Fonix plc (LSE:FNX) reported a 12.9% increase in gross profit to £21.0 million for the financial year ended 30 June 2026, supported by its existing mobile payments business, international expansion and the introduction of new products.
Adjusted EBITDA rose 11.0% to £16.2 million, while adjusted earnings per share increased 7.1%.
The mobile payments and messaging provider increased its ordinary dividend to 9.30 pence per share and completed £2.4 million of share buybacks during the year.
Fonix also reported progress across several European markets, expanded the availability of its PayFlex platform and renewed contracts with major UK and Irish media customers.
Gross Profit Increases 12.9% to £21 Million
Fonix reported gross profit of £21.0 million for FY2026, representing growth of 12.9% compared with the previous financial year.
Adjusted EBITDA increased 11.0% to £16.2 million, while adjusted earnings per share rose 7.1%.
The results marked a return to double-digit growth in gross profit and adjusted EBITDA.
The company maintained a strong cash position while continuing to invest in international expansion and product development.
Fonix operates an asset-light business model, providing mobile payment and messaging services to customers in the media, charity, entertainment and enterprise sectors.
The supplied announcement does not disclose the company’s total revenue or year-end cash balance.
Dividend Rises to 9.30 Pence Per Share
Fonix increased its ordinary dividend to 9.30 pence per share for FY2026.
The company also completed £2.4 million of share buybacks during the financial year.
These shareholder distributions accompanied an increase in adjusted EBITDA and adjusted earnings per share.
Fonix continued to invest in its technology platform and international operations during the period.
The company has not specified the percentage increase in its ordinary dividend in the supplied announcement.
Portugal Established as Third Market
Fonix reported progress in implementing its international expansion strategy during FY2026.
Portugal is now established as the group’s third market, extending its operations beyond the UK and Ireland.
The company has also launched services in Switzerland, where it is working with two broadcast customers.
In France, Fonix has established the staffing and organisational structure needed to support further expansion.
The group is seeking to apply its existing technology platform across additional European markets rather than developing separate systems for each country.
Sixth European Market Targeted for FY2027 Launch
Fonix completed network connectivity in a sixth European market during the financial year.
The company is targeting a launch in that market towards the end of FY2027.
The market has not been identified in the supplied announcement.
Fonix’s international strategy involves expanding the availability of its mobile payments and messaging services through a common platform.
The company expects its international operations to contribute to future growth, although the timing and scale of revenue generation will depend on customer adoption and commercial activity in each market.
PayFlex Expands to Major Customers
Fonix continued the commercial rollout of PayFlex during FY2026.
The product was introduced to major customers, including its first client outside the UK.
The expansion represents a further step in making Fonix’s existing services available across its international operations.
The company has not disclosed the number of PayFlex customers added during the year or the revenue generated by the product.
Fonix intends to develop its product portfolio alongside its geographic expansion, providing additional services to both existing and new customers.
CompsPortal Launches With Channel 5
Fonix launched CompsPortal with Channel 5 during the financial year.
The product also received a national technology award.
CompsPortal forms part of the group’s broader offering for media customers, alongside its established mobile payment and messaging services.
Fonix continues to develop products intended to support audience participation and digital engagement.
The company has not provided separate revenue or profit figures for CompsPortal in the supplied announcement.
RichMessaging Trials Progress
Fonix conducted trials of its RichMessaging products during FY2026.
The company reported encouraging results and plans to convert the trial activity into recurring customer campaigns.
RichMessaging is part of Fonix’s wider product development programme, which aims to expand the services available through its technology platform.
The company has not disclosed the number of trials completed, their financial contribution or the value of potential future campaigns.
Further commercial progress will depend on customers adopting the service for repeat use.
Major Media Contracts Renewed and Extended
Fonix renewed or extended long-term agreements with key media customers in the UK and Ireland during the year.
These included contracts involving Global’s radio brands and ITV’s flagship programmes.
The agreements provide continued access to established customers as Fonix develops its international business and introduces additional products.
The group serves a range of media and charitable organisations, including ITV, Bauer Media, RTÉ, Global, Comic Relief and BBC Children in Need.
The supplied announcement does not disclose the financial value or specific duration of the renewed contracts.
Outlook
Fonix expects further profitable growth in FY2027, supported by its established UK and Irish operations, international expansion and new product launches.
The company plans to develop its activities in Portugal, Switzerland and France while preparing for the launch of a sixth European market towards the end of the financial year.
Management also intends to expand the use of PayFlex and CompsPortal and convert RichMessaging trials into repeat campaigns.
Fonix enters FY2027 following a 12.9% increase in gross profit to £21.0 million and an 11.0% rise in adjusted EBITDA to £16.2 million, alongside an increased ordinary dividend and £2.4 million of share buybacks.
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