Fonix (FNX) H1 2026 earnings summary

Executive summary

• Delivered strong operational and financial progress in H1 FY26, with robust growth in core UK and Ireland markets and continued international expansion.

• Trading in line with expectations for the year, with strong H1 performance and momentum into H2.

• All key service lines grew, supported by product innovation and long-standing client relationships, including a contract extension with a major broadcaster.

• High recurring income (over 99%) and 100% platform uptime maintained.

• Growth strategy focused on sustainable, long-term profitability through product innovation and international expansion.

Financial highlights

• Revenue grew 9.2% year-over-year to £42.3m, with gross profit up 7.1% to £10.5m, driven by 6% growth in mobile payments and 20% in mobile messaging.

• Adjusted EBITDA rose 6.4% year-over-year to £8.3m.

• Adjusted PBT rose 2.6% to £8.0m, and adjusted EPS was flat at 6.2p.

• Total Payment Value (TPV) reached £160m, up 6.7% year-over-year for the 6 months ended 31 December 2025.

• Underlying cash at period end was £9.2m, down from £11.0m, reflecting higher shareholder distributions.

Outlook and guidance

• Well positioned for a strong second half, supported by high recurring revenue and momentum across the customer base.

• Growth expected from Portugal, new product lines (PayFlex, CompsPortal, RichMessaging), and a robust enterprise pipeline in Europe.

• Board confident in delivering sustainable gross profit growth and long-term shareholder value.

• Downside risk from UK gaming tax changes seen as manageable due to sector diversification.

• Continued targeted investment in product capability and European market expansion.