Aussie Broadband has released its results for the half year ended 31 December 2025 (H1 FY26), delivering double-digit revenue growth across all three segments of the business.
Group revenue totalled $637.8 million, up 8.4% compared to the prior corresponding period (pcp).
Underlying EBITDA ($74.7 million, up 13.5%), underlying NPATA ($31.3 million, up 24.5%) and underlying NPAT ($22.3 million, up 40.9%) all also increased in the half.
Higher speed tiers helping to drive growth
Over the half, on-net broadband connections increased by 39,300 to 827,700 at 31 December 2025, representing a 13.7% growth since 31 December 2024.
Following the launch of NBN’s Accelerate Great initiative, which saw an acceleration of wholesale download and upload speeds of NBN's three highest residential speed products on FTTP and HFC, high-speed plan adoption increased materially, according to Aussie Broadband.
As a result, nearly half (44%) of connections are now on the new 500Mbps and above speed tiers and 69% of connections are on the 100Mbps plans or above (up from 56% in FY25).
The business has continued to experience "strong uptake of faster speed tiers" and claims to lead the market in the newly launched 2000Mbps plans with 2,700 active connections, representing a 43% share of that market.
Aussie Broadband’s market share of on-net NBN services increased 0.4 ppts to 8.8% at 31 December 2025.
Largest E&G contract to date signed
Revenue generated by the residential segment (up 14.7% vs. pcp) was driven by a growth in broadband connections and "continued strong momentum" in mobile through bundled offers.
The Business, Enterprise & Government segment also saw "continued high gross margins", driven similarly by an increase in broadband connections and more than 5,200 new mobile services. Aussie Broadband has been increasingly successful in winning larger E&G contracts, the company states, driving the average contract value up by 38% compared to prior year.
Aussie Broadband also signed its largest E&G contract to date with Bakers Delight and recorded its highest month of new business connections in October 2025.
Wholesale like-for-like revenue grew 12.5% vs pcp, due to double-digit growth seen in broadband connections and mobile SIOs, but gross margin percentage decreased 2.9 ppts to 41.9%, with growth in data and mobile outpacing higher margin voice over the half, along with growth in lower margin international swaps trading.
Wholesale broadband connections jumped by over 90%, however, owing partly to an exclusive six-year wholesale services agreement which will see Aussie Broadband provide services to More and Tangerine Telecom, adding approximately 290,000 connections. Migration of those connections is on track to be completed over H2 FY26, and pilot sales have commenced on the platform.
M&A activity heating up
Alongside the release of its financial results, Aussie Broadband also announced it is set to acquire 100% of Nexgen, a provider of business communication solutions, from Infotrust.
The proposed purchase adds approximately 6,000 SME NBN customers to Aussie Broadband, and Nexgen is forecast to generate FY26 EBITDA of $8.1 million, with an expected contribution of $2.7 million to Aussie Broadband’s EBITDA in FY26.
This follows the acquisition announced last month of AGL Telco, slated to add an estimated combined 350,000 services to Aussie Broadband’s customer base.
The company also divested Brisbane-based cloud and MSP Digital Sense to 11:11 Systems for a total consideration of up to $18 million, including a conditional deferred payment of $4 million. Completion is expected to occur by the end of March 2026.
Last year, Aussie Broadband agreed to sell the Buddy Telco brand and customer assets to Tangerine for an estimated $8 million, with completion expected in H2 FY26.
Aussie Broadband said that refinancing on improved terms provides greater financial capacity and the ability to pursue organic and inorganic growth opportunities in the future.
Capital investment in fibre will also be reduced, with a focus moving forward on increasing utilisation of the existing Aussie Fibre network and limited to on-net buildings only, allowing capital allocation to accelerating replatforming of Aussie Broadband’s core systems with the aim of further reducing cost to serve and improving efficiency across the business.
"A significant year ahead"
Group CEO Brian Maher said H1 FY26 was another successful period for Aussie Broadband as it continued to grow connections organically, secured new customers and partners and laid strong foundations to accelerate growth beyond its Look-to-28 ambitions.
“In September, we upgraded all eligible customers to new speed tiers on day 1 of NBN’s Accelerate Great initiative," he said.
"Today, nearly 70% of our customers are on 100Mbps speed or higher, and we see opportunities to increase the high-speed penetration further as fibre becomes more widely available and households upgrade broadband plans to meet their growing data needs.
“The Business, Enterprise & Government segment, which was combined from the start of FY26, delivered strong revenue growth and new customer acquisition, including our largest ever enterprise contract with Bakers Delight. Our recent wins have been supported by streamlined project delivery and improved customer references as Aussie’s reputation as a high-quality telecommunications services provider continues to strengthen in the BE&G market."
Maher said thaat owing to the agreement with More, plus the acquisitions of AGL Telco and Nexgen, the company will surpass many of its three-year ambitions, announced in 2025, "well ahead of time".
"Moreover, as we migrate these customers onto our network, Aussie is set to become the third largest NBN service provider – an incredible milestone for the Company," he stated.
"We have a significant year ahead as we migrate connections and continue to execute our strategic priorities. With these three significant transactions together with our ongoing organic growth, we have full confidence in our outlook for the remainder of FY26 and are pleased to upgrade our Look-to-28 ambitions to reflect a material uplift in revenue, earnings and market share."
The company has revised its underlying EBITDA guidance in FY26 to the upper end of the previously announced range to between $162 million and $167 million (previously $157 million to $167 million). This represents 17% to 21% growth on FY25.
Reflecting the company’s recent M&A activity, Aussie Broadband also upgraded its Look-to-28 strategic ambitions, targeting significant market revenue growth, expanding EBITDA margin and resultant EPS growth.
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