How FlexiRoam’s AI eSIM Agent Sparked a Half-Year Profit Rebound
FlexiRoam Limited has reported a remarkable turnaround with a net profit of AUD 1.42 million for the half-year ended 31 December 2025, driven by a shift to high-margin recurring revenue and cost discipline. The launch of its AI-powered eSIM agent and key partnerships underpin this transformation.
- Net profit of AUD 1.42 million, reversing prior loss of AUD 2.12 million
- 22% revenue decline offset by gross margin expansion to 72.7%
- Operating expenses cut by over 50%, boosting profitability
- Launch of world’s first AI-powered eSIM agent on WhatsApp
- Strategic partnerships secured with Generali and Dialog
A Strategic Turnaround Amid Revenue Decline
FlexiRoam Limited’s half-year results for the period ending 31 December 2025 reveal a company in the midst of a significant transformation. Despite a 22% drop in revenue to AUD 5.94 million, the company posted a net profit of AUD 1.42 million, a dramatic swing from a loss of AUD 2.12 million in the previous corresponding period. This turnaround is the result of a deliberate strategic reset focusing on higher-margin, recurring revenue streams and rigorous cost management.
The company’s gross margin expanded impressively to 72.7%, up from 53.5% a year earlier, reflecting disciplined cost-of-sales management and pricing optimisation powered by its proprietary AI pricing engine. This margin expansion was critical in offsetting the revenue decline and driving profitability.
Operational Discipline Drives Cost Efficiency
FlexiRoam slashed operating expenses by more than half compared to the prior period. Selling and marketing costs fell sharply from AUD 2.53 million to AUD 828,000, as the company pivoted towards organic growth and partner-led distribution channels, including its innovative WhatsApp-based AI eSIM agent. Staff costs and administrative expenses were also significantly reduced, supported by automation and streamlined workflows.
This disciplined approach to cost control, combined with improved unit economics, enabled the company to generate positive operating cash flow of AUD 1.87 million, marking the second consecutive quarter of cash flow positivity. The balance sheet strengthened accordingly, with net assets rising to AUD 4.19 million and cash reserves increasing to over AUD 3.17 million.
Innovation and Partnerships Fuel Growth Prospects
Central to FlexiRoam’s strategic reset is its transformation into an AI-powered global connectivity platform. In December 2025, the company launched the world’s first AI-powered eSIM agent operating entirely within WhatsApp, eliminating the need for app downloads. This innovation enables faster deployment of connectivity programs for brand partners and enhances customer experience.
Strategic partnerships have been secured with major players such as Generali, a global insurance giant, to offer the AI eSIM agent as a travel benefit to policyholders. Additionally, a January 2026 agreement with Dialog supports a national IoT connectivity rollout, expanding FlexiRoam’s B2B solutions footprint. The ongoing Mastercard partnership spans 410 banks across 78 countries, underscoring the company’s broad enterprise reach.
Looking Ahead
The board expresses confidence that the operational reset, combined with innovative AI technology and strong partnerships, positions FlexiRoam well for scalable growth. However, the revenue decline amid profitability gains raises questions about the sustainability of this model and the pace at which recurring revenue streams will expand.
Bottom Line?
FlexiRoam’s pivot to AI-driven connectivity and disciplined cost management has delivered profit and cash flow, but sustaining growth amid lower revenues will be the next test.
Questions in the middle?
- Will FlexiRoam’s shift to high-margin recurring revenue sustain top-line growth in coming quarters?
- How quickly will the AI eSIM agent partnerships translate into material revenue contributions?
- Can the company maintain its cost discipline while scaling operations and technology investments?
