Company Announcements

Fonix plc

("Fonix" or the "Company")

Full Year Trading Update and Notice of Results

Steady growth in the UK and Ireland while accelerating product and European expansion

Fonix plc, the mobile payments and messaging provider, is pleased to provide an update on trading for the year ended 30 June 2025 (the "Year").

Financial highlights:

●     Gross profit for the Year increased by 3.9% to £18.6m (FY24: £17.9m).

●     Adjusted EBITDA¹ grew by 6.6% to £14.6m (FY24: £13.7m). Costs include £0.2m of exceptional legal and consultancy costs associated with preparations for future international expansion, which have not been added back.

●     Fonix continues to generate strong underlying cash flows and intends to pay an increased final dividend in November 2025, in line with the Company's progressive dividend policy to pay out at least 75% of adjusted earnings per share.

Business review:

FY25 was a year of strategic execution, with Fonix delivering gross profit and earnings growth in line with expectations while laying firm foundations for future expansion. We maintained our leading position in the UK market, securing new wins with GB News and News UK, whilst experiencing continued growth across both the UK and Ireland.

Growth was more measured than in recent years, reflecting resilient revenues from our largest clients and evolving competition formats. Demand for new products - including PayFlex, CompsPortal, and RCS - has been strong in the latest quarter, with clear traction among existing and prospective customers. These offerings are expected to drive meaningful new revenue streams from FY26.

Internationally, engagement has been high across all target markets, where incumbent providers are failing to meet the needs of broadcasters. Fonix's proven platform and agile approach are resonating strongly, creating a significant runway for expansion, as detailed below.

TPV declined to £281 million (FY24: £303 million), largely due to reduced charity campaigns, and the planned exit of some low-margin services. These changes had limited impact on gross profit, reflecting our focus on sustainable, higher-margin revenue.

All Irish customers continue to trade as normal following the Gambling Regulation Bill's approval. Implementation will take time, and no immediate service risk is anticipated. We do not expect to provide further updates unless the regulatory position changes materially.

Future growth strategy:

Fonix is entering FY26 with strong momentum and multiple growth levers across products and markets.

●     Geographic expansion is underway, with:

○     A full commercial launch in Portugal expected in September, following a successful June pilot campaign.

○     Overseas entities being established in two additional European countries, with broadcaster and carrier engagement already underway.

○     Plans to enter a third new market, creating a diversified European presence and reducing reliance on the UK.

The new European territories have a less mature broadcast market than the UK, and Fonix's offering is expected to grow the market opportunity with strong pricing power and supports exciting long term growth ambitions.

●     New product launches are central to Fonix's growth strategy, significantly expanding our addressable market, strengthening customer relationships, and positioning us as a clear market leader in mobile interactivity and payments:

○     PayFlex enables seamless online payments - including Apple Pay, Google Pay and card payments - directly within message-based environments such as SMS and RCS. While failed SMS payment recovery is one use case, its broader value lies in powering fast, frictionless transactions across multiple channels. Already live with two major UK broadcasters, PayFlex is gaining strong traction and opening up new, more flexible ways for consumers to pay.

○     CompsPortal, a newly developed self-serve competition platform, empowers brands to run high-performance online campaigns with integrated payments and full admin control. It also unifies winner management and entry data across SMS, PayFlex, RCS, and online - with the first customer launch expected in September 2025 and more to follow.

○     RCS (Rich Communication Services) will launch in FY26, enabling interactive, branded messaging and seamless multi-payment journeys - delivering richer engagement and higher conversion rates. When combined with the flexibility of PayFlex, RCS unlocks access to a significantly broader market of more complex, higher-value transactions, both within our existing client base and across new sectors and use cases.

Together, these developments mark a significant step in expanding beyond SMS, enabling multi-channel consumer interaction, seamless payment flows, and richer user engagement - ultimately driving higher transaction volumes and customer lifetime value.

The Board expects to report its audited final results for the year ending 30 June 2025 on Tuesday 23 September 2025.³

Outlook:

Fonix enters FY26 with a much broader product offering, and a strengthened platform to  expand internationally. As ever, Fonix is reliant on its partners in terms of timing and efficacy of new revenue streams and we continue to take a cautious, sustainable approach to our growth expectations. With launches planned in multiple new markets, the rollout of PayFlex and CompsPortal, and the upcoming launch of RCS, the Company is well positioned to deliver continued revenue growth and further diversification of its customer base. The Board remains confident in the long-term prospects for the business and expects the growth initiatives implemented in FY25 to support sustained, profitable growth in the years ahead.

Rob Weisz, CEO, commented:

"FY25 has been a pivotal year for Fonix. While headline gross profit growth was steadier than in recent periods, this was a year of exciting progress behind the scenes - laying the foundations for the next phase of scalable growth. We've launched new, game-changing products, entered new markets, and deepened our client relationships across multiple sectors.

As we move into FY26, we're confident that the investments made in FY25 will begin to bear fruit, supporting stronger growth, greater diversification, and sustained value creation for our shareholders."

Notes:

All financials are based on unaudited figures.

¹ Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest, R&D tax credits and tax from the measure of profit.

² Engagement means a payment transaction received from or SMS message delivered to a unique mobile number.

³ All financial numbers contained within this announcement remain subject to audit.

Enquiries

Fonix  plc                                                                                                                        Tel: +44 20 8114 7007

Robert Weisz, CEO

Michael Foulkes, CFO

Cavendish Capital Markets Limited (Nomad and Broker)                                      Tel: +44 20 7220 0500

Jonny Franklin-Adams / Seamus Fricker / Hamish Waller (Corporate Finance)

Sunila de Silva/ Harriet Ward (ECM)

About Fonix

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

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

Headquartered in London, Fonix 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.