Comms Group (ASX: CCG) has reported a record first-half FY26, with revenue up 39% to $37.6m and EBITDA up 87% to $4.5m, driven by strong organic growth and the TasmaNet integration, while reiterating full-year guidance.
Underlying NPATA stood at $1.8m, and the company declared an interim dividend of $0.00125 per share.
Critically, recurring revenue continues to represent over 90% of total revenue, highlighting a stable and predictable business model.
The TasmaNet integration contributed $8.9m in revenue during 1H FY26.
TasmaNet Integration and Synergies
Progress on the TasmaNet integration is well underway, with network synergies approximately 50% complete.
Broader rationalisation efforts are progressing, with integration rationalisation itself at 40% complete.
Consolidation of domestic networks and cloud infrastructure is actively in progress across key cities including Sydney, Melbourne, Brisbane, Hobart, and Launceston.
This initiative is targeting up to $2m in annual savings, with a one-off capital expenditure of around $0.5m in FY26 to facilitate the consolidation.
The integration is expected to be fully transitioned within FY26, which will further support future revenue and EBITDA targets.
Guidance and Growth Outlook
Comms Group's full-year FY26 guidance remains intact.
The company is targeting an annualised revenue run-rate of over $75m and annualised EBITDA of $9-10m.
The company demonstrated strong new sales momentum, signing $5.4m in new Annual Recurring Revenue (ARR) during 1H FY26.
This includes $1.8m in new ARR from the Global & Wholesale segment.
A significant commercial pipeline exists, with over $5m in ARR opportunities currently identified in the Global segment.
Financial Position and Capital Management
As at 31 December 2025, Comms Group reported an ending cash balance of $4.0m, with net debt at $6.5m.
In a strategic move, the company successfully refinanced its debt with Westpac in January 2026.
This new facility includes an undrawn $8m facility specifically available for acquisitions.
Capital expenditure in 1H FY26 was $0.7m.
A further $0.5m is allocated for network and cloud upgrades in FY26, after which capital expenditure is expected to be low.
Strategic Integration and Financial Discipline
Comms Group's record first-half performance demonstrates the success of its integration strategy with TasmaNet and strong organic growth, leading to significant EBITDA expansion.
The company has reaffirmed its FY26 targets and strengthened its financial position through debt refinancing, positioning it for continued growth and potential M&A.
