Fonix plc reported adjusted earnings per share of $0.059 for fiscal year 2026, topping consensus forecasts of $0.053 by 11%, and its shares traded at $194, just under the $215 peak set over the past year.
Gross profit rose 12.8% year over year, the company said, marking the eighth consecutive year of double-digit compound growth at an average of 19% annually. Adjusted EBITDA expanded in line with gross profit, extending an eight-year compound growth rate of 23%. Total payment volume grew 8%, while mobile payments specifically climbed 11%. Adjusted operating expenses rose 20% as the company scaled its international footprint and product suite.
"Gross profit is the number-one indicator of growth for us," Chief Financial Officer Michael Foulkes said. "That has grown really strongly in the period at nearly 13%."
Fonix said it maintains roughly 95% market share in UK broadcast and charity interactive services. Its customer base is concentrated among major media and telecommunications operators — including ITV, Global Radio, Channel 5, Bauer Media Group, BBC Children in Need, Comic Relief, Omaze, and BOTB — with network partners such as EE, Three, Vodafone, Sky, O2, Stripe, Adyen, and Checkout.com.
The top ten customers accounted for 86% of gross profit, with average contract lengths exceeding nine years. CEO Rob Weisz attributed the stickiness to long-term customer relationships.
"When we win a piece of business, we tend to retain that business, work to grow that business, and work with those customers for a number of years," Weisz said. "Hence why I think our top-10 customers, the average contract length of those clients is circa over nine years."
The company highlighted its CompsPortal platform, launched in December 2025 with Channel 5, alongside its PayFlex and RichMessaging products. PayFlex recovers approximately 20% of otherwise-failed SMS transactions where mobile-network-operator rejections previously ran as high as 10%.
Internationally, Fonix entered Ireland in 2022, launched in Portugal in September, completed two pilot customers in Switzerland, and established operations in France. The company estimated the French market for paid interactive services at roughly €100 million in consumer spend, with an addressable gross-profit opportunity of about €5 million, compared with the UK market valued between £250 million and £300 million.
Fonix executed a £2.4 million share buyback during the fiscal year, following a £3 million special dividend in the prior year. Average headcount rose to 58 employees from 52, and current staffing sits at approximately 60 people.
Foulkes emphasized platform reliability as a key competitive advantage.
"100% platform uptime is probably the most understated value proposition we have as a business," he said. "It's probably one of the main reasons they chose to work with us."
Shares rose 1.04%, or $2.00, to $194 in recent trading, leaving the stock roughly 9.8% below its 52-week high of $215. The company went public in October 2020.
