23 September 2025

Fonix plc

("Fonix" or the "Company")

Final Results for the year ended 30 June 2025 (the "Year")

Robust performance with product launches and international expansion set to accelerate growth

Financial Highlights

Highlights

●     Strategic execution in FY25: Delivered earnings growth in line with expectations while laying strong foundations for the next phase of expansion.

●     International progress: Overseas markets now represent c.13% of gross profit, driven primarily by Ireland; first live campaigns launched in Portugal in June with broader commercial rollout taking place in mid-September and additional customer launches expected later in FY26; legal entities established and contracting underway in two additional European territories.

●     Product innovation advancing: Strong progress across the product suite - PayFlex launched with major UK broadcasters, CompsPortal scheduled for first launches in October 2025, and RCS (Rich Communication Services)⁵ preparations underway for FY26 - extending Fonix's capabilities beyond SMS and positioning the Company as a leader in multi-channel interactivity and payments.

●     Growing and scalable platform: 29m unique mobile user interactions during the year (FY24: 23m) with 100% uptime; platform proven to scale reliably with increasing demand.⁶

●     Solid client base: High retention maintained, including renewal of the Bauer UK contract on an exclusive two-year basis. New customer wins such as GB News and News UK added further momentum in the UK media sector.

●     Shareholder returns: Final dividend of 5.9p per share recommended, in line with progressive dividend policy to distribute at least 75% of adjusted earnings; together with the interim and special dividends already paid, total distributions for FY25 exceed 100% of adjusted earnings.

The Board expects to publish its Annual Report for the year ending 30 June 2025 on the Company's website on Friday 17 October 2025. The Annual General Meeting is scheduled to take place on Thursday 13 November 2025.

Outlook

Fonix enters FY26 with strong momentum. Full commercial services are now live with a major broadcaster in Portugal, and two further European markets are progressing at pace. At the same time PayFlex, CompsPortal and RCS broaden the product suite and create new revenue opportunities. Together, these initiatives will diversify earnings beyond the UK and reinforce Fonix's leadership in interactive services. With a highly cash-generative model and proven track record of execution, the Board is confident in delivering sustained, profitable growth.

Notes

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 Adjusted PBT is profit before tax excluding share-based payment charges and R&D tax credits.

³ Adjusted EPS is earnings per share excluding share-based payment charges.

⁴ Underlying cash is actual cash excluding cash held on behalf of customers.

⁵ RCS means Rich Communication Services and is the next generation of native mobile messaging, supporting rich media, interactivity, and branded business communication.

⁶ Unique mobile users are calculated as the number of unique Mobile Station International Subscriber Directory Numbers (MSISDNs) processed through Fonix services.

Rob Weisz, CEO, commented:

"FY25 has been a pivotal year of preparation, and we now move into FY26 with the strongest growth platform in our history. With Portugal live, two further European markets progressing, and additional geographies already on our roadmap, international expansion is set to become a major driver of growth.

At the same time, our product innovations are opening entirely new revenue streams. PayFlex, CompsPortal and RCS together represent a step-change in capability - enabling richer consumer journeys, higher-value transactions and deeper relationships for our clients. These are not incremental add-ons but transformational products that expand our addressable market and reinforce our position as the leading provider of interactive services.

The combination of international scale and product innovation means Fonix is entering its next phase with powerful momentum. We are confident that FY26 will mark the start of an acceleration in growth, greater diversification of our earnings, and sustained long-term value creation. Above all, we believe the opportunity ahead of us is larger and more exciting than at any point since IPO, and we look forward to delivering on it."

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.

Chair's Review

I am pleased to present my review of the year ended 30 June 2025, a period marked by investment, innovation and international expansion for Fonix. Although headline growth was more measured than in recent years, the business delivered resilient earnings and strong cash generation, underpinned by disciplined execution of our strategy. FY25 has been a strategically important year in which we have broadened our product offering, expanded our international footprint, and laid the foundations for the next phase of growth.

Gross profit grew by 3.9% to £18.6m, adjusted EBITDA increased by 6.6% to £14.6m, and adjusted earnings per share rose by 4.6% to 11.3p. These results underline the strength of our business model, with profitability holding firm and gross margins improving year-on-year. The decline in total payment volumes was largely attributable to lower charitable giving, reduced telephone voting traffic, and a decision by a gaming client to exit the market - all of which had lower margins and limited impact on Fonix's earnings. In addition, some broadcasters encouraged consumers towards higher price points, which reduced volumes but maintained margins. Taken together, these dynamics highlight the resilience of our revenues and our ability to deliver sustainable returns, even as market formats evolve. Return on capital employed rose further to 125%, reflecting the efficiency of our operations.

