diluted) for the nine months was PHP 1.23, up from PHP 1.13 year-over-year.

Outlook and guidance

• The company remains focused on expanding its nationwide fiber network and maintaining high ROIC through prudent capital deployment.

• Ongoing investments in infrastructure and technology are expected to support continued growth in both residential and enterprise segments.

• The Bifrost Subsea Cable System is expected to be operational by year-end, enhancing international connectivity.