Superloop’s fibre strategy clears FY26 hurdles as SuperCharge29 begins

Superloop completes Double Down with profit and cash growth

Superloop Limited (ASX:SLC) has finished its three-year transformation with the numbers it wanted: revenue rose 21.6% to A$664.3 million, underlying EBITDA increased 33% to A$122.7 million and net profit after tax reached A$17.5 million, compared with A$1.2 million a year earlier. The company added 205,000 customers to finish FY26 with 935,000, while its nbn market share rose to 8.5%.

The earnings improvement was accompanied by stronger cash generation. Gross operating cash flow reached A$123.5 million, equivalent to 101% conversion of underlying EBITDA, while management said free cash flow increased 50%. Consumer remained the largest growth engine, with revenue up 27.4% to A$463.2 million and 116,000 net new customers. Wholesale revenue increased 15.7% to A$90.1 million, with gross margin rising to 66.8%, and Business revenue returned to growth, increasing 8.1% to A$113.4 million.

The annual report formally records the outcome already outlined in the FY26 results and strategy, including the company’s claim that underlying EBITDA finished above the top end of upgraded guidance. It also shows the operating leverage behind the result: group gross margin rose to A$234.8 million, although reported revenue still includes a A$7.2 million reduction tied to the amortisation of the Origin Energy share-based payment.

Lightning Broadband acquisition reshapes the balance sheet

Superloop’s expansion came at a price. The company paid A$177.2 million in cash for Frontier Networks and Lynham Networks during FY26, including A$166.2 million for Lynham, the parent of Lightning Broadband. The acquisitions expanded the Smart Communities footprint to about 190,000 contracted lots and supported the launch of Neoloop, a wholesale-only platform combining VostroNet, Frontier and Lynham’s fibre assets.

The deal adds scale, but the accounting remains unfinished. Superloop has provisionally recognised A$111.4 million of goodwill on Lynham, alongside A$45.1 million of property, plant and equipment and A$26.1 million of intangible assets. Deloitte identified the purchase price allocation as a key audit matter, meaning the values remain subject to refinement during the permitted measurement period. The Lightning Broadband acquisition had been described as a cash-and-debt-funded expansion of the national FTTP footprint; the annual report now shows the transaction’s full effect on the accounts.

SuperCharge29 sets a demanding three-year target

With Double Down complete, Superloop is aiming for more than A$1 billion in group revenue, A$200 million in underlying EBITDA and reported earnings-per-share growth above 30% a year by FY29. The company says the route will combine organic growth, operating leverage, Smart Communities expansion, acquisitions and capital management. Its AI tools are already part of that operating model: the Teddy customer-support agent handled 34% of support interactions in FY26 and resolved more than 65% of those without a call or human intervention.

The strategy also changes the incentive structure around management. For FY27, the annual long-term incentive grant is being replaced by a three-year SuperCharge Growth Incentive tied to relative shareholder return, reported EPS growth, revenue and underlying EBITDA. Full vesting requires performance at the stretch levels of the scorecard, including A$1 billion revenue and A$200 million underlying EBITDA. That design gives the targets a direct remuneration consequence, although it does not make them forecasts or guarantees.

Debt and goodwill raise the execution test

Superloop ended FY26 with A$101.7 million of cash and A$229.4 million of interest-bearing borrowings, leaving net debt of A$147.5 million including lease liabilities. Its gearing ratio moved from a net cash position equivalent to negative 4.8% of equity to 35.9%, while A$64.3 million remained available under the A$300 million revolving facility after borrowings and bank guarantees. The company says operating cash flow and its refinanced debt facilities provide sufficient funding for at least the next 12 months.

There was no dividend for FY26, as there was none in FY25. The investment case therefore rests on whether customer growth, higher-margin wholesale infrastructure and the contracted Smart Communities lots can translate into the SuperCharge29 earnings targets without a further sharp increase in leverage. The next report will need to show not only growth, but also how quickly the newly acquired fibre assets convert into recurring revenue and cash.