Fonix (FNX) H2 2026 earnings summary

Executive summary

• Trading performance for FY26 exceeded market expectations, driven by strong growth in core product lines, especially mobile payments and messaging, and international expansion into Portugal, Switzerland, and France, with a sixth European market in progress.

• Maintained long-term client relationships, with top 10 customers averaging over 9 years per contract.

• Increased ordinary dividend and completed a £2.4m share buyback during FY26.

• Continued focus on TV, radio, charity, and entertainment verticals, servicing major U.K. broadcasters and charities.

Financial highlights

• Gross profit rose 12.9% to £21.0m, up nearly 13% year-over-year, driven by U.K. media and new Portugal market.

• Adjusted EBITDA increased 11.0% to £16.2m, though slightly lagging gross profit due to investment in new hires, especially in France.

• Revenue grew 15% to £83.3m; adjusted profit before tax up 8.4% to £15.5m, with growth impacted by increased amortization and reduced interest income.

• Total Payment Volume (TPV) reached £303m, up 8% year-over-year, despite loss of low-margin gambling customers due to U.K. tax changes.

• EBITDA and gross profit have grown at 23% and 19% CAGR, respectively, over the last eight years.

Outlook and guidance

• Return to double-digit growth expected to continue, supported by innovation and new market expansion, with international markets expected to contribute revenue in FY 2027 and growth anticipated through FY 2030.

• Strong broadcaster pipeline across multiple European territories, with significant further upside anticipated in new international markets, especially France and Switzerland.

• U.K. market remains mature; future growth expected but at a more conservative pace.

• France expected to reach break-even in 18 months, with ongoing investment as market develops.