Swoop Holdings delivered a robust FY25 with 20% revenue growth, positive free cash flow, and secured major long-term fibre network contracts, positioning itself as a rising challenger in Australia's telecom sector.
- 20% revenue increase to $106.5 million in FY25
- 14% growth in core business EBITDA
- Positive free cash flow of $5.1 million, reversing prior year losses
- Signed a 3-year wholesale internet services deal with Flip adding $10M+ annually
- Secured up to $49 million in long-term fibre network contracts in Greater Melbourne
Strong Financial Momentum
Swoop Holdings Limited (ASX, SWP) has reported a compelling set of financial results for the fiscal year ended June 2025, underscoring its growing footprint in Australia's competitive telecommunications landscape. Revenue climbed 20% year-on-year to $106.5 million, driven by organic growth in its core broadband and mobile services. The company’s underlying EBITDA, which strips out non-operating and one-off items, rose 14% in its core business segment, reflecting improved operational efficiencies and scaling benefits.
Importantly, Swoop turned a corner on cash flow, generating positive free cash flow of $5.1 million compared to a negative $5.7 million in the previous year. This improvement was supported by strong operating cash flow growth of 64%, highlighting the company’s ability to convert revenue growth into cash generation.
Expanding Market Share and Subscriber Base
The company’s strategic focus on the nbn broadband market is paying dividends, with a remarkable 300% increase in market share and approximately 61,000 active nbn services as of June 2025. Swoop now commands nearly 0.7% of the national nbn market, capturing 24.6% of all new orders; a trajectory that could see its subscriber base exceed 220,000 if sustained. Overall subscriber numbers across mobile and broadband reached about 205,000, all from organic growth, underscoring the strength of Swoop’s customer acquisition and retention strategies.
Major Contract Wins and Infrastructure Investments
FY25 was marked by significant contract wins, including a three-year wholesale internet services agreement with Flip, expected to contribute over $10 million in annual revenue. Additionally, Swoop secured a long-term contract valued at up to $49 million to construct, own, and operate a fibre network in Greater Melbourne, backed by a global technology company listed on NASDAQ. These deals not only provide revenue visibility but also reinforce Swoop’s position as a premium provider of residential and small-to-medium business broadband services.
The company continues to invest in its network infrastructure, including fixed wireless and fibre assets across multiple Australian states. Its fibre rollout projects, such as the Seacrest Estate in Western Australia and the Gippsland region in Victoria, are expected to deliver high-margin recurring revenue streams, supporting Swoop’s long-term growth ambitions.
Operational Excellence and Customer Satisfaction
Swoop’s commitment to customer experience is reflected in multiple industry awards for mobile and broadband services, including top ratings for value and satisfaction. The company leverages AI and automation to streamline order processing and improve service delivery, with over 60% of nbn orders provisioned with zero-touch activation in under an hour. This technological edge supports Swoop’s scalable business model and positions it well against larger incumbents.
Financial discipline remains a priority, with operating expenses tightly controlled at 18.6% of revenue and total borrowings reduced to $16.7 million from $23.3 million the previous year. The company’s cash position of $8 million, supplemented by $10 million in undrawn facilities, provides ample runway for organic growth and potential acquisitions.
Bottom Line?
With strong financials, expanding contracts, and infrastructure investments, Swoop is poised for accelerated growth, but execution risks on fibre rollout and divestments remain key watchpoints.
Questions in the middle?
- How will Swoop manage execution risks related to its large fibre network rollout in Melbourne?
- What impact will the upcoming Vonex divestment have on Swoop’s balance sheet and cash flow?
- Can Swoop sustain its rapid nbn market share gains amid intensifying competition?