Fonix remains highly cash generative, and the Board is recommending an increased final dividend of 5.9p per share in line with market expectations, taking the full-year ordinary dividend to 78% of adjusted earnings, in line with our progressive policy. In addition, a special dividend of 3p was paid in February, reflecting our strong cash generation and balance sheet. These distributions demonstrate our commitment to returning surplus capital to shareholders while continuing to invest in growth.

Strategy and growth

Our UK and Ireland SMS business has remained resilient, supported by strong client relationships and a leading market position, such that we attracted new clients News UK and GB news in the year. We continue to see opportunities for growth in this area, while recognising that the primary drivers of future expansion will be international markets and product innovation. New capabilities such as RCS and online interactivity will broaden our addressable market and position Fonix to capture additional opportunities across competitions and adjacent sectors.

International expansion has been a major focus, with a live trial in Portugal being completed in June 2025, followed by full commercial launch earlier in mid-September. This represents an important milestone: while Ireland demonstrated the potential of our client-led model in closely aligned markets, Portugal reinforces the broader opportunity and proves our ability to expand successfully into geographies where cultures and languages are less closely aligned with the UK. Building on this success, we are establishing legal entities and entering into contracts with broadcasters and mobile operators in two further European markets, with additional geographies identified on our roadmap. Many of these markets remain underdeveloped in interactive services, where incumbents have placed limited focus. With our proven technology, trusted reputation with regulators and operators, and broadened product suite, Fonix is well positioned to capture and expand this significant opportunity.

Governance and people

During the year we appointed Michael Foulkes to the expanded role of Chief Financial and Operating Officer (CFOO). This reflects the increasing scale and complexity of our business as we broaden our product suite and expand into multiple new geographies. Michael's dual oversight of finance and operations ensures Fonix is well positioned to deliver disciplined execution alongside ambitious growth.

The Board continues to progress the appointment of an additional independent non-executive director, in line with shareholder feedback and best practice under the QCA Corporate Governance Code. A key consideration in our search is to identify a candidate with deep local market knowledge in the new geographies we are targeting. Having board-level expertise in these regions would provide valuable insight as we navigate entry, strengthen relationships and establish our presence.

More broadly, the Board recognises the strength of Fonix's entrepreneurial, specialist team, which has consistently demonstrated its ability to deliver innovation, scale efficiently, and maintain the Company's competitive edge.

As always, I would like to thank our talented team for their dedication and hard work, our customers and partners for their collaboration, and our shareholders for their ongoing support.

Outlook

Fonix enters FY26 with strong momentum. With launches planned in multiple new markets, and new products such as PayFlex, CompsPortal and RCS set to broaden our reach and deepen customer relationships, the Board is confident in the Company's long-term prospects.

Our strategic focus remains clear: to drive sustainable, high-quality growth, expand internationally in partnership with leading broadcasters, and deliver long-term value creation for our shareholders.

Edward Spurrier, Non-executive Chair

CEO's Statement

FY25 has been a year of delivery and preparation, in which Fonix has made strong progress across products, clients and international markets. While overall growth was steadier than in prior years, this has been a period of real momentum behind the scenes, laying the foundations for the next phase of expansion.

Our strategy is clear and focused, built around three core pillars that guide how we deliver growth and scale the business:

1.      Driving revenue growth through technological innovation

Our UK business continues to be the foundation of Fonix. While SMS revenues remain steady, SMS remains a crucial foundation of our business, as the only truly universal mobile channel available on every handset and there is meaningful opportunity for further growth as newer clients, such as News UK, scale their activity. At the same time, we are broadening our product suite in ways that we believe will significantly increase our addressable market for both new and existing customers:

PayFlex

PayFlex enables consumers to complete online payments directly within, or from, a message-based chat. Its first application is helping broadcasters recover failed SMS billing transactions by offering alternatives such as Apple Pay, Google Pay or PayPal. More broadly, PayFlex allows customers to offer online payment options where SMS billing is restricted by regulation or commercial limits, supporting higher-value transactions and new campaign formats. Fully integrated into Campaign Manager, PayFlex provides a flexible way for clients to increase revenues while keeping the user journey simple and familiar. Payflex has been trialled by a number of clients over the summer, and is ready for a full launch this autumn.

CompsPortal

CompsPortal allows broadcasters to extend their on-air competitions with a dedicated online site promoted alongside SMS campaigns. This expands the broadcaster's opportunity to promote their competitions to an online audience, increasing engagement channels and creating opportunities to drive for higher revenues. Integration with Campaign Manager makes campaign setup, management and winner selection straightforward across every channel. By unifying consumer data across SMS, PayFlex, RCS and online, CompsPortal also enables more personalised marketing and ensures the most effective channel is promoted at the right time. CompsPortal is being launched with one major customer in October 2025, and will be rolled out to others over the coming year.

RCS

RCS is the next major evolution of interactive messaging, giving brands the ability to deliver richer, branded experiences directly within consumers' native messaging apps. It combines embedded payments, interactive content and real-time engagement within a single conversation. For customers, this means higher participation, stronger audience relationships and entirely new formats that go beyond the limitations of SMS or email. Fonix is one of the few providers able to deliver RCS with integrated payments, giving us a clear advantage as adoption accelerates. We see RCS as a major opportunity to bring conversational commerce to life, with purchases, upgrades and upsells taking place directly within the chat.

Together, these innovations extend Fonix's capabilities beyond SMS, positioning us as the market leader in multi-channel interactivity and payments.

2.      Client- and sector-led international expansion

International growth adds a significant new dimension to our strategy. In September, we completed a full rollout across a major broadcaster's radio portfolio, marking an important milestone and proving our ability to expand successfully into markets beyond those closely aligned with the UK. With direct connectivity across all operators and a growing broadcaster pipeline, Portugal clearly demonstrates the scalability of our model.

We are also in the process of establishing legal entities and contracting with broadcasters and carriers in two further European markets, with other geographies identified for future expansion. Early engagement has been highly encouraging, and we look forward to updating shareholders as and when services are live and generating revenues.

Crucially, the innovations we have developed in the UK - PayFlex, CompsPortal and RCS - will be major differentiators overseas. Many international markets remain underserved in interactive services, with incumbents focused elsewhere. Broadcasters and operators are actively seeking modern, flexible solutions, and Fonix's reputation as a trusted partner - built on years of regulator and operator collaboration - gives us a strong platform to accelerate adoption.

3.      Sustaining long-term profitability for shareholders

We continue to take a disciplined approach to growth, balancing investment in innovation and international expansion with consistent shareholder returns. Our highly leveraged operating model allows profitability to scale faster than costs, enabling us to invest in new products and international infrastructure from a position of strength. At the same time, we remain committed to returning surplus cash to shareholders, as demonstrated by both the ordinary and special dividends paid during the year.

Looking ahead, we may incur one-off exceptional costs where we see opportunities to accelerate international expansion. In particular, certain larger neighbouring markets represent a very significant medium-term opportunity but may require additional upfront investment in overheads, regulatory work and local operations before delivering material revenues. Where such opportunities exist, we will take a measured approach - investing selectively to establish an early-mover advantage, while ensuring the underlying business remains highly profitable and cash generative.

The expansion of Michael Foulkes' role to CFOO has been an important development, bringing together oversight of finance, operations and technology delivery. This unified remit ensures that as we broaden our product suite and scale into new geographies, we maintain tight cost control, operational resilience, and the agility to allocate resources quickly to areas of greatest opportunity.

People and culture

Fonix's success is built on its people. Headcount increased to 52 during the year, with senior hires in engineering and operations strengthening our capacity to deliver multiple product workstreams. As we expand internationally, we are also building teams with local expertise to help navigate regional dynamics and support relationships with broadcasters and operators.

Our entrepreneurial, specialist team is a key differentiator. Their deep sector expertise and innovative mindset enable us to deliver unique value to clients, while maintaining the scalability of a technology-led business rather than a services model.

Outlook

FY25 has been a pivotal year of preparation, and we now move into FY26 with the strongest growth platform in our history. With Portugal live, two further European markets progressing, and additional geographies already on our roadmap, international expansion is set to become a major driver of growth.

At the same time, our product innovations are opening entirely new revenue streams. PayFlex, CompsPortal and RCS together represent a step-change in capability - enabling richer consumer journeys, higher-value transactions and deeper relationships for our clients. These are not incremental add-ons but transformational products that expand our addressable market and reinforce our position as the leading provider of interactive services.

The combination of international scale and product innovation means Fonix is entering its next phase with powerful momentum. We are confident that FY26 will mark the start of an acceleration in growth, greater diversification of our earnings, and sustained long-term value creation. Above all, we believe the opportunity ahead of us is larger and more exciting than at any point since IPO, and we look forward to delivering on it.

Robert Weisz, Chief Executive Officer

Financial Review