Fonix – Trading Update points to even higher profits, shares 169p, TP 300p

Mark Watson-Mitchell – 22.01.2026

This morning, the mobile payments and messaging provider Fonix (LON:FNX) issued a Trading Update showing a strong first half for the period to end-December, with gross profit increasing by 7.1% to £10.5m and adjusted EBITDA growing by 6.4% to £8.3m, demonstrating growth across both UK and international operations.

The company successfully launched commercial services in Portugal and established connectivity in a third European market, with a pilot scheduled for the second half of FY26.

Product innovations like PayFlex and CompsPortal are expanding, and total payment volume rose 7% to £160m.

Fonix intends to pay an increased interim dividend and remains confident in meeting full-year expectations, despite noting that gaming operators now represent less than 7% of gross profit.

The Business

Founded in 2006, headquartered in London, Fonix is a leading provider of mobile payments and messaging solutions, enabling businesses to connect, engage, and transact seamlessly through mobile technology.

It helps organisations across media, charity, entertainment, and enterprise sectors drive revenue and enhance audience engagement.

It is a fast-growing, innovation-driven company, trusted by industry leaders such as ITV, Bauer Media, RTÉ, Global, Comic Relief, and BBC Children in Need.

With a strong focus on technology and consumer experience, Fonix continues to shape the future of mobile payments and interactivity.

Management Comment

CEO Rob Weisz stated that:

"We've had a strong first half, with trading momentum building across both the UK and international markets.

Entering the second half of the year with the strongest UK trading run-rate in the Company's history we continue to demonstrate our ability to nurture growth from existing customers through a combination of ongoing product innovation and consultative partnership as well as a focus on our new business lines.

Our international expansion is gaining traction, with Portugal scaling well and further European opportunities progressing.

At the same time, continued innovation across our product portfolio is opening up new use cases and supporting higher revenue per end consumer.

With a growing pipeline and a highly reliable platform, Fonix is well positioned for the next phase of growth and the Board remains confident in meeting expectations for the full year."

Broker’s View

Analysts Michael Hill and Andrew Darley, at Cavendish Capital Markets, rate the group’s shares as a Buy, with a Target Price of 300p.

They state that:

“Fonix is leveraging its highly scalable, cloud-based platform to expand with existing clients and win new clients.

The platform’s strength is demonstrated by no churn from major customers since inception, and it is diligently expanding its market-leading technology outside of the UK, including becoming the market leader in Ireland less than one year after FY23 launch.

We expect launch into three new European markets could transform gross profit to at least £30m in FY30E, and accelerate launches into new countries, as multinational customers and multinational mobile operators advocate the platform’s differentiated solutions.

We expect that any upside to our forecasts would benefit from strong gearing through to EFCF, which would be returned by the progressive dividend policy, and potential additional shareholder returns.”

Their estimates for the current year to end-June 2026 show revenues of £80.6m (£72.8m) with adjusted pre-tax profits of £14.9m (£14.3m), earnings of 11.3p (11.3p) and a dividend of 9.3p (11.8p) per share.

For 2027, they see £86.1m in revenues, £15.9m in profits, 12.1p in earnings, and a 10.0p per share dividend.

My View

The group’s Interim Results, which are due in March, should help to promote this £167m-capitalised group’s shares, which closed at 169p ahead of the Trading Update.