Superloop (SLC) H2 2025 earnings summary

Executive summary

• Achieved first positive Net Profit After Tax (NPAT) of $1.2 million, a year ahead of turnaround plan targets, with net profit improving by $16 million compared to FY24.

• Revenue grew 31% year-over-year to $546.5 million, driven by strong Consumer and Wholesale segment performance.

• Underlying EBITDA rose 70% to $92.2 million, with margin expanding to 16.9%.

• Added over 275,000 net new customers, reaching more than 731,000 total, with nbn market share up to 6.6%.

• Free cash flow nearly doubled to $56.3 million, ending with a net cash position of $29.5 million.

Financial highlights

• Gross margin increased by $44.5 million to $189.6 million, with group gross margin percentage steady at 34.7%.

• Operating expenses rose 11.8% to $103 million, but opex/revenue ratio improved from 17.3% to 14.4%.

• Free cash flow up 93% to $56.3 million; gross operating cash flow conversion at 95% of underlying EBITDA.

• Capital expenditure was $28.4 million, 5.2% of revenue, at the lower end of guidance.

• Net cash position of $29.5 million and $51.9 million in undrawn debt capacity.

Outlook and guidance

• On track to deliver the three-year Double Down strategy by end of FY26, targeting $700 million revenue and mid-to-high teens EBITDA margin.

• Early FY26 trading strong, with 17,000 net new Consumer customers added by mid-August.

• Positioned to benefit from nbn speed upgrades and expected market churn in September.

• M&A remains a strategic lever, with strong balance sheet to support accretive acquisitions.

• No formal guidance provided at full-year results; guidance expected at AGM